I have been working with leading Business Improvement guru, Tim Franklin, preparing the PR for his latest book which offers an introduction to Continuous Improvement (CI) at beginner level, encompassing Lean, TQM, Six Sigma and the other related methodologies of CI.

He was developing an analogy of a geographic expedition to describe Continuous Improvement. As you start out on an expedition, you can see the horizon clearly as being the final destination, but as you walk towards it, it recedes and eludes you, like a moving target. CI is like this in practise. In the beginning you think that you know the maximum benefit that you can lever from a particular process, but if you continue to revisit the same process time and time again, it’s amazing how your comprehension alters through experience – learning by doing.

Sadly, many organisations don’t develop this advanced comprehension, because they don’t embrace the ideology behind CI, they see TQM or Lean as a set of tools and techniques, rather than a different way of working.

By simply imposing CI as an additional set of craft skills, employees can become suspicious, wondering just what the hidden agenda may be. Just look up the word Lean in the dictionary – devoid of fat, sparse – no wonder that many employees think that it is another term for downsizing.

Maintaining a profitable business year after year is extremely a difficult job. Managing your own company involves many business endeavours that are too tough to handle by yourself. Handling difficult situations is not an easy thing to do and wrong decisions can put your company in jeopardy.

Regardless if your business is privately held, large or small, or family run, you need to have an independent third-party business consultant. A professional adviser can teach and guide you through the right decisions in all business areas. This ensures that you exceed your personal and professional goals and stay financially fit for different business initiatives.

More often than not, many start-up or small companies rely on their own circle of influence for professional advice. Some of these organisations use employees, business associates, investors, managers, and even family and friends to help them decide on and apply business objectives strategically. This does not work for all cases, because the circle of influence usually creates decisions that hinder business improvement and growth. This affects not only the company’s reputation but also has effects on the employees.

For best business results, company owners must have an outsider’s perspective to help them through tough decisions and focus on areas that need improvement. A business adviser should help the key managerial staff in handling several areas such as business strategies, sales, marketing, finance, operations, and staff.

There are many reasons why you should entrust your company, especially if you have a start-up company, to a third legal party for business advice. Many successful companies around the world use outside advisers to help them reach and exceed their business goals. Here are three reasons you may want to consider this option.

Reason 1

Outside business counsellors are not emotionally attached to your company like you and your employees are. The problem with most companies is that managers and other figures in charge are not well equipped with leadership and administrative skills to handle some challenging situations. Employers must know how to handle situations without being personally attached to the situation. Emotions can be a sign of weakness and business will always be business no matter what the outcomes may be.

Reason 2

Outside professional consultants are not financially attached to your business endeavours like your employees and investors are. This is usually the downfall of companies that do not know how to handle crucial financial situations. For example, when several clients pull out, and you lose valuable profits and sales, you usually end up finding situations to cut on costs to save the company. This may cause you to lay off several staff members and other factors you think are no longer essential for you company. To avoid situations like this, it is best to find financial business advisors who can help you with your problems.

Reason 3

Outside professional mentors help you focus on the big picture and the necessary steps required to exceed corporate goals without being distracted by day-to-day operations and issues. Learn to be a good leader of your company and do not let politics ruin your integrity.

Many people assume that growth is an excellent indication of increased profits. Growth does not necessarily mean a business is more profitable, however. Many times, just the opposite is true. With growth come additional costs. New buildings are a major expense. There is the property to purchase accompanied by increased taxes. There are countless sundry expenses such as furniture, employee wages, utility bills, cleaning services, employee health care, and the list goes on.

A business doesn’t have to get bigger to become more profitable. Streamlining involves trimming, pruning and otherwise cutting out the deadwood. Almost every business owner or manager can find ways to reduce costs in structures and improve employee efficiency. Even reducing waste in small ticket items such as office supplies can considerably improve the bottom line.

Business streamlining often involves a major change in employee attitude to be most effective. It isn’t uncommon to overhear employees make statements such as, “I don’t care what it costs, the company is paying for it. It’s not my money.” At one small business, a salesperson was asking for improved healthcare benefits, while at the same time turning in travel vouchers for more miles than he was actually driving on company business. When the business owner told him that the company was struggling financially, and that he, the owner, was often taking home no paycheck at all, the employee stated, “It makes no difference. Your job is to ensure the welfare of your employees.” The salesperson seemed unaware of the financial realities of running a business. He didn’t understand that the financial welfare of the business must come before employee benefits can improve.

Business streamlining is most effective when the employees are voluntarily involved. Educating them and showing them the monthly figures can go far in improving employee cooperation, especially when the business attaches employee rewards to such improvements. In the case of the salesperson previously mentioned, he was offered a reward of both financial remuneration and improved health benefits if he hit certain sales goals. In his case, the reward offer fizzled. He not only did not increase his sales, they went down.

To improve business streamlining, the small business improved its own operations by getting rid of the salesperson and hiring a new one. The new salesperson hit the ground running. He recognized the need to find new customers, and went to previously untouched areas where he made new contacts and sales. There was an immediate spike in sales his first month on the job. It improved the business financial situation, and brought rewards to the salesperson as well.

In addition to employee awareness, reduced spending for unnecessary supplies, utility payments, gasoline and other expenditures can really add up. Other ways to improve business streamlining include hiring experts for advice in cost reduction, working with equipment suppliers to seek lower lease payments on equipment and so forth. Anything that helps to streamline and reduce costs, can help a business become much more profitable.