Your Small Business Organizational Chart – What to Consider

What is an organizational chart, and why is it important to your business? You may be asking those questions. If you are, then consider this information, because the chart is actually quite important and you will need to consider many things when creating one.

Chances are, you have already seen or heard of an organizational chart in the past. It is a flow chart of sorts that lists the positions of all employees at your company, and lists them in order from top to bottom. An organizational chart will show the chain of command for all employees.

Why is it important? It is vital that all employees know to whom they answer directly. They also need to know who is their ultimate boss, so that they always know who to go to when there are concerns, requests or questions.

One thing that can cause a big problem in a company is confusion. If you allow confusion to persist, your employees will lose moral and it could greatly affect their work and eventually lead to them leaving. An organizational chart is an excellent way to avoid confusion among current employees and help new employees get an idea of the chain of command.

Even if you have a very small business with only a few employees, an organizational chart is still vital. Often, in extremely small businesses, the chain of command can become confused. By providing your employees with a specific chart, you will be able to keep these problems at bay.

When you begin the process of making your organizational chart, there are some things that you will need to consider very carefully. The main purpose of this chart is to show who each employee’s direct supervisor is.

If you do not already have an exact chain of command in place, then you will have to take some time considering just how it should go. What people need to answer directly to you? Are there people in your business who are responsible for other employees? Do you have supervisors or managers?

You will have to answer these questions before you begin the process of your organizational chart. You can also use the chart to spell out what exactly is each person’s job responsibility.

You may want to include a short list of bullet points with each job title to show the main responsibilities. This means that you will need to take some time considering just what each employee does. This can be a great way to keep all job responsibilities in order and avoid confusion.

An organizational chart can be a great way to keep confusion out of any business. It can be helpful for small businesses especially, where lines can easily be blurred.

Common Problems With Business Flow Charts

In a business, there would surely be different ways of keeping the business processes intact or maintained. There are different managerial skills and responsibilities that are applied as well as conceptual skills that are always imposed to leaders. These are the skills that would always be important of all. Without these skills, normally, the company would not work efficiently and would not be productive and progressive. This is somehow disturbing for the people involved in the company, either coming from the outside or inside premises.

One incorrect process could lead to different failure. All business processes are chained with one another. Normally, with one link broken, surely almost everything would be broken as well, which is why it is always advisable to track the problems and take corrective action as possible.

Business processes are diagrammed through the use of flow charts. These charts are not just for businesses, normally, it could also be used in different processes including the programming languages systems, management systems, decision-support system, etc. These flow charts are perfectly useful in keeping the manager or head and the members of the organization aware of what is to be done every now and then. Flow charts may vary according to what kind of process is being done in a company; and of course, in a flow chart, there would be different groups that will be working to form a whole system. Despite these organized charts, there are problems that could possible come up, such as the following:

• Insufficient transfer of information/explanation regarding the flow charts
This is typically normal and could either be caused by the people who explained or the people who listened. Some workers would not take heed of the process that will later one result to inconsistency of processes. In addition to this, some workers were not trained well beforehand or did not have the correct tools.

• One group is not complying well
As said above, flow charts would always include groups. If one group would not follow certain instructions efficiently, there would be some instances that there may be mistakes that may occur in no time. There is a big need for cooperation and wholeness.

• Incorrect representation
This is somewhat minimal in the situation but could also happen in any company. There are charts that are hastily made without proper consideration of the due importance of each element in the chart. By following incorrect chart, everything would be ruined.

How to Create a Successful Business Plan

A good business plan enables you to build a strong foundation for your business, provides it integrity and helps to make you responsible towards your business. So, a proper business plan is inevitable in the success of a business. Charting a business plan can be nerve-racking, but with the right steps, it is a cake-walk.

Major sections of a business plan:

1. Executive Summary: Being the most critical section of a business plan, it is the first section that a reader sees. For the sake of perfection, you can write this section after you complete all other sections. It should provide a snapshot of your business, a mission statement, business history, current profile, founder’s details, locations, services offered, number of staff, future plans, and current profile in brief.

2. Market Analysis: This section indicates how well you have researched the prevalent market conditions. The chances of success, details of your industry, growth rate, market shares, current market trends, customer details, details of competitors and their products, comparative study of the products with respect to their strengths and weaknesses and so on can be included.

3. Company Description: This section provides a high level perspective of your industry and company, which helps the reader understand the relation between the two. It includes nature of your industry, company history, target customers, potential solutions that you will offer to target customers, and so on.

4. Organization and Management: This section should deal with how your staff is organized. The organization hierarchies, division of labor, profiles of managers, Board of Directors and Company Owner are to be included. This section should also include details of salary, perks and incentives.

5. Marketing and Sales Management: This section should help you to decide the marketing strategies for the sale of your goods and services.

6. Product Details: As the name indicates, this section describes the products or services that your business proposes to offer. You will need to provide details of current market research, benefits of products to customers, competitive advantages and copy rights or trade secrets with respect to your product.

7. Funding request: This section includes all that a bank or investor would need to know to understand the funding requirements of your business.

8. Financials: This section provides support, if you request for outside funding. Unless it is a startup company, this section should include your company’s financial track record for the past few years.

9. Appendices: This is where you will include all those details which you will not be able to fit into the other sections, but your readers might want to see.

While charting your business plan, you should think of the various audiences like bankers, investors, and professionals. Keeping properly formatted, short paragraphs is highly recommended in a business plan. You can include bulleted points to highlight the important points. It is nice to include complex data in the form of tables, or charts.