We’re sure every business leader and entrepreneur has come across the term “operations” – yet, there is very little consensus on what it actually means. Some believe that it refers to the management of business assets and employees to ensure smooth sailing. While others argue that it boils down to the deployment of strategies that enable the startup to consistently operate with high efficiency and productivity. While the explanations may vary, the good news is that most people agree on operations are as critical for a startup as product development, capacity planning, marketing or other business aspects.
Hence, it is essential for technology startups to understand their operational demands at the outset and develop a robust operational setup. Operations is not a stepping-stone, but rather a functional framework that defines the startup’s growth, revenue, agility and success. In this blog, we will break down what “operations” really means for a tech startup, and how you can align it with your business objectives.
Operations At A Tech Startup And Its Four Components
Operations can be loosely defined as “business functions that support the day-to-day processes.” It refers to the broad range of activities that help in keeping the entire machinery running without friction. Although there’s no right or wrong definition, as every tech startup has unique operational demands and needs, “operations” will generally have four key components:
Finance
The day-to-day operations of any technology startup will entail various financial transactions, making it one of the core pillars of operations. The financial aspect of operations includes ensuring that payments are made on time, sales invoices are delivered, outstanding funds are collected, consultants or third-party collaborators are compensated, etc. Tech startups should set up software that handles employee expense dues and payroll aids in filing claims and automates the process of claiming tax returns when applicable. Moreover, as part of the startup’s operational setup, the financial arm helps monitor cash burn and expenses, as well as ensuring key stakeholders have accurate information needed for budgeting and monetary decision-making.
Human Resources
Managing the people within the startup is a critical component of operations. This aspect of operations entails carrying out pertinent and timely recruitment campaigns, employee development and upskilling. To ensure the workforce functions effectively, HR teams must also review appraisal, compensation and retention schemes to align them with the needs of the employees. Some consider this to be the most significant component of operations as it correlates directly with the productivity and efficiency of the startup as a whole. Further, operational HR teams are also the ones in charge of developing social programs, incentives and reward systems to improve employee satisfaction and business output.
Compliance
Technology startups need to establish an element of compliance to abide by financial, security, legal and corporate regulations on a daily basis. This aspect involves collaborating with legal teams to ensure contracts with the employees, support staff, consultants, suppliers, and even customers are watertight. Tech startups need to make sure they comply with all requirements (such as auto-enrolment pensions, data protection laws, etc.) and offset it with the required insurance (such as professional indemnity, public liability, etc.) by making compliance a part of their operations. The compliance component is necessary for ethical functioning as it defines the “dos and don’ts” for the employees and decision-makers.
Infrastructure
A vital facet of any startup’s operations is its infrastructural setup, as it affects not only the existing business functions but also how quickly the startup can scale and expand in the future. This pillar of operations ensures that the workforce has the relevant facilities, equipment, tools and technology to perform their duties seamlessly. More importantly, infrastructure has to keep upgrading to cope with new requirements and demands. For example, with the growing call for hybrid work schedules, every tech startup needs to ensure its infrastructure is flexible for both in-house and remote workers.
To Sum Up
You can think of “operations” at a technology startup as four key business components – finance, HR, compliance and infrastructure – working together. Yet, managing such diverse business functions necessitate startups to focus on various aspects of their operations; imagine setting up administrative, recruiting, compliance, legal and accounting teams! This can be extremely challenging to manage all at once, especially for nascent, budding startups.
That’s where TeemGenie can lend you a helping hand! We provide Employer On Record services that can help you offload all aspects of building and managing your India team to dedicated experts. From scouting the best talent to handing over the setup to you, TeemGenie is an all-encompassing EOR partner for startups!
EOR++ By TeemGenie
At TeemGenie, we customize EOR (also known as Professional Employer Organization – PEO) offerings to fit your company’s unique culture, swiftly address employee concerns with a proactive approach, and connect you with top-tier tech talent curated specifically for your needs. We understand that no two startups are the same and help you craft a tailored strategy based on your business model and overseas destination. TeemGenie is an exclusive India EOR partner that infuses a personal touch into employee management, ensuring your team’s needs are met with care and expertise, unlike standard SaaS-based solutions.
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