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Category - Small Business

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1
Your Organisation Chart
2
What Plans Do I Need?
3
Your Business Model
4
Barriers To Entry For Your Startup
5
What’s Your “Why”?

Your Organisation Chart

What is an organisation chart?

Put simply, it is a “tree” diagram of the positions in your business – who they are, what they do and are responsible for, who they report to, and who they supervise.

Notice I said “diagram of positions” not a diagram of people. And when I say “who they are” I did not mean the names of the current incumbent, I mean their position descriptions. This is important as I explain later – an organisation chart is about organising the roles and responsibilities in your business in the most efficient way – not about who does what right now because they are the most experienced or capable.

If you want to operate a business now, or at anytime in the future, where you are not called up[on to micro-manage every decision, to supervise every person and help them make every decision, where people in your business know exactly what to do and who to go to if they need help, then you need two things:-

  • A very clear vision of what everyone should be striving for; and
  • An organised team where everyone knows their roles and responsibilities and know what procedures they need to follow in their tasks.

An organisation chart is the start of an organised team.

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What Plans Do I Need?

It’s an old saying but oh, so true!

Business startups don’t plan to fail, they just fail to plan.

About 80% of startup businesses fail within the first three years. Yet, of the startups that had a plan, and stuck to it, less than 10% failed in the first 5 year period.

So clearly, you stack the odds on your side if you take the time to map out your business strategies before you start your business.

But what plans should you be formulating?

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Your Business Model

All businesses work through a flow of activities that connects the different parts of the business into a whole.

For most businesses, this connectivity or “business model” evolves over time. When they open their doors, they might be concentrating on producing their product or services to create a value proposition, and then they go to market and suddenly have to think about customers. As they interact with customers, they realise there are flaws in the distribution channels, which cause customer relationship issues.

In time, a hodge-podge of “how things work” and “how things work together” get boiler-plated together. No wonder some businesses look and feel inefficient and the various components of their business betray their publicised “brand.”

Let me give you an example.

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Barriers To Entry For Your Startup

When you start a business, you may have to face some “barriers to entry.”

What are “barriers to entry”?

These are in-built barriers existing in some industries and market sectors that face newcomers, making it difficult for them to start a business in that industry.

It is important as a startup to recognise and identify barriers to entry, and even more important to look at ways you can get around them – or your business may be stillborn. Let’s first look at what they are.

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What’s Your “Why”?

When you are starting a business you need to be clear about your “why” – your purpose.

Some people say “that’s easy, it’s to make money!”

Well, I disagree. If you start your business with the purpose of making money….you won’t! Your decisions will be based on yourself and not on who you serve. Your actions will be based on making money, not on the reason why you serve! You will be found out – people will see the truth behind any branding message you try to put out there.

So, what is your “why”?

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