How to boost your business’ productivity

Productivity refers to how much work is done by a business. It’s the output that is produced when considering factors such as the number of employees or hours put in to deliver a product or service. 

A productive business is important because it helps to increase profits, employee motivation, customer satisfaction and company efficiency. 

See below for ways to make your business more productive.  

Set business goals 

One way to stay productive is by formulating business goals. By doing this, you can set the direction of your business and ensure that you stay on track for achieving the growth that you aim for.  

Goals allow you to stay focused and avoid drifting off track by spending time on unproductive tasks and activities that don’t contribute to your plans and targets. 

You can create various types of goals, including: 

• Financial goals covering revenue, profit and cashflow. 
• Operational goals that cover processes such as improving efficiency, boosting customer satisfaction and enhancing sustainability. 
• Growth goals that focus on expanding your business. 

To ensure the goals you set are effective, you can use the S.M.A.R.T. acronym. This stands for goals that are: 

• Specific 
• Measurable 
• Achievable 
• Realistic 
• Time-related 

For more advice on setting up effective goals to help grow your business and increase your productivity, read this guide. 

To measure your progress towards achieving your goals, create key performance indicators (KPIs). For advice on financial KPIs, read this guide. 

Outsource to experts 

“Do what you do best and outsource the rest” is a phrase that was first coined by famous business consultant Peter Drucker in the 1990s.  

His advice still rings true today. By taking on the services of specialists for certain tasks, you can focus on the core business activities most important to you.  

Accounting is an example of an activity you can outsource. The UK system is complex, so it can be confusing and time consuming for business owners to deal with accounting tasks themselves. By outsourcing to an accountant, these issues can be dealt with quickly and efficiently.  

Among the tasks accountants can help you with are:  

• preparing and filing self-assessment tax returns 
• running a limited company 
• setting up a payroll 

For advice on finding the right accountant for your business, read this guide. 

Automate your accounting 

Software can also help you be more efficient and productive with your accounting. 

Tools like QuickBooks, Xero and Dext can help you get organised and manage your finances from wherever you are. 

An accountant can match you with the right accounting software to meet your needs. They can talk you through the digital solutions that are available and help you select the right package for you and your business. 

Access productivity tools 

Rather than relying on inefficient paper methods, there are other tools that can improve your productivity.  

You can use them to manage your own activities and collaborate with others. There are tools that help you organise to do lists, tools for sending and storing files and images, tools for running online meetings and tools for managing projects. 

Examples include: 

• Teams 
• Asana 
• Basecamp 
• Dropbox 
• WeTransfer 
• Evernote 
• Todoist 
• Slack 

Avoid time-wasting activities 

Look at day-to-day business activities that could be limiting your productivity.  

Meetings 

Unnecessary meetings can impact on your productivity. When setting one up, ensure there’s a clear reason for it with a focused agenda set. You could also consider the way you conduct meetings. Walking meetings, when a group gathers outside for a conversation, are increasingly popular. A study by researchers at Stanford University found that a person's creative output increased by an average of 60% when walking. 

Use appointment scheduling tools like Calendly and Sprintful to send a link to people with the times when you can make meetings and block out times in your online calendar when you are not available for meetings.  

Emails 

Sending lots of emails can be a time-sapping activity and there may be quicker ways to communicate information or conduct conversations. Consider other methods such as sending messages through tools like Slack or Teams, speaking on the phone or setting up a quick video call. 

Social media 

Social media has many business benefits, but it can be easy to spend lots of time on platforms like X (formerly Twitter), Facebook and LinkedIn but not achieve results that benefit your business.  

Think about why your business should be using social media and how it fits with your business plan. If you have employees, draw up a social media policy for when and how they should use social media at work. Outsourcing your social media activity to external service providers or employing internal marketing staff can also be beneficial.  

Consider your working environment 

The environment in which you work can have an impact on your productivity. A badly-lit, uncomfortable room can reduce your and your employees’ effectiveness and mean you don’t work to full capacity. 

Consider the places you and your staff work from and ensure there’s suitable equipment and furniture. An appropriate workstation and chair are important, as is good lighting and a strong internet connection. The Health and Safety Executive has advice on good posture when using display screen equipment here. 

With many people now adopting hybrid working and operating from multiple locations, including their own home, it’s important that you ensure that your working environment is effective and doesn’t impact negatively on your business’ productivity.  

Motivate and upskill your workforce 

Employees are vital to a business’ productivity so it’s important they are motivated and possess all the skills needed to do their job effectively. 

Ensure you have strong communication channels set up and staff know how to use them.  

Encourage collaboration and the open sharing of ideas. 

Identify any skills gaps and provide necessary training. 

Look for ways to boost team morale such as through social events and offering benefits like hybrid working, healthcare and discounts on leisure activities.  

Read more advice on motivating your employees in this guide. 

How TaxAssist Accountants can help 

TaxAssist Accountants can help you with the right advice to support your business growth.  

While our expertise covers tax, accounting, bookkeeping and payroll, we can also connect you with other providers we work with. 

Contact us to find out more about our services and to book a free video or face-to-face consultation. 

Date published 1 Aug 2023 | Last updated 20 Mar 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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