A Small Business Guide to Operational Excellence
I've had the privilege of engaging with Josh Tan, a seasoned consultant with a wealth of knowledge in operational excellence, business leadership, and management. Our conversation was rich with strategies and insights that are crucial for any small business owner looking to enhance their profitability and efficiency.
The Pillars of Operational Excellence
Operational excellence isn't just a buzzword; it's the backbone of a thriving business. Josh and I explored the critical importance of measuring and analyzing various aspects of a business, including sales, marketing, operations, and employee satisfaction. These metrics are not just numbers on a spreadsheet; they are the indicators of your business's health and potential for growth.
The Power of Data Analysis
One of the main themes of our conversation was the significance of data. In today's digital age, tools like QuickBooks have become indispensable for small businesses. They allow you to gather and analyze data efficiently, leading to informed decision-making. But it's not just about having the tools; it's about using them effectively. We delved into the necessity of tracking customer data, understanding employee satisfaction, and measuring performance metrics such as return rates, average order value, and abandoned shopping carts.
Building a Foundation Before Innovation
Josh shared a crucial piece of advice: slow down to build a strong foundation before attempting to innovate. This means starting with measuring key variables and identifying any limiting beliefs that may be holding you back. He recommended setting regular times for reviewing and logging numbers, and even rewarding yourself for consistent practice. This disciplined approach ensures that when you do innovate, your business is ready to handle it.
The Role of Accountability and Maintenance
During our conversation, we touched on the challenges of operational analysis. Having a consultant or coach can be invaluable in helping businesses stay on track with their operational goals. For small teams, reviewing numbers together can create a sense of accountability that is essential for success.
Josh also highlighted the potential for deviations from business plans, such as unexpected changes in sales or disruptions in supply chains. Regular maintenance is key to preventing equipment breakdowns, and for larger companies, having redundancies in place is a must.
The Path to Continual Improvement
Josh's insights, drawn from his high-level engineering background, emphasized the importance of setting aside time for analysis and planning to anticipate and prevent problems. Fostering a collaborative team environment is also vital for continual improvement.
I shared my perspective on the value of being proactive in solving problems before they arise. This proactive mindset is at the heart of operational excellence and can make a significant difference in a business's success.
Final Thoughts
Our discussion was not just about identifying the importance of operational excellence; it was about providing practical, actionable strategies that small business owners can implement. Whether it's through data analysis, building a solid foundation, or being proactive in problem-solving, the path to enhanced operational efficiency and increased profitability is clear.
The recording of my entire Livestream with Josh Tan, on the Small Business Pro University YouTube Channel…
