12 Golden Rules For Creating and Developing a Successful Business

12 Golden Rules For Creating and Developing a Successful Business

Elena Vasilyeva is a professional accountant, auditor, general director, and partner of the Foros Audit audit company, author of the bestselling book “50 Secrets of a Tax Auditor. How to protect yourself, your business, and get a million from the budget, ”wrote the column.
How to achieve business success
How to achieve business success

In 2005, already 12 years ago, when I decided to start a business, I simply had no idea what I was getting into … What, like many people who decided to work for themselves. Then it seemed to me that it was enough to know accounting, in principle, and my business would be successful! But I was very cruelly mistaken …

As my experience and practice showed, at least 12 blocks should be organized and worked out in any business. So what are these main blocks?

We will consider them in this article.

If all the blocks of your business are thought out, organized and functioning correctly, then the business will be effective and you will never lose it. At a minimum, your business will be afloat!

Blocks of organizing your business

1. The daily office operations system

All the routine operations of your business should be described, optimized, and, most importantly, they should be controlled.

  • Keeping a history of customer interactions. If you neglect this point in the work, then you work with the client one-time. The client left, even if for a short time – and you forgot it. If the client returns with a complaint or with a desire to continue to work or return to old questions, it is very important to have information about work already done with him. Make no mistake – keep all data about any, even the most insignificant contact with the client in the archive. Where to store archives is up to you. But we all know that the technique is not so reliable, a computer or laptop can simply break. My solution is to store data in the Cloud, these are Google archives, Yandex. Disk, and Bitrix24. Any number of systems!
  • Work with incoming and outgoing correspondence. Designate the person in charge of your mail. The full delivery of letters and their quick processing is important here. For example, my Skype employee instantly transmits to me questions posed by customers via email in real-time.
  • Office supplies, repairs, and purchase of office equipment. Naturally, up to a certain time, you yourself can engage in these non-everyday operations. But with the growth of your business, with the complexity of the tasks that will fall on your shoulders, this not too responsible tasks, you must delegate to the responsible person. This person will be able to control the purchase, seeing the current situation, and needs.
  • Receive incoming phone calls. This is one of the most important operations in any business. The voice in the receiver for your client should be pleasant and confident. The person answering the call is not necessarily a professional in your business – this is, first of all, a good coordinator and a “lightning rod” in some way for the called customers. Not a single call should go unanswered! There are special programs for recording incoming calls and answering them. And you probably know that you can transfer an incoming call to any number convenient for you so that not a single call goes unanswered!

Routine operations, despite their apparent simplicity, should be described, taken into account, and delegated to responsible persons.

2. The product development system is your product line.

In any business, you need to consider four types of goods or services that must be present in your portfolio. This division may not be formal, but tangible for the client. This is the key to success when a client directly chooses a product or service from your range. So, 4 types of goods/services:

The first type is free, free. That is, you should be presented with a free, demonstration service or product, or perhaps a product + service package. For example, in my business, these are free materials on social networks. Availability of a free product/service is the first stage of sales, thanks to this, people get to know you, recognize us, and trust appears.

The second type of product/service is designed for people who are always looking for “cheap.” The cheapest in your lineup should be something that will set you apart from all competitors. As an example, in my business, these maybe some form of reference.

The third type is the optimal combination of price and quality. People should want to buy this product/service again or return to you for another, but return fully satisfied with their first work with you. In my case, these are the clients who calmly choose the services they need, having received quality at a decent price, they will come back again and again.

And the fourth type is VIP. You should always have a VIP product or service. The fact is that there is a certain type of people who are always looking for VIP. These people are not many, while the price of such goods/services should be many times higher, starting multiple of 3.

Understanding that you must satisfy the needs of the entire target audience, it is necessary to build a line of such goods/services so that all four types are presented in it. If you build such a line, then consider that you fall on all your target audiences.

3. Protection

A built-in product system must be protected, that is, registering a brand, corporate identity, packaging, etc. This topic is especially relevant when your business grows and you are already thinking about a franchise.

The production system also refers to the development of products: the selection of performers, subcontractors. When choosing artists, you must clearly understand what your requirements and conditions are. If you give warranty periods, it is necessary to outline the terms and conditions of the warranty.

And further, bring this information to your customers in all available forms – this will be your competitive advantage. In my example, if we stop working with a client, he must understand how much time he will be able to contact us. The customer must know what exactly he is entitled to under the warranty service, whether it is a check or just working moments.

4. Order processing

Properly built order processing system is important.

  • Reception of the order. Every businessman should have a clear algorithm of actions for receiving an order from a client. Elementary, you should have this plan fixed on a regular sheet of paper. Each of your employees should be familiar with this algorithm, everyone should know their specific actions. You can turn this plan into a checklist or job description. Record the sequence of receipt of the order, for example, in the form: receiving a call-transfer to the responsible employee-pricing-drafting-contract-exchange of documents. It is necessary to exclude the loss of order on any part of this chain.
  • Fulfillment of the order. The direct execution of your work should always be of high quality and extremely clear. If you sell services, then following the video instructions for each service in the process of their implementation is ideal. As we have already discussed, information on clients, on interaction with them, on services provided and results should be recorded, best of all in the Cloud. In my experience, and video instructions need to be saved, also in the Cloud. This is useful to you and your employees.

5. Customer settlement system

In addition to the direct procedure for invoicing the client, you need to think about a credit system and / or installment plan. That is, do you provide goods/services only after payment is made, or is it possible to pay in installments. From my practice, it is advisable to provide a time period during which you expect payment without making claims.

For example, in our business this period is not more than two months, during the first month we just wait for payment, then, after another 2 weeks – we notify the client about the need to make payment. In the last two weeks, we have even more persistently reminded of payment and write an official letter. Because if the client does not pay the bill, then we are not responsible for the work, accountants can not work for free. Therefore, the payment term taken from my practice is only 2 months.

6. System of work with suppliers

This unit of work is also very important. We recommend that you create a table with a list of suppliers and their main qualities. Such a list will help you to argue for yourself the choice of a provider. It is important to have an understanding of the basic attributes of companies: the presence of debts, including tax payments, the disqualification of the director, etc. For example, in Bitrix I have a description of each supplier, as well as each client. Due to this, I can see the basic data for each company: contracts, letters, primary documents, orders, constituent documents, etc. – approximately 5-6 folders for each client/supplier.

7. Marketing system

A marketing system is a sales system. The sales scheme, designed for the mass customer – this is the marketing plan. It may include the development and production of promotional material, at least business cards. But now the most relevant advertising material is posted on social networks, publications in mass media, etc. The marketing plan includes both the PR and PR plan – these are all marketing events. Here is the creation and updating of the database – for me it is mainly working with the newsletter (notification of offers, changes, product lines). This also includes working with the site, its development, and updating. The developed marketing system is like a development strategy for your organization.

This year I put special emphasis on the development of a system of marketing events, starting with webinars, that is, mass attraction, this is completely different than an individual sale, when you see a client, understand his needs, offer something specific. Mass attraction should also have a certain scenario, in other words, you should have a marketing plan.

8. Human Resource System

You, as a business owner, cannot and should not do everything yourself, otherwise, it is already just a job, not a business. Understanding this, you come to hire people, to work with people, with your employees. Working with people is very difficult, it is a whole art.

I want to recommend the amazing book “Exploitation of Man by Man” by Timur Hagen. For me, this book was a revelation! And its main essence is that people from the point of view of personnel selection are divided into four main categories. The first is the smart poor; the second is a cunning sneak; the third is a farmer and the fourth is chaos.

In my practice, there was a “ chaos ” – if such a person appears in your organization, you will not forget them! These are people who will step over everything! When they come, they are fooling, smiling to meet you, just surprisingly sincere people. They are under you, while you are strong, but if you gave a little slack, then everything changes at the moment. There may be law enforcement agencies, etc., in full.

9. Physical space management system

This system includes the delegation of cleaning work at the office, the smooth operation of the Internet, a courier. As well as office design, minor repairs (at least replacing a light bulb), watering flowers, congratulations to employees and customers, etc. This system seems to be invisible, insignificant, but without it, work will rise, comfort and productivity will drop.

10. The accounting system

Here I mean preparing my budget. This system is also registered with Timur Hagen – a system of financial control: it must be distributed among different people. This should be done for security reasons, it should not be all in the same hands. It is necessary to divide responsibilities as much as possible: who maintains a current account, who engages in cash, who maintains a budget.

That is, if all the finances are in the same hands, then the internal control system is not built and we immediately consider it ineffective. It is important to understand that as soon as you trust one person so much, you become superfluous and they will try to get rid of you. Even if there are people in whom you are sure who will never do so, it is nevertheless advisable to share responsibilities.

11. General corporate systems

Here, for example, insurance. For example, I insured a contract for several years, but now I have not begun to do this anymore, as a practice has shown, this does not give any guarantees.

12. Investor Relations

If you create a distinct, well-structured system of your business, then it makes sense to put this system on paper. Create a document understandable and interesting to investors, make a franchise. And then they will want to invest in you, investors will appear for whom your business will be attractive.

We examined the twelve blocks that make up any business. You can’t do without their proper construction if you are doing the business seriously. Every block is important, in my opinion, especially frames. There are, of course, negotiations on contracts, drafting and executing a contract, licensing activities, laying electrical and Internet networks, etc. – these are more professional issues.

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