close

The 5 Essential Elements of an Efficient Business

Business Meeting by Thinkstock.
Image credit - Thinkstock

People and process are more important to your success than that idea that you’re in love with.

An idea is not enough. The people and the process you need to actualize the idea consistently is more important. These tips will give you pointers on how to achieve premium results and a smooth running system.

1. You need to master the art of management.

The success of a business is not a function of the product alone. In fact, many times the product is not really what sells. Organization is all about management, and great management can sell anything. Good management is a technical discipline – something you must apply yourself to. A big successful business doesn’t come from a great idea and a lot of capital. The entrepreneur trail is lined with casualties of those who thought the same.

2. You get great people by treating people great.

When you are just starting out, attracting top notch talent is difficult because people aren’t always willing to take a gamble with their livelihood. At this time, it is better to have a small crop of talented people than a large crop of dead weight. You must be willing to grow an organization slowly. You will literally have to be everywhere, work closely with every person in your small staff. If you can get the right group of people and treat them right, you have already taken giant strides.

3. Track your cash.

One key thing you must learn to do is to manage your cash flow – your accounts receivable (sales) and your accounts payable (expenses). Put together a cash flow budget. You can’t predict everything, of course, and surprises happen, but do your best with what you know. If you have the cash on lock down, the planning process is easier.

4. Process. Learn to do the right things in the right way.

People are the backbone of any organization, but process is also an equally vital foundation. “Process” is the series of actions you take in order to achieve an intended outcome or result. Before you even venture an idea or attempt to expand your business into another area, you must be able to wrap your head around the different defined actions that would yield you that picture in your head. Let your staff learn the process, and if it isn’t working as well as you thought, check to see if you are doing the right things right.

5. Tech it up.

In 2017, there is no smooth running organization without suitable tech. The present need for technology cannot be over emphasized for two reasons – customers are getting used to it and technology has actually become much smarter than when you last checked. You may have the best structures, but without the most suitable technology and internet resources, you will still keep stuttering.

 

 

 

Source: Entrepreneur

 

Tags : Chidike Samuelson
admin

The author admin

Leave a Response