How to Structure a Small Business Organizational Chart in Google Docs
In 2019, the US has around 30.7 million small businesses according to the Small Business Association. If you’re planning on opening a small company, make sure to prepare an organizational chart. If you need help in making one, you’re welcome to take notes from our guidelines below.
1. Focus on the Structure of the Business
Businesses have their own structure in order to assign or delegate specific responsibilities. Since organizational charts are simply a visual representation of the company’s structure, you need to focus on and gather details from it.
2. Decide on a Type of Organizational Chart
There are various types of organizational charts to choose from if you’re making one. There’s the matrix type, flat type, and the hierarchical type. Which one do you think suits your organizational structure best? Refer to our FAQs below for definitions of each chart type.
3. Get Everyone’s Names and Titles
Of course, it’s important for you to gather up every single employee’s name for your organizational chart. Additionally, get each employee’s position or title in your small business. Both details, along with an optional portrait photo, are essential in organizational charts.
4. Start with an Outline of the Diagram
Whether it’s by sketching or writing down notes, it’s best to start with a basic outline before getting into the actual org chart. This will only take you a few minutes, but the outcome will be far superior when compared to that without a planned outline.
5. Keep the Shapes, Lines, and Spacing Consistent
Organizational charts consist of shapes and lines to signify people and relationships, respectively. When creating one for your small business, keep these elements consistent in size and thickness. Aside from that, the spacing between the shapes should be consistent as well.
6. Add Colors or Visual Enhancements
Fill each shape with a color that distinguishes itself from the background. Also, you can assign a specific color according to their rank in the hierarchy. And only if appropriate, you may also add design enhancements to the chart's background.
What is a small business organizational chart?
From the name itself, it is a type of diagram that small businesses use to illustrate their organizational structure. It is made up of the business owner, the managers, and all the employees.
What are the characteristics of a small business?
- Not more than 500 employees.
- Very limited branches or locations.
- Close employee-management relationship.
How many small businesses fail within their first 5 years? And why?
According to Convergehub, over 50% of small businesses fail before reaching 1 year, and over 95% fail within 5 years. According to CB Insights, the most common reason for their failure is the lack of market demand.
How important are organizational charts?
- It informs employees of their tasks and rights.
- It guides employees of who their superiors are.
- It visually represents the structure for meeting objectives.
What are the different types of organizational charts?
- Hierarchical organizational chart - The most common type wherein employees are grouped together according to rank or position.
- Matrix organizational chart - Unlike typical hierarchies, multiple managers oversee employees who are grouped according to skill and assignment.
- Flat organizational chart - The type most preferred by small businesses wherein the manager and employees share the same decision-making responsibility.