Operational efficiency is more important than ever for small businesses. With rising costs, shifting customer expectations and increasing competition, there is pressure to do more with less.
Before you can streamline processes or implement new tools, you need to understand where the knowledge lives inside your business. The real insights often come from the people closest to the problem. Many business owners fall into the trap of trying to do everything themselves. But by tapping into your team, identifying inefficiencies, and aligning everyone around smarter systems, you can improve operations, strengthen your business, and lay the foundation for sustainable growth.
Start with Your team
Ideally, you’ve already established clear lines of accountability and know who to involve when a challenge arises. Even if you haven’t, treat each issue as its own project and bring in those with firsthand experience early in the process. When employees help create the solution, they’re more invested in it and often spot things others miss.
This collaboration is especially important when adopting new systems or technologies. Trying to handle the rollout alone can slow things down. Instead, involve a small group that works in the areas of the business where the change will be implemented. Their perspective will ensure that the new process is usable and practical.
How you frame these changes also matters. People may hear “operational efficiency” and assume it means job cuts. However, when you show them how their roles can evolve with new “technology”— not disappear — you reduce fear and build trust. This is especially true with emerging tools like AI. It might take you 80% of the way there, but you still need human input for the final 20%. When you train your team to use it well, you’re freeing up their time for higher-value work — not replacing them.
Bottom line: don’t work around your team. Work with them.
Pair tech with the right talent
Technology can be a powerful driver of efficiency, but on its own, it’s not a silver bullet.
Any time you bring in a new system — whether it’s a Customer Relationship Management (CRM) system, an automation tool, a reporting platform, or something else — you also need to think about the talent behind it.
When considering a new technology, identify any new skills your team will need to successfully manage the technology. Additionally, consider any project management, reporting, and analytics capabilities that should be in place.
Every new tool introduces new demands, and if you don’t plan for them, it won’t matter how advanced the solution is. Even the best tools are only as good as the people using them.
Stop guessing and start listening
Efficient businesses are built on open, honest communication across all levels — and that starts with making space for feedback at every level of your organization.
The people who deal with day-to-day operations often have the clearest view of what’s working and what isn’t. If you’re too far removed, you risk missing the root of a problem. Skip the “telephone game” by going directly to the source. Make yourself approachable. When employees feel safe speaking up, you gain a more accurate view of your business — and better solutions.
Don’t just fix it, rethink it
When small business owners encounter operational issues, their instinct is to fix what’s broken. But the better approach is to ask yourself: Do I have the right people involved? And if I were building this process from scratch today, how would I do it?
Often, process problems are really people problems. Does the person managing it understand the metrics they’re trying to hit? Are they aware of any new goals or business demands that require a shift in their approach? Efficient and effective teams are those that have a clear understanding of the bigger picture.
Once you’ve addressed the people element, step back and reimagine the entire process to meet the business’s current needs. I’ve been in situations where I was trying to solve four different problems, only to realize they all disappeared when I removed a single unnecessary step. Sometimes, the clearest path forward starts with a blank page.
This kind of reset shouldn’t happen only when something goes wrong. Operations should be evaluated as frequently as you revisit your strategy. Every time your strategy shifts, your systems, processes, and team structure should be reexamined to ensure they’re still aligned with your goals. At a minimum, this type of review should happen annually.
Measure what matters
Success can be hard to define without the right metrics in place. That’s why business owners must identify the key performance indicators (KPIs) that signify real progress toward their goals. If you can’t measure growth, you can’t manage it.
Equally important is having the tools and systems in place to access and analyze those metrics. Business intelligence resources, such as Power BI, can pull data from across your systems and consolidate it into dashboards, providing real-time insights into the KPIs that matter most.
Know when to outsource
It’s easy for small business owners to overlook high-risk areas of their operations, especially when they’re focused on growth. IT security, human resources, and financial guidance are common examples. These functions aren’t luxuries — they’re business necessities.
Not every area of the business needs to be handled in-house. Look for opportunities for partnerships and outsource where outside expertise is needed. You don’t have to know it all — just when to call in help.
Take AI, for example. Everyone’s experimenting with it, and some are plugging in sensitive data without fully understanding the implications. Every time you drop proprietary information into an AI platform, you could be exposing your business to risk. But working with an IT advisor can help you navigate these new technologies safely and ensure your data is protected.
Most business owners have at least one trusted advisor in their network, such as an accountant, broker, or mentor. Start there by asking for referrals, and find partners who can cover the areas you don’t specialize in.
Make efficiency intentional
Operational efficiency is about doing more with intention. By empowering your team, leveraging the right technology, and rethinking your processes, you can position your business for long-term success. Sustainable growth starts with smart, people-first systems and the discipline to keep improving them.
Cory Raggi is Chief Operating Officer at 1RDG, the financial center, which provides businesses with a full range of management, compliance, and advisory services. For more information, visit 1RDG.com.