The following are 10 Greatest Tips On How To Manage Your own Business:
- Management policies
- management style
- Leadership style
- Stocks management
- Marketing management
- Customer relationship management
- Financial management
- Personnel management
- Accounting management
To start and manage your own small business can be quite challenging indeed. Poor business management is one of the leading causes of business failure.
Management simply means the administration of an organization, whether it is a business, non-profit organization or government body.
Given the above simple definition, you can see that you need entrepreneurial skills to manage your own small business.
This article, therefore, seeks to highlight some of your basic responsibilities you need to manage your own small business.
Management policies involves the process of creating, communicating, maintaining policies procedures within your small business.
An effective policy management system should reduce business risk in two ways;
- It makes policies more quickly accessible do direct care staff, guiding care
- And safety decisions.
Flowing from the above, you need to bear in mind that the success or failure of your business depends largely on the type of choices and policies you implement to manage your small business.
In other words, you should by your policies, the direction you want your business to go.
Therefore, it is your responsibility to make sure that you:
- formulate workable programs, policies and procedures that will enable you to manage your own small business.
- map out where you want your small business to be in the next 5-10 years time
- implement your business policies effectively
- closely monitor and evaluate the overall performance of your business
Most importantly, it is your sole responsibility to make sure that you are regularly following trending events in your industry. If you fail to do that, your business will not be able to complete in the market place.
Your management style should the particular way you go about accomplishing your business objectives.
It should include the way you make decisions, how you plan and organize work and how you exercise Authority.
Your management styles may vary by the nature of your business, level of management anzd even from person to person.
Management style should enable you to manage your own small business successfully. You will need to develop standard code of conducts which your employees should key into.
Furthermore, you should remember that your employees will often follow your footprints. That means that you need to lead by example.
For example, if you are in the rut of postponing what you can today till tomorrow, your employees are most likely to emulate the bad habits of procrastination from you.
On the other hand, if your employees know that when say something you always stand by it, they will follow will with whatever policies and procedures you roll out.
Most importantly, you will need to continually upgrade your management styles to suit your employees, customers and suppliers.
Most importantly, your management styles should follow the trends in your industry so that you the train will not leave you behind.
Manage your own small business: Leadership style
To manage your small business successfully, you need to display a good leadership style.
Your leadership style will be defined by how you direct, motivate, guide and manage groups of people.
It is your responsibility to motivate your employees to perform, create and be innovative in the discharge of their duties.
In addition, to be able to manage your own small business successfully, you should know that you will need to show some level of flexibility when implementing your business policies.
This is important because flexibility should enable you to meet the expectations of your employees, customers and suppliers.
However, flexibility should not be taken to mean that you should tolerate lapses that will have negative impacts on your business.
Rather, it does mean that you have to be able to strike a balance between weakness and strength.
Finally, you should be able to get your employees to do what is right without bullying them.
To be able to manage your own small business successfully, you will need to manage your stocks effectively and efficiently.
In most businesses, like yours, it is possible that stocks will take a large chunk of the capital of your business.
This means that you need to pay special attention to the management of your stocks.
You cannot talk of customers, sales, profits and business growth without talking about stocks.
Therefore, it is your responsibility to make sure that you:
- are able get regular and uninterrupted supplies of stocks.
- obtain supplies at reasonable prices.
- put in place effective and efficient internal controls over your stocks.
In addition, you need to make sure that you are not:
- Carrying excess stocks
- experiencing stock outs
- carrying stocks nearing expiry dates
- carrying obsolete stocks
- carrying stocks that are experiencing low demands
- stocking over or over-priced stocks
- And lots more.
Another tip to enable you manage your small business successfully, you will need to be able to generate enough sales to keep you in business.
Do not forget that business is war and the common enemy is competition.
For example, you will need to:
- constantly monitor the behavior of the market.
- the competition,
- and promote the products or services you are offering
- and the strategies competitors are using to drive sales.
Customer relationship management
Yet an important strategy you too need to manage your small business, you will need to put in place an effective and efficient customer service.
Ability to attract new customers and keep your existing customers should be one of your top priorities.
Moreover, customers are important because without them, you will not be able to sell your products or services. Plus, if you do not sell, you will not make profits. And without profits, your business will not grow.
You need customers more than they need you. Customers have choices. If you do not treat them well, they can can easily take their businesses to other vendors.
Therefore, it is your responsibility to make sure that your customer service makes every customer happy and satisfied. And that no customer leaves your shop unhappy.
Furthermore, you should constantly assess and evaluate the performance of your customer service. You need to upgrade your customer service on regular basis to meet the needs of changing times.
In addition, you need to monitor your customer retention rate. If the rate of customer exits is more than new customer acquisition, then you are missing it.
Most importantly, you should get feed back from your customers and sales personnel. This will enable you to know how customers feel doing business with you.
An effective and efficient management of the finances of your small business is very crucial to the survival of the business.
Financial management is such a big topic that cannot be fully discussed in this articles. But
suffice it to say that you need to put in place effective and efficient internal controls over your cash.
In particular, you should pay special attention to the following points:
- bank accounts
- cash in hand
- control of business expenses
- avoidance of expenses that do not add value to your business
There might be times when you could run into difficulty in making financial decisions. When you find yourself in such a situation and seem unable to sort things out, you should feel free to consult a financial experts for advice.
The little fee you will pay to a consultant could be the magic you need to navigate your business out of financial mess.
Personnel management is yet another area you need to pay special attention to. In business, things do not just happen. It is people that make things happen. Your employees are your first assets.
Beyond that, you need to be a bit flexible in the management of your employees. Do not forget that employees have choices too.
For example, if not well treated, highly skilled employees who know their worth can leave you for better jobs elsewhere.
Therefore, you should:
- motivate your employees
- give promotions and pay raises to deserving workers
- recognize and encourage them to give their best
- where necessary, give them training to meet the needs of your business
- allow them to take their annual vacation so they can refresh
- let them have a sense of belonging; i.e. let them feel that they are part and parcel of the business
- let them share in success story of your business
- pay them what they are worth; i.e. according to the work they do for you.
Most importantly, do not forget that the quality of services you get from your employees is a function of what you put into the development. It should a win-win situation.
Another important tip that will enable you to manage your small business successfully is that you need to keep accurate financial records of your business transactions.
If your business cannot sustain the employment of a full time bookkeeper or an accountant, you can outsource the job to an outsider to write up the books.
However, as your business begins to grow, you will need to hire an accountant to:
- keep all the necessary subsidiary books,
- prepare annual financial statements for your business
- compute your tax liabilities
- and file your tax returns.
Remember that if you are running a business without accounting records or without preparing annual financial statements for your business, you are like a pilot flying an airbus without a compass.
In conclusion, to set up and manage your own small business is worth trying. After all, it is the dream of many people to enjoy financial freedom. And even be employer of labor. But before then, you need to work very hard to nurture the business, especially at the early stages.