Company Organization : How to Organize Your Small Business

For company organization In small businesses, the boss is often a girl for everything: setting company goals, designing strategies, making sales and personnel decisions – nothing works without him. As a boss, you need good nerves and the skills of an all-rounder, because you should always keep an overview of the organizational structure in your small business. That is not always easy.

The good news: There are strategies and tools that can help you organize properly and make management much easier.

Strategy, Corporate structure, and Correct Organization

To organize properly, you should first distinguish between unconditional executive tasks and tasks that you can delegate and then monitor. These vary greatly from company to company. That depends on factors such as industry, product range, company size or company structure. Basically, two task groups can be distinguished:

The long-term tasks of the executive duties include the development, specification, and implementation of corporate goals, the formulation of a strategy and the planning of its implementation, as well as the creation and maintenance of a suitable organizational structure for small businesses. The focus is on the question: What should my company organization look like in the coming years? These tasks are usually unconditional chief tasks and, when delegated, require close control. After all, you are setting the course for the future of your company.

Organizing Company Operational Tasks Properly

The chief tasks in everyday business include:

  • Management of employees,
  • Contacts to important customers and suppliers,
  • Decisions about investments,
  • Financing,
  • Talks with banks,
  • Overview of the order situation, earnings development, and finances.

If you organize everything correctly here, you will make day-to-day operations much easier.

Company Organization Through Self-Management

In small and micro businesses, in particular, the company boss is usually the owner. He bears the general corporate risk associated with the risk of loss of personal property. The business is usually his life’s work, personal and company goals merge. In everyday business life, there is usually time pressure, day-to-day business takes up the available time, the boss is at risk of overload.

As a result, important executive tasks in corporate management – such as strategy development or paying attention to critical success signals – are often neglected. Good self-management is essential for proper organization. To do this, you collect the chief tasks that are due in the course of a year on a checklist and note the necessary activities. For example, visiting a top customer with a discussion of further orders. Then you have to estimate the time required for the process. Because management usually has more tasks than you can handle, you have to set priorities – or delegate them in a targeted manner. The important thing is that deferred tasks should not be forgotten, because they too are important.

Tip: If you realize that you can no longer complete a task, it is better to delegate it than not to tackle it. Many employees prove to be more willing to perform if they are given management responsibility and trusted to meet the company’s goals. If your selection is careful, your employee may do the job better than you could have done under time pressure. Conclusion: Organizing properly is not possible without delegating.

Leadership And Corporate Structure In Small Businesses

Leadership has a personal and professional side. In terms of personnel, the company boss delegates the work to his employees and monitors their fulfillment. Skills such as communication and team skills, delegation skills and friendly interaction with employees are important prerequisites for successfully completing this task. The technical side includes basic knowledge of commercial and legal topics. Technical knowledge is added to production and craft businesses. Topics in which every entrepreneur should have basic knowledge include:

1. Planning and organizational structure in small businesses

This includes planning the service program and organizing business processes in all areas.

2. Human Resources Management

As an entrepreneur, you should have a basic knowledge of labor and social law. This is important when hiring an employee when concluding an employment contract and especially when terminating an employee.

3. Accounting, taxes, law

As a rule, employees or external consultants work for these areas. As a company boss, you usually take on a control function. Therefore, you should also have a basic knowledge of e.g. B. the types of tax (income tax, income tax, sales tax, etc.), contract, commercial and competition law.

4. Investment and financing

Decisions about investment and its financing are important tasks of corporate management. This also includes personal contact with the bank.

Company Organization Through Clear Priorities

The chief tasks are varied and demanding. The following four rules for the correct company organization can make your company management considerably easier:

1. People before things

 Decisions are usually made from an objective point of view. However, people are often affected. The boss should think of this side.

2. Profit before sales

Don’t forget the expenses associated with sales. An increase in sales is desirable, but not at any price. The corporate goal must always be to generate profit. You’d better forego growth if that permanently lowers your profit.

3. Liquidity before profitability

If you forget the finances, you quickly fall into a liquidity trap. Then there is a risk of insolvency or even bankruptcy. If in doubt, you should choose a business with high payment security (and normal return) over an order with high return (and higher payment risk).

4. Securing inventory before expansion

If you grow too quickly, you will often receive the invoice with follow-up costs that also grow rapidly. Growth is a corporate goal – but not at any price. It also becomes critical if your organizational structures or capacities in the management do not keep pace with the growth of the company or even collapse (e.g. shipping or production logistics).

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