Every business is born with an idea — your idea. Your imagination, research and dedication set the wheels of work spinning. And then, as your business begins to flourish, more and more people are brought on. What started as your idea is now a much bigger picture with loads of people – employees, partners, suppliers, customers – associated directly and indirectly with it. As business grows, responsibilities and departments need attention and guidance. Without a system and guidelines, your small business could become chaotic. Hence, setting the groundwork and infusing discipline into the system immediately is vital for your business to grow smoothly. To do so, you need to set strict business rules.

Why Do You Need Business Rules?

  1. Guiding principles: One of the main objectives of business rules is to guide employees about the business’s structure, the different roles and designations involved, whom to approach or report to when faced with a problem or the correct way of dealing with customers and suppliers. Helping your employees understand these things as soon as they join ensures efficient working and reduces errors.
  2. Standardization: Well-thought-out and articulated rules help your business set standards of uniformity and consistency in quality. If every staff member adheres to these standards, it increases efficiency and strengthens your brand power.
  3. Avoid legal problems: Clear rules on dealing with customer complaints or supply chain problems can save your business from potential lawsuits and threats, as the employees can simply refer to the rules and act accordingly.
  4. Improve performance: Having an idea beforehand of what is expected from them also keeps the employees motivated to give their best from the outset, thus improving their performance at work and boosting business.

How Do You Make Business Rules?

Making business rules is a detailed process that requires in-depth knowledge of every process of your business, the tasks of various departments and/or employees and the potential problems or dilemmas that could crop up.

Various types of business rules specify what could be done in particular circumstances. Some help with managerial issues, others with human resource problems and still others with actionable guidelines for solving a problem.

  • Rules for Leaves: For instance, having a standardized template for leave applications by employees with necessary details such as duration of leave, reason for leave, emergency contact details, etc., makes it easier for HR to keep records and manage leave requests comfortably. Furthermore, specifications about medical or paid leaves (how many days will be allowed, any documentation to be submitted) should also be specified.
  • Rules for Invoicing: Then there are rules pertaining to essential business procedures such as invoicing or inventory-keeping. These rules outline the procedure to be followed when sending/receiving invoices, sending reminders, and handling payments. In processes with multiple layers of approval involved, such rules help save time and effort. This is because your employees will inevitably keep changing over time. A detailed “how-to” guide makes their job easier and quicker.
  • Rules for Customer Interaction: One of the most important sets of business rules pertains to employee-customer interaction. These rules should be thoroughly detailed and include things such as how to greet and speak to customers, how to deal with difficult ones, what types of discounts are to be offered on which products, and the business’s return policy (if any).

For instance, what should the employee do if your business has a 10-day return policy and a customer happens to come a day later? Though seemingly simple, such policies can lead to severe altercations and affect your business. So detailed, written procedures and rules act as a safeguard against disgruntled customers.

  • Rules for Uniforms and Protective Gears: Business rules also include the employees’ code of conduct and other requirements such as dress code. If employees working in manufacturing units or on the field must wear any protective gear or safety shoes, then the rules must specify it.

These rules should be communicated to the employees as soon as they are recruited to avoid accidents or health issues. If any employee does not comply with the rules, the action to be taken must also be written down in the rules. Such practices help ensure that all employees are treated equally and fairly.

  • Rules for Workplace Management: Another severe and significant advantage of written business rules is that they protect your business against potential lawsuits. When faced with severe accusations (workplace harassment, bullying, unfair labour laws, etc.), the managerial staff should be able to refer to the rules and act under the given guidelines. By following the procedures, they can protect themselves and the business against litigation to some extent.

Business rules are to a business what a Constitution is to a government. The more detailed, clear and transparent they are, the better they will help run your business without difficulty and maintain quality. As a business owner, you can help decide the rules, but the actual writing of the rules, with all the correct legal and technical terms, is best left to a specialist. Hence, hiring a consultant for the job is advisable.

Contact Ford Keast LLP in London for Your Business Management Needs

Business rules are not easy to write. An expert business consultant can help you write a business manual and various policies to help employees run their daily business operations smoothly. At Ford Keast LLP, our experienced business consultants can provide services for all your business management needs. To learn more about how Ford Keast LLP can provide you with the best business management expertise, contact us online or call us at 519-679-9330.

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