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Freedom First Credit Union

6 Mistakes to Avoid When Streamlining a Business

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Streamlining doesn't mean cutting corners or sacrificing quality.

Molly Reynolds, President of Public Relations at Trepoint, has advice for businesses that want to begin the process of streamlining.

Operational streamlining can be dread-inducing, which is why so many businesses find excuses to put it off.

"We should wait until things slow down."

"It's first on our to-do list when there's more cash flow."

"We'll make that next year's new years resolution!"

There are lots of reasons for putting it off, but streamlining now means being able to save money during lean times and increase profits when business is booming.

Streamlining now also means less waste. Management is a business of details and when the focus on those details is inadequate, things start to slip and operations performance suffers. From there, it isn’t long before customers and clients start to complain of inadequacies and word of mouth snowballs into loss of business.

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There are some serious pitfalls to avoid while attempting to streamline though, and if these are not avoided they can have the same negative effects as random management. Here are some of the most common of those mistakes to be avoided:

1. Inadequate Operational Budgeting

The streamlining initiative must not be at the expense of the operational budget, or the business' reputation for quality and excellence will quickly suffer, even if it is only due to minor deficiencies. The operating budget includes the cost of all equipment needed to run the business and the myriad supplies needed. When any of these expected services or amenities are missing or downgraded, it is quickly noted by customers.

2. Insufficient Attention to Legal Issues

In the hotel industry, for instance, sometimes omitted in the streamlining effort are things like contracts for special events, banquets, sales, maintenance contracts, and some commercial contracts. Accounting and billing information must not be under-estimated, because they can literally be the lifeblood of operations. Even more legal requirements lurk in statutory taxes, payroll deductions, social security laws, labor laws, and employee insurances – all of these must be adequately attended. Property management software can be a real boon in this regard, because it incorporates all the various functions of hotel management into one package that can be fingertip-controlled at a single source.

3. Inadequate Market Presence

When streamlining cuts into a business's presence on the Internet or its marketing initiatives it becomes counter-productive, because in modern times market presence trumps all else. Since so many transactions are made online after having conducted a search for the perfect product or service, maintaining a strong web presence is paramount. For the same reason, marketing strategies must incorporate the Internet as a key vehicle by which clientele will be targeted. This is not the budget to skimp on.

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