Business operations is the broad term used to describe everything that takes place within a business for it to run and make money. Business Plans include a section on operations to help company founders better understand the equipment, personnel, and processes needed to run the business.
Business Operations Elements
The operations of businesses vary depending on the type of business, industry, size, and so forth. For example, the functions of a brick-and-mortar store will be different than those of an online retailer. The former needs Point-of-sale terminals to process sales, while ecommerce software is required by the latter.
Most businesses will consider the following factors when conducting their business:
- Process
- Staffing
- Location
- Equipment or Technology
The impact of a process on productivity and efficiency is critical. Manual processes that could be automated or duplicated by another department can cost businesses time and money.
Documentation of business operations should be done department by department so that managers can examine them and find ways to improve, consolidate, or save money. Documentation can also be used to train new employees.
The processes determine the staffing. How many people are required to perform the tasks outlined in the work processes? A small company might only need a few generalists, while a more prominent firm will require many more specialists.
Certain types of businesses are more concerned with location than others. The reasons for this will differ. A pet groomer may only require a place to park, while a solopreneur consultant will likely need space for a desk in their home.
Equipment or technology required for optimal business operations can significantly impact the location. Pet groomers with staff and multiple grooming bays need more space, and they will also require different equipment than mobile groomers who offer services at the pet owner’s house. Carpet cleaning businesses don’t require a storefront. However, they will need an office and a garage for their trucks.
Analysis of business operations
It’s crucial to regularly assess and analyze the business operation, especially after rapid growth, to identify inefficiencies. This will also improve communication. Comparing a business’s operations to industry benchmarks can ensure they are at their best.