It is significant for businesses to have an organizational structure that allows smooth flow of information and bolsters the decision-making mechanisms installed. The differentiation between a conglomerate and an organized small-scale business is almost indistinguishable now, primarily due to the aid of outsourcing channels that are available, and secondly the existence of technology that enables these firms to compete.
The outsourcing of functions allows small businesses to not only seek services of efficient vendors but also prove to be cost-effective measures. It is significant for businesses to keep in mind that its core competencies cannot be replaced by or outsourced to external stakeholders.
There are certain business functions that are tantamount to the overall success of a business. Let’s have a look at some of the key functions that must be infused into a business structure for prolonging the leading period against competitors and consolidating a substantial market share:
- Accounting is Accountability
One of the important problems that small businesses or newly established start-ups face is the scarcity of monetary resources. The limited financial assets can either be saved for long term decisions or can be used for operational expenses, so the involvement of opportunity cost makes effective allocation imperative. One of the ways, businesses can save their costs (leakages) and project future transactions is by hiring the services of small business accountants. The idea is to have a transparent system of accountability which instills a sense of honesty and creates an environment of trustworthiness for different stakeholder groups associated with the organization. By hiring the services of professional accountants, the business will save itself from any allegations of malpractices plus the expertise can be used to keep control over expenses.
- Communicate Before Market
Marketing is an important function for small businesses but what’s the objective of it? In order to communicate the core offering of the business and augment the level of brand awareness amongst the potential consumers. Businesses are not going for marketing tools anymore because consumers are smart and shrewd enough to understand when they are being advertised a product and when they are being approached for a discussion. The idea of communication is to promote the brand but at the same fulfill the idea of disseminating significant information.
- Right People for the Right Role
The role of human resource management is important because the policies that are laid out at the foundation of the recruitment and selection process often turn into the skipping stones for ultimate success. Workforce planning is an essential function that determines the quantity and quality of manpower that a corporate entity requires. The job descriptions need to be articulate, precise, and perfect depictions of the employer’s expectations. By compromising on the skillset of manpower at initial stages, the business might be sowing a seed of disintegration for the future.
- Leadership Carves the Path
Businesses are entities that are often driven by the prime movers of its founder’s philosophies or work ethics. The flow of innovation and creativity is a function of leaders who have the acumen and ability to instill a sense of purpose in the workforce. Effective leaders are visionary and are equipped with the innate ability to look beyond the apparent realms of corporate equations. Their vision has a trickle-down effect for the lower levels of the hierarchy, where managers and subordinates are also motivated and inspired by the same goal of excellence.
In this age of cut-throat competition, businesses are in a limbo position where they must deal with lessening attention span of consumers and at the same time, ensure that their projected expenditures don’t exceed the actual costs.