How to Increase Your Company’s Revenue or Gross Income – Part 6

The single most expansion-constricting cause for worry for entrepreneurs is the lack of or poor organization of the business.

Where the organization of a business is left to the vicissitudes of life, or the owner’s whims and caprices, or in-vogue ‘management guru’ or ‘system’, a company cannot attain its vision, but flounder and remain small.

Today, we are going to address what organization, organizing, management, and administration are, and what values they contribute to the rapid expansion, prosperity, and sustainability of your business.

To organize is to arrange properly to achieve the best, most valuable outcome. To organize, one has to follow a laid down pattern and steps to getting something done.

Organizing is the activity or action leading to the organization of a business. 

Management is the art and science of getting oneself and one’s subordinates to get the vital work done to achieve set tasks, objectives, or goals.

Administration is the steps taken within an organization to ensure the people, process, equipment, and materials elements are brought to a standard of how they should be, how it is to be done, etc. to enable Management to have what it needs to get work done. 

For instance, getting staff to understand how to write promotion letters is an administrative function; compared to getting staff to write and send promotion letters to clients or customers which is a management function.

If these aspects of an organization are not well known, processed into the routine of the business, enforced, monitored, and improved upon an going basis, the business will not attain its potential growth.

An organization is akin to a human baby. At birth, the baby has every organ, system, etc. that a fully grown adult has; that is if the baby is not born deformed. As the baby grows, every cell, organ, and system grows and matures along with the child. We have never seen a baby grow limbs, kidneys, or eyes at intervals toward adulthood; everything necessary for the baby to become able to attain its full human potential comes with the birth of the baby, not after.

This is so true of the artificial organism we call organization. As the name implies, an organization is an organism, just like a human baby. Even the corporate and criminal laws of every country recognize the organization as a person, if unnatural.

To develop a corporate or organizing structure for your business, that is if you don’t have one that takes into account the factors described herein, you must see the structure in terms of the timespan of the vision you dreamed up for your business. You cannot draw up a corporate or organizing structure for your business as it is today or as it will be next year, except your vision can be attained today or in one year. 

This has been the bane of large companies internationally. They restructure, year in and year out as the company outgrows the pattern and structure of their corporate structure. This restructuring costs a great deal of work, cost, worry, and the sacking of employees. 

With these surgeries (restructuring) done to insert a bladder, pancreas, etc. (aspects of the organization not done earlier) which are thought to be unnecessary at the onset of the structuring in the adult company, the company and its owners suffer.

Therefore, so as not to fall victim to 1) the business remaining small forever (except this is your aim), 2) remaining in a state of constant worry as to why your business is not thriving and expanding, and 3) losing your dreams and business altogether, and go back to the slavery that is employment, you need to take the steps to:

1) Consider to initiate the processes of organizing your business;

2) Do all the steps to organizing and formalizing your business;

3) Utilize the organizing structure and the attendant management and administrative systems.

We shall discuss the steps and elements of an organizing structure to guide your decision (1 above) next week.

Let us continue to strive to thrive!

Babatunde Odutola
LeadEtics® Consults