Regina Thomas https://www.industries.veeva.com 3m 677 #familybusiness
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Consistently meeting customer expectations is how multi-billion dollar companies are made. According to Grand View Research, U.S businesses spent $ 7.9 billion on Quality Management (QMS) solutions in 2019. The truth is that the size of your business doesn’t matter; customers appreciate quality products. It is the only way you will stay in business, let alone expand. This article looks at how family businesses can benefit from QMS. Read on to learn more.
Improved Profits
The biggest selling point for adopting quality management for your family business is the direct financial gains. Small enterprises often lose out to the inefficiencies. Implementing quality management systems irons out both internal and external bottlenecks. The biggest gains will be during the production phase.
For instance, a manufacturing company may look into a better manufacturing process. Better efficiency lowers the cost of production. This improves profit margins. Other benefits are that low production cost allows a business to have a pricing advantage. Consequently, they can reach a wider market and sell more products. Both factors will see your profits soar. And what business doesn’t want that?
Better Customer Satisfaction
The four main quality management system components are quality improvement, quality assurance, quality control, and quality planning. Although all these components are vital, quality improvement is what keeps you ahead of the pack. It means the business will always be working hard to find new ways to improve the processes and products.
An effective QMS takes onboard customer complaints and compliments and improves the product. This helps to keep your loyal customers happy and win you new ones.
Improves Internal Communication
Workplaces attract people from different backgrounds and cultures. The junior staff needs guidance from the senior management to execute the goals of the business effectively. Without efficient internal communication, there will be chaos. A family business can achieve this through team briefings, meetings, and notice boards.
It is through these channels that the business explains its policies, targets, plans, and programs to its staff. Over time, a communicative culture is developed within the businesses. New employees joining the business will have an easier time adjusting to the environment. A clear c
Exploit New Markets
In a constantly evolving business environment, the importance of winning new customers can’t be overstated. Most family businesses start out catering to a specific market segment. However, it is important to change with the times to stay profitable. Quality management systems take the guesswork out of the process. The business can collect valuable data on consumer trends and adjust accordingly. The system’s data allows for evidence-based decision making.
The data obtained is compared to the goals of the business. The metrics will show whether the business is failing or not. The data collected may indicate that it’s time the business targeted a new market where the results are better. The company can then decide to produce more or change the product to reach previously unexploited markets.
Helps Manage Growth More Effectively
It is every business owner’s dream to grow and expand. Unfortunately, growth comes with its fair share of challenges. A classic problem is taking too many orders that you can fulfil in time. As the family business expands, you won’t be able to get away with mistakes like poor planning. You will definitely need more staff and here is where the problems start. It will be harder to control quality and still keep up with the demand.
A QMS has the entire ingredient needed to manage growth. The metrics will help you balance inventory and cash flow. You will be more aware of the risks that come with the new opportunities. In general, implementing a QMS gives you more control and enables you to steer the family business to the next level.
Final Thoughts
Hopefully, this article opened your eyes to the potential gains of implementing a Quality management system. A quality management system could be what has been holding your family business back. However, QMS is not a one-fit-all magic potion. The wrong software can be disastrous for your family business.
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