What is Small Business Process?

Small businesses vary a great deal in terms of size and revenues. Small businesses can even be started on a part-time basis while a person continues a regular job with an employer.

In developing countries, many small businesses are sole-proprietor operations such as selling products at a market stall. No matter what kind of small business you own or plan to start you should be aware of the importance of small business processes.

A small business process is a collection of business activities and tasks that are performed by a system or a person within a structured business.

Business processes are the backbone of your business operation. If implemented properly, these processes can significantly improve the value of your business.

What is a Small Business?

Small businesses are privately owned partnerships and sole proprietorships. Usually, small businesses have fewer employees and generate less annual revenue than larger enterprises. 

What is Business Process?

A business process is defined as a collection of business activities and tasks that when performed by people or a system in a structured course, produce an outcome that contributes to the business goals. A business process includes the following elements.

  • Activity/tasks
  • System
  • Data 
  • Workflow 
  • Employees

A business process is a series of steps performed by a group of stakeholders to achieve concrete goals. Each step in a business process denotes a task that is assigned to participants. It is a building block for several related ideas such as process automation, business process management, etc.

Examples of Business Processes

Processes differ depending upon the type, location, and industry of a business. There are a few processes that are practiced across all businesses around the globe. Following are a couple of business process examples that apply to almost any type of business.

Sale Process

The sale process is a fundamental business process across various industries. The common sales process observed by most businesses involves the following steps.

  • Sharing the sales proposal
  • Receiving orders for services/products
  • Sending quotes
  • Agreement to terms & conditions
  • Delivery of products/services
  • Billing 
  • Payments
  • Updating records of sales

The order of these steps can be different for different businesses. But the general theme of the sale process remains the same.

Customer Service

Customer service is another important process that is a part of business operations globally. It involves the following steps.

  • Receive customer complaints/issues through CRM
  • Acknowledging the customer concern
  • Resolving the issue
  • Communicating the status to customer
  • Officially recording the issues and it’s solution

Lifecycle of Business Process

Besides having global business processes, businesses also need to set up their own processes unique to their business type. In order to successfully incorporate new processes, businesses need to follow the business process lifecycle.

There are 7 steps of the business process lifecycle.

Step 1: Define your goals

What is the purpose of the process?

Step 2: Plan and map your process

What are the strategies needed to achieve the goal? This is the broad roadmap for the process.

Step 3: Set action and assign stakeholders

Identify the individual tasks that your system and team need to do it in order to execute the plan.

step 4: Test the process

Run the process on the small scale to see how it performed. Observe any gaps and make required adjustments.

Step 5: Implement the process

Start the process in a live environment. Properly communicate and train all stakeholders.

Step 6: Monitor the result

Review the process and analyze its patterns. Documents the process history.

Step 7: Repeat

If the process is able to achieve the goal set for it, replicate it for future processes.

Why Should You Improve Your Business Processes?

Efficient and effective processes are the key to the rapid growth and sustainability of your business. Here are some reasons to get you started with business process improvement.

It Helps You Save Costs

Process improvement enables you to identify unnecessary spending of resources and find effective ways to produce the best process output. This allows you to save on costs that otherwise can be utilized for other important priorities.

It Enhances the Customer Experiences

Enhanced business processes directly contribute to business goals and ensure customer satisfaction. Effective and efficient business processes produce exceptional outcomes that delight your customer.

It Boosts Productivity Within Your Teams

Process improvement helps you to exterminate nonessential and unnecessary activities and tasks from your process. It enables you to re-engineer your existing process with more effective techniques. This encourages your employees to take up the more challenging tasks as opposed to clerical redundant activities.

It Helps You Live a Better Life

Improved business processes lead to better operation, better lives, and better business outcomes. Once your processes are streamlined, you can enjoy your personal life, without any stress because your processes will ensure smooth business operation for you.

Types of Business Processes

Here we have mentioned 3 types of business processes.

  1. Operating Process

Operating processes are the main functions of the business process. These processes are directly related to the fundamental values, mission, and vision of the business and are also known as primary processes.

  1. Managing Process

The processes that plan, organize, control and coordinate all the functions of the business fall under managing processes. These processes are goal-oriented, it includes motivating and helping your team to achieve their targets. These processes also help in forming a direction for the further growth of your business.

  1. Supporting Process

These are processes that are not directly related to the delivery of the service or products to the customer. But they help the business create an environment. Where the primary process can work better.

Wrap up 

When you start a business. It is important to create, understand, implement the processes regardless of the scale of your business. Now that you have an idea of how to create and map out these processes, you can start working on them.

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