In the last blog, we talked about the fact that tasks in your business are nothing
However, business habits must be deliberately planned and designed and adapted when change occurs.
And when your business grows or the circumstances change, these habits need adaptation. The aim of these changes, the systematic design of processes is to make your business better every day.
I am creating a guide in the next blog posts that will help you recognize when and how you make changes in your company. And the advantage is on you with the flexibility of a small business.
It would be nice if you had a kind of warning system that shows you when it is time for a change.
The good news is: This warning system exists.
The bad news is: You need to recognize the warning.
But let’s start from the beginning. There are two sources that induce a change in the business structure.
It is either an external influence – e.g. Economic changes or new technologies. Or it is an internal influence – such as your team or the business structure itself.
Let’s take a closer look at these external influences:
Economical: In your market are other suppliers with the same or a very similar offer. There are suppliers, human capital in the form of qualified employees and various political measures such as credit and inflation. All these things influence your business.
And they make changes (often) necessary.
Technological: New technologies are constantly being developed. These often lead to the need for different offers. Likewise, new technologies will change the work within one’s own company.
Sociological / Cultural: This area contains the values, norms, and habits, as well as the demographic characteristics of the society in which your business operates. They influence how your business will change in the future. Not only in the market but also internal changes in the way your business presents itself on the market.
Politically: Politics can have an extreme impact on your business, e.g. by changes in the law and new regulations, or the increase or remission of taxes. A sub-area is the globalization, which is regulated by the legislation. Every business is affected by globalization in some way. This is reflected in various crises we already have experienced.
All these influences must be observed to react promptly and correctly and perhaps even gain an advantage.
And when we are here, let’s look at the internal influences, so everything within your business.
Employees (hired and outsourced): Your employees are your biggest asset. Their knowledge and motivation is a key factor for the success of your business. Changes are often started by employees. They often recognize early when something is not running smoothly. Therefore, it is so important to always treat your team with respect and value their input.
System / Processes: The system describes the relationship between the employees, the individual areas, and the clients. Every task, every role, and every rule are anchored in it. The system of a business consists of processes and standard procedures, which are all the connected tasks in your business. It should always serve the efficiency and effectiveness of the business and therefore needs regular analysis and adaptation to new circumstances. As your business grows, the processes themselves can lead to a change. When the circumstances change so much that the formerly designed processes no longer meet the new requirements and (even) become an obstacle.
As you can see, there is always a reason to question your business structure with regard to the external influences and the internal structures. And to follow these results with needed adaptations. To wait for this to become a pressing necessity is a very risky way of doing
business. Making changes and consolidating in your business takes time – depending on the size of the changes it can be weeks or even months. Time you may not have. Or time in which you may lose a lot of money due to the high pressure combined with the new processes that need settling.
Next week we will be talking about warning signs that you need to assess your business processes and procedures.