“Why Bother with an Organization Chart if I am Just a Small Operation?” The Beal Business Advisor

Aug 4, 2011 | Corporate Member News

Many business advisors advocate setting up an organizational chart for your business, regardless of size.  This may sound strange for a business with one (or two) people, but an organization chart is appropriate for all business sizes for the following reasons: 

  1. Provides a clear business focus
  2. Drives human resource excellence
  3. Maximizes efficiencies

The organization chart is capable of providing a clear business focus by identifying each line of business, and within each business line, grouping the components in the product/service development and delivery, and providing clear accountability. The organization chart communicates whether the business is product or customer focused and illustrates centralization and geographic organization, both of which impact customer responsiveness.

The organization chart also drives human resource excellence by recognizing lines of authority, spans of control and decision-making processes; these are responsible for helping or hindering employee empowerment and productivity.

Finally, an effective organization chart is capable of maximizing efficiencies by reducing rework and encouraging 360° feedback. When designed effectively, the organization chart is capable of creating a culture that lends itself to continuous improvement with the assistance of feedback across management levels and business lines. 

Does this apply to you, in your organization of one or two or three? What an organization chart (including job descriptions) does then is provide you with a clear vision and structure with which to drive your business forward. In a small organization, everyone wears multiple hats. By outlining all those hats on an organization chart, it becomes clear what the next step is as your business grows. Picture your business in its ideal state. Put in as many boxes as it needs to deliver the goods and services at that point. Then put your name in each box (for now). It will become clear, as you hire your first or second or tenth person, what you need them to do.

For more information, contact us at 204-478-7266 x110. 

This article originally appeared in the August 2011 edition of The Beal Business Advisor. The issue also included:     

  • Buying a Business 
  • The Business Sales Process 
  • Quote of the Month 
  • Upcoming Seminars
  • Businesses for Sale 

Check it out here

About Beal Consultants, Business Growth Professionals

Focused Business Advisors
Beal Consultants helps people buy, sell, value, improve, and start businesses. We deliver value-added services in the following areas:

Grow Your Business
We can help make your business grow profitably using proven success strategies, step-by-step guidelines and an abundance of insight from our experience in working across a wide variety of industries.

Insightful Diagnostic Report

Are you ‘too close’ to your business? Are you working too hard in your business you have no time to work on it? Do you need a second perspective, a fresh pair of eyes?

Using a proven methodology, we can come in, interview you and your key staff, review your financial results against industry benchmarks, and make concrete recommendations on how to improve your business.

Improving your business means more profit for you, more free time and, eventually, more value when you exit. Call today for a free, no risk initial consultation.

Strategic Planning

Strategy planning is NOT about creating 50-page documents that are never referred to again. Strategic (and business) planning is all about understanding how your business can grow and thrive in a challenging, competitive business environment.

You are competing against many competitors, not just your direct competitors, but all your indirect competitors as well. You are vying for attention in an increasingly complex and crowded marketplace. You need to clearly understand – and you need to communicate to your clients – your key value proposition – why should they do business with you? Understanding your value proposition is key to differentiating yourself in today’s marketplace, and is key to having a sustainable competitive advantage. Your business strategy and business success relies on having a crystal clear understanding of your unique competitive advantage.

Find out more here.

About Beal Consultants – Business Brokers

Focused Business Advisors

Beal Consultants – Business Brokers helps people buy and sell businesses. We deliver value-added services in the following areas:

Buy a Business
We provide counsel, guidance and support throughout all steps of buying a business including: Search, Screening, Valuation, Negotiation, Due Diligence, Financing and Agreement Structuring.

Sell Your Business
We provide counsel, guidance and support throughout the process of selling a business. Some of the advantages of hiring an intermediary to sell your business include: confidentiality, creating and executing the marketing package, negotiation, and buyer screening.

Succession Planning/Exit Strategy
Looking to retire? Great! Is your business ready for you to retire? Can you afford to retire? Do you know how to minimize your tax burden when you are looking to sell or pass your business on to your children? We can help you understand the options that are available to you. Think it’s too early? The earlier you start, the more your business can be worth, and the more options you have to minimize taxes. If you’re thinking of getting out within five or less years, start planning today!

Business Valuation
Need to know what your business is worth? We help you determine the value of it and understand the key drivers of that value, so you can know how to improve it.

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