03/12/2021
On the topic of how to set up a business, I have already written in an article about how to organize your business. But since establishing a business is not the easiest thing, let's return to this topic again. In the future, we will probably come back again. In today's article, I will share my opinion on how to set up a business in terms of its systematization, i.e. the division of business processes into several subsystems and their integration and organization.
I would like to note (although for you, the reader, from the point of view of running your own business, it may be insignificant) that I placed this article in the heading “Starting a business”, and not “Doing business”, although, probably, the second would be more correct. But I think that it is necessary to establish business processes at the very beginning of your business, so the article is placed in the “Start of business”. Although I understand that for a completely novice entrepreneur, this is not the easiest task, but it is necessary to strive for this.
how to set up a business
How to set up a business or what needs to be done to improve it?
First, it is important to note that the business is a single entity, and its division into separate elements is done from a practical point of view. It is true that there are different business processes with different intermediate tasks and goals, but they are very interdependent, and in the end they are still responsible for a single result – profit. Profit is the ultimate goal of any business, it is not discussed.
So, what business systems need to be set up? I list some:
The system of organization of work in business.
The system of motivation and personnel management.
The communication system at the enterprise.
Communication system with clients (existing and potential).
A competitor and market tracking system.
The system of training, growth and development.
Systems that are closely related to the specifics of a particular business.
The list, of course, is not exhaustive. All these processes, in fact, are part of some more global business process that we are trying to establish. For example, personnel training and communication in an organization are part of HR, tracking competitors and the market is marketing, etc.
What am I talking about? Yes, to the fact that it is very important to systematize your business to the last link like this, and improve each of them. One weak link can have a bad effect on the business as a whole. Just like, for example, if one part of the car fails, it will not go. This is the interaction in the system. By replacing one part of the car, you have repaired the whole system – the car has gone. It can be the same in business: systems are arranged like this – many elements, one whole.
And again, why am I telling all this? The article is about how to set up a business. In order to properly establish a business, friends, it is important to understand it as a system, sort it out and consider each individual business process as an opportunity to establish and improve the business as a whole.
How to systematize and improve the business?
To help you systematize your business, I made a small questionnaire, answering which, you will be able to understand more deeply all the 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 does your business and/or industry work?
For example, you have a home appliance store. That is, you are engaged in sales of equipment. What does this mean? This means that you have to buy 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 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 turned out. Each of these processes most likely has its own subprocesses, let's say. For example, organizing a sale may imply that you will have to train your sales staff in particular. Well, let's say I can't know, maybe they are professionals :-). Or, it is clear that in terms of marketing, you need to think about how and where you will advertise. And so on. So much for a certain systematization of business.
2. Which of the processes has the most significant impact on profit in my business?
Here, rather, it is immediately clear, but nevertheless. It's immediately clear, because I believe that marketing is the most important thing in any business. Attracting new customers and retaining old ones. The essence of the question is more about which factor is in second, third place, and so on. I have already given the first one :-). To make a rating of some kind. In general, it is necessary to understand the interrelationships of all these processes and determine priorities. That's what I meant. It sounds better this way :-).
3. How can the currently prioritized business process be improved?
You have compiled a rating (in which marketing is always in the first place in advance, I warned you :-)) and are you really starting to think about how to set up a business process? Exactly the one that is the priority. Look for solutions as much as possible. When you were able to establish one business process, you have already started to establish the business as a whole. Then the next process and so on, and so on around. Even by the fact that you better understand how your business works and how business processes interact with each other, you have already made a huge step towards the competent organization of your business, do not doubt.
