There are two ways to interpret the phrase 'business processes'. We can assume it refers to equipment you use for specific tasks in running your business, such as the telephone, fax machine, computer etc. Or we can interpret it on a more 'global' level, in reference to a group of activities that culminate in the production of your product or service. Here, we will discuss the latter.
There are three kinds of business processes essential for any enterprise, venture or business, regardless of its age: Management Processes, Operational Processes and Supporting Processes. Organizing your business into types of processes, and through a clear schedule of steps, will make success that much easier to attain.
Management Processes
These are the processes which govern the operation of the system. The planning of the business and the control of its performance falls under this heading. How you choose to execute your activities (strategy), project management, and corporate governance all apply here. These are large sub-headings on their own, but their importance and manpower vary according to the size of your venture. In a corporate setting, senior management is responsible for management processes, however in a new business this task may be taken on by a partner or investor.
Operational Processes
This is the core of any business. It generates the most revenue, and has the highest costs. If something falls out of sync here, very often the whole house of cards will fall. Purchasing, manufacturing, advertising, marketing, sales and research are all part of the operations. Market sensing processes usually take place before business activities begin, and should continue at regular intervals from then on. Customer acquisition processes are important operations at every stage of business. Keeping your product or service current and maintaining superior customer services are part of customer acquisition and customer relationship management process.
Supporting Processes
This is usually the last process to fall into place, and the first to go when a business is failing. The supporting processes aid in the core operations and can include services such as accounting, human resources and technical support. In the beginning of a venture, small business owners often try to save capital by performing these duties themselves or have a family member assist them. This can be a great way to save, if the core skills are there. As the business grows, and especially in the case of accounting tasks, it is advisable to have a professional take over. In small business, it is very common to use outside entities for human resource services. In this manner there is a better chance for a good candidate being chosen and the cost is most always reasonable. Consider the cost of hiring, training, and then having to let them go because they were not the right fit will cost much more than just letting a professional help you.
Each of these heading can be broken down into sub-processes which can sometimes become more important than the original heading. As long as the purpose of each process is focused on aiding the consumer, it will be valuable. When you are beginning to design your processes, start with a mission statement such as 'I want my service to evolve with technical trends'. Then you can compose a strategic management plan which is closely linked to an operational management sub-process which will include research. Another example is 'I want my product to have 100% turnover each month'. Your process to accomplish this goal will involve the purchasing and inventory management sub processes under the operational process umbrella.
Starting a new business is exciting and scary all at once. If you have a good business plan, enough capital, and a marketable idea, then you have a good beginning. Those things do not guarantee success, you need to continue on and develop your essential business processes. Then you have a better chance for success.