Business Operations
What is Business Operations?
Businesses and organizations offer goods and services to consumers or commercial
clients to earn profits.
o Example: A bakery provides fresh bread and cakes to customers, aiming to
generate revenue and cover expenses like rent, ingredients, and staff salaries.
Activities must be efficient to generate sufficient revenues to cover expenses and ensure
profitability.
o Example: A tech company ensuring its software development process is
streamlined to meet deadlines while minimizing costs.
Business operations evolve as the business grows, requiring management to adapt to
changes for smooth operations.
o Example: A small café expanding into a franchise must handle challenges like
sourcing ingredients in bulk and maintaining consistent quality.
Understanding basic business functions helps in professional development for both the
company and its employees.
Role of Business Operations
Aligning Cross-Departmental Teams: Operations ensure all departments work
cohesively toward shared goals.
o Example: A retail company’s operations team works with marketing and sales to
launch a seasonal campaign effectively.
Creating Scalable Processes: Operations define processes that grow with the business.
o Example: A Software As A Service SaaS company implementing automation
tools for customer onboarding as the client base increases.
Budgeting and Analytics: Business operations collaborate with revenue teams to
manage finances and leverage business intelligence tools.
o Example: Using marketing analytics to identify customer acquisition costs and
optimize campaigns.
Business operations facilitate cooperation between departments and help
organizations adhere to budgets.
o Example: A manufacturing company coordinating between R&D and production
to meet budgetary constraints while launching a new product.
Elements of Business Operations
1. Process
Impacts productivity and efficiency.
o Example: A manual inventory tracking system in a warehouse replaced by
automated software saves time and reduces errors.
Processes should be documented to identify areas for improvement and train new
employees.
o Example: A logistics company documenting its delivery process for drivers
ensures consistency and helps onboard new staff.
2. Staffing
Staffing needs (How many employees needed to work) are determined by processes and
business scale.
o Example: A small startup might hire versatile employees who handle multiple
roles, while a large enterprise needs specialized teams.
Questions like "Who needs to do the work?" and "How many are needed?" guide staffing
decisions.
3. Location
Importance varies by business type.
o Example:
A home-based freelance graphic designer requires minimal space.
A retail store needs a high-traffic area (lots of customers).
A software company thrives in tech hubs with access to skilled talent
employees.
4. Equipment and Technology
Correlates with location and business needs.
o Example:
A pet grooming salon needs space for grooming bays and equipment.
A mobile pet groomer only needs portable tools.
A carpet cleaning company requires a garage for trucks and office space
for operations.
