Overview: Small Business Management

By | January 21, 2015

Managing small business require using the same management principles applied in a large corporation: planning, organizing, directing, controling, and staffing. We’ll learn one by one based on the explanation from a book “The McGraw-Hill 36-Hour Course: Entrepreneurships” by James W Halloran.

Planning

The planning function of looking into the future sometimes gets lost in the strenuous day-to-day operations of a small business. The entrepreneur differs from the corporate manager in that he or she must participate in all business activities, not just in a specialized role. As the result, the days are full. Time must be found for financial planning, marketing strategizing, personnel responsibilities, maintenance routines, and administrative duties. There’s no sufficient time to plan into the future, however, if the business is to be successful, proper planning is essential.

Entrepreneur s should discipline themselves to find a way of divorcing themselves from the operating activities on the regular basis to plan. Some may set aside a period of time each day to set future objectives and map out a course of action to reach them. Others may take weekend retreats.The enterprise hasn’t been created for just a month. It’s expected to perform productively over many years. All management activities must be planned well in advance if long-term growth want to be obtained.

Organizing

Organizing is decision making of how to use resources to get objectives accomplished. Who will do that, what plan should be prioritized, are decision that determine responsiveness of a business. Small business prosper and at least survive because they are able to respond quickly and personally to their cusstomer’s needs. Proper organizing will assure that all job get done properly and on time.

Directing

Directing the enterprise is the leader’s job. Effective directing comes from good listening. Giving effective instruction and setting fair policy is gain through understanding the strengths and weaknesses of your organization. Learning this requires listening to your customers, employees, and all of stakeholders. Be willing to hear what you may not want to hear. Accept critism and admit error is the key to be ab effective small business manager.

As the leader, the entrepreneur must stand one step ahead than others and keep finding out new ways to do things. Continuing education in regards to the industry developments, management techniques, marketing strategies, and financial planning should be arranged into entrepreneur’s work schedule.

Controlling

Controlling is setting procedures to stay on top of progress. There are many ways to keep an eye on how the business is doing. Setting the objectives is one function, but making sure they are achieved is just as important. The manager must decide on timetables to meet the goals and devise methods to check for progress or problems. If progress is slow, new way to get where you want can be directed quickly.

Staffing

Staffing your business is important to efficiency and customer relationships. People who work for you will make or break your business. The small business owner should always monitoring and looking for the way to fill the weaknesses through staffing. Know your limit and hire to go beyond it. Understand the deficiencies and hire the right personnel to complete it.

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