Small and medium-sized businesses (SMEs) account for a large portion of the UK economy, with many of them playing an important role in creating jobs and driving economic growth.
While SMEs may lack the resources of large businesses, they can still be successful if they have a well-defined business structure.
This overview will explain how a great business structure can help an SME business to succeed and what steps can be taken to achieve success.
What is a Business Structure?
A business structure is a set of rules and guidelines that define how the business is run. It includes all the roles and responsibilities of each position in the business, as well as how decisions are made, how resources are managed, and how employees are rewarded.
A great business structure should be flexible enough to adapt to changing market conditions and customer needs, while also providing clarity and direction.
How Can a Great Business Structure Help SMEs Succeed?
Having a great business structure in place is essential for SME success. A well-defined business structure helps to create a clear line of communication between the company’s various departments, which in turn helps to improve efficiency and productivity. It also helps to ensure that everyone in the business understands their roles and responsibilities, enabling them to work together to achieve the company’s goals.
Great business structures also help to ensure that the company’s resources are used in the most effective way possible. This helps to maximise profits and minimise losses, which is essential for long-term success.
As well as helping to optimise operations, a great business structure also helps to ensure that the company’s strategy is well thought out and achievable.
What Steps Can Be Taken for Success?
When it comes to creating a great business structure, there are a few key steps that SMEs can take.
1. Define the Company’s Goals and Objectives: The first step is to clearly define the company’s goals and objectives. This will help to ensure that everyone in the business is working towards the same goals and that resources are being used in the most effective way possible.
Business Goal Template
1. What are the overall goals of your business?
2. What specific objectives do you need to accomplish to reach these goals?
3. What timeframe do you have to complete each objective?
4. What resources, personnel, and skills do you need to achieve each objective?
5. How do you plan to measure success for each objective?
6. What risks or potential obstacles could hamper your progress?
7. How will you adjust your objectives if they are not met by the given timeframe?
Create a Clear Chain of Command:
It is important to create a clear chain of command, with each role in the business reporting to a higher-up in the organisation. This helps to ensure that everyone is on the same page and that decisions are made in an organised and efficient manner.
Chain of Command Template:
1. Business Owner: ___________________________________________
2. Management Team:
a. ______________________________________________________
b. ______________________________________________________
c. ______________________________________________________
3. Employees:
a. ______________________________________________________
b. ______________________________________________________
c. ______________________________________________________
3. Line of Authority:
a. ______________________________________________________
b. ______________________________________________________
c. ______________________________________________________
4. Responsibilities:
a. ______________________________________________________
b. ______________________________________________________
c. ______________________________________________________
5. Reporting:
a. ______________________________________________________
b. ______________________________________________________
c. ______________________________________________________
3. Establish Clear Policies and Procedures:
Establishing clear policies and procedures is essential for SME success. This will help to ensure that everyone in the business understands their roles and responsibilities and that the company’s operations are running as smoothly as possible.
Template for Establishing Policies and Procedures
1. Introduction:
Begin by introducing the purpose of the policy and procedure document and provide general information about the company and its goals.
2. Scope:
Define the scope of the policy and procedures and outline the areas to which it applies.
3. Policy Statement:
Provide a clear statement of the policy and the objectives that it seeks to achieve.
4. Definitions:
Define any relevant terms or phrases that are used throughout the document.
5. Procedures:
Outline the procedures to be followed in order to ensure compliance with the policy.
6. Responsibilities:
Assign specific roles and responsibilities to ensure that the policy is adhered to.
7. Monitoring and Review:
Set out how the policy will be monitored and reviewed to ensure its effectiveness.
8. Legal Requirements:
Outline any relevant legal requirements that must be complied with.
9. Appendix:
Include any additional information that might be relevant to the policy and procedures document.
4. Develop an Effective System of Rewards and Incentives:
An effective system of rewards and incentives will help to ensure that everyone in the business is motivated to work hard and achieve the company’s goals.
Establish a Goal:
1. Clearly define the goal that employees should be striving for and the reward or incentive that will be given for achieving it.
2. Set Criteria:
Create criteria for measuring performance and how the reward or incentive will be determined.
3. Choose Rewards/Incentives:
Decide which rewards or incentives will be available to employees who reach the goal.
4. Monitor Performance:
Put in place a system to monitor employee performance and track progress towards the goal.
5. Provide Feedback:
Provide employees with feedback on their progress and the rewards/incentives available.
6. Adjust Rewards/Incentives:
Evaluate the effectiveness of the rewards/incentives and make adjustments as needed
7. Celebrate Success:
Commend employees for achieving their goals and celebrate their success
Conclusion:
Having a great business structure in place is essential for SME success.
A great business structure helps to ensure that everyone in the business understands their roles and responsibilities and that the company’s resources are being used in the most effective way possible.
By taking the steps outlined above, SMEs can create a great business structure that will help them to succeed and reach their goals.
If you would like a review or some assistance to improve or develop and implement a great business structure focused entirely on your business success then we can help.
ACT Business Consultants Ltd offer a free-of-charge meeting to establish the current business position and a second free-of-charge meeting to present findings and how we can help.
Book your meeting now:
Call: 01235 886222 Email: info@actbusinessconsultants.co.uk or visiting our booking page www.actbusinessconsultants.co.uk