How to establish a business

To establish a business is not the easiest thing in today's article I will share about how to establish a business from the point of view of its systematization, i.e. the separation of business processes in multiple subsystems and their integration and organization. I think that you need to establish business processes at the very beginning of their business, although I understand that for very first-time entrepreneur is not an easy task, but the need to strive to do just that.

How to establish a business or what to do to improve it?

What are the business processes you want to establish?

First, it is important to note that the business is a single entity and its division into individual elements is done from a practical point of view. It is true that there are different business processes with different intermediate objectives and goals, but very interdependent, and in the end still responsible for the single result – profit. Profit is the ultimate goal of any business is discussed.

So, what business systems need to establish? List some:

• The system of work in the business.
• The system of motivation and personnel management.
• Communication system in the enterprise.
• System of communication with customers (existing and potential).
• The tracking system for the competitors and the market.
• System learning, growth and development.
• Systems that are closely connected with the specifics of a particular business.

The list is certainly not exhaustive. All these processes are, in fact, are part of a more global process that we are trying to establish. For example, staff training and communication in organizations – part HR monitor competitors and market marketing etc.

And again, I tell you all this? The article's about how to establish a business. In order to properly establish a business, friends, it is important to understand it as a systemto sort through and consider each business process as an opportunity to establish and improve business in General.

How to systematize and improve the business?

To help you systemize your business, I made a small questionnaire, the answers to which you will be able to more deeply understand all business processes in your own business. Do not think that this requires some kind of special training or resources. All you need is a head on your shoulders :-).

1. What EXACTLY do you do in your business? EXACTLY how to construct your business and/or industry?

For example, you shop for sales of home appliances. That is, you are selling technology. What does it mean? This means that you should buy this vehicle (or make, if you are a manufacturer), to bring in your store to attract potential customers, sell (!) them to deliver the goods, provide service. The same thing in other words: to find a supplier (to provide the channels of communication with them), organize logistics, conduct marketing, make sales, organize secondary logistics, service and customer support. In parallel to monitor the work of employees, follow the market trends, behavior of competitors, etc.

I sketched a simple example, and here's how it happened. Each of these processes is likely to have its own subprocesses, so to speak. For example, the organization of the sale could imply that you will have in particular to train their employees to sales. Well, I don't know, maybe they are professionals :-). Or, it is clear that in terms of marketing it is necessary to consider how and where you advertise. And so on. Here you have a certain systematization of business.

2. Which process has the most significant impact on the profit of my business?

Here, rather, immediately clear, nevertheless. Once it is clear, because I believe that in any business the most important is marketing. Attracting new customers and retaining old ones. The essence of the question is more about which factor in second, third place and so on. The first I already gave :-). A rating of some kind to make. In General, it is necessary to understand the relationship of all these processes and to determine priorities. That's what I meant. So it sounds better :-).

3. How can I improve my priority at the moment is a business process?

You made a rating (which marketing always in advance in the first place, I warned you :-)) and start to really think about how to establish a business process? The one that is a priority. Look for solutions as much as possible. When you can establish a single business process that you already started to establish the business as a whole. The next process and so on and so around. Even thus that you better understand how your business is and how business processes interact with each other, you have already made a huge step towards the competent organization of your business, no doubt.

A simple example: let's say you wisely have engaged customer base, and they to you come back again and again. It is clear that you get more sales and more profits. But also other business processes will improve (unless of course you are not doing high-profile failures in other parts of the business). For example, more revenue, more budget on marketing – best marketing. More sales (and more often), then, accumulated experience, and thus the skills of your sellers. More loyal customers you have means a more stable cooperation for the vendors too – you will have to have priority. Well, and so on.

This is a very rough example, of course, but just for clarity. Each element of the system improves the system as a whole, it is the law of physics. And that business is a system, no doubt worth it.

I repeat the essence: find the lower links in the business processes, and improve each of them according to priority.

4. Something has improved? What? How is it measured?

Of course, we need to monitor and measure the results of all these "improvements". Suddenly it's not improvement for your business?