Business processes are another way of describing the system you use to operate your business – what are the steps you use to handle an order from a client? How you go about pricing a job? What’s the procedure you use to erect a fence you sold? How do your accounts get put together?
Those questions will provide examples of your business processes.
What tends to happen in businesses is that, when it starts, everything is simple. There are only a few of you, you talk to each other and get things done. As you hire more people, things can become complex and there is not that smooth efficiency you had at the start.
Often, we find that an established business has not looked at its processes for a while and inefficiency has crept in when no one was watching. The business was probably founded on the technical skills of the owner, not on an understanding of how business works.
So when it has become inefficient, it is relatively easy to bring efficiency back and produce more cash to the bottom line.
Therefore, business process management is a really worthwhile discipline to keep you business running smoothly and efficiently.