I found this on Wikipedia. http://en.wikipedia.org/wiki/Business_efficiency Don’t ask me how I got there only my Browser history can tell me how I started on one topic and ended up there.
So for those that didn’t read the Wikipedia page, your efficiency ratio is your expenses/revenue ratio. The higher the ratio the healthier the business.
There are two ways you can improve your ratio:
1) Increase Revenue – the easy way is to achieve this is to serve more customers – There are a number of ways you can Increase Revenue. One way is to charge more which you can always do. However, there is a limit to what the Market will sustain and your product or service is only worth what someone will pay for it. Another way to increase revenue to make sure you service your customers as efficiently as possible. This way you service them quicker and time IS money. By being more efficient you can service more customer with the same resources.
2) Decrease Expenses – the easiest way is to make sure your expenses are as low as they can be. Maybe you need to look at where money is being wasted? Where is the business the most inefficient? The biggest expense is most likely your most valuable resource your Staff. Your staff’s time is usually your biggest expense. Instead of trying to reduce that expense, the best way would be to make sure their time is best utilized so they are as productive as possible.
Make sure they can get the Job done as quickly and efficiently as possible. Make it easy to track their work and record the details you need to run the business.
At Ocom we can assist you to build an efficient business. Give us a call on 1800 626 676 and ask one of our friendly staff how we can help?
Check out some of our Case Studies to see some of the ways we have increased the Efficiency Ratio for some of our clients.