So when I last blogged about our company’s desire to grow and what I was doing to make it happen – I talked about how I had some defined projects.
They were:
Target Market /Value Proposition
Revenue Model/Pricing
Operations
Despite over 14 years as a woman business owner in one business, and over 4 in another (MyCity4Her) OPERATIONS is not a word I feel very warm and fuzzy about. I’ve not really embraced the concept and impact of OPERATIONS as a business owner up until now, probably because up until now, I haven’t really been faced with operating a size able business. What I’ve had in my consulting company has been more of a “lifestyle” business if you will, and the media company has only just begun to have traction and grow.
However, in moving along in the structured plan to grow MyCity4Her I’ve had to come face to face with OPERATIONS (for an acceptable definition of Business Operations click here) and deal with the reality that if we want to grow – examining, optimizing and eventually re-engineering operations for optimum outcome is going to be a necessary evil. Unless operations are optimized, it’s very hard to grow a business successfully.
To understand if you’re operations are optimized, it’s important to break them down. That means breaking down systems, processes, resources, etc. It’s a big job if you don’t already have everything organized that way. But it’s one of those things – you’re better off fixing it now, than later.
Anyway, at first I worried – how was I going to do this? Where would I start? This struck me as a monumental project…and not the most fun. Regardless – I understood it had to be done as unless I understand what our resources are, and where we need to increase, replaced, re-engineered, or re-tweak them – how can I possibly imagine growing this business successfully? Not fully understanding how your business operates is akin to trying to build and live in a house without knowing how many rooms you need, where it should be, what materials you’re going to use, or who you’re going to need to hire/consult with to build it.
Anyway – as I dove into OPERATIONS – I started with financials. Personally I believe MONEY in a business – is a key place to start as it impacts so much. I am very fortunate because my banker – Richard Yoskey, of Wells Fargo – was willing to take some time to come and delve into this with me. Prior to meeting with Richard, I mobilized my bookkeeper Mary Jo Watson – of Accounting Solutions to get the books tidied up and up to date. That helped immensely.
With accurate books, we were able to generate INCOME STATEMENTS and look at the existing trends of revenue, expenses, etc. and make some educated projections about how the company could theoretically grow, if we modified some things operationally, whether in staffing, technology, or otherwise. It was an empowering process.
If you aren’t good with Operations or this kind of stuff – I highly recommend finding someone who is to help you – it will help immensely and you’ll get more done. If you don’t know anyone good with operational stuff – ask your trusted advisers for referrals. Every business owner should have what I call their “Dream Team” – these are the people, you engage – to help you realize your dream. They are professionals knowledgeable in the things you require to grow your business. A basic DREAM TEAM includes (in my opinion) a great BANKER, a great ACCOUNTANT, a great LAWYER to start…from there, you can build – depending on your business’s goals and needs. MyCity4Her’s DREAM TEAM over the years has increased to include a great MARKETING PRO, a great FINANCIAL ADVISOR, a great CFO, a great IT Expert and a few great coaches in different capacities.
The next part OPERATION PROJECT for us specifically is going to be to inventory of all the tasks that have to be done daily, weekly, monthly, quarterly, bi- annually and annually. Yup. All of it. Why? Because if we don’t know what is being done, how its being done, why and by whom – how can I possibly optimize the operational flow of the company. It serves me no good to hire more staff, or buy new equipment, or invest in new technology if I’m unsure how I’ll get a return on the investment.
Are you familiar with all the Operational intricacies of your business?
If not – you should be.
A nice by-product of inventorying each task and part of your operations is that when you’re done – you should be left with a pretty nifty draft of an OPERATIONS MANUAL. Something every self respecting company needs and depends on for business continuity’s sake, not to mention assist in creating COMPANY POLICIES and PROCEDURES.
So – are you familiar with your business’s OPERATIONS? If you’re not – you should be… I’d really love to hear what you’ve done to become more familiar with your operations and if you have any tips/ideas how to optimize OPERATIONS please share them!
To be continued…