Business operation systems are standardised ways that an organisation uses to carry out its activities. Systems include processes, procedures and approaches for conducting business. Below are some of the areas in which one would develop and implement systems for running the side hustle business.
- Manufacturing
- Service Delivery
- Marketing
- Distribution
- Human Resource
- Procurement
- Finance and accounting
MANUFACTURING
Manufacturing begins with inputs that undergo a process which ends up with outputs. The process can be documented to ensure that standardised goods are produced. For example, to make a cake requires mixing ingredients in predetermined proportions. The mixture is then put in an oven for a specificed time to produce a cake.
If one ventures into manufacturing, there is need to prepare a standard operating procedure for production. The procedure should be known by production staff and be used to churn out products of the same quality. Any changes to existing procedures should be authorised before they are implemented.
SERVICE DELIVERY
Businesses that offer services such as catering have a process of serving its customers. For example, at a fast food restaurant there is a queue that begins with informing the cashier the meal one wants. The meal is costed and once payment has been, a receipt is issued to the customer. He or she hands it over to person serving out food. After obtaining the food, the customer sits down on provided seats and table to eat. On finishing the meal, the customer leaves the restaurant. If you open a services business, develop the steps in providing the services for uniformity in serving customers.
MARKETING
One of the challenges that most new businesses face is how to market their products or services. Marketing is about the steps of promoting, pricing and selling one’s products. Through promotion, your business products can be attractively made known to potential buyers. Decide on how you will price your products to make them affordable to your target customers. Develop steps to be followed at the point of selling the products and receiving cash from customers.
DISTRIBUTION
Distribution involves moving the finished products from the factory or warehouse to wholesalers or retailers. One should develop the steps of the movement right from loading to offloading the products. With Uber for several things these days, a small restaurant can use motor bikes to deliver ready lunch packs to offices in the neighbourhood. Decide and document on the process of your distribution busines.
HUMAN RESOURCE
When the business will require employees, it is important that you develop policies for handling various human resource issues. Such policies should cover the following areas:
- Recruitment and selection of new employees
- Deployment of employees
- Terms and conditions of employment
- Training of employees
- Managing the performance of employees
- Payment of employees salaries and benefits
- Termination of employment
Policies on the above areas will enable one to handle employment matters within the confines of the labour laws. If one violates the laws, employees may file suits whose fines could hurt business finances.
PROCUREMENT
Business operations require one to purchase items that will facilitate production of goods or delivery of services. A procurement system should be developed to ensure timely availability of business assets, materials and utilities. The system will include information on how to choose suppliers; when to make orders; receiving and storage of delivered goods and issuing goods for internal usage.
FINANCE AND ACCOUNTING
Finance is the life blood of business whose inflow and outflow should be prudently managed. One is expected to develop procedures for receiving and paying out money. For example, receipts should be issued for all the cash transactions. Daily cash sales should be banked the following day. Payments must be authorised and paid using banked money and not the money in the cash box. A pretty cash system should be put in place for payment of miscellaneous expense.
All business transactions should be recorded either manually or using a computerised system. To gauge the performance of the business, one should prepare financial statements on a quarterly basis and the final ones at the end of the year.
LAST POST ON SIDE HUSTLE SERIES
The last post on the Side Hustle shall be on SIDE HUSTLE LAUNCH. Be on the lookout for the post tomorrow.
