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How running a lean business model improves your cashflow and efficiency
21 September 2023
How running a lean business model improves your cashflow and efficiency
It can be a challenge for any business to keep both their operational expenses under control, while also remaining efficient and meeting customer demand. Running a lean business model can help you manage operational expenses and more efficiently meet customer demand by keeping operations, stock and processes to a minimum. This in turn reduces your outgoings, increases efficiency and improves your cash position. Could the lean business model work for you?
The lean business model
A lean business model aims to eliminate waste in your operational and product manufacturing processes, while still allowing you to meet your customers’ needs. The idea is to minimise your processes which helps you streamline the production of goods, reduce your operational expenses yet still meet the demands of your customers. This in turn creates an organisation that’s run in a lean, efficient and profitable manner.
The 5 key elements
- Cost efficiency. Cutting waste is central to the lean methodology. Applying the lean methodology allows you to reduce waste in the manufacturing process and minimise any unnecessary spending. This allows you to optimise your resources and allocate funds strategically.
- Increased agility. With a lean approach in place, it’s far easier for the business to be both agile and flexible. This makes it easier to respond quickly to market changes, customer needs and emerging opportunities you spot in your sector.
- Enhanced customer focus. Promoting value is another core element of running lean. By eliminating activities that don’t add value, you can prioritise customer satisfaction and deliver tailored products and/or services that meet your customers’ needs.
- Streamlined processes. The lean methodology aims to streamline your workflows, reduce bottlenecks and enhance your overall operational efficiency. This all leads to improved productivity and shorter lead times, helping you deliver your product more efficiently.
- Sustainable growth. Running a lean business model promotes long-term sustainability. There’s a continuous focus on improvement, adaptability and financial stability, all of which helps to make you more competitive and ready to grow.
Talk to us about implementing a lean strategy
If you think your business could become more efficient by implementing a lean strategy (or some parts of the lean strategy), talk to us about your current processes and operational strategies. We can discuss how implementing some aspects of the lean methodology could help your business towards a more efficient and profitable future.
The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.
At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.
Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.
To discuss all your account matters please call us on 09 438 1001
