How to establish a business (part 1)
On the topic of how to establish a business, I already wrote in an article on how to organize your business. But since setting up a business is not the easiest thing, let us 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 establish a business from the point of view of its systematization, i.e. division of business processes into several subsystems and their integration, and organization.
I would like to note (although for you this, the reader, from the point of view of running your own business it may turn out to be insignificant), that this article was placed under 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 their business, so the article is placed in the “Start of Business”. Although I understand that for a completely novice entrepreneur this is not an easy task, but it is necessary to strive for this.
how to establish a business
How to establish a business or what needs to be done to improve it?
What business processes need to be established?
Firstly, it is important to note that the business is a single whole, 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, this 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.
Communication system at the enterprise.
Communication system with customers (existing and potential).
Competitive and market tracking system.
The system of training, growth and development.
Systems 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 saying? And besides, it’s very important to systematize your business like this to the last link, and to improve each of them. One weak link can adversely affect the business as a whole. Just like, for example, if any one part of the car fails, it will not go. This is the interaction in the system. Replacing one part of the car, you fixed the whole system – the car went. It can be the same in business: systems are so arranged – many elements, one whole.
And again, why am I telling you all this? After all, the article is about how to establish a business. In order to competently establish a business, friends, it is important to understand it as a system, put it on the shelves and consider each individual business process as an opportunity to establish and improve the business as a whole.
How to systematize and improve a business?
To help you organize your business, I made a small questionnaire, by answering which you can better understand 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 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.