Efficient business processes help small business owners to measure the productivity and gauge the performance of their businesses. Maintaining an operations manual is a good idea, as it enables business owners to redefine or update existing policies and strategies.
The different types of business processes that help you to run your business profitably are listed below:
They can be further categorized as follows-
1. Prospecting – This process includes listing all those activities that you need to carry out in order to attract prospective clients and customers for your products and services. You need to clearly figure out and define the steps in the operations manual to meet desired targets. Also keep close track of the results, to gauge the effectiveness of the system.
2. Prospect Conversion – This includes determining and defining of steps in order to convert your prospective clients and customers into real ones. It helps you to evaluate the steps that you need to take so that your prospects can gain a better understanding of your product and service. It allows the small business owner to give the prospect a compelling reason to sign a business deal or buy the product or service.
The Accounting Processes
These are considered to be the backbone of any business, and can be classified into the following:
1. Cash flow – Regulating and maintaining constant cash flow is very important for any business. You need to assess how much cash is required in order to keep your business running on track and then accordingly develop strategies to review the cash flow from time to time. In addition to this, you also need to determine adequate methods to handle possible overflows or shortages of cash.
2. Payroll – An efficient payroll system guarantees that your employees will be paid on time and with accuracy. Your workforce is an integral part of your business and should not be taken for granted. You need to define a process with clear time periods and methods like bonuses and pay increases that will be used to reward your employees for their efforts.
3. Billing Systems – A sound and stable billing system is a financial necessity for any business. You need to devise a system that regularly generates bills and informs vendors and customers when and how much is due – otherwise, your cash flow may be adversely affected.
4. Bookkeeping Systems – You need to be constantly in touch with the financial condition of your business – including the cash inflow and outflow and all other related financial issues that ensure profit. Having a good bookkeeping process is imperative for the good health of your business, as it greatly influences decision making. It will also help you to evaluate whether your other business plans and strategies are working effectively. This system can be implemented through software or by hiring an accountant.
The Personnel System
Is grouped into the following:
1. Appraisal – An efficient appraisal system for evaluating and measuring the performance and productivity of your staff is very important for the growth of your business. You need a business system that constantly gauges the progress of each employee and then provides feedback.
2. Hiring – The hiring system should consider and address all issues associated with the recruitment process. Having efficient business processes is not a complicated as it may sound. By following the tips above, you can ensure that each process works together to make your business profitable and successful.