Effective: “successful in producing a desired or intended result.” Being effective allows you to get what you want out of something. Refer back to the example above, “I grossed 1 million this year!” If you had a goal to gross 1 million, than you achieved it, you are effective! It doesn’t matter what you spent to get there, all that matters is you got there.
Efficient: “achieving maximum productivity with minimum wasted effort or expense.” Being efficient allows you to get the most productivity as possible, without wasting money or time getting there. I’ve talked to people saying, “I grossed 1 million this year!” Yes, great, that’s awesome, but unless you know how efficient they are, it doesn’t really matter. They may have grossed 1 million, but they spent 2.
Now one isn’t more important than the other; they are both unique in their own ways. They can exist without one another, but the best way to utilize them is having them work together. This is something that can take a lot of time and energy to figure out, but once you do, your business will be ran and operated better than anyone else’s. Lets look back at the previous example, “I grossed 1 million this year!” now let’s assume that the goal was to gross 1 million dollars and spend less than last year. This shows that they were 1) effective, as they achieve their goal. and 2) efficient, as they increased productivity without wasting expenses.
The key to becoming efficient and effective is first becoming effective. If you can achieve the results that you strive for consistently, then you can start working on efficiency. Start cutting unnecessary cost, start buying things in bulk, start cutting your unneeded bills. Even if you save 1%. I know it doesn’t sound like a lot, but 1% of 1 million turns out to be $10,000 that is instantly added to your profit. You can save 1% and many things that will show up on your income sheet. Also, being effective, and focusing on efficiency will allow your staff to become more productive.
Once your business is effective, and efficient, it will be hard to compete with you, and easier for you to successfully run your practice. You’ll make the most profit in any situation, and you will use the least production possible while still having the same results. It’s basically just a smarter way to look at “work smarter, not harder”. besides, who doesn’t want to make more, but work less?
What do you think? Comment below on what is holding you back, and I can help!