There are many reasons to run your own company, including the prospect of being your own boss and being in control of your work/life balance. With more and more new businesses being founded each day, it’s clear to see that the benefits are too great to pass up.
However, many people take the plunge into self-employment, but not all of them succeed. Statistics show that up to 90% of startups fail in their first year, however for the 10% that do survive, fast growth is essential in the early years.
Growth helps your company become eligible for further venture funding, helps stave off competitors and of course, leads to further growth. To achieve this, preparation is key.
Below we’ve put together a guide to the essentials things you should know about running a company, in an attempt to help any entrepreneurs or anyone thinking of starting their own business.
1. Operations
The job of an operations department is to ensure that the business is run both efficiently and effectively. People working in operations need a deep knowledge of the workings of the business from top to bottom, essentially they are the ones who keep the business functioning as it should.
Those working in operations are required to have strong organization and communication skills, as well as being able to perform well under pressure. The importance of communication skills in operations cannot be over estimated, as staff are required to communicate with everyone that the company works with, including colleagues, suppliers and clients. A successful operations department will maximise efficiency to increase your business’ profitability.
2. Human resources
The human resources department deals with issues regarding employees of the company, including recruitment and benefits management. They also serve as mediator between staff and management. A HR manager will protect the interests of the company’s staff, acting as a confidant if the staff have any problems.
Likewise, the HR department protect the company’s interests in terms of making sure they are not in breach of employment law. A successful HR team should establish strong relationships with other teams, as to better understand their roles and so they can arrange any further training an employee needs.
3. Finance
The cornerstone to any successful business is a good accounts department, to run a business without one is simply impossible. The basic functions of the department include calculating the payroll, cash inflow, cash outflow, inventory and fixed assets amongst many other jobs.
To run a successful finance department, it is essential to identify and utilize key technologies that will aid your invoice management. Using online accounting from Sage will help the formation of reports, budgeting and bookkeeping. All in all this should allow the company to make well informed decisions and hopefully maintain a stable performance.
4. Recruitment
An effective recruitment team is essential in bringing in the best possible employees and ultimately, creating the perfect team for your business. There are some basic principles that your recruitment department should follow in order to be as successful as possible. It is important for recruiters to have a clear structure for the candidate, helping them achieve their personal goals and as a result, helping the company achieve its goals.
There are, of course, a wide range of other departments your business will have once you reach a certain size. Most of these will be specific to the industry you are in; however, the four above will be found in any business and are the essential parts that will keep the business running smoothly.
