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Oct 25

What Organizational Structure Do I Need?

Posted by: Steve Marr

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A small business owner may believe that he or she needs no organizational structure.


Consider Mel, who owned an independent hardware store. Mel employed 12 people: one in the back office and the rest assigned to “do whatever needs to be done.” In a word, his business was a mess. Because no one was responsible, no one took ownership.


I helped him to establish a simple organization chart dividing up many key responsibilities. The most effective customer service employees were assigned to work the floor, while others were more use unloading trucks, organizing storage space, and placing merchandise on shelves. Reordering was assigned to one person.


In a short time, Mel’s business ran much more efficiently, and when some employees quit, he was able to go without replacing them, saving $30,000 a year. 


I advise my clients to write out a simple organizational chart, even if they are the only person working in the business. At first, they will fill all the boxes, but in the future they can decide what boxes they want to hand off to the first person hired, and as the business grows, new staff can be added to fill the needed roles.


Paul wrote, “But everything should be done in a fitting and orderly way” (1 Corinthians 14:40 NIV). An organizational structure will help you become an orderly business.


Steve Marr, Your Christian Business Coach

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