How to systematize and improve a business?
To help you organize your business, I made a small questionnaire, by answering which you can more deeply understand all business processes in your own business. Do not think that this requires any special training or resources. All you need is a head on your shoulders :-).
1. What exactly do you do in your business? How exactly is your business and / or industry structured?
For example, you have a home appliance store. That is, you are selling equipment. What does this mean? This means that you must purchase this equipment (or maybe produce it if you are a manufacturer), bring it to your store, attract potential customers, sell (!) To them, deliver the goods, provide service. The same thing in other words: find a supplier (provide communication channels with them), organize logistics, conduct marketing, organize sales, organize secondary logistics, service and customer support. Plus, in parallel, monitor the work of employees, monitor market trends, the behavior of competitors, etc.
I sketched a simple example, and this is how it happened. Each of these processes most likely has its own subprocesses, let’s say so. For example, organizing a sale may mean that you will in particular have to train your employees in sales. Well, let’s say I can’t know, maybe they are professionals :-). Or, it’s clear that in terms of marketing, you need to consider how and where you will be advertised. Well and so on. Here you have a certain systematization of the business.
2. Which of the processes has the most significant effect on profits in my business?
Here, rather, it’s immediately clear, but nonetheless. It’s immediately clear, because I believe that in any business the most important thing is marketing. Attracting new customers and retaining old ones. The essence of the question is more about what factor is in second, third place and so on. I already gave the first :-). Make some rating. In general, we need to understand the interconnections of all these processes and determine priorities. That’s what I meant. That sounds better :-).
3. How can I improve the current priority business process?
You have made a rating (in which marketing is always in the first place in advance, I warned you :-)) and you begin to really think how to establish a business process? It is one that is a priority. Look for solutions as much as possible. When you were able to establish one business process, you already began to establish a business as a whole. Next is the next process and so on and so forth. Even by the fact that you better understand how your business is structured and how business processes interact with each other, you have already taken a huge step towards the competent organization of your business, do not hesitate.
A simple example: let’s say you have correctly established work with the customer base, and they will come back to you again and again. It is clear that you will get more sales and more profit. But other business processes will improve (unless, of course, you make big mistakes in other parts of the business system). For example, more profit, more marketing budget – better marketing. More sales (and more often), which means that experience is accumulating, and thereby the skill of your sellers. More regular customers you have means more stable cooperation for suppliers too – you will have priority over them. Well, and so on.
This is a very crude example, of course, but just for clarity. Each element of the system improves the system as a whole, this is the law of physics. And the fact that business is a system is beyond doubt.
I will repeat the essence: find the lowest links in business processes and improve each of them in priority.
4. Has something improved? What exactly? How is this measured?
Of course, you need to monitor and measure the results of all these “improvements.” Suddenly, this is not an improvement for your business? 🙂 In general, as I always say, control and analysis, friends. Only in this way can you be sure that you are on the right track and will be able to establish your business.
We establish the main business systems in our business
Let’s go back to our list of basic business systems and processes, which I have posted above and discuss it in more detail. Items on this list are required in any business. True, with varying degrees of priority in different types of business. Do not think that there are big words, and that this is a difficult task. How to establish a business, in fact, is not such an insurmountable question.
All that is needed (from the point of view of today’s article) is the creation of certain rules and schemes, according to which the work will be carried out in your business. Well, setting up an enterprise, if you prefer. Simply put, there must be some kind of internal routine. That is, do not let everything flow. I can’t tell you here how this should look. Moreover, not all types of business are the same, or rather, completely different. But one thing I can say: a business needs to start with the fact that YOU, at the very beginning, must determine the rules of the game in your business and monitor their compliance.