Business management for small businesses
August 24, 2009 by Victorino Q. Abrugar
Filed under Uncategorized
When people think of business, they usually think of profit and money. When people think of management, they usually see a person or group of persons wearing nice coats and ties. All of these are like viewpoints seen on a tip of an iceberg which still had unseen deeper notions under it. Being in business should not only mean being in a quest to financial wealth. Likewise, management doesn’t only mean a process which can be handled by people who have finished college or master’s degree in business management or administration.
For big companies, management is well-funded and well-established. But how about those small entities which obviously don’t have huge money to spend to establish a well-placed management structure? The answer is… they don’t actually need big bucks to have a management system that will effectively and efficiently run their small companies. What small entrepreneurs need is a great participation in their small businesses. This rigorous participation means great investment of time, passion and personal qualities (i.e., intelligence, wisdom, emotional strength, ability to influence and lead people, etcetera).
Management is simply the process of accomplishing a goal. Business management is simply the process of accomplishing business goals. These business objectives include success in profitability, liquidity, solvency and integrity. The processes involve in management include planning, organizing, staffing, directing and controlling an organization. Management can also be established in small organizations which include of only few persons. It can even be adopted by companies which are composed of only one person. The following are management processes which can be done by small business owners and entrepreneurs.
Planning
To effectively and efficiently reach business goals, advance thinking is a must. Planning is simply the process of making a plan. A business plan (e.g., financial plan, marketing plan or operational plan) is a systematic set of objectives, and procedures to meet those objectives. Small business owners have small current objectives. Thus, they enjoy the advantage of creating a simpler business plan than big companies. A good plan is one that is specific, measurable, achievable, relevant and trackable (S.M.A.R.T). See these Simple tips and techniques in planning your business for the year 2009.
Organizing
Organizing is simply the process of placing things in order. This means that to achieve entrepreneurial effectiveness and efficiency, you need to arrange and group your resources and activities in a more organized manner. This process starts from organizing your files and folders inside your laptop or desktop used in your own business. In a small organization, putting your employees in the right places and positions will make them more efficient and productive. Like a basketball team, each member has given its special position (center, forward and point guard). The coach places the player in the position where he can contribute more to earn points, steal points and win their game.
Staffing
This process is popular to big organizations since they are the ones who can hire and train more people. However, even a one-man company can do this process. Staffing is the process of selecting and training individuals for specific job functions and making them accountable for their related responsibilities. For entrepreneurs who cannot afford yet to hire people, there are still individuals whom they can make as their employees and train to effectively do their jobs – these individuals are their selves (yourself). For a one-man company, you can charge yourself with the duties of being the owner, manager, accountant, salesman or a marketer.
Directing
Known as the heart of management process, directing is a function that involves more human interaction. This includes influencing human behavior through motivation, communication, and discipline. A manager in an organization should effectively reach out the personal qualities of his or her subordinates. This is to guide them in attaining their personal success which can be aligned to the organizational success. An organization cannot gain success if its members are in failures. Likewise, a company, small or big, cannot be considered successful if its people are not succeeding. Blaming someone for his failure doesn’t promote the management function of directing because this function is more on motivation rather than depression.
For small entrepreneurs who have very few employees or just have their selves as self-employed, the function of directing can be started within their selves. It can be started by motivating, reflecting and disciplining one’s self. Have you lately tried to figure out your direction and things that you must achieved?
Controlling
According to Henry Fayol, one of the most influential contributors to modern concept of management, control consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.
After making a plan, have organized it, charged individuals with assignments and responsibilities and motivated them, the next process that we should undertake is controlling the organization. This is to assure that we are doing the things according to plan. And if things are not, we do something to set these things right. Every process from planning, organizing, staffing to directing should be done and run appropriately. To ensure this, we set standards, measure actual performance and take corrective actions whenever deviations are detected.
Conclusion:
Business management should start from the time the business starts. We should not wait for a great amount of financial resources to establish our business management system. Planning, organizing, staffing, directing and controlling – we can start these functions in our selves. We can also initiate them to very few people.
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