Learning the 10 essential steps to organize your business would be interesting to Business Owners, Employees and any one in a Leadership Role or want to be!
But, practicing these would test your time, energy and patience. All professionally managed businesses have mastered these, for its advantages and assured results. You too can……
Have you ever packed your luggage for a travel?
Then you obviously know, what is organizing. We need to stack each and every item (clothes, travel kit, medicine, gadgets) needed during the travel inside a travel bag. Which need to be well arranged and compact to the maximum. Once done, you have everything within your reach. Meantime we don’t carry unwanted items. Lesser the luggage higher the ease of handling.
Same is applicable when you organize your business. Everything required (men, machinery, materials, method & money. Better known as 5M Principle) are intact and available when needed. Organized businesses have single point of control for all its operations. Organized companies do not carry unwanted stuff, whether it is stock or people or even scrap. In short, you are driving your business with lesser effort for a higher output.
When is the time for Organizing Your Business?
Best time for planting a tree was 10 years back. And second-best time is now. Same is for organizing your business. (If you have done this recently then no need. Just quickly go through the 10 steps. You may find some of them useful). If have not done this recently (or never) or if you are building up your company, then best time begins today.
What you gain by following these 10 essential steps?
Organizing the businesses lead you to major four results,
Higher Efficiency
Efficiency = Output / Input. When you organize your business, you shall be able to bring down the inputs required (like, energy, manpower, raw material, time, cost, inventory, process). While business inputs are optimized on one side, increased results (production, employee productivity, sales) are produced on the other side .
Better Effectiveness
Effectiveness = Is the capacity to produce desired result in every business function (sales, production, logistics, financial accounting, HR)
Business Growth
In terms of Sales, Volume, Market Share, Customer Base, Product Line, Brand Building etc.
Profitability
Increased Revenue, Additional Sources of Revenue, Reduced Expense, Cost Controlling, Lean Inventory, Reduced Cost of Production.
10 essential steps to organize your business are given down below,
- Gather Business Information
- Form a Leadership Team
- Do Mind Mapping
- Set Organizational Goals and Targets
- Define Performance Parameters (KPI, KFA, KRA)
- Generate MIS (Management Information System)
- Set Target
- Track Performance & do Performance Review
- Monthly Budget
- Income Statement
Conclusion – Implementation and regular and continued practice of the above-mentioned steps will make your companies operation structured and focused. Point to remember is that none of these steps can be achieved in one shot. It is the consistency matters not the pace. Your accounts and HR members play very important role throughout in this process. These are the tools which helps your management process solid.
