When creating a business, organizing the business a critical step, even if it is just you to start. When I started my business, I thought about what I needed to do everyday to grown, and how I wanted the business to look three, five, and ten years down the road. Now every year when I renew my business playbook, I do the same exercise, and check it with my vision from the year before and when I started. As I make decisions for hiring and building the business, I check it with how I wanted the business organized. As you can see organization is important.
What is busines organization. Most people think of busines organization as a the type of tax strategy, i.e. LLC, partnership, S-Corp, C-corp. While this is a type of business organization, what I am referring to encompasses the tax strategy, but that is simply a part, not the overall.
Parts of Organization
- The first part is how you want your business setup – DBA, Partnership, LLC, etc… Know that this may change overtime, but you might start one way at first, but have a vision of growth for that change. There should be different milestones for when to make the changes, and there should be a lot of thought process put into this.
- Leadership – How you set up and detail your leaders for the organization is very important. Once you start delegating tasks to other leaders, you lose a semblance of some control. SO you don’t want to fill a position just to fill a position, but instead to enable you to grow more. A mistake I see all the time is, people get to a certain level, and they hire a CFO. While CFO’s are great, the reason most people hire a CFO is because they don’t want to deal with the books, so they hire the CFO, but the CFO just frees up the owner from dealing with books but know really strategy for growth. If you have descriptions of what jobs are needed, and how the leaders will help grow the business will give you a roadmap to adding leadership.
- Processes – As you work in the business, you will find ways to make the business smoother, these are processes. However there are several systems and processes you can set up at the beginning. For example, customer ordering, or employee hiring, etc.. The more you can have repeatable systems that can be passed on as you grow the better.
- Strategy – As I mentioned, the way you organize the business is a critical step
These are the four steps to organization of the business, and a good process moving forward. If you have questions, please reach out, and we can discuss.