Learn how to professionalize your business with these great tips from Juancho Robles in today's highly competitive business world.
A few months ago, a young entrepreneur kept messaging me, asking if he could speak with me or meet with me about how to proceed with his dream of growing his business and eventually listing it on the local Philippine Stock Exchange. He found out about me through a referral from my stepdaughter, who went to the same school as he did. He must have read my Link in Bio and believed that I could assist him. I was intrigued, so we set up a Zoom meeting.
With Zeal and Dedication
This young entrepreneur told me at the start of our first meeting that he was inspired by billionaire entrepreneurs like Elon Musk, Mark Zuckerberg, and Jack Ma. He admitted that he couldn't grow his company quickly without assistance. As a result, he was looking for a consultant who could also serve as a business coach, advisor, and mentor.
I was actually astounded by this young man, who was driven by a strong desire to expand his business at such a young age. He discussed expanding his e-commerce drop-shipping business. It thrived during the pandemic, and he made several million dollars last year, but our conversation eventually turns to his most recent plan: to launch a franchising company supported by an online marketing and business development platform.
As a result, I agreed to assist him. We then began by holding planning meetings with the ultimate goal of professionalizing his company's early stages.
5 Ways to Professionalize Your Company
My discussions with this young entrepreneur inspired me to examine the various aspects of professionalizing business operations.
I actually designed a roadmap for several companies that wanted to do an initial public offering (IPO) of their shares many years ago. I eventually turned this roadmap into a framework that business owners who want to professionalize their businesses can easily understand. Many of my consulting engagements focused on one or more components of the framework, depending on the company's priority.
This framework divides business professionalization into five components, which are discussed below:
1. Administration
It all comes down to putting in place an appropriate decision-making structure to ensure that the business runs smoothly and without conflict. It entails establishing the company's organizational structure—from defining management and board committee charters to establishing levels of authority—as well as preparing the company's policies, rules, and regulations (e.g., the corporate governance manual, code of conduct, and manual of operations).
Establishing a family constitution—which establishes the rules and boundaries for family members involved in the business—is also a good idea for family-run businesses.
2. Strategy Execution
Strategy implementation entails carrying out annual strategic planning activities and putting in place a performance management system (e.g., preparation of performance scorecards for each department and individual employees with specific key performance indicators). Similarly, establishing an action plan monitoring system to track the status of strategic action plans is extremely beneficial.
3. Risk Assessment and Management
This entails incorporating risk management into the company's operations, similar to how Enterprise Risk Management is practiced (ERM). Furthermore, before embarking on major projects, businesses should conduct risk assessments. One effective method is to practice Project Risk Management.
Overall, risk management is all about anticipating potential problem areas and devising a solution to mitigate or resolve the problem before it occurs.
4. Improvement of Business Processes
Business Process Improvement requires you to concentrate on increasing the effectiveness and efficiency of the company's operations. A business process is an activity carried out by a company in order to achieve one or more of its business goals. Cash collections, warehousing and logistics, and sales are all examples of business processes.
A company should implement continuous improvement activities to improve its business processes. Implementing a total quality management (TQM) system, benchmarking or comparing the company's practices to the best practices of other companies in the same industry, improving internal company controls, and establishing capability improvement or training plans for employees are all part of this.
Furthermore, the company should implement auditing and compliance activities to check and monitor the various business processes. They should also think about implementing a fraud control program or a fraud reporting system. Operating a fraud reporting system is a required activity for publicly traded companies. The results should then be analyzed and used to improve the company's business processes even further.
5. Asset Preservation
The term "wealth preservation" refers to corporate structure. This way, you can maintain control of the company and plan succession plans for management and key officers to ensure smooth transitions. Furthermore, investment planning ensures that investments are made to achieve specific investment goals while adhering to specific asset allocation policies.
Similarly, corporate tax planning ensures that the company and its affiliates can take advantage of potential tax breaks or use the most efficient tax structure. In the long run, estate planning for family businesses is just as important.
Overall Impression
Professionalizing your business is difficult and takes a lot of time and planning. As a result, I decided to share my experiences in order to provide a roadmap for aspiring entrepreneurs who want to up their game.
And the advantages are enormous! Professionalizing your business practices enables your company to provide the best products and services possible, promote integrity and accountability, and reduce employee conflicts as a result of clear and transparent policies. It also boosts your employees' confidence and re-energizes them to work with a clear understanding of the company's goals.
But, more importantly, it can provide business leaders with the ability to manage the company efficiently and effectively. As a result, they will be able to rapidly grow the company and realize its full potential. This makes perfect sense to any businessperson!
Please stay safe, everyone!