What is a holistic approach to your small business
Here I am not talking about a health business or new-age business. I am talking about ALL business types and sizes within the micro to small business sphere.
When talking about the business we can ignore the medical usage of this term and think about the philosophy of taking a holistic approach.
Holistic – characterised by the belief that the parts of something are intimately interconnected and explicable only by reference to the whole.
A holistic approach means thinking about the big picture of the entire business. So regardless of the task at hand, each change you make to one or more parts affects the business as a whole!
In taking a holistic approach to your small business you review the fact that each change you make will affect your small business. You need to always look to the big picture and your business as a whole.
As a small business owner you know that, particularly in the beginning, you need to wear all the hats. You need to be:
- Accounts Payable and Receivable
- Human Resources
All these areas and more make up your business as one entity and what you do or don’t do in one area affects another area whether you realise this or not.
The sum of all parts
If one area is being ignored due to lack of interest or knowledge then the other areas will suffer.
For example, A creative business owner may love making all their items but completely ignore the need to monitor their accounts. Bills go unpaid, invoices remain outstanding and they don’t have money to keep creating.
This sum of all its parts idea is much easier for big business – Here there are teams of people responsible for these areas and with regular reviews it is easy to see if an area is being ignored or not performing.
Every part of your business
If you break up your business into many parts and you look at each of those parts – how is each area performing. Are you looking at the various aspects of each area holistically so that each area is then creating a business that is the sum of all its parts?
Value creation – You are creating/offering something of value that others want or will be encouraged to want.
Marketing – Building demand and attracting attention for your value creation
Sales – Transforming prospective customers into paying customers through transactions
Delivery – Providing what you have promised and ensuring satisfaction
Money – Ensuring that you bring in enough money to make your efforts worthwhile
Value creation – you have a hobby
Marketing – you have a flop
Sales – you have no profit
Delivery – you have a scam
Money – you have a business that will close
Do you have a holistic strategy for your small business?
By defining all these areas in your business and looking at them holistically you can see where you may need help to ensure that you are maintaining a holistic approach to your business.
Holistic approach – considering all areas equally