If you missed the previous blogs in this series, you can find them here:
- Increasing the value of your existing service
- Increasing the price of your existing service
- Enhancing your existing service
Efficiency can mean a lot of different things to different people. By implementing these initiatives we are being more efficient. Which in turn increases value, price and allows us to add more services.
However we can also improve efficiency across the business with improved business processes and the use of technology.
Reducing costs and becoming efficient can produce savings that go straight to your bottom line. If you work on a 20% profit margin, you’ll need to sell £10,000 of services to make £2,000 of gross profit. To make £2,000 of profit from cost savings you need only save £2,000 – certainly worth looking at becoming more efficient, which is different from cutting costs. So be mindful to focus on efficiency, as this will ensure you perform better – i.e. generate more revenue and profit as cost-effectively as possible. A couple of definitions for you.
- Cost Control – ensuring costs are within acceptable norms on an ongoing basis
- Efficiency – is the extent to which time, effort, or cost is well-used for the intended task or purpose
Simply making sure that quotes go out the same day as speaking or meeting the client and that invoices are raised as soon as the job is complete, with favourable payment terms or profiles for you. These are great places to start on your efficiency journey.
We know that ServiceM8 job management software will increase profits by an average of 30% when implemented properly!
We have created this Return On Investment calculator so you can see what that would mean for you. It will surprise you to see just how much one piece of software can positively affect your business.