Organization: One Vital Key to Handling Growth Within Small Businesses
September 25, 2017
Once you have a clear picture of your priorities – that is your values, goals and high leverage activities, organize around them. "- Stephen Covey
Being an entrepreneur is part of the hustle. Small businesses now want a bigger piece of the "pie," and wealth is not in short supply. But one of the challenges that small businesses face is handling the growth of the business. One reason is that not all entrepreneurs were business majors in college where one would have learned to develop, oversee, and organize operations.
The thought process usually goes from: idea, to operating, to profit as the end result. And then one day it all becomes a reality, making one's way off the ground to up and running while during the planning stages- growth was not a considering factor.
Understand that just starting out with little to no employees does not require having structured systems in place because the owner usually does all the work. He or she acts as the sales person, producer of goods or services, technical support, help desk, customer service, bookkeeper and a host of other roles as the demand calls for it.
This demand is actually the growth of the business, where now it's time to bring on employees or outsource to virtual assistants the mundane tasks that can be handled by skilled workers. Many business owners will go over job duties and specific tasks that need to be handled to make the business operate as smoothly as possible. This can certainly work for a time being. But as work orders increase and customers desire more and varied types of products and services, those responsibilities need updated, improved upon, or even changed.
Sometimes, by keeping things the same, even though the business is evolving can slow up the processes of the business. Not everyone will continue to understand their specific roles and how things should be operating. Money can be mishandled; customers may not be served in a timely manner or at all, and pending issues can go unresolved. Things can really slip through the cracks and constituencies can question the owner's credibility.
This can lead to an increased amount of stress on the owner as well as causing the business to suffer; extremely leading to the owner cutting back on production or closing down the business because it has become too much to handle; especially if the money has been misappropriated and can not be recovered.
"To be in hell is to drift; to be in heaven is to steer." George Bernard Shaw
It does not have to be that way. If you are a new business owner, or if you perceive that your business is about to take off exponentially, it may be time for you to implement proven organization to your business. Do so by documenting how tasks are to be performed. This means that you will have to develop training materials, an employee handbook, a handbook of policies and procedures. All of these organizational tools can keep your employees or virtual assistants accountable, so that everyone is held to the professional standard that you have set for your business. And if your business requires everyone to have a laptop, specific software geared towards your industry, printers, and filing cabinets, then go ahead and invest in these tools to handle the growth of your business. Ultimately, it is in the best interest of your business.
If the growth of your business happens before the big profits come in, then do not sweat it. Just apply for business credit. It can cover your costs without affecting your credit file negatively. A personal can qualify for up to $ 75,000 for a new start-up and $ 150,000 for a seasoned business. One of the great benefits of using business credit as compared to personal credit is that that does not report to personal credit reporting agencies and the credit can be converted to cash to pay those new employees. It can pay the outsourcing costs of any virtual assistance and it can be used to purchase the tools needed to keep up with the growth of your business.
Business credit cards are based on a personal guarantee. So, there are certain criteria that must be met to be approved: 720 credit score, 30% debt-to-credit ratio, no bankruptcies, no foreclosures, no missing payments in the past 24 months of making application, one or more credit cards with a $ 5,000 maximum limit and a 10 year personal credit history. And if you are short on any of these criteria mentioned, you can receive mentorship from business credit card consultants on how to meet those must-haves.