How to Keep Your Business Lean in 2023
A lean business model is an effective way to ensure success and longevity. Given the current state of the economy and business landscape, it is more important now than ever to keep your business lean.
A lean business is one that limits waste, reduces costs and maximises efficiency. This saves not only money, but time, too. It also makes it easier to adapt and pivot when necessary.
Let's look at how you can keep your business lean for financial success in 2023.
1. Eliminate Waste
The first step to keeping your business lean is to evaluate current practices and look for areas of waste or inefficiency. This includes everything from physical products to process and procedures. Make sure you are only using the necessary resources for your operations, and look for opportunities to streamline operations, such as by automating processes.
2. Automate What You Can
Automation can help reduce labour costs and free up resources for other areas of the business. You can automate everything from customer service, invoices and even marketing activities. This not only reduces costs, but improves the customer experience and workflow.
3. Outsourcing Over Hiring
One of the most effective ways to keep your business lean is to outsource certain tasks rather than hiring new employees. This eliminates the costs associated with recruitment, training and onboarding new staff, as well as providing you with access to experienced professionals who can deliver high-quality results.
You also won't have to worry about HR or payroll such as pay, benefits or vacation time. Outsourcing can be a great way to remain competitive in the market without breaking the bank. It keeps your business structure agile and allows you to focus on core tasks while granting you greater flexibility and scalability.
4. Be Frugal - Not Cheap
There's a big difference between being frugal and being cheap.
Being frugal means finding ways to reduce costs without sacrificing quality, while being cheap means compromising on quality in order to save money.
One will benefit your bottom line, while the other can damage your reputation.
When looking for ways to save money, be sure to consider long-term impacts, not just short-term savings. Remember that investing in quality products and services can help save money in the long run by reducing maintenance costs and increasing efficiency.
5. Learn How to Say "No"
"No" is the most powerful word in business, and it's important to learn how to say it.
Saying no can help you stay on track with your goals and objectives, prevent overspending and help you stay focused on what's important.
It can also help you establish boundaries with partners and suppliers, ensuring that you are only partnering with those who can deliver the results you need without compromising on quality.
It also means that you don't get side-tracked by projects, requests or ideas that don't align with your goals or add value to your business.
By learning how to say "no" and sticking to it, you can remain lean and focused on what's truly important.
6. Know Where Your Profits are Coming From
I know, I know - you've probably heard the term "know your numbers" a thousand times by now. But it's true. Knowing where your profits are coming from is key to understanding what works and what doesn't in your business.
Look at your sales numbers and customer data to identify which products or services are your most (and least) profitable. This will help you focus on what works and eliminate what doesn't.
By understanding which products and services are the most profitable, you can then focus on those areas and invest in them - while cutting back on products or services that don't generate enough revenue.
By following these tips, you can ensure that your business remains lean and competitive in 2023.
Automate wherever you can, outsource any tasks that are not core to your operations, invest in quality without being cheap, learn how to say "no" and always know where your profits are coming from.
By doing so, you can keep your business lean and ensure that you remain profitable in the years ahead.
The challenge of keeping a business lean can be daunting, but with the right approach and strategy, it can be done. The key is to stay focused, remain strategic and have a long-term vision for success. The rewards are certainly worth it.
We hope you find this information useful and please feel free to share it. If you have any questions, feel free to contact us.
Timothy Kelliher & Company Limited
Phone/WhatsApp: +353 (0) 64 6632105