Entrepreneurs’ Brew – Critical business processes and systems for start-ups: Part II

Pastor Welcome Thamsanqa Mlungisi Dlalisa

Last week we dealt with the broader range of business systems for entrepreneurs.

Those systems outlined last week are more suited for medium to large enterprises. However, as a small business start-up in the township, it is essential for you to select carefully just a few critical systems for your business. Therefore this week we plan to propose some of those critical businesses systems. Even when your start-up is a one-man business, you will soon find that you are ‘out of control’, unless you start organising and writing down how and when key things need to get done. Like it or not, you are now entering the dreaded realm of ‘formal business processes’.

The right question is: What is the minimum that I need?

The correct approach is to implement one process at a time, starting with those things that are most critical and relevant to your business, until you feel that things are starting to happen naturally and consistently, without the attendant stress and continual recovery mode. If you feel that the process itself is a burden, you have likely gone too far.

Here are eight key business tasks that relate to almost every start-up, generally prioritised by criticality. Think about the implications of each to your own business, and the potential impact of getting them done incorrectly, or forgetting to do them entirely.

1. Systems to manage physical assets and finances

Physical assets include your buildings, cars and other tangible assets. As soon as you start a business, you must know how much you make and how much you spend in a day, a week, a month and so on. These are your accounting systems. You cannot afford not to keep these records about the performance of your enterprise, even as a small entrepreneur. Keeping an asset register is also important, so you know the number and condition of your assets like building/s and/or cars.

2. Develop your business plan

Even as small operator, you need to have a clear business plan, even if it is simple and straight to the point. As your first system, the business plan defines your business model, sales, opportunities, threats, weaknesses, strengths and product definition – just to mention a few things.

3. Product development process

It is important to document how things are done in your organisation. This helps you when staff members leave your company. The new employee/s can then easily learn how things are done, using these business processes. This includes how your products are produced or developed. When you induct new employees, you can use these documented manuals. This way, when your employees resign or are terminated for any reason, that will not affect your business negatively.

4. Manage human resources

HR systems are important, as these cover, among other things, recruitment, selection, training and development, promotion, reward and recognition, termination and so on. These systems and HR policies bring order and professionalism to your business. In addition, they prevent the unnecessary litigation that may arise out of inconsistent application and treatment of workers.

5. Leverage information technology

Leveraging information systems is important. This includes issues like how to access the internet, what servers you need, the applications required, the databases to be designed and the backups to be scheduled. Nowadays, the growth of your small business requires that you leverage and optimise technology.

In order to help the entrepreneurs of Tembisa implement what we are learning via these articles, I have set up what I call the JOSEPH ACHIEVERS MENTORING (JAM) programme. The programme is based on Joseph in the Bible, who rose to prominence despite his background. I am encouraging all Tembisa residents to join. This programme is aimed at supporting all residents of Tembisa but it targets mainly young entrepreneurs, young professionals, university students and high school learners. It offers a range of support initiatives including career guidance, training and mentoring. Many have enrolled for the programme and receive business management training and mentoring. I challenge you to enroll for JAM in order to propel your life or your business to new heights. To register for JAM, send an email to dlalisa.rhi@gmail.com or call the number below.

Join us for our next seminar, where we will have funding partners like Standard Bank, NEF, IDC and many others on Saturday 24 June 2017, from 9am until 3pm at RoyalHouse International Church (532 Entshonalanga Section, Tembisa).

For more information, contact Pastor WTM Dlalisa on 083 395 1165.