What makes the difference is an individual’s ability to informatively work in collaboration and cooperate as part of a team whether in the same room or all in different countries.
One advantage of being a sole trader within a business is that you have a comprehensive understanding of all the activities/work within the business. A true competitive advantage when it comes to accommodating opportunities, as all critical variables to make rapid and effective decisions are readily in the one brain. The capabilities of the human brain are remarkable when it comes to making decisions, often unconscious to the majority of variables which were instantly taken into consideration.
Inevitably as a business expands more and more people get employed. The sole trader’s competitive advantage of everyone knowing everything simply dissolves as more and more people join the business. Obviously, there are more advantages than disadvantages to expansion for a business owner.
A company can be defined by listing all its business processes. The larger the organization the more likely efficiencies are attainable by allocating several people to different operations within the same process. Optimisation through specialisation not only simplifies the employees’ roles but facilitates further enterprise expansion. The inevitable consequence of this business progression is the individuals become more isolated. To maintain quality assurance and counteract problems caused by isolation, the firm may need to duplicate operations and implement less efficient channels of communications between departments.
These necessary double-checks mentioned above can easily account for ten per cent of overall human resource work time. Arguably more importantly it can inhibit critical information reaching senior management in time for them to put counteractive actions in place.
For tax reasons, accounting software generally gets implemented long before the firm is fully established. Companies can quickly outgrow their initial accounting software. As an interim solution frequently firms implement third-party add-ons. Often for companies in the B2B sector, such plugins only partially resolve their actual requirements and management becomes ever more reliant on spreadsheets as time goes on.
A Business Management Solution (BMS) is a necessary stepping stone for any growing business. BMS is more orientated around your company’s business processes rather than mainly finance. Still, at the core of BMS software, you have live management and financial accounts. It’s a realistic prerequisite that the employees feel they are too busy to migrate to a completely new solution. The main consolation to the employees is that it’s the solution, not the problem. Benefits are immediate to all and the accounts department would be no exception to this rule.
A good BMS empowers and facilitates individual users within the organisation to accomplish their individual goals more effectively within the context of the company’s objectives. As it’s all part of the one integrated solution, instantly the duplication stops, paper chasing is eradicated and access to realtime information becomes the norm.
In conclusion, a BMS like Herbst Insight Enterprise can collect, consolidate and distribute every aspect of the business in realtime to any staff member within any department. Whether or not that individual is in the same department, same office or even when half the workforce is working from home the solution has always been about consolidating an organisation. Not that dissimilar to the brain of the sole trader who’s empowered for the task in hand whilst having everything available if required.
If you enjoyed this article you also should read these:
1 – 5 reasons why you should say a ‘NO’ for manual business processes
2 – 8 Common Business Management Problems That Can be avoided by ONE SOLUTION
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