Unlocking growth: the efficiency fixes every family business needs
With rising costs, regulatory hurdles, and workforce retention issues, businesses are under increasing pressure to do more with less. For nearly half of family business leaders, that pressure is quite literally keeping them up at night. According to the 2025 Family Business Barometer survey, which Pronto Software conducted in partnership with Family Business Association, 47% of family businesses said that “improving efficiency” was a major source of stress. After all, it’s a challenge that, if left unaddressed, can slow growth and strain resources. Yet many businesses already have the tools to improve their efficiency they simply struggle to identify inefficiencies within their operations and implement change effectively. As Chad Gates, Managing Director of Pronto Software, explains: “Efficiency isn’t just about cutting costs. It’s about making sure you’re doing what you need to do in the best possible way.”
So what’s holding businesses back, and how can they streamline their operations for long-term success?
Common efficiency roadblocks
Most businesses face multiple, interrelated challenges when trying to improve efficiency:
- Rising business costs: Inflation, wages and supply chain expenses are squeezing margins.
- Regulatory and compliance burdens: Changing policies create compliance challenges.
- Talent acquisition and retention: Shifts in the labour market have made it harder to keep skilled employees.
- Economic uncertainty. Fluctuations in demand and geopolitical risks make long-term planning difficult.
Beyond external pressures, internal business dynamics such as; leadership structures, decision-making bottlenecks, and outdated workflows can also limit efficiency.
Why inefficiencies persist: three major barriers
1. Lack of visibility
Many businesses operate without a clear, real-time understanding of what’s causing their business to underperform. Disconnected technology systems and manual processes create blind spots, making it difficult to track performance. Another major contributor to this issue is paper-based processes. Manual paperwork slows operations, increases costs, and leads to errors.
2. The “But we’ve always done it this way” mentality
While improving efficiency is critical, resistance to change remains a major hurdle. Many businesses cling to legacy systems because they feel familiar, or because they fear disrupting daily operations. This often leads to unnecessary tasks within the business’s processes, such as manually entering the same data into multiple systems instead of using integrated software solutions. “Sometimes there’s an unwillingness to dust off the skeletons in the closet because it seems too hard,” says Mr Gates. “But avoiding change often leads to bigger inefficiencies down the track.”
3. Trying to fix everything in-house
Many family businesses prefer to solve challenges internally, assuming that external expertise isn’t necessary. However, objective insights can help leadership teams uncover hidden inefficiencies and avoid costly trial-and-error mistakes. According to the Business Barometer survey, two-thirds of family businesses are not seeking external guidance, which potentially limits their ability to identify and implement the best solutions.“Believing you can fix everything yourself can be false economy,” says Mr Gates. “Sometimes, just a conversation with a peer or an adviser can unlock an efficiency you’ve overlooked.”
Three ways to improve efficiency
To improve efficiency and get tangible results, you need to review your business operations across the board. Here are three things to consider, with actionable steps you can take.
1. Invest in employee training
Many businesses have the right tools but aren’t using them effectively. Upskilling employees can help businesses maximise the value of their existing technology. Beyond technology training, mentorship programs and clear career pathways can help retain talent, particularly for non-family employees who might otherwise leave due to limited growth opportunities.
Actionable steps:
- Conduct internal training to ensure employees understand the full capabilities of existing tools and technology.
- Assign technology champions to help teams troubleshoot and optimise their use of technology.
- Invest in ongoing learning to keep staff updated on new efficiency-boosting features.
2. Re-evaluate internal processes
Automation is one of the most effective ways to boost efficiency, especially for time-consuming administrative processes such as payroll, invoicing, and inventory tracking.
Actionable steps:
- Automate approvals and invoicing to reduce administrative delays.
- Use predictive analytics to improve inventory and cash flow management.
- Replace paper-based processes with digital workflows for faster decision-making.
3. Track and measure efficiency gains
One common mistake that businesses make is failing to measure efficiency improvements after they’ve implemented changes. “If you don’t track efficiency improvements, you can’t know whether your efforts are paying off,” says Mr Gates.
Actionable steps:
- Use Enterprise Resource Planning (ERP) reporting tools to track cost savings, processing-time reductions and inventory turnover rates.
- Set clear key performance indicators (KPIs) before implementing automation, such as “reduce invoice processing time by 30%."
- Review data regularly and adjust your strategies based on real-time analytics.
How Enterprise Resource Planning (ERP) software can help improve operational efficiency
ERP systems streamline business processes by integrating all departments into a unified system, ensuring accurate and real-time data sharing across teams. They allow businesses to automate routine tasks, such as invoicing and inventory tracking, reducing manual effort and minimising errors. Additionally, ERP systems provide insightful reports and analytics, enabling faster decision-making and improved resource management for greater operational efficiency.
Make efficiency a business priority
If “improved efficiency” is on your business wish list, it’s time to take the first steps. Start with quick wins, such as process automation and better technology adoption. Ensure your employees are properly trained, so you can minimise staff turnover and maximise the potential of your existing tools. And last but not least, don’t hesitate to seek external expertise even if you’re just attending networking events and chatting to industry peers. As Mr Gates puts it: “Improving efficiency is a journey. By investing in the right tools and mindset, family businesses can create a leaner, more agile and future-ready operation.”
About Pronto Software
Pronto Software is an Australian developer of award-winning business management and analytics solutions. Pronto Xi, our flagship ERP software, integrates accounting, operational and mobile features in a single system optimising business processes and unlocking actionable insights. Over 1,500 organisations have leveraged our industry experience and innovation to increase growth and revenue.
For more information, visit pronto.net
