How to Develop Business Process in a Small Company by following this article, you should develop a process oriented business instead of a personality oriented business so that you can whether you are relaxing in a five-star hotel of Dubai or devoting time to yourself at peaceful place but your business keeps on growing without your presence.

How to Develop Business Process in a Small Company

Introduction

• Do you have to invest further time in your business?
• Is your presence must to perform the daily actions in your business?

One of the common problem faced by the new startups and business owners is to develop business processes.

There are two types of businesses - Personality Oriented Business & Process Oriented Business.

Personality oriented businesses are like Thaggu K Laddu and Gupta Burger Wala. If these people do not go to their business shops, the quality of their products will decline. In other words, their business shop cannot function in their absence.

On the other hand, process oriented businesses is like McDonald's, wherein the presence of the founder is not needed to run the business. Their consumers don't even know the founder, they only know McDonald's.

You should develop a process oriented business rather of a personality oriented business so that you can whether you are relaxing in a five-star hotel of Dubai or devoting time to yourself at peaceful place but your business keeps on growing without your presence.

How is it possible?

It will only be possible when SOPs are developed in every department of your company.

Also Read: 3 Powerful Strategies To Make Your Clear Goal

Standard Operating Procedure (SOP)

If you want to transform your business from personality oriented business to process oriented business, you have to develop Standard Operating Procedure (SOP). Benefits of the SOPs are as follows:

1. Business Scale-up

SOP will help you in scale up your business fast and getting a J-curve in your business.

Suppose your home branch is in Rajasthan and you want to start new branches in Delhi. In such a case, you develop Standard Operating Procedure (SOP) and manuals in Rajasthan branch and send them to your newly opened branches in Delhi.

Now, the new branches will also start following the business processes and procedures that you are following in Rajasthan. This will help you in the fast expansion of your business.

2. Efficiency

SOP helps you in rising the efficiency of your business processes.

3. Quality

SOP helps you in keeping the quality of your product and business processes consistent. This makes your quality parameters the same.

4. Uniformity in Performance

SOP helps in keeping the same performance of your business processes. This means that your outcome will remaining the same.

5. Reduce Miscommunication

SOP also reduces the chances of miscommunication in your association. This also decreases the chances of failures.

Strategy and Execution Standard Operating Procedures (SOPs)

Make SOP for execution; Do not make SOP for strategy in the starting.

Keep the Strategy with you as you are the owner of the business.

But, you can make the SOP for the execution so that your business processes keeps on going and you can bring automation in your business.

How to make your business automated?

To bring automation, identify the business activities that are either repetitive in naturally or done most frequently. Make a list of such these activities.

Start making the frameworks of execution or SOPs to perform these activities.

These frameworks or SOPS will help you in making the performance management excellent of your company.

Performance management will help you in recognize high performers, low performers, and no performers of your company. This is because now you can easily measure the performance of your workers with the expected outcome as per the designed SOPs.

Knowledge Loss Risk in Small Businesses

Due to the lack of SOPs, the knowledge loss risk increases of small businesses. That's because business processes are neither in a well-written manual nor properly formatted.

The complete business process is in the mind of your expert employee as he is doing it with his expertise and you become dependent on him.

Now, your business is again personality driven rather than process driven. When this employee leaves your company there will be a loss of knowledge for the company.

If you have the knowledge data of your expert employee on the paper in the form of a written manual, it will bring repeatability in the business process.

In addition, when you hire a new employee in his place, then the training cost of the company decreases because the manual is ready.

You just need to hand over the manual to the new employee and ask him to go through it.

Once he finished the manual, take the assessment of the employee whether he is able to understand it or not.

If he scored less marks, then explain him and ask to read the manual again. Now, take the assessment again.

Your new employee is ready in one week and gets on his work.

Steps to Develop SOP

1. Identify the problem for which you need to make the process

Determine the department in which you are facing frequent crisis in the quality, productivity, outcome, calculation, accounting, or sales.

Write the problem of the department so that we can make a goal to achieve and develop a process for the same.

This is because we need to have the direction first to take the decision.

2. Build the process boundary

After identifying the problem of business and setting the goal, you need to define the boundary of the business process.

Boundary means to identify the A (start point) to B (end point) of the business process. You first need to decide the first and the final step of the process.

For example:

You want to develop a process of making a burger.

First step in this process will be to purchase raw materials of burger like bun and the ingredients of tikki.

Final step in this process will be the consumption of your product by the customer.

All the steps involved in the making of burger will come in between the first and the final step.

Identify the look and feel of the final outcome.

Also, determine the input required in between to reach the final output.

3. Brainstorm all the activities with your team

Write down all the activities required to complete the process and sequence them. Determine the manpower required for performing different activities.

You should brainstorm around all the best practices.

For example:

Identify the person who makes the best burger. Now, observe his process of making the burger. This will include the amount of ingredients he uses, the heating time of the ingredients, etc.

Write his complete process of preparing a burger. Use his sequence of activities. Also, determine the manpower required in different activities.

4. Put the Process in the Flowchart for Integrated review

It includes three points-

Process Role - Decide the task of every employee.

Flow Chart - After assigning the task, make the sequence in which the tasks will be performed.

Integrated Review - The team will do an integrated review, which means that they will decide how much work will be provided by whom.

5. Kill the Potential Problems in the Advance with RACI Matrix

When you make business processes, the problem will come like processes will break, quality issues may occur, a wrong quality product or service reaches to the market, etc.

So, before these problems occur, make a RACI matrix to avoid such problems.

R - Responsible - Decide who is responsible to perform a particular activity in the business process

A - Accountable - Decide who will be accountable for a particular activity in the business process. He will be the person who needs to take care that the activity is done properly.

C - Consulted - Decide who can help the "Responsible" and "Accountable" people, if they are not getting the desired output. He is a super specialist.

I - Informed - Decide who will be the informed person. He is the head of the complete branch.

I Do, We Do, You Do Model

I Do - First, you need to perform the business process in front of your employee so that he can learn the process.

We Do - Now, you have to perform the business process along with your employee or junior.

You Do - In You Do step, you supervise the work of your junior.

If you implement RACI Matrix and I Do, We Do, You Do Model in your business, then you are able to build a high-performance team.

Must Read: How to Create a Business Model