Using operations to increase cash flow - service delivery (pt. 2)

We looked at how operations can increase cash flow with a focus on product delivery. Let’s shift our attention to service delivery. How we deliver services to our customers can impact revenue and profits. When we deliver services well, we enjoy a greater likelihood of satisfied customers. Satisfied customers are often repeat customers. It increases the likelihood we can expand our offerings to those customers, in turn increasing revenue. When we operate as efficiently as possible, we spend less money on the operational expenses, in turn increasing our profit margin.

Consider how your business handles service delivery.

What services do you deliver to your customers?

How do you deliver them—virtually, in person, or hybrid?

What technology or resources do you need to deliver those services?

Do you need to be licensed to deliver those services?

Do you need any additional insurance to protect you from liability when you deliver those services?

Are your services heavily regulated such that you need to adhere to any industry-specific laws and regulations?

How do you follow-up afterward to ensure the customer is satisfied and its needs are met?

How are you compensated for your services? Are you paid a one-time, upfront payment, or do you invoice your customers for future payment?

Are you delivering a one-time service or recurring service?

How do your customers access service offerings on a recurring basis?

These are just a handful of questions to start developing a full picture of how your business operations to deliver services. With answers to these questions, you will be well-positioned to develop an operational blueprint that can be refined over time to increase your business’ efficiency and reduce operational costs.

Here’s to more business birthdays!

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