Proximity is a key ingredient in streamlining anything.

Everything has a switching cost. The closer two things are, generally, the lower the switching cost.

Here are some business ways to use this idea, and some alternative ways to think about "proximity".
1. Locational Proximity

The obvious one is how close one task is to another. The closer you can put similar or consecutive tasks, the faster they can be performed using fewer resources.
2. Similarity Proximity

When looking to streamline a process, put like pieces together.

If entering invoices, enter info related to the payment or in an adjacent screen at the same time... even if not needed until a later step.

Its easier to do while you are already there.
3. Thought Line Proximity

This is a little more abstract

There is a true cost to mental "task switching", so group like ideas, foci, jobs, strategic thoughts, reading, and other things together.

Lower the non-productive mental stress you put on yourself.

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More from @joshuamschultz

1 Mar
Data can be thought of as water.

It is flowing through your company.

Many companies can't harness it and use it because of their culture, not their tech literacy.

Some things to consider...
Data is flowing and moving.

The more you capture, the more energy you have to use.

However, this is only potential energy.
Keeping all of it creates a lake in your organization.

This ends up just being a stationary body of potential.

You don't need a lake to use water to power things, you just need a constant and focused stream.
Read 15 tweets
17 Feb
There is a User Experience concept that goes something like this...

Each screen should have one purpose.

This can be widely applied to small business operational setups...
Too many screens clutter and confuse the user.

Good UX makes the software intuitive and simple, flowing from one action to the next, with little friction
A great head of operations should always be looking to reduce friction for everyone.

The customers
The suppliers
The workers.
Read 5 tweets
15 Feb
Most small businesses are family affairs. Even if its just the owner with no other family. There are emotions, family problems, ego-tied actions, and more.

These businesses are great businesses... but be ready. Here are few thoughts to help worker/acquirers in these businesses
1. 70%+ of owner net worth is the business itself.

They feel a lost customer or sale, a mispriced item, a wrong margin, a bad review, or any negative hit as a threat to their financial security and future well-being.

The thought "what if this continues" is always there
2. Owners see the success of the business as their personal success. Some take it to identity.

Realize, when you are talking about the business, you are talking about a piece of themselves, not just an asset they own.

Its more like discussing their heart than their car.
Read 15 tweets
31 Jan
Checklists are a crucial part to remembering everything you need to do.

Systematize your business
Document those systems
Use checklists to ensure its done the right way, every time.

Creating checklists is one of the first things I usually do.

It gives me abase to iterate on.
So here is a checklist for monthly accounting.

Last week I shared how I automated a few of the bills we have.


Some of them require small tweaks each month based on amortization.

So to prevent forgetting, I created a checklist to include them in.
When I create a checklist, I always consider it a type of delegation document.

What needs to be here so that I can give this to someone inside or outside the company, and they can do it for me!

I may not be ready for this yet, but write it now so that when I am, its much easier
Read 14 tweets
31 Jan
Sometimes people miss what automation is about.

It isn't to make things easier
It isn't because is new or tech-forward
It isn't an end of itself

Its a tool... One of many...

For the purpose of building Capacity
As business expands, your resources become more scarce.

You have less time
- to do all things you want to do,
- to make the decisions you need to make
- to service your customers the way they deserve to be serviced.
You can buy your way out of this by hiring people and buying equipment.

However, the paradox of business is this - the faster you are growing, the tighter cash usually is.

So the businesses that need cash most, have it least!
Read 7 tweets
29 Jan
What it means to streamline operations.

We had 1 warehouse person able to ship 3000 skus to 100 customers and do all receiving from 2000+ suppliers. How?

Streamlining involves:
1 internal/external task moves
2 Batching/Consolidating
3 Abstraction
4 Systems
5 Empower
6 Automate
1. Internal vs External Tasks

When looking at a procedure, there are tasks that must be done at that moment, and ones that can or are done at the moment.

By removing all "external" tasks and delegating or move to when there is available time, you create a more steady work flow
2 Ex. Shipping a SKU

When shipping a SKU we need to enter the customer we are shipping to. We can't do this earlier because we just found out where to ship it (a customer order).

These are internal tasks.
Read 22 tweets

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