There are 9 best ways to manage your business successfully.
Study your business
It is one thing to be able to float a business but it is a different ball game to be able to manage and grow the business successfully.
The very first step you need to take in your entrepreneurial journey is to study and understand the industry you belong to.
This is because if you do not understand how those in the industry operate, you will not know what it takes to make your business successful in the industry.
Management functions and responsibilities
Every business needs an effective management to be successful.
As the business owner, you are on the driver’s seat.
You determine which direction the business will go. Everyone in the team is looking up to you for direction.
That means that the success or failure of the business rests squarely on your shoulders.
Consequently, it is your responsibility to:
Provide effective, flexible but purpose driven leadership style.
Formulate policies that will guide all the activities of the business.
Implement effective policies to ensure that the policies are properly understood by every member of the team,
Monitor policies to ensure full compliance with the rules and regulations of the business.
Review policies as the needs arise and to ensure that the the policy documents are regularly updated.
According to Benjamin Franklin “if you fail to plan, you are planning to fail”.
In business, planning is key to success.
To this end, you can write a business plan for your business even if you are not going to seek funding from financial institutions.
Additionally, the plan can be incorporated into a handbook or a blue print for the internal running of the business.
Therefore, your planning should cover all aspects of your business.
For example, you need to plan for:
Sourcing for materials, stocks and inventory
More importantly, you must base your plans on facts, not guess work.
Most importantly, you should remember that if you carry on your business activities on faulty plans you cannot get the desired results.
Purchasing is yet another important thing that you need to plan for seriously.
The importance of purchasing can be better appreciated if you remember that large companies usually have purchasing departments often headed by professionally qualified purchasing officers.
For example, if you are into manufacturing, you must source for raw materials from the cheap and reliable suppliers to avoid idle machines.
Similarly, if you are in a retail business, you will need to purchase quality products from genuine sources so that you can keep your customers and attract new ones.
Furthermore, do not forget that if you buy cheap you will sell cheap.
Most importantly, remember that it is your responsibility to ensure that your business remains competitive and successful.
How To Manage Your business: Store Keeping
In most cases, stocks and inventory take a large amount of business capital.
That means that you need to put in place an effective internal control systems to ensure that your stocks are properly handled by competent and reliable employees.
Beyond that, you should ensure that your inventory are maintained on a computer system.
Use of computer software is highly recommended because it is:
There have been reported cases where dishonest employees steal stocks from their workplaces.
Some store officers can recycle products back to your suppliers after the goods have been delivered to your store.
It is, therefore, very important for you to pay attention to stocks and inventory in your business.
Marketing is an important part of your business.
Ideally, every single person in your business can be involved in marketing. But you will provide the leadership and support necessary for your marketing activities to be successful.
Firstly, you will need to make arrangements to advertise and promote your business.
Secondly, it is your responsibility to make sure that your business generates sufficient revenue to keep you in business.
How To Manage Your business: Cash management
This is another important area where you need to be strict and observant.
Thirdly, you can install a close circuit camera in all strategic locations in your business.
This is particularly important for cash register and exit points of your business.
Furthermore, you will need to introduce budgeting into your cash management system.
A cash budget system can help you to ensure that your business expenses are tracked in a timely, and responsible manner.
In particular, cash budgeting system can help you to keep your eyes on your creditors and debtors accounts.
As I have said in some of my previous posts, in business nothing just happen. It is people that make things happen.
Consequently, you will need to bring on board reliable, competent and committed hands to help you manage your business.
Moreover, having high quality personnel in team means that you must invest in your employees.
Furthermore, you should not forget that your employees are your first assets.
More importantly, you need to remember that the quality of services you receive from your employees is a function of your inputs into their training and development.
Therefore, you must empower your employees to be the best they can be.
How To Manage Your business: Keep accounting records
If you are running your business without keeping proper records of incomes and your business expenses, you are a pilot flying without a compass.
Proper records keeping can help you to ensure that your business transactions are transparent.
It can also help you to detect or prevent frauds from happening in your business.
Yet another important reason why you need to keep records of your business transactions is that it will help you when it is time to:
prepare your annual financial statements
File your tax returns
Know the net worth of your business.
Determine whether you are making profits or losses in your business.
In conclusion, let me say that it is not possible, in this article, for me to say everything that can be said about business management.
You should not forget that business is not a bed of roses or for the feint of heart.
However, simply tell yourself that failure is not an option.
A lot of successful business owners have gone through thick and thin before they achieved success.
By Samuel Ijenhi
B. Sc. Accounting, University of Benin,
Benin City, Nigeria.