Every business should have a structure

Many small businesses owners muddle through.

Every day is a challenge to get through the things that come at them. Buying the stock, dealing with a difficult customer, speaking to the bank manager, paying the latest tax bill, sorting out an employee problem and so on. A relentless treadmill of stuff to be done. And it feels never-ending.

There is a better way. 

Michael Gerber in his seminal book about small business, 'The E Myth Revisited', advocates drawing up a structure chart for roles and duties in the business from day 1. 'There's only me in the business!' I here you say. That is pretty typical. A start up may initially just be the business owner doing everything. Even so, Gerber argues that listing what needs to be done and then drawing up a structure chart with the different roles, provides some organisation from the outset.

Initially the business owner will fill every position on the structure chart. Importantly though, they need to wear those different hats at different times and ensure that essential work gets done. The marketing, the selling, the invoicing, collecting the money.

As the business grows some of the positions on the chart start to get filled. Maybe a part-time bookkeeper first, then someone to help in the shop whilst the owner places the orders. Gradually the team starts to take shape and the job descriptions ensure they do the right things.

Creating the organisation chart is not a one-off exercise. It needs continuous review as the business grows and develops. Every now and then it might need a significant overhaul as processes and activities are revised to adapt to new challenges or opportunities.

Businesses that don't have a structure chart and clear roles and responsibilities can still get by and many do just that.. 'Muddle through' as I said in the opening paragraph. They do tend to stay small however and business life can be uncertain and a little chaotic.

So if your business doesn't have a clear structure, do give this some thought.

I came across this quote from a chap called Henry Cloud which kind of sums it up, 'Boundaries are basically about providing structure and structure is essential in anything that thrives'

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