- December 19, 2018
- Posted by: John
- Category: Business plans
When is the last time that you ran a business efficiency analysis on your business? Have you ever run a business efficiency analysis on your business? If not, then you are missing out on an opportunity to tune up your business operations, increase your productivity, and increase your bottom line.
Business Efficiency Analysis: How Well is Your Business Doing?
What is a Business Efficiency Analysis?
A business efficiency analysis is a tool that is designed to gauge how efficient your business is. This analysis is based on the “operational efficiency of a business”, that is, the ratio of input that goes into running your business operation as compared to the output that is gained from that same business.
When we look at the efficiency of your business we can look at multiple factors like financial efficiency or energy efficiency. So we are really looking at how well your company is using the resources you are investing in to create a final product. So, for example, we may look at what percentage of your annual revenue is earmarked for expenses.
The Different Types of Efficiency
There are many ways to measure business efficiency, below are just a few:
- Financial efficiency or company expenses as a percentage of company revenue.
- Energy efficiency or the energy required to operate the business and produce products compared to the cost and sustainability of company goals.
- Eco-efficiency or the environmental impact of a business when viewed as the cost of environmental impact as a percentage of company revenue.
- Process efficiency or how efficiently company processes are working versus the revenue that goes into those processes.
Business Efficiency Vs. Business Productivity
Business efficiency should not be confused with productivity or the effectiveness of production efforts.
When we talk about productivity, we are talking about the output of your business in a specified period of time. So, how many cars can your manufacturing plant employees produce in one hour of work?
When we talk about efficiency, however, we are talking about how efficiently those cars are being produced. For example, are you losing money on the manufacturing of cars because the input in the process is higher than the output?
Why You Need a Business Efficiency Analysis
Every company should periodically run a business efficiency analysis to determine whether they are reaching their maximum potential for reducing expenses and maximizing resources. By regularly running a business efficiency analysis you will not only be able to cut your budget, but you will also be able to increase your productivity.
Measuring Business Efficiency
There are numerous ways to measure business efficiency. Here at Tekulus, we have developed a proprietary system of analysis using over thirty years of experience in the IT and big business playing fields. This system performs a full scan of your current business model and highlights areas where that plan is excelling and where it could use some improvement. We look for anomalies and weaknesses in your IT strategy and using your current goals and shifting expectations, we reinforce the weaker areas of your current strategy and overhaul those areas that are costing more than they are helping. We then present you with a unique business plan for increased efficiency based on our decades of experience and your personalized company goals.
Need a Professional to Run a Business Efficiency Analysis For You?
If you need a professional IT strategy company who can run a business efficiency analysis for you, Tekulus can help! Pick up the phone and give us a call at 510-592-8530 to have one of our professionals run a business efficiency analysis for your company and to see how we can help you to improve your productivity today!