It can be difficult to know where to focus your efforts when it comes to operations within your company. Do you focus on sales? Or, do you put more of your money and time into operations? This is a common debate with entrepreneurs who have limited resources.
The first thing you need to know is the difference between business operations vs. revenue operations. Let’s break down both to gain a deeper understanding of where you should focus.
What Is Business Operations?
Business operations are things that your company must do to function. It’s the heart of the business and includes all core functions such as HR, writing a marketing plan, advertising, etc.
Business operations should be focused on:
- The overall health of the company
- Core functions (payroll and finance)
- Marketing and sales strategy
- Operations procedures
What Is Revenue Operations?
Revenue operations are the functions that relate directly to your revenue generation. This includes customer acquisition, sales management, lead follow-up, and more.
Revenue operations should be focused on:
- Driving revenue
- Generating leads
- Providing support for sales staff
- Running the sales funnel successfully
The Need for Unity
As you can see above, there’s a difference between business operations vs. revenue operations. With this knowledge, let’s discuss why entrepreneurs need to focus on bringing both together in unity.
Business operations are the “brain” of your company. It’s what keeps you compliant and running a healthy company that maintains good communication and financial controls. The only problem is that business operations are cost-heavy.
You cannot run a successful revenue operation without proper business operations to follow through with daily tasks such as hiring new employees, collecting revenue, and managing the finances.
Revenue operations are the “arms” of your company. It’s what generates revenue for your bottom line. The only problem is that revenue operations are profit-light.
You cannot run a successful business if your revenue operations are weak. It’s important to have the right systems in place for collecting revenue, managing clients, and following through on daily tasks. All of this costs money up front.
If you focus too much on one side of the coin, then you’ll be spending all of your time (and money) on revenue operations without the proper tools in place to support your business.