The past two years have been a testing time for entrepreneurs and most have had to make significant changes to increase profitability and ensure they survive and prosper.
At ShP Limited, a year ago we undertook a full audit of the business to see where we could make it more efficient and streamline our processes. We also reviewed our aims and direction to ensure we had identified all gaps in the market. For us, this meant identifying new organisations and charities to link with as well as exploring new countries to sell in.
We reviewed our aims and direction to ensure we had identified all gaps in the market
After the audit process, one of the first steps we took was making each manager of every department responsible for their own profit and loss.
This has had a huge effect on spend because creating this competitive element means each manager is determined to make their department the most successful and profitable. It’s fostered healthy competition and ensures we’re all working towards the same aims.
The audit of the warehouses revealed we could implement a slicker stock control process in order to turn stock around more quickly, and have products in the warehouse for no longer than is absolutely necessary.
Another area that we recognised could be profitable for us was providing white label sites for retail and online trade-in services. Our work in this area resulted in the launch of www.mirrorgogreen.co.uk in conjunction with the Daily Mirror, the first national newspaper to launch an online gadget and phone recycling scheme. This area of the business is scalable so we can now offer white label sites to all manner of clients.
These are just a few examples of how we’ve adapted to become more slick and profitable. The downturn in the economy must be seized by entrepreneurial businesses as an opportunity to shine.
Simon Walsh is co founder of electrical recycling business ShP Limited, which works with businesses across the UK, recycling electrical and electronic equipment.
