Cost verses spending verses profitability – the ongoing puzzle that all business owners face every day, month and year. It’s the difference between success and failure yet hardly any of us know, compared to the competition, where we fit in our particular industry.
OKI Australia recently ran a SME business efficiency survey which showed some interesting points. It indicated organisations struggle to maintain operational efficiencies and cost effectiveness as they grow.
While a micro business can effectively control expenses, larger firms face higher charges for everything from staff costs and office space rental to electricity and technology.
The survey incorporated responses from 500 SME’s across the country. Of the sample 57 per cent were micro businesses (one to five people) while a further 23 per cent had between six and 20 people. The remaining respondents had between 20 and 200 people.
The surveyed firms were also asked to nominate their key costs of doing business relative to the benefits that they received from that spending. Items considered delivering the best return included supply chain operations to marketing and advertising activities.
Staffing costs and information technology were nominated as among those areas in which returns were not as effective.
The survey indicated that many SME’s are looking for ways to make efficient and effective use of their IT investments.
Interestingly of those who said they were operating effectively, 62 per cent said they made the acquisition of reliable technology and extended warranties a priority. Those that did not see themselves as efficient did not make these factors a priority.
Of those organisations that had undertaken cost optimisation projects, the targets for the optimisation have been varied. Of the survey sample, 29 per cent said they have realised efficiencies through reviewing their spending on advertising, 26 per cent on IT procurement and 24 per cent on IT maintenance.
We see this through our own clients – with technology so crucial to the organisations day to day operation the outsourcing of this service coverage to a focused partner provides many advantages.
We offer a number of options within our service model – allowing clients to pick and match the best cover for them. They are able to customise the service to suit their business not only for today but also for the future.
So what we all know to be true is now official. Australian SME’s are working hard to improve or boost their efficiencies. More than 75 per cent of the surveyed organisations believe there is even more room for improvement.
Are you confident you have the correct IT partner to support your business through the ever evolving technology market?
For independent advice, please contact Tech Precision. We’ll help you relax.
I will leave you with this quote;
“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.”
– David Rockefeller,
banker and philanthropist