Invest in Technology

By Brad Sugars on Mar-14-2008 | Subscribe

This will improve the speed at which your business operates. You need to have the fastest, most reliable machines that you can afford. You should also have all your accounts and files on computer. To manually do any bookkeeping in this day and age is criminal.

Hints and Tips:

Set a budget and then buy the best you can afford.
Don't worry too much about technology quickly becoming obsolete, eventually you have to dive in.
Look for an accounting package that's similar to your accountant's so you can work together electronically.
Get on the Net. You can save a lot of time and money by communicating via email, it also makes you look more professional.
Invest in some computer training so you make maximum use of your equipment.
Buy from companies that offer solid after sales support.

Systematize the Routine, Humanize the Exceptions:

Basically this means that you should put systems in place to cut down on your team's work load. Effective systems can often make the people that were performing those tasks able to perform at a higher level and, able to perform more tasks in the same amount of time.

Make a list of all the routine tasks and write, record on video or audio tape, a system for each and every task.

Once again, systematize the routine, humanize the exceptions.

Hints and Tips:

Regularly audit all your tasks and ask 'Could this be done better using a different system?'
Remember the customer- there are some things that a machine just can't do.

Automate as much as possible:

Investing in machines to do the work previously done by a team member is a wise choice. By automating, you not only save money on wages, you can also increase your productivity. This means that your goods will cost less to produce and therefore give you a greater profit margin. So, always look at putting a system in place rather than employing more people.

Hints and Tips:

The initial up-front investment in machines can quickly pay itself off if they are utilized properly.
Make sure you get complete training in their use.
A strong warranty and after sales follow-up is a must.
Explain to team members why the changes are necessary and only keep those that are willing to embrace technology.

Sell Obsolete Equipment/Machinery:

Printers and dry cleaners are notorious for keeping outdated equipment. Any old machinery that you have should be sold to generate extra revenue. The profit from the sale of old equipment can be used to offset the cost of a new replacement.

Hints and Tips:

1. Never unnecessarily hang-on to obsolete equipment.
2. Try and find a supplier that will accept it as trade-in on new equipment.
3. If you can't get trade-in, sell it complete or as spare parts.
4. Plan old equipment sales and upgrades so you get the best possible tax benefits.

Sell Off Old Stock:

It's not making you any money sitting in a store room and if it's on a shelf then it's taking up the space that could be occupied by a more profitable item. Selling off your old stock at cost or above creates extra revenue and allows you to display faster moving goods with greater margins.

Hints and Tips:

Do regular stock takes and 'fire' old and slow moving items.
Maybe offer them as a special deal, in bulk, or simply give them away with purchases of your higher margin products.
Don't get these items again.