February 6, 2012

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Do you have a firm grasp on the basic functional areas of your small business? More importantly, what’s the main motivation of each department?

We realize how important delegation is for successful businesses. But, if you aren’t really aware (i.e. going through the motions) of daily, weekly or monthly business systems, it’s hard to think about delegating.

Where in the world would you start?

Basic Organizational Functions

Generally, every small business includes the same (give or take a few) functional areas. If you’re a startup you’re likely wearing multiple hats across these organizational areas. And if you’ve been in business for a few years, you’ve realized that the quicker you grow and delegate, the better your business will be, long-term.

1. Production
2. Sales
3. Marketing
4. Customer Service
5. Finance
6. Human Resources
7. Administration/Legal
8. Information Technology
9. Research and Development

This list should ultimately reflect what your company can financially support. And as you grow, you can expand based on strategic goals and business need. However, as a startup, you’ll likely focus immediately on functional areas 1 and 2, and so on. Learn to do the basics really well and then move on to conquer the next organizational phase.

Your Only Motivation Should be Value Creation

There’s no definitive answer as to how many, or few departments your small business actually needs. The main idea is that each segment of your business should focus on value creation.

Have you ever really asked yourself, “Why are we doing this?”

It’s essential to get clarity on the main motivation behind each department.

For example, your marketing efforts shouldn’t be focused on closing sales. Your marketing plans should be designed to reach and persuade targeted prospects, and identify leads. Your sales efforts can then be directed towards nurturing leads, developing relationships and closing deals.

Clearly defined “department motivations” will help you assess whether or not you’re focusing on the right tasks and if not, allow you to course correct and delegate new responsibilities.

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