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The structure of a business is like a Lego tower made from several interconnected pieces. Each piece has one specific function and relationship to other parts of the company. 

At the bottom of your business structure, and the most basic, are laws, taxes, and other governmental regulations. Each law and regulation usually has a straight and to-the-point description, and following these is a definite must. Messing with the government and laws is not a battle worth entering. Never try to breach laws, or you will eventually have to pay a high price and penalty for it.

Leadership Insight

Right at the bottom of the business structure, and on top of rules and regulations, is the leadership of the business. Success or failure of any business is entirely dependent on its leadership. There is no way you can grow or maintain a successful business without a qualified leader.

Business Culture

The culture of a business is reflected in how the staff treats their jobs, customers, and each other. The culture of a business is exactly what has been created by the owner or leader of the company. Without the right culture and an effective team, the whole structure of the business fails.

Financial

The money and financial situation of a company is like the glue that adheres everything together. Without money and a robust economic foundation, the strongest leader and the most skilled employees are not able to affect a significant change. The sale makes money, and the cash flows into the whole business to create growth, allow production, increase profit, and run the entire company.

Growth & Development (R&D)

Growth and upgrading your products and services are fundamental to the survival of your business. Fierce competition and new technologies are making almost all products and services obsolete before the products or services even reach mature stages. The reason growth and upgrades are nearly at the base of the business structure is that, without it, your business will die even before it can make any tangible profit. You have to continuously improve your products and services to survive, let alone grow and expand.

The greatest products and services will eventually become obsolete, especially if you don’t try to improve them. This is the main reason that growth and improvement are at the base of any business.

There are several ways you can upgrade your products and services: finding or acquiring new techniques and technologies, expanding to other nitches in the market, or merging with another business that collectively gives you more chances to compete in the ever-changing market. 

Products & Services

Products and services are what you sell to make a profit. Rarely can you claim that you have a product or service that is exclusive to your business. Competition is on every corner, looking for the next opportunity.

The Personality of Your Business

The personality of your business is revealed in the words and phrases associated with your business’s name in the minds of your customers. People buy from you because of what is on their minds regarding you and your products. You may have the best products ever made on the market, but if people hate your business’s personality, you won’t be able to sell your products or services.

Marketing

Your marketing department locates your ideal customers and prepares the right message and route to approach them. They match your products to what people are looking for. Sometimes you may need to persuade and manipulate the minds of prospects in order for them to buy from you. If fast delivery is a determining criterion in your market, and people make a buying decision based on the delivery time, then it is your marketing responsibility to engrave fast delivery into the minds of your prospective customers, closely associating it with your business.

Customer Service

Customer service starts long before making a sale and continues long after the sale has been made. Customer service is not your products or services but rather the experiences that people have with your business. Customer service is all about feelings and emotion.

If you are selling skincare services, your customer service starts the moment a prospect finds you on the internet or is referred to you. Your business card, brochure, website, phone etiquette, and every customer interaction are part of your customer service.

The same customer service continues, stretching long after your client or customer received your products or services. Excellent customer service is the cheapest way to obtain new customers and keep old customers loyal.

Competition

Right next to your business are other businesses that compete with you in five major areas: reputation, price, quality, customer service, and location. Other than in leadership, your competition is competing in almost everything else with your business. You need to have an eye on the competition at all times.

Customers

Customers are at the top of everything on a business structure diagram. You and your competition are fighting to keep your share of the market or grow and gain more customers. Customers are at the foundation, and whatever you have and are doing is all directed to satisfy their demands.