5 Essential Steps to Building an Organization
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Before you start building an organization, make sure your first devote some time to planning. A plan with goals, forecasts, and an action plan to reach those goals is the foundation of any successful organization. You don’t want to simply rely on luck when building your business as it leads to failure and a financial loss most of the time. Because it is so common, we often are only exposed to rare success stories where someone built a large organization in a very short period of time merely with luck and a small effort. But there are millions of other stories of people who quit their jobs and thought once they would simply start, everything else would fall into place and work out, who eventually (or even early on) fail.

When planning, focus on

  • short-term goals that you plan to have completed within one year
  • medium-range goals that you will strive to reach in one to three years
  • and long-term goals that you plan to accomplish in three or more years.

If you don’t know where to begin, a SWOT Analysis is usually a great beginning point. Completing a SWOT Analysis will require you to research the competition and identity your strengths and weaknesses in comparison to your competitors as well as the opportunities and threats of the market.

If you have not written a formal business plan at this point yet, this would be the time to do so. 

Based on this Analysis, you can then create a forecast of the supply and demand of the service or product you are planning to provide to customers. Finally, create some realistic but challenging goals for your business in terms of revenue, growth, and development.

After you have a plan, start organizing. Outline the positions you will need to have filled as well as the responsibilities of each position. Decide on rules of authority and departmentalization and finally determine which and how many resources will be needed to fulfill all positions to reach the goals. The resources you should focus on at this point are human resources, employees.

Start the staffing process and attain employees that you think will be a good fit for your business and the positions you have outlined during your organizing stage. If you do not want to select your personnel yourself, consider hire a staffing company or hire a human resource manager for your company first who will then be responsible for finding/recruiting and training your new workers.

Once you have all of the human resources and equipment you may need and you are ready to focus on optimizing your performance, seeking to achieve the highest potential level of performance, you will be involved in directing. To build and run a successful, high performing organization does not only require a great product or service and happy customers, but it also takes satisfied employees as their satisfaction will determine their motivation, which in turn determines their productivity level. Employee satisfaction is one of the most difficult challenges that business owners face as they are focused on a high return on their investment while employees seek a competitive compensation. As a business owner, paying your employees competitive wages and providing incentives can largely pay off in the long run. Your employees will appreciate you as a leader and often go out of their way and take the extra step of effort to provide excellent customer service or complete a task quicker, more accurate or better. In addition, the organization’s work environment will be much more enjoyable, reducing your expenses on attaining new employees to replace those who resign. Always focus on having an open line of communication so your employees are able to address any concerns employees may have. Encourage them to perform well and continuously offer coaching and development to improve your employee’s knowledge and skillset.

If you are unable to engage with employees as described below, assure you choose a manager who has the necessary qualities and compassion and will be able to direct.

Finally, by placing performance standards and periodically evaluating actual performance results, you will control your organization and make corrections as necessary, while rewarding any noteworthy success.