Using operations to increase cash flow - product delivery (pt. 1)
A well-run business is more profitable than a disorganized one. Whether you are operating a startup or established small or mid-size business, every business needs cash to remain in business. A strong sales pipeline and well-formed business development strategy are vital to getting new business opportunities. But no number of new customers will sustain the business if no one is paying attention to how the business functions.
Operations is the how. It comprises all of the decisions, processes, and actions behind the scenes that keep a business running.
Small businesses are often leanly staff in the early years and often struggling to figure out what to prioritize and how to make time for all of the obligations. Implementing processes around the key elements of your business operations can save you time. Time saved is time that can be spend on generating new business and identifying areas to run your business more efficiently.
Getting Started
Not sure where to start? Spend some time understanding how your business functions in these core areas.
We’ll start with one common area that often is ripe for improvement—product delivery.
Product delivery - How do you get the product to your customers? Map out the steps. Once the product is manufactured (in-house or by a third party), what happens next? Is it shipped or delivered to your warehouse, or does it get shipped directly to the customer? Do you send product to stores in bulk, or do you primarily supply individual customers. Do you have a storefront (physical and/or virtual) that you keep stocked? What carriers do you use? Have you compared the costs of the different delivery options to determine which one is most cost-effective?
Have you researched packaging options to determine what materials are most cost-effective and sustainable?
Do you have a process for ensuring the delivery arrived intact and was accepted by the customer?
What information do you provide to the customer with the delivery? Is it clear how they can contact you if there are issues? If they are larger customers who pay post-delivery upon receipt of an invoice from you, do you have a streamlined process for preparing, sending and following up on those invoices.
Next Up: Service Delivery
Here’s to more business birthdays!
#small business #businessoperations #businessadvising #processimprovement