Tuesday, 12 December 2017

How To Manage A Business Effectively


Managing a business can be challenging and demanding. Commitment, knowledge of the business, determination, finance and human management are essential in the start up and management of any business. Running a business requires a great deal of commitment and energy.

10 Points To Consider On How To Manage A Business

1. SET REALISTIC GOALS (SHORT AND LONG)
After setting up a business, the next step is to control and expand the business. For the business to grow there should be more planning and focus based on the experience so far. Work towards achieving your goals by training your staffs, increasing productions, increasing sales through improved marketing and advertisements.

2. KNOWLEDGE OF THE BUSINESS
Successful business leaders are well versed in the in the dealings of the industry. A manager have to understand the roles of the different positions they manage so they can make important decisions affecting the company such as promotion of staffs and even hiring new ones. It is difficult for a manager to gain the respect of staffs if he is not knowledgeable in the business. Leading by example is key for the staffs to respect the manager. Learning from other experienced and seasoned professionals is important and will help you avoid certain mistakes.

3. ORGANIZATION STRUCTURE
The bigger the company the more complex the structure becomes. Running a business requires a lot of work and creation of different departments including administrative unit, management of finances, laws and regulations to adhere to, employment or firing of workers, sales and marketing.depending on the size of the company it is important to break down each area into different departments. Each department should be occupied by qualified and experienced individuals that are professionals in there area of specialization. Those in an accounting department handle the finances and budgets for other departments and the company, the legal department handles matters such as laws, regulations, and insurance, while the human resources department handles employee matters including hiring, firing. A sales and marketing department will handle each matter dealing with sales or advertisement and promotions. For a business to be successful, each department while handling their own matters, must work effectively with one another.  The Chief Executive Officer (CEO) might be the founder or owner of the company, and therefore would only be responsible for reporting to other large shareholders. However, in most situations, the CEO reports to a board of directors or the owner of the company. In this way, they act according to the requirement of the board, implementing there decisions. A CEO may also work together with another executive, like a vice president or chairman, to make important business decisions.

4. FINANCIAL/RESOURCE AND HUMAN MANAGEMENT
To run a business successfully, you must be aware of all of the company's resources, including both finance and people. you need to know how much of each to allocate to the different departments to reach the desired results. Identify company assets like cash reserves and other assets that can be used when required. A scale of preference should be used in Assessing the needs of the company as they apply to your plan. Resources should be provided to the most important aspects. Statistical analysis is required inorder to examine past performances. Try to identify the successes and failures. Plan meetings with the employees to create plans or monitor progress. All reports have to be submitted and scrutinized. this method enables the management to track progress or deficiencies in there workers as well as the method the business is being managed.

Also Read: How To Make Money Daily On Facebook

5. IDENTIFY STRENGTH AND WEAKNESS OF THE COMPANY 
To implement the operational plan, the strength and weakness of the company must be considered. The strenght of a company includes workers experience and skills, assets, financial. The strength of the company should be used as an advantage to move the company forward. Weaknesses should also be identified, this can include poor performances, toomuch cost, incoherent organization, wrong area of concentration etc. Sometimes this problems can be hidden or undetected. This problems can be solved one after the order.  

6. MARKETING PLAN
Creating and reinventing the marketing strategies of the company goes a long way to expand the company's output. If you have the best products and it doesn't get to the consumers, then its worthless. Adverts and sponsorship creates awareness thereby expanding the business output.

7. FOLLOW THE COMPANY OBJECTIVES
If you are an employed manager, you have to stick to the objective of the company. If the board or owner expects you to take the business in a new direction and you focus on increasing sales, you might end up loosing your job.Try and find out the goals of the business so you can create plans and actualize them.

8. FORECASTING 
Is an informed estimate on how something will be. it can be about the industry or finance. there are different method of forecasting of which in most cases includes government policies, competitors, statistical data of income and expenditure, natural events such as weather and man made events like sports competitions. This events increase or decrease the company's success. A major event such as the football world cup that is coming up will lead to an increased demand for sports wears such as jerseys. A sports wear manufacturing company have to increase production and marketing to make more sales.

9. INDUSTRIAL LAWS
Business owners have to be aware of laws guiding regulating there business. these laws and regulations should be studied by those in management positions to ensure that their company's operations are consistently up to date with current changes. industrial and labour laws vary from state to state and country to country.

10. MAKE CUSTOMERS HAPPY
Customers satisfaction is key to the success of any business. The biggest businesses are the ones with the happiest or most satisfied customers.

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