The Interconnectivity of the Business World

Business, Agriculture, industry and manufacturing are the backbones of every society. Businesses not only produce the products that we use on a day to day basis but they also offer employment to such professionals as accountants, engineers, scientists, lawyers such as debt recovery lawyers and many more. While businesses serve us their clients, they also rely on other businesses for some products and services.

In every industry, there are businesses in different stages; start-up businesses, growth stage businesses and established business that are considered the industry leaders. During the start-up phase, most business owners use trial and error to develop structures, processes and set up the foundation of the business. This is not only time consuming but it also wastes a lot of resources for a business that is already stretched to its limit. However, there is a more bearable and faster way to do this: business benchmarking.

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What is business benchmarking?

Business benchmarking is the process through which businesses compare their operations, products, processes to model businesses either in the same industry or otherwise. Benchmarking aims at improving operations, producing better quality products at affordable prices, identifying better ways to meet customer needs, time saving techniques, employee motivation and retention as well as other business processes. Benchmarking can also help a business identify key performance indicators (KPIs) for staff at different levels such that the business can appraise more effectively in future. A great starting point when identifying businesses to benchmark with is business associations.

Business associations

This is an organisation made up of businesses with similar interests and whose main purpose is to engage in activities that promote the members' business interests. They engage in activities such as lobbying for better legislation, research and development, coming up with policies and standards to be met by members and ensuring that their members have a unified voice on different issues. The associations could be local, regional, national or international. They are governed by a constitution and the members elect representatives as per their rules.  Business associations also ensure that their members are in compliance with the laws in their state of operation. But why is this important?

Importance of following laws within business practice

The law is like a double-sided sword. On one hand, it protects the interest of the business in the community and on the other hand it ensures that the business lives up to its civic duties in the community by protecting the interest of the government, the employees and the clients. Without the rule of law, the business environment would not only be chaotic but also inhibitive. The cost of doing business would be extremely high and the since every business would make its own rules, there would be a lot of exploitation.  Therefore, it is important for businesses to adhere to laws as the stability in the industry emanates from the rule of law.

The business environment can be challenging but with the assistance of established businesses, the state and business associations, small businesses can pick up the pace and grow into larger organisations. While the established businesses are not obligated to help small businesses, offering a helping hand not only augers well with the community but it also cements its place in the business environment. Working together for a better and prosperous economy should be the goal of all businesses irrespective of their current stage or industry of operation.