Small Business Management Which Works

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By - 30 June 2009

Starting a small business and operating it is bloody hard work! You are in charge of everything and sometimes it can feel like you are actually doing everything. Sometimes it can be hard to find a style of management that is truly effective. Learning by trial and error is necessary in business, but there is no need to get burned too often. There are some key small business management techniques you can use to improve your business development. Here are the top three.

 

1. Set Goals.

 

When you are starting a small business and managing it you need to set your company performance targets. Make them small, make them part of a larger plan and make them achievable. There are so many things to think about when starting a small business it will really give you focus and a sense of direction if you know where you want to be in a month, in a year and in ten years. Dream big, plan small.

 

2. Be Organised.

 

Your company produces all sorts of information and all of it can be used for business development. If you are fastidious in your record keeping you can see which stock is selling well, which isn’t. You can see what is working and what isn’t. You can see exactly how much money you’re making and how much money you have right now. You can know what your business is worth and the direction you need to go in order to make more money. Keeping good records isn’t sexy and it isn’t the part of the job you’ll enjoy the most. But think of it as your form guide. It gives you the inside track on how to improve your business. And it’ll help you fill in those tax forms every June!

 

3. Employees.

 

A key part of business development is the hiring of employees. Those starting a small business often find dealing with their employees the hardest part of small business management. Selecting the right employees is essential. A lot of problems that could occur later down the line can be eliminated by hiring the right person to begin with.

 

Of course, you don’t have a crystal ball, you can’t know what someone will be like in a job until they are in it. But there are some things you can do to make sure you get the best candidates. Advertise extensively for positions, cast the net as wide as possible. Request that all applicants fill in a form and send their CV. Take time over the questions you put in the application form. That information can be used as a springboard for interviews. When you have the right candidate and you have welcomed them into your business you need to keep them thoroughly trained, supervise and motivated.

 

Perhaps you could create a profit-sharing scheme, or allow them to have a small stake in the business? By making the future success of the business directly applicable to your employees you can be sure that they will be more likely to go the extra mile for the business in the same way that you do.

 

Go for it!

 

Small business management is not easy, but it is also not rocket science. Business development depends on clear targets, good organisation and good people. If you can keep on top of these three aspects of running your business, you will find that running your business will be easier and your results will come faster. Management is a hard skill to learn, but if you follow these sound principles you’ll see it no longer needs to be the hardest part of running your business. 

About the Author

George Butler
Raj Aryan has varied interest in the field of business. In particular, he has a keen interest in SME's and the challenges these businesses face. He has written numerous articles about small business.