Improving Your Home Based Business Efficiency

Home based business proprietors must be constantly thinking about ways to improve the efficiency of their business ventures. If you have some standardized, documented, flexible business goals and operational procedures, it is not difficult for you to achieve high levels of efficiency in your home based business.

In the absence of clear guidelines and operational procedures, your employees or team members will do things differently and your business will be unorganized with your work being done on an ad hoc basis. Your business will run much more efficiently if you simply put in place a standardize set of operational procedures. This is best done prior to actually putting your business in operation.

At the same time remember to use caution in not making your procedures to elaborate and specific, otherwise, you risk having your employees and team members take shortcuts to minimize their work. Shortcuts if planned and dovetailed into a standard operational plan could increase efficiency, however, shortcuts which are simply put into action on an ad hoc basis generally only serves the interests of the individual employee and may actually sabotage the team efforts causing serious problems within the company.

This article is intended to help you to develop some suitable and easy to use procedures that may enhance the overall efficiency of your home based business.

Understanding:

It is imperative that successful businesses follow a set of standardized rules and policies. Setting up these rules can be accomplished by analyzing each and every aspect of your business very closely. Primarily you will need to have a clear understanding of the job function of each team member including yourself before developing your rules and operational procedures.

Productivity is critical to the success of your business. To achieve productivity requires team work to insure a smooth start to finish accomplishment of the entire project. To maintain efficiency and to maintain good employee relations, you will need to implement a feedback system so that team members can identify operational problems and get credit for their input. A happy work force will increase the efficiency of the business ten fold compared to an unhappy disgruntled work force. Careful study and attention to daily operations will help you to identify problem areas and will allow you to fine-tune the procedures in a timely fashion thereby enhancing the efficiency of your business enterprise.

Allow Team Member Input:

People are individuals and as such, they generally work at their own pace and style. For efficiency sake, you should allow individuals to seek their own level of involvement within the business environment as long as it achieves the overall company goals. You should allow a certain amount of flexibility and variation within the job function. You should not try to control every aspect of your employees and team members’ work by imposing strict supervision if it is not absolutely necessary.

If you allow your team and employees to primarily work at their own pace, within reasonable limits, they will enjoy their work more and will make positive contributions towards increasing the efficiency of your home based business.

Assessing Your Efficiency:

Your personal efficiency is also critical to the successful operation of your business. You should make optimum use of every minute of your workday. Review your work style from time to time and see if there is any scope for improvement. Seek out specialized supervisory training to improve your managerial skills. Attend trade shows to learn new techniques to dovetail into your business. Seek out feedback from your customers to get their perspective so that you can take corrective measures whenever required.

Being Systematic:

It pays to be systematic in your work place. To run your business smoothly you need to maintain a good filing system so that you will be able to locate specific documents without wasting time. That way you will be able to conduct your work without delays. To improve efficiency you can also delegate some work to other team members. Doing so will not only increase efficiency, it will also improve their moral by showing that you trust them to perform above their job levels. Your trust in your team will instill confidence in them.

Efficiency generally means getting your product from start to finish and delivered to your customer in a timely manner while maintaining high quality and generating customer loyalty and repeat business. Constant monitoring of your entire start to finish operation will enable you to cross-check and rule out the possibility of errors and inefficiencies in your home based business.

Local Business Advertising – Small Businesses and Online Advertising

Many businesses, both large and small, spend abundance on advertising on newspapers and other local business advertising. Even more money is spent when it comes to advertising on a popular channel on TV. Yet, many businesses aren’t aware or simply ignore the fact that the internet is a very powerful marketing tool with many benefits and little costs.

The main benefit of online advertising is its price. Typically, the form of online advertising that is most often used is pay-per-click. This is where a company pays a certain amount of money whenever an ad is clicked on. Doing large advertising campaigns may become a little pricey, but it is often nothing when compared to the amount paid for television advertising. The price of online advertising is brought lower every day, which means less money spent by businesses trying to market their products and services.

Online advertising can be easily targeted to ensure better results. You can make it where a different advertisement will be shown to potential customers on a gardening site than on a gaming site. Advertisements that are more relevant to a person are more likely to entice. This means more people clicking on your advertisements, and more people purchasing your products and services, or at least being aware of them.

Most offline advertising is limited to only local business advertising. Or, the advertising may only show during specific times. Yet, online advertising is shown to potential customers and clients every day at every time of day. It doesn’t matter if these potential customers live in the USA or if they live in China. Because of this, you will find that more people are being exposed to your products. You will also receive a wider variety of customers or clients with different personalities and interests.

For small businesses that don’t have much money to invest in advertising, they can easily use email marketing to garner more customers or clients. Email marketing is where companies send useful emails that both inform the reader and entice the reader into purchasing their products or services. Companies may need to hire someone to write emails that encourage converts, but other than that, there are no other major costs.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.


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