What a business depends on - 5 digits that an entrepreneur must know (part 2)
5. Lifetime value of the client / Cost of attracting one client This indicator will allow you to understand how much you will get back from each invested ruble. In…

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Car rental as a business idea
Many of us have long been planning to open our own business and work only for ourselves. However, among many business ideas, people are lost, afraid to invest their hard-earned…

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How to sell goods well - learn from Amazon
How does Amazon sell products? As I said, we’ll just go point by point along the route that is offered to the visitor on the site. And we will, of…

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How to establish a business (part 2)

2. Which of the processes has the most significant impact on profits in my business?
Here, rather, it’s immediately clear, but nonetheless. It’s immediately understandable, 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, you 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 made a rating (in which marketing is always in the first place in advance, I warned you :-)) and you start 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), therefore, 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.

You must say this (and document, of course), by what criteria the result is evaluated, what zone of responsibility of each, what, how, by whom and when it is carried out, etc. And this applies to all the items on this list. Just clarify the work. That’s all. Of course, theory is theory, and in practice, everything is different, but nonetheless.

So, to summarize: The easiest way to establish a business is to systematize individual business processes in your business and improve each of them. In other words, to establish a business is, first of all, to understand the interaction and influence of different processes on each other, and then competently and extremely clearly organize the rules for their implementation in such a way that this leads to an improvement in the whole business.

Copying a business, or how to capitalize on other people's ideas (part 2)
How to capitalize on other people's ideas, or how to copy a business? Firstly, a little reservation. I do not want to say that the world does not need new…

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Industry Analysis through 40 Questions (part 2)
Competitors and Competitive Industry Analysis 22. How many competitors in this industry? Analyze your piece of the market, i.e. those with whom you are really competing. But be aware of…

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How to increase profits in your business (part 1)
If you are an entrepreneur, then you simply have to constantly ask yourself the same question - how to increase profits? Profit - this is business. The whole point of…

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List of activities requiring a license (part 3)
38) Activities for the production of copies of audiovisual works, programs for electronic computers, databases and phonograms on any kind of media (except if the specified activity is independently carried…

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