Starting your business
- Definition of startup and small business entrepreneurship
- 5 stages of business development
- Stage 1. Understanding the idea
- Stage 2. Materialization of the idea
- Stage 3. Growth of business
- Stage 4. Formation and expansion of the business
- Stage 5. The decline of business
- Remote employees role at the stage of scaling a business
- Key points of business process optimization
- Brief description of BPO
Definition of startup and small business entrepreneurship
A startup or start-up company is a company with a short history of operating activities. Mostly, these companies have been recently established and stay at the stage of development or market research. The term startup (starting your business) became popular in the days of the dot-com bubble when a large number of Internet companies were created. New projects in high-tech industries are often called high-tech startups. The term startup is used for all sectors of the economy. For example in the area of information technology and Internet projects startups are called new companies that are just founded or planned to be created. IT startups are not tied to aggressive marketing and PR methods aimed at the rapid company’s promotion. IT startups can be created for a long time before the marketing entrance (for example, creating a product takes two years and only after the company starts its promotion).
Entrepreneurship is mostly called an initiative-independent, economic and commercial activity of individuals and legal entities, oriented towards making a profit (income). Entrepreneurship can be classified for two reasons: by its scope and nature of the activity.
Comparing with the usual business that a person only starts, a startup has an innovative basis, i.e. starts a business that did not exist previously at all. The idea of any startup is a new product, a new technology, something that was not produced anywhere in the world. We would like also to add that a startup is different from a regular business because it has investors immediately, i.e. investors do not invest money in the already successfully operating company, but at the very beginning of its inception. A startup is based on ideas.
5 stages of business development
Every business on its way of formation until the brand is stable undergoes a number of changes. At the same time, each business project experiences periods of stagnation and decline when the optimal level of growth and development is reached.
Most businesses go through at least five stages of their development and it is almost impossible to ignore at least one of them.
Stage 1. Understanding the idea
Any project cannot be implemented without a fresh and interesting idea. This idea will bring its economic benefits with sufficient investment. When you develop a business idea you should keep in mind various economic aspects, such as features of industrial production, the competition level, availability of the necessary resources, the market and potential consumers. Also, remember the range of the required investment: the amount of expected profit and the ratio between the level of investment and the level of profitability.
Stage 2. Materialization of the idea
The stage of business idea materialization is nothing but a phase of a startup. The interested parties take all necessary measures and actions to implement the idea at this stage. First of all, any necessary formalities for registering an enterprise are followed in order to give the business official legal status and designate its appearance in a certain industrial area. Once all the formalities have been settled and the legitimacy of the business enterprise has been confirmed, it is possible to begin the activity.
Stage 3. Growth of business
This a stage when the business scale and activity increases. Now you can begin to decline production costs, as a result, it will be possible to provide goods and services at slightly reduced prices without harming the enterprise’s revenues. All this together will increase business competitiveness, attract more customers and make profit grow.
Stage 4. Formation and expansion of the business
As soon as business begins to gain momentum and generate more and more profit this is the most appropriate time for taking steps to increase market share and expand consumer composition.
Stage 5. The decline of business
Mostly, any business begins to lose its positions and face the need to deal with the ever-growing competition and provide consumers with more favorable conditions, low prices and high-quality goods or services in comparison with competitors. In fact, in order to maintain the achieved level in the development of a business enterprise, provide it with sufficient sales markets and gain superiority over its competitors, certain expenses are needed that should be directed to advertising, promoting the brand and the product itself, ensuring stable supplies, occupying new niches in the market. At this stage, many entrepreneurs are between two fires: leave the prices the same and lose revenue or raise prices and lose customers. In the case of a completely hopeless situation, it may be worth considering options for selling a business or merging enterprises.
Remote employees role at the stage of scaling a business
Modern business owners who are looking for the ways of business process optimization begin to consider remote work as a profitable alternative to office employees. This is not an incident at all. Remote employment has a lot of positive aspects:
- Transferring to the “remote work” mode allows you to save up to 65% of the total costs required for a business organization.
- High efficiency of remote employees and also any professional orientation.
- A remote employee is extremely suitable in the area of intellectual and consulting services. Because these areas mostly do not require the personal presence of any specialist.
The remote employment industry increases by 10-15% annually. This means that lots of organizations of different directions require remote employees. However, the problem of even remote personnel turnover is still actual.
Besides economic benefits, remote employees can encourage employers to announce the remote worker’s recruitment. Minimizing any risk is possible, you just need to understand exactly how it should be.
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Key points of business process optimization
Business processes optimization (BPO) is a partial improvement of existing business processes by eliminating obvious shortcomings. For example information loops, duplication of functions, etc.
BPO is used in cases when the company needs to reduce costs, shorten the production cycle, decrease the number of managerial mistakes, take urgent measures to overcome the crisis, etc. BPO is usually the subject of key business processes because these processes give the greatest effect.
The changes in the organizational structure of the enterprise
There are often a lot of changes that come in the organizational structure of the enterprise when it’s time for BPO. Because as a result of the work, the functions of the divisions are redistributed. There is a need for new divisions or for the rejection of some old ones. Thus, as a result of BPO, the interaction between the divisions improves and the efficiency of the company and its competitiveness increase.
In order for BPO to bring the expected result, any business processes need to be consolidated in the regulatory documents of the enterprise, and also in the management information system. If the enterprise has a business process management system (BPMS), then the BPO will be successful. Based on statistics, i.e. reliable data on the life of the enterprise, you can optimize business processes and immediately fix the results in the information system.
Brief description of BPO
The concept of “business processes” became very popular in recent years and even covered with some touch of mystery. In fact, everything is simple. A business process is a set of actions that are performed in a company to receive an expected result. For example, the customer service business process. The company’s competitiveness and profitability directly on the efficiency of business processes. That is why along with building the working staff system we see the need to work at the same time with business processes. This is one of the most difficult work in organizational consulting, but still one of the most important.
What does BPO do?
- The company’s activities become transparent. There is an opportunity to improve work, improve the procedure of rationing and remuneration of staff, etc.
- It becomes possible to make a sensible choice of processes that need to be automated. The only what affects the profits and financial results requires automation. Starting with secondary processes is wrong.
- Employees are aware of the organization’s goals, and its manageability is growing.
- The final product quality increases. Each process that can improve its quality needs to be fixed.
When is it necessary to do the BPO?
- When you need to increase the transparency and manageability of the company.
- When you transfer the control to a hired manager. Also, when changing a manager or selling a business.
- When preparing a business for a franchise.
- When implementing information systems (ERP-systems, etc.)
- When building an integrated holding.
Front Desk Helpers’ special offer
Our goal is to help different companies optimize their budget and expenses. We know how hard it is to build your own business. Too many anxieties with hiring employees, recruitment process, office rent, equipment and it’s settings, staff supervising and the biggest concern – taxes.
Most of the remote positions we provide cost 65% which is lower than the middle average in the USA. Starting from $7/hour you can hire multilingual bookkeepers, dispatchers, professional virtual receptionists, marketers, IT specialists including engineers, developers, web designers or even remote technical support agents.
Once you become our partner you start to avoid investments on the following:
- HR and recruitment – save your time on learning of hundreds of CVs and interviewing. No dismissal consequences.
- Taxes – don’t pay extra. One employee working full-time week costs $280. NO hidden payments.
- No office – no rent and no need to supply any sort of equipment. Moreover – no bills by the end of the month.
- A multilingual international team – all of our agents speak at least 2 languages.
- Focus on your own business – delegate your tasks to the skilled team who honestly doesn’t require personal presence.
Our proprietary HR management system allows you to forget about the office environment. We work 24 hours a day, 7 days a week in all business time zones. Sounds good? Fill our Request Consultation Form and get a free consultation on how to outsource your job processes on significantly lower salaries. We don’t stop at this point, we offer a totally free 7 days trial with our team.
Don’t be afraid to try. The world is changing rapidly. The question here if you are able to accept these changes? Give us a call and we guarantee that you will turn all your concerns into your strength.
We invite you to learn more about our capabilities and use the cost calculator for remote employees to evaluate the benefits of working with us!
Front Desk Helpers Co, 2019. Change your business mind!
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