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The 5 Departments Your Small Business Needs

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It’s easy to think that the outlook for small businesses isn’t great. Many don’t survive for long, and others wither away in times of financial hardship. In order to give your small business a chance to thrive, you need to set it up for success from the beginning. If you’re looking to give your small business a sturdy foundation, here are the departments you need to form.

  1. Administration

This is where the decisions get made. Every business needs an administration to oversee all the other departments of the company. At this level you can decide on internal tools to manage the back-office operations of your business and on the infrastructure of your company, which can dictate your workflow, daily operations and the overall efficiency of your business. You can use tools like terraform to assist with building and modifying this infrastructure.

This branch of your company may oversee the management of employees and the implementation of new directives. It may also serve as the prime method of communication between you and all the other branches. If the communication between administrators isn’t optimal, you may miss important information and any miscommunications can trickle down through the rest of the business.

  1. Marketing

In the modern crowded marketplace where everyone is on the internet, it is crucial for your company to find a way to stand out among your competitors. This is where a top notch marketing department is worth its weight in gold. Using invaluable data from customers, your marketing department can make connections with your consumers by highlighting what makes your company unique.

This department is not only responsible for procuring new customers, but for analyzing what will keep your current customers or clients happy so that you don’t lose them. A marketing department can also conduct experiments with different types of advertising to see what kinds of sales, products and services your target customers want the most.

  1. Finances

Cash flow is the lifeblood of any business, and this is especially true for small businesses who may not have large investments to keep them running when things get tough. You need someone who understands where the cash is going and if the company is headed towards financial issues. If you lose your cash flow and can’t pay your employees, you will be negatively impacting the lives of others, which can permanently damage your company’s reputation.

Your finance department can make sure that paychecks go out on time and that products and equipment are purchased before you need them. It can also keep you on top of your taxes. If you can’t complete your taxes correctly, you can face fines that will cost you your business.

  1. Production

This is the part of your business that supplies the service or product you are offering. Whoever is in charge of this department needs to make sure your employees are properly trained according to your company’s procedures. If you make shoddy products or complete work poorly, you may lose customers and damage your reputation. Without proper training, or if you neglect to hire qualified individuals, you could wind up with work safety complications or issues with product quality, which will ultimately cost you more money.

  1. Sales

If your marketing department does the job right, you should have customers or clients reaching out to your business. This is where your sales department takes over. These individuals make a personal connection with your clients, and a knowledgeable and polite interaction can close the sale again and again.

However, don’t ignore customer service skills. How you handle problems will say a lot more about your company in the long run, so make sure you are easy to contact and are willing to solve problems when you make a mistake.

Running a small business is a lot of work, especially if you want to grow to fit all of the departments you will need to operate most effectively. Scaling your business with different departments can feel overwhelming, but when they work together, they form the machine the keeps your business moving.

Published: September 22, 2020

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Devin Caldwell

Devin Caldwell is a small business owner who loves helping other entrepreneurs succeed in the competitive business world. He owns three businesses and works as a consultant in his limited free time. Devin is also a husband and father of two beautiful children. If you want to work with Devin, reach out to him on Twitter: https://twitter.com/DevinCaldwell13.

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