Before we understand the importance of information technology for entrepreneurs, let us understand a few important things about your business.
Basic legal structures for business organizations
1. Sole Proprietorship: A sole proprietorship is an unincorporated business that is owned by one “individual”. Sole Proprietorship does not require government approval. The business has no existence apart from the owner. Owner owns the business assets and is personally responsible for all debts of the business. All liabilities of the business are the owner’s personal liability. It’s easiest to set up a sole proprietorship business as there is not much documentation required.
2. Partnership: A partnership firm is an association of two or more persons to carry on as co-owners of a business or other undertaking for profit.
A partnership firm can be set up by a partnership deed which is a document made out by the partners and witnessed by a lawyer.
The property acquired by a partnership firm is property of partnership and not the partners individually.
The partners are jointly liable for debts of the partnership. They are also jointly responsible for any legal liability against the partnership.
3. Corporation or company: A corporation is an association of individuals, known as stockholders, created as a business entity.
In order to form a corporation, a number of legal formalities have to be fulfilled. A corporation does not dissolve upon the death of one or more owners.
Companies are separate in law from the individual owners (shareholders) of the business.
A company is a separate legal entity and bears its own name and seal. It can own property, incur debts and borrow money. Shareholders cannot be held accountable for the company’s acts.
The Companies Act, 1956, regulates a company’s affairs and protects the interests of minority shareholders.
4. Limited Liability Company: A LLC is a flexible form of enterprise that blends elements of partnership and corporate structures.
It is an association of individuals, known as members, that share characteristics of both the individual and corporate identities.
It may be a sole proprietorship, a partnership or a corporation. Legal formality is similar to that of a company.
LLC provides limited liability to its owners against the actions of the business or other members of business.
Note: source above information is collected from Indiainfoline.com
After understanding the basic legal structure of businesses, you need to figure out or understand the goal of your business.
What is the goal of your business or company?
Growth Plan: How you want to grow your business
Scalability: Up to what extent you want to grow
Geography of your services: Local/National/International/Global
What is your role in your organization?
- Strategy & Planning
- Investor / Funder
- Marketing & Sales
- Execution & Delivery management
How are you managing your business currently?
- Lead generation
- Delivery of products & Services
- Are you following any standard process(s)?
- How much Manual & how much Automated
- How many hours you spend daily on managing/administering your organization.
- Is organization completely dependent on for managing/administration
Role of Information Technology in your organization & benefits
You need to introspect what is current role of Information Technology
In your organization, how much you are using technology to grow your organization.
Digital Presence
What is your digital presence – What are places you are promoting or displaying your business online.
Do you have a web presence – Do you have your own website? Are you planning to have one? Do you have enough technology capabilities to own & manage your website or ecommerce store?
Digital marketing Tools used in your business
- FB
- Insta
- SMS
- Cold Calling
- E-mail marketing
Note: You need to know what is the need of above tools, how they can help
Core business management strategies
- What is your lead generation engine
- Do you have analytics & details of your customers in JIT
- Which method you follow to know your customers
- What is your Inventory management mechanism?
- How do you do Data management?
- What is purchase management & costing goods/service you purchase from your vendors/suppliers?
- What is the Sales order management process you follow (Delivery & Billing/Inv)?
- How do you maintain your book of accounts?
Note: Are you using any tools/techniques/technology for above?
Importance of IT in your Organization
By now you should be familiar with your organization structure, objectives, roles & responsibilities, digital marketing tools, core business processes & strategies.
Below are the importance of IT in your organization
- It can help you to cut costs
- Improve communication
- Become more innovative in products/services
- Facilitates strategic thinking
- Stores & safeguard valuable information
- It eliminates wastage
- Speed up time to take new products to market
- Process improvement (Sales, cost & operating matrics)