If you run a business, then you have processes. It’s part and parcel of being a business owner. But the difference between the companies who grow and scale efficiently and those who struggle is not having processes, but knowing what they are. There are thousands of businesses out there who go through processes every day, but don’t really understand what their processes mean or even why they’re doing it. So today, we wanted to explain why you should take some time to understand what your business processes are, and how you can improve them.
But First, What Is A Business Process?
Simple. By definition, a business process is an activity, or a set of inter-related tasks that, when completed accomplish a pre-defined goal. Your monthly bookkeeping is a process, admin is a process and your service delivery is a process. While the content and goals of a process can vary wildly depending on your business, the basic steps are the same:
Why You Need To Understand Your Business Processes
Knowing how your business operates is an essential part of growing your business. Knowing what your essential business processes are makes it possible for you to choose tools that will help you improve your efficiency, productivity and profitability. Mapping out your business processes also shines a light on any gaps you might not have noticed, and helps you gain a deeper understanding of your business and set appropriate priorities. When you bring in new staff, or outsourced services, understanding how you work will allow you to brief them better, and get better results. Ultimately, understanding your business processes is a crucial step in building a successful, scalable business model.
Common Business Processes
Every business will have different processes. It all depends on what you do, how you prefer to do things and even the number of people involved in any given task. But there are some business processes that are pretty universal. Just a few examples that generally apply to most businesses include:
- Managing financial and psychical assets
- Developing new products/services
- Creating business and marketing plans
- Raising funds
- Managing human resources
- Billing and revenue collection
- Customer development and support
- Managing IT assets
Your business probably has a lot more processes than this, but you can use this list as a starting point. Once you’ve identified what all of your processes are, you can start to map out the steps involved in each, and see where you can improve things. This is a process in itself, but it is essential to creating a robust business. And as they say, Rome wasn’t built in a day.
At Scale Up Solutions, we love helping business owners really dig into their business processes and gain a better understanding of how their businesses work. We can then use that information to showcase growth opportunities, and help you create a strong, scalable business. Discover how we work.
If you’d like to find out more about how we work, or about business processes in general, please get in touch with us today.