A modern business plan that will lead your business on the road to success must have another critical element. That element is a part where you will need to cover possible risks related to your small business. So, you need to focus your attention on something that is called risk management and use specific risk management process if you want to succeed as an entrepreneur.
Organizational changes do not appear from themselves. For any process of performing something, there is a reason, and the process is the result of that reasons. If the reason does not exist for the process or action, then logically there will not be the need for that process or action. Because of the continuity of these type of actions in the business life cycle, there will always be reasons for these actions. These forces (reasons) are called sources of organizational changes. However, what are the most important forces of changes that are in the central focus for senior managers?
As we know companies are surrounded with two types of change forces: external and internal forces. The results from the research refer to external change forces.
According to a survey conducted by the EIU (Economist Intelligence Unit) sponsored by Celerant Consulting conducted in November 2010 through a survey of 288 executives from North America, Western Europe and Latin America, the focus of change management has shifted.
Similarly, organisations are increasingly devoting their attention to the sales and marketing functions. This further refl ects the shift in emphasis towards growth and the future and away from cost cutting. Apparently, executives are leaving the preoccupations of surviving the downturn behind.
This means that if the greatest attention until now has been on cutting costs, the changes now have large focus on sales and marketing functions that allow companies to increase market share and to be more focused on the future of the business.
As you can see the main forces driving changes into the companies are:
- competitive and cost environment,
- customer demand,
- desire to increase market share and
- reducing complexity within the company.
Logical results because competition and costs are something that always has a big impact on business processes. On the other side today’s markets are consisted with the customers with constantly changing demand that always will need some alignment within the company.
When it comes to small businesses often the structure is forgotten because entrepreneurs think that the business is small and there is not a need for structure. Even with three employees small businesses also need a structure, especially because every business has functions. You cannot find business without functions because there will always be something like sales, customer support, accounting, manufacturing, marketing…
Regarding these issues, the difference between large and small businesses is that the big businesses have more human resources while in the small businesses because of fewer resources, there is the existence of overlapping of functions. Thus, in the small businesses you can find the same person responsible for finance, sales and supply.
The organizational structure serves not only for determining positions among people in the business, but also has effects on communication and effectiveness of various business functions. Because of that it is useful you as an entrepreneur to make a chart of your structure. With such a chart, it is much easier to find “bottlenecks” that may occur as an obstacle to business development.
The negotiation process is an integral part of any business, and you cannot escape it no matter what kind of business we talk.
You will always need to negotiate if you want to win a sale with better conditions or make purchases of raw materials with better terms. Notice that in both cases we say the word “better” that is the goal the f negotiations process.
In order to have negotiation as a process we must have:
- minimum of two sides involved in negotiation process,
- a subject for negotiation between both sides and
- existence of different purposes between the two sides.
How can you attract more customers to your business? This is a really interesting and constantly actual question for you as an entrepreneur. We cannot find an entrepreneur that doesn’t want to know the answer. Here I will cover some practical steps you can use to attract more customers to your small business.
However, even if you know the answer, you must be aware that the answer is something that can be classified into the variable category. It means that today’s answer may not be the same for the tomorrow.
An entrepreneur is a person that always search for new customers for the business.
Use what you have to get what you want. It is one of the most powerful advice for each entrepreneur. It is much easier if we use what we have to get everything that we want. Sometimes we have always that we need to success in what we want. However, sometimes we don’t have everything that we need to get what we want.
Interesting question is how to get what you want and in the same time to use what you have.