Designing your business with an Organization Chart

[Get Right]

Hey Guys and Gals - I have received a few requests to share how I design my businesses by using an organization chart. I will give a synopsis here including a screenshot of one of my current businesses so you can see how they work in real life. I also attached a free editable word document that you can use as much as you like, enjoy!

So why use an organization chart? Just like a roadmap for your company generating sales/profit etc. you need a roadmap of how you will organize your employees/consultants etc. This roadmap is crucial for 3 reasons:

1. It provides a simple graphic showing what positions are needed to complete your organization to achieve a certain level of income.
2. It helps you identify the order in which you need to hire employees.
3. It helps you create a system that can run independently of you.

So how do you develop your own? It's pretty easy. Simply list the positions you think are necessary to get your company to the desired income level. For this thread assume the one I designed was 1M revenue/year. Now under each position list the name of the individual performing those duties. If you are a solo-entrepreneur then list your name under each position (in my example - look for my name "allen"). After a little while you should start to "see" the organizational structure. As you hire employees erase your name and put the new employee in that position. The goal being to remove your name from as many positions as possible.

So what are the real world implications for this?

1. At some point you are going to need a strategy to separate your time from your business. This chart can help. If you will notice the top bracket shows "shareholders". My goal is for my name to only appear here once my business is built out.
2. If you ever decide to sell your business you are going to have to prove to a potential buyer that your system runs without you. Well, here is your proof.
3. Saving you a lot of green! Imagine hiring an employee without an organization chart. You get super busy one day and say "Heck, I need an assistant!" So you hire one but then realize you really needed to hire that Sales guy before the assistant...so what do you do now? Yep, probably borrow a bunch of money to get the sales guy or wait 3 years to afford him.
4. It helps your other employees understand the structure of your business. Employees like clarity, this provides it.

So how can I push the chart further? I use these ad-ons (not shown on example for privacy).

1. I write the true company revenue $ target under the "organization chart" heading. This will change over time and the chart will need to follow.
2. I write the salary, estimated salary or wage under each position. This helps budgeting for each new employee.
3. I write the duties of each position which correlates to the unique Operations Manual for each position. This is also helpful when it comes time to write ads for job boards.
4. Remember this is a working document. It needs to change/breath and develop a life of its own. As your income target changes, so does the chart. As your company directions migrates it needs to flow as well.

I hope this helps you guys and gals build your employee structure. As always - ask me anything about this, I'm happy to help.

 

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[MarkNNelson]

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[Vigilante]

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1. Ni

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[Get Right]

Vjot ot dmettod I-Nzvj, sohjv?

Tu ov muult moli zua siqmedif zuastimg op vji noffmi gostv, epf zua'si tvomm qsitipv ev vji vuq epf up vji gsupv mopi. Xet vjot up qasquti, us katv jux ov xuslif uav tu ges?

Op vji qsufadvoup 2 sumi O qsuwofi cedlaq epf uwisgmux. Et xi eff nusi qsufadvoup sumit O xomm sinuwi nztimg dunqmivimz gsun vjot qesv ug vji catopitt.

I-nzvj fuit veml tunixjev ecuav vjot cav xjip duncopif xovj cuult moli Caomv vu Timm epf qistupem iyqisoipdi vji djesv siemmz dunit vu mogi.

 

[MakeItHappen]

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