Managing Small Business Challenge
It is not easy running a small business, especially when you consider the fact that things are always changing, from customer needs to new technology to marketing strategies.
So, how can you manage a new business—while keeping an eye on the future and making sure you can scale up smoothly when the time comes?
Likely, you have a full plate and have to wear multiple hats as you oversee a range of different areas in the business.
In this post, we’ll walk through how to get small business management right, using examples from real-life startups and small businesses that are thriving and getting ready to scale. Skip ahead if you like:
- What exactly is “small business management?”
- Why is small business management so important?
- What are the most essential skills for running a small business?
- 6 small business management tips from 6 small businesses
- 5 essential tools for managing a small business
What is small business management?
Small business management involves aligning and co-ordinating all aspects of a small business. That can include managing employees, suppliers, finances and all the daily processes of the business. A small business manager will often also be responsible for overseeing the big-picture business plan.
Everyone’s definition of the company size of a “small business” is slightly different, but for our purposes, let’s just say these are companies with 1 to 99 employees.
Why is small business management important?
Well, there are a few reasons why good small business management is important, but here are the big ones.
It directly impacts employee productivity and performance
What a small business manager says or does will have a direct impact on employee performance—especially if this person is also the boss (and especially if you don’t have a human resources team yet).
Unlike a manager of a larger organization or business, a small business manager will likely have constant day-to-day contact with their employees.
So, their management style will be one of the most important factors in whether employees succeed or struggle. A manager can lift morale and inspire everyone to work together—or cause it to plummet.
It builds the foundation for company growth
A small business manager is often one of the first managers in a company (if not the first manager). And if this person is good at their job—and stays with the company as it grows—they will be a treasure trove of knowledge for new employees.
From the product development history to company dynamics and politics, to a holistic vision for the future, there’s a lot that this person will learn during their time as a manager, and they’ll be a key piece for the company’s growth plans.
Cash flow, cash flow, cash flow
Can’t run a business if you’ve got no cash. Do you want to maintain a healthy cash flow or be over budget every month? When it comes to management, your business finances are a huge part of the job.
Do you (or your manager) know how to hire strategically so you’re not overspending? What about choosing the right software and tools to fit your actual business needs? These are all important parts of small business management.
Source : https://www.dialpad.com/blog/small-business-management/
