Ten ways to increase your business productivity

Many start-up owners are familiar with the pressure of juggling countless responsibilities whilst trying to stay ahead of the competition. 

With rising costs, economic uncertainty, and an increasingly demanding marketplace, maximising productivity isn't just beneficial - it's essential for survival.

The good news? As a start-up, you may have a significant advantage over larger competitors when it comes to implementing productivity improvements. 

You may be able to make and implement decisions more quickly as compared to a larger organisation.

The challenge lies in knowing where to focus your efforts for maximum impact. 

Here are ten strategies that smaller businesses could use to work smarter, reduce waste, and significantly boost their bottom line without breaking the bank or overwhelming their teams.

1. Revisit your business processes

As businesses grow, they can often accumulate inefficient processes. 

Take time to review and streamline operations—from how you handle customer enquiries to your procurement and delivery cycles.

Listen to the views of your staff as to how these processes can be improved to increase efficiency. 

After all, they work with these systems every day and may have identified areas where you could reduce costs and improve quality.

Conducting a process audit annually can help uncover inefficiencies and pave the way for improved workflows.

2. Give people the power to work remotely

Many businesses have moved away from the idea that an employee has to be at his or her desk in an office at a certain time each day.

By using cloud software and other solutions for digital connectivity, you can give your staff the ability to work from home, or while travelling to meetings.

This could reduce time consumed by travelling into the office, and the resulting improvement in work-life balance for the employee can pay dividends in increased morale and productivity.

Read this article on how to manage remote employees.

3. Match tasks to strengths and interests

Understanding your team's individual capabilities is just as important as knowing your business inside out. 

Take time to identify each employee's core strengths, preferred working styles, and areas of genuine interest—not just what's written on their CV.

When you align tasks with people's natural abilities and passions, you may see immediate improvements in both the quality and speed of their work. 

An employee who excels at client relationships but struggles with data analysis will deliver far better results handling customer accounts than wrestling with spreadsheets.

In smaller teams where every role matters, ensuring each person can contribute their best work becomes even more critical to overall business success.

4. Invest in employee training and development

An undertrained team could be a serious drag on productivity. 

Small businesses could invest in regular training to ensure staff are skilled, confident, and up-to-date with the latest industry practices.

Businesses could also take advantage of government-funded training programmes and apprenticeships through initiatives like the Skills for Life programme.

Continuous learning may lead to more efficient operations and empowered employees.

Read this article on how employee training can help your business.

5. Optimise inventory and supply chain management

For businesses handling physical products, efficient inventory management can impact productivity. 

You could use inventory management software to prevent overstocking or a stock shortage, both of which waste time and resources.

Develop strong relationships with reliable suppliers and consider sourcing locally to reduce delivery times and transportation costs. 

Regular inventory audits can also help identify slow-moving stock that ties up capital.

6. Use data analytics for decision making

Data-driven decisions can be more effective than those based on intuition alone. 

Implement analytics tools to track key performance indicators relevant to your business, whether website traffic, sales conversion rates, or operational efficiency metrics.

Google Analytics, social media insights, and accounting software reports can provide valuable data to guide strategic decisions and identify productivity improvement opportunities.

Read this article on how to make business decisions.

7. Streamline communication channels

Poor communication can create bottlenecks and confusion that drain productivity. 

Establish clear communication protocols using tools like Slack, Microsoft Teams, or Zoom for different types of interactions. 

Create standardised templates for common communications and implement regular cross-departmental team briefings to keep everyone aligned. 

Avoid communication overload by designating specific channels for urgent matters versus general updates.

8. Outsource non-core activities

Many small businesses fall into the trap of trying to do everything in-house, which spreads teams too thin. 

Instead, considering outsourcing non-core functions that your team does not have expertise in such as IT support, human resources, legal services, or digital marketing.

Your business can also tap into a growing network of freelancers and agencies offering cost-effective solutions. 

Read more on how to outsource expertise for your business.

9. Make boosting workplace morale a priority

High morale may translate to measurable productivity gains in several ways. 

Employees with good morale may take fewer sick days, stay focused longer, make fewer mistakes, and are more willing to go beyond their basic job requirements.

In contrast, low morale can potentially lead to increased absenteeism, higher turnover, reduced quality of work, and what's often called ‘quiet quitting’ - where employees do the bare minimum required.

Recognition and appreciation are among the most cost-effective morale boosters. 

Regular acknowledgment of good work, both privately and publicly, costs nothing but delivers substantial returns. 

This doesn't require expensive reward programs - often a sincere “Thank you”, or highlighting someone's contribution in a team meeting is sufficient.

10. Hire for diversity and inclusivity

One of the benefits of hiring for diversity and inclusivity is that it may deliver a boost to productivity.

Diverse teams bring different perspectives, problem-solving approaches, and experiences to challenges. 

When people from varied backgrounds tackle problems together, they're less likely to fall into groupthink and more likely to identify creative solutions.

Perhaps one reason that diverse teams may make better decisions is because they consider a wider range of factors and potential consequences.

Homogeneous groups often suffer from confirmation bias and blind spots that diverse teams may avoid. 

Having a more diverse team may lead to fewer costly mistakes, better strategic choices, and a more thorough analysis of opportunities and risks.

Read more about how to hire for equity, diversity, and inclusion as a start-up.

Productivity improvements in smaller businesses require a holistic approach combining technology, people, and processes.

Remember, productivity improvement is an ongoing process rather than a one-time fix.

Regular review and adjustment of these strategies ensure continued effectiveness as your business evolves.