What business processes should you streamline?
Your business will only ever be as profitable as your productivity allows. By implementing standard operating procedures and re-evaluating your workflows, you can improve efficiency as well as the bottom line.
If you’re wondering where to start in your business, here are five key business processes you should streamline ASAP.
Payroll
Payroll can be tremendously time-consuming, especially for small business owners. This process can eat up valuable hours every month. Errors and delays can not only put you at risk for fines and tax issues, but also for employee turnover. After all, no one wants to work for a business that doesn’t pay them on time.
To streamline this service, conduct a time audit that outlines the step-by-step process as well as the time commitment. Investigate what parts of the process can be automated or streamlined. Consider the bigger picture, starting with employee scheduling to see where the opportunity for improvement lies. It’s also worth looking into outsourcing parts or all of the process to a payroll services provider, to free up that valuable time for other business activities.
Invoicing
Invoicing is a task that often gets put on the backburner. While it is an administrative task, invoicing is perhaps one of the essential business processes for managing your cash flow.
Take a look at the current process and identify how long it takes to invoice a customer after the order has shipped and the average time it takes to pay. Look at the process itself and determine if there’s an opportunity to improve the workflow. For example, sending out bulk invoices on set days or using automation and accounting tools to make the process more intuitive.
There are also other ways to streamline the process to encourage timely payment. For example, incorporating early pay discounts into each invoice or working a set accounts receivable call schedule to follow up on late payments.
Customer Service
Lots of businesses are following the traditional model of reactive customer service. These businesses are missing out on an opportunity to improve customer retention and boost brand awareness. Proactive customer service is when a business reaches out to a customer before there is a problem.
If you don’t have a set follow-up worked into your customer service plan, it’s time to add one to the process. This should just be a friendly, personalized call or email that asks about the customer’s initial thoughts, challenges, or satisfaction. Proactive service allows your business to address any pain points and correct them before they get posted on social media.
You should also investigate putting a customer service tracking system in place if you don’t already have one. This system will track customer calls or emails as they come in so that no one falls between the cracks.
Hiring and Onboarding
Recruiting is another area where businesses have an opportunity to free up time and money by using automation. Take a high-level overview of your current hiring process, and how long each phase takes. A standard hiring process might include:
- Crafting job descriptions
- Posting the job online
- Collecting applications
- Pre-screening applicants
- Contacting candidates
- Setting interview schedules
- Interview prep
- Reviewing interview results
- Scheduling secondary interviews
- Contacting successful candidates
- Crafting contracts
- Onboarding employees
And so on, so forth. Using an applicant tracking system (ATS) or centralized recruiting and onboarding platform can cut days off of the hiring process. With this streamlined process in place, you’ll get the right person in the right job as soon as you need them.
Performance Management
Performance management isn’t just about ensuring employees are doing what they’re supposed to; it’s about exploring their opportunities for growth and their overall morale. If you don’t have a regular performance management process in place, you’re missing the opportunity to improve your business by investing in your people.
It doesn’t have to be complicated. Start by scheduling regular check-ins with your employees, noting on things they’ve done well and areas where they seem to struggle. Ask if there’s anything they want to learn or explore and how you can facilitate their growth.
By addressing these core business functions, you can create a successful, productive business.
