Type up “small business failure” on a search engine and you get tons of overwhelmingly depressing results showing various statistics demonstrating that there’s a realistically slim chance that any business will survive past the 15-year mark.
According to the U.S. Bureau of Labor Statistics, the chances a business founded in 1994 will have survived to this day dips down to 20 percent. There is, of course, the issue of context whenever you’re looking at a cold statistic that does little to paint a picture of how businesses reach such a high failure rate. In addition to that, failure rates vary depending on other circumstances such as industry and political climate.
You will find a vast ocean of pundits attempting to provide their own two cents on why businesses have a high failure rate, and they will tell cite anything from poor management to the lack of a presence online.
After looking through the various reasons, there’s one thing that many have in common and it’s in your control:
Businesses will often lose the momentum they first had because they do not manage to keep up with the demands of running their everyday operations.
They can’t talk to their customers effectively online, their service quality doesn’t match the expectations of a fast-paced fickle market, their inventory is disorganised or the business itself doesn’t differentiate itself enough to make a mark on visitors.
Businesses that don’t have all of their ducks in a row cannot hope to address these issues. It is only logical that the first thing everyone needs to do before going any further is to face the elephant in the room by streamlining daily business activities in such a way that they are (at the very least) manageable.
Organise the backroom environment
Behind every jar of honey you buy is an army of bees that have traveled thousands of miles to make each spoonful. We know honey is made this way, yet we seldom ever ponder the journey each bee took to making that entire jar that’s now sitting in your cupboard.
Businesses work in much the same way; there are backroom processes that keep the ship afloat each and every day. Although few customers will ever see these mechanisms, their impact on the forward-facing side of a company is on full display.
Having the right software to run your back office will come a long way in helping you to avoid experiencing trouble in these departments. Applications like ProWorkflow do an excellent job of streamlining task management, invoicing, and many other functions that are often overlooked when hunting for inefficiencies that need addressing.
Get social with your online base
One of the things making large corporate entities stand out online right now is their ingenious use of social media. While there are many who see this as a carte blanche to spread a dizzying array of bland boilerplate marketing content in a desperate attempt to be relevant with the “cool” crowd, there are stellar examples of companies like Starbucks, Etsy, Calvin Klein, and McDonald’s using platforms like Twitter to embrace trends and engage directly with customers.
When you look at these brands extending their presence, it’s tempting to think that they have teams of people entirely dedicated to browse social sites and start conversations.
The truth is that much of their social media engagement efforts come from the use of applications that help automate this in an intelligent way, letting them concentrate solely on the parts of social branding that help build engagement and retain it.
Tools like Narrow provide an enormous boost by taking a no-nonsense approach to Twitter interaction, showing you who’s talking about subjects that are relevant to your goals. Other applications like Hootsuite help you schedule posts ahead of time so that you do not have to spend every living moment on social networks.
This will effectively reduce the amount of time you spend on this activity to a couple of hours a week, freeing you from the headache of having yet another front to fight on.
Keep your inventory in check
The reason that retail giants have no problem opening a gazillion locations is because they were able to keep their ducks in a row when it came to tracking everything they sell and acquire.
Having a systematic approach to inventory simplifies operations to the point that reproducing the model is a simple game of “plug and play”. They do this like every other successful and long-living enterprise still alive in the 21st century does. They use the magic of software.
Without this ingredient, you’ll be spending more time tracking where things are going and who’s paying for what than taking care of any of the other 18 million different things you have to do to keep the lights on.
It’s a not-so-well-guarded secret that there are solutions that even smaller contenders can use to keep themselves in good competition with their much larger counterparts, and one of those solutions is inventory management.
Software like Vend, for example, contains a variety of smaller applications that come together to form one of the most powerful point-of-sale and inventory management suites, even allowing for things like layaways, parked sales, and gift cards.
Technology may have advanced to a point where it perhaps has a stronger grasp on our daily lives than we’d like, but the game of retaining customers still operates on the same rules it did back when the first street markets began appearing thousands of years ago.
You have to make sure that they don’t find greener pastures elsewhere and one of the main ways you can do that is by showing them that you provide a fluid environment and a dedication to serve.
The difference is that today there are pieces of software that make these things a lot simpler. Take advantage of this and you’ll have a very strong chance of living to see another decade (or ten).
Create An Operational Plan
You probably have a business plan, but you need an operational plan to define your business’s day-to-day operations.
An operational plan forms part of the business’s strategic plan and is important for effective business leadership.
It describes how the work will be done, the workflow from input to end results, including the resources that will be used along the way, all of which are required for success.
Streamlined business systems also defines how you will deal with risks, and how you will ensure sustainability of the project’s achievements.
Related: Streamline Your Business Systems
An operational plan also explains how, or what portion of, a strategic plan will be put into operation during a given operational period.
What is an Operational Plan?
While strategic planning provides the vision, direction and goals for the business, operational planning translates that into the everyday workflow of the business that will hopefully produce the outcomes defined by the strategy.
Simply put, operational planning is the conversion of strategic goals into managed execution.
It deals specifically with the internal operations and resources necessary to produce your company’s product or service.
Operational Plan: 4 Steps to Success
An operational plan addresses four questions:
- Where are we now?
- Where do we want to be?
- How do we get there?
- How do we measure our progress?
Related: Free Action Plan Template Download
The key components of a complete operational plan include:
- Human capital. The staff and skills required to implement your project, as well as current and potential sources of these resources.
- Financial requirements. The funding required to implement your project, your current and potential sources of these funds.
- Risk assessment. What risks exist and how they can be addressed.
- Estimate of project lifespan, sustainability and exit strategy. How long your project will last, when and how you will exit your project, and how you will ensure sustainability of your project’s achievements.
Operational plans should contain:
- Clear objectives
- Activities to be delivered
- Quality standards
- Desired outcomes
- Staffing and resource requirements
- Implementation timetables
- A process for monitoring progress.
Why have an operational plan?
An operational plan is important because it helps your team to:
- Be clear about where you will get the necessary resources
- Use those resources efficiently
- Clearly define the most critical resource requirements.
- Reduce risks where possible, and prepare contingency plans where necessary.
- Think about the long-term future of the project, including its sustainability.
Who should prepare an operational plan?
Operational plans should be prepared by the people who will be involved in the implementation. There is often a need for cross-departmental dialogue as plans created by one part of the organisation inevitably have implications for other parts.
- A project administrator or finance manager should be involved in defining financial requirements
- Human resources should be involved in assessing HR and capacity needs
- HR, IT or operations staff should be engaged in discussions of processes, procedures and systems.
Efficient operational planning and implementation calls for ongoing open communication between the project team and these other staff.
Related: How To Implement Systems for Success
Why Skype When You Can Video Conference?
Why purchase a video conferencing system to expand my empire when I can get Skype for free?
- Contact: Ezelle Andrews, Yealink Product Manager, Even Flow Distribution (an authorised distributor of Yealink products)
- Email: firstname.lastname@example.org
- Website: http://www.evenflow.co.za/
- Facebook: https://www.facebook.com/pages/Even-Flow-Distribution/125721674114016
- LinkedIn: https://www.linkedin.com/company/855725?trk=tyah&trkInfo=idx%3A1-1-1%2CtarId%3A1425379815676%2Ctas%3Aeven+flow
- Twitter: https://twitter.com/evenflw
If you’re looking to put an end to time-consuming, expensive and exhausting business travel or just considering the next step to boost your business’ productivity, you’re likely to be faced with the ‘Skype vs video conferencing’ dilemma. Why purchase a video conferencing system to expand my empire when I can get Skype for free?
While Skype provides a great solution to staying in touch with friends and family abroad at no cost, certain drawbacks, such as limited resolution, high bandwidth usage and the fact that the service is only available to Skype users, make this a less-than-ideal solution in the professional environment.
Until recently, professional video conferencing has been inaccessible to most businesses in SA due to its high cost of ownership but Yealink has changed this by providing professional video conferencing solutions designed for SMEs, offering a perfect balance between high quality, ease-of-use and affordability.
Here are some of the key reasons to choose one of Yealink’s video conferencing solutions over a free video conferencing service.
1. Increased reliability
Free video conferencing services do not offer a performance guarantee. You run the risk of poor call quality or dropped calls due to network issues. While this may be a free service, it could cost you your business’s reputation.
Corporate video conferencing solutions (VCS) only require one megabit of bandwidth – half of what is needed for Skype – allowing high-quality video, even under fluctuating network conditions.
2. Improved visual and audio quality
While Skype allows for multi-participant calls, there are limitations in terms of visual and audio quality.
Skype does not have zoom-in and focus camera functionality, allowing only the host of the call to be seen in the corner of the screen during a multi-participant call. Poor audio quality and echoing is also often the result of Skype’s microphone being built into the camera.
Yealink’s VCS support full-HD dual systems to display people and content at one time and, thanks to integrated packet loss, you can be sure of a high quality viewing experience. The system’s Full-HD PTZ, 12x optical zoom PTZ camera allows you zoom in, out and around the room with a clear picture at all times.
The Yealink VCS phone has several built-in microphone arrays and supports 360-degree voice pickup, so you won’t have to shout across the room.
There’s also no need for squishing up to hear other attendees. With an optimal expansion microphone KIT, the voice pick-up range can be extended up to 5 metres and video phones are available for desktop video if you don’t fancy joining the rest of your team in the boardroom.
3. Ease of use
Concerned about complicated VCS equipment setups? Don’t be. Yealink VCS plug-and-play simplicity makes installation quick and fuss-free. And thanks to VCS unique industry-intelligent firewall, there isn’t even a need for firewall configuration. Bonus!
While Skype appears simple to use, its multi-party settings are not as intuitive as those of its one-to-one call functionality.
4. Management and support
Unlike Skype, Yealink’s video conferencing solutions offer the peace of mind of top-quality, 24/7 support. Yealink provides scheduling, software updates and reporting over a controlled secure network infrastructure.
5. Unlimited access
While four people can participate in a multi-party Skype call, quality is unreliable whereas Yealink’s VCS allow for eight participants, bridging a client site which allows for a more secure, controlled and reliable VC experience.
Finally, while Skype is limited to 100 hours per month for multi-party calling, you are able to use Yealink’s VCS as many times as you want per month.
Want to learn more or book a VCS demo? Click here to get in touch and we’ll show you why it’s worth investing in one of Yealink’s premium video conferencing solutions.
Speed Up Production Using Communication Structures
Find a structure that maximises the production line.
Usually communication flows with the hierarchy structure of the company, e.g. from CEO to director to deputy director to manager to assistant manager, etc. Is this necessarily how communication should flow? With an understanding that communication needs to be orderly structured.
The type of communication structure in place has an influence on the production speed. Closing or opening lines of communication will determine the pace of production.
One structure can be ideal for a company, a division or just project. You need to know which structure will suit your conditions.
A communications structure can be seen as a pattern that directs who talks to who in the company. In the 1950’s Bavelas and Leavitt, sociologists researched communication structures.
The aim was to find the impact a structures has on problem-solving and production. These five communication structures are still relevant to today’s communication.
1. Chain/line Structure
Communicators are positioned in a line or chain. Person 1 communicates with person 2, 2 with 3, 3 with 4 and 4 with 5. The communicators are only linked to the person next to them.
Communication is organised, however information may be misinterpreted, late or not reach the destination. I would recommend this structure for relaxed companies/situation where there is no deadline. To avoid glitches, use electronic channels as backed up.
2. Y Structure
It resembles the letter Y, person 1 and 2 on top can communicate with person 3. Person 3 is able to communicate with 4 who has connections with 5. Person 1 and 2 are not linked. The two will only know what 3 communicates. 3 has the advantage of most information since he can communicate with 4 who has information from 5.
In companies where communication is a priority this structure will not work. Time is wasted, and some might not receive the information. It however will function well where confidentiality is a priority.
3. Star Structure
Person 1 is at the centre, he can communicate with person 2, 3, 4, and 5 who have a direct link to him. This structure will be ideal for managers who give instructions to individual subordinates. For groups work this doesn’t work since person 2, 3, 4 and 5 are not linked.
4. Circle Structure
There is no figure of authority, unfortunately things can go wrong. It is however ideal for peer and micromanagement communication. Each person is linked to two people on their sides. Person 1 is linked to 2 and 5, 2 is linked to 1 and 3, 3 communicates with 2 and 4, while 4 interacts with 3 and 5. This will work well combined with another structure, e.g. the star.
5. All-Channel Structure
This structure will do well during crisis situations where all are clear of their role. The lines are open to all, there is no limitations. This quickens the flow of communication. What is negative is that there is no authority figure.
Read next: 5 Things Businesses Can Learn From Rugby
Snapshots2 weeks ago
27 Of The Richest People In South Africa
Small Business2 weeks ago
A – Z Easy Small Business Ideas
Women Entrepreneur Successes2 weeks ago
How Jacqui van der Riet Went From Receptionist To Co-Owning A R230 Million Business
Self Development5 days ago
5 Inspiring Quotes From Madiba To Stir You Into Action On Mandela Day
Self Development2 weeks ago
25 Bad Words That Make Other People Feel Inferior
Angel Investors3 days ago
A Comprehensive List Of Angel Investors That Fund South African Start-Ups
Leading2 weeks ago
8 Books Every Manager Should Read To Become A Better Leader
Ongoing Learning2 weeks ago
6 Free Courses That Can Help You Become A Successful Entrepreneur