Here’s
dilemma: You spend sixty hours a week or more working on and in your business. You know you have good employees. You know you have a good location. You advertise regularly. You know there is a need for your service or product. But, your business is still floundering. You may be making one or two critical mistakes.Many businesses make these mistakes. Some succeed in spite of
mistakes. Most close their doors after a few years. Correct both of these mistakes and your business will flourish. Your profits will increase.
You must realize that both of these mistakes are dependent on each other. You cannot correct one and expect success. You must correct both of them! If both of these problems are not corrected,
business will continue to flounder. The two mistakes are:
1.Improper organization of
business 2.Improper marketing strategies.
1) Improper Organization: As your business grows, you add more personnel to take care of certain areas of responsibility. Everyone working in a given area reports to
person “in charge” of their area. That sounds very good on
surface, but from an operational standpoint, it is a major mistake. This mistake is only compounded as
business continues to grow. It causes reduced efficiency, duplication of effort and poor communication.
How to resolve: First,
business should look at its organizational structure. It should identify all
processes that are currently being used. Each process should be thoroughly documented and evaluated. Then,
relationship between
various processes should be examined. The business must then identify what process must be done first, second, third, etc. Areas of duplication should be eliminated. Non-productive processes should be eliminated. Organizational structure should be reassigned according to
business processes.
The best way to identify and resolve
organizational processes of a business is through
use of a committee. This committee should be composed of employees from different areas of
business. It may be two employees for small businesses or it may be ten for large businesses. It will require some extra time on
employee’s part, but
potential benefits far outweigh
additional responsibilities.