Some business methods start out efficient but become less efficient over time. For example, as rules and regulations change, you may add tasks to a process to comply with the new regulation (Source: “Optimizing business processes”, InfoWorld). However, some existing tasks may no longer be required due to the change. Did you remove those tasks from the process? Likewise, changing one process may affect another process, resulting in unnecessary duplication or tasks that no longer need to be done. If secondary processes are not updated, inefficiency is the result.
Inefficient business processes can result in:
Businesses cannot afford to waste time, money, and resources. They cannot afford the risks of errors and accidents, employee frustration, and unsatisfied customers. To address these problems, improve productivity, and streamline operations, a business method must be evaluated and optimized on a regular basis (Source: “What Are the Best Tips for Business Process Optimization?”, wiseGEEK). One approach to business method optimization consists of just three steps: identify, analyze, and automate.
At the beginning of a venture, small business owners often try to save capital by performing these duties themselves or have a family member assist them. This can be a great way to save, if the core skills are there. As the business grows, and especially in the case of accounting tasks, it is advisable to have a professional take over. In the small business, it is very common to use outside entities for human resource services. In this manner, there is a better chance for a good candidate being chosen, and the cost is most always reasonable. Consider the cost of hiring, training, and then having to let them go because they were not the right fit will cost much more than just letting a professional help you.
Each of these headings can be broken down into sub-processes which can sometimes become more important than the original heading. As long as the purpose of each process is focused on aiding the consumer, it will be valuable. When you are beginning to design your processes, start with a mission statement such as ‘I want my service to evolve with technical trends’. Then you can compose a strategic management plan which is closely linked to an operational management sub-process which will include research. Another example is ‘I want my product to have 100% turnover each month’. Your process to accomplish this goal will involve the purchasing and inventory management sub-processes under the operational process umbrella.
Starting a new business is exciting and scary all at once. If you have a good business plan, enough capital, and a marketable idea, then you have a good beginning. Those things do not guarantee success; you need to continue and develop your essential business processes. Then you have a better chance of success.