Entrepreneurship is management. Whether you have created your company or if you manage a business that belongs to others. You undoubtedly know that business management is not a subject that is improvised. I am going to detail below the 10 tips that seem most relevant to anyone who wants to manage a business with the best guarantees.
The 3 fundamental skills for good business management
Before going into the details of the key aspects of good business management. I think it is important to highlight some of the most important skills that an entrepreneur or company manager must have.
- Work oriented to results. What does that mean? Simply that everything that is done is designed to achieve certain objectives. Of course, you want to have sales and profits, but you can also take into account other parameters.
- Make decisions and act effectively. In particular, it is important to be able to react to some changes and correct errors.
- Lead and motivate the human team. I have a whole article on how to be a leader, so I won’t go into more detail.
Plan and implement actions for the management of your business
Business management consists of a succession of projects that you have to manage. And that requires good planning to maximize the chances of success. You start by setting up your business, preparing a business plan, and designing your strategy, but the planning doesn’t stop there. In the day-to-day of your business, you will have new projects, investments to stay competitive, marketing campaigns to reach your customers, and many more complex tasks that require planning.
Luckily, you have tools to help you. You can use free management software, have a good project manager on your team, and of course, get training to strengthen your planning and implementation skills.
Good business management implies control
If you want to know how your business is doing so you can take action and achieve your goals, you need a control system. And that management control is not limited to reviewing the results or following the key indicators for your company. It goes further, in particular, it serves to manage the different risks to which the business is subject. Measuring results and controlling risks are two essential aspects of running a business.
A company lives from its sales
It is impossible to talk about business management advice without mentioning the fundamental importance of business work. That is why it is important to establish a sales strategy, supported, if necessary, by marketing campaigns. Finding customers, looking for the best channels to reach them, motivating salespeople, and controlling prices and margins are fundamental tasks for good management.
The importance of shopping
It depends a lot on the business there. If you sell professional services, you are probably much less dependent on your suppliers than if you are in a retail business.
For many companies, the relationship with suppliers is a very strategic aspect. It is necessary not to depend on a single company, and learn to negotiate prices. And of course, know precisely at all times the sales costs and the cost price of each product.
collect sales
There is no use selling if you don’t get paid later. Moreover, if in the end, a sale ends in default, it will have been worse to sell than to have done nothing. That is why it is so important to have good customer credit management, establish adequate limits for each one, and have an agile and quick procedure to act in the event that a payment is delayed.
Business management and expense control
Whether in the personal finance or in the business world, not spending more than necessary is a strategy with very good results. In fact, you don’t have to be the manager of a company to be responsible for expenses. In large organizations, it is quite common for each department manager to manage their spending budget, with annual objectives.
Stock monitoring
In distribution activities, stock management is usually one of the most strategic points for the business. You have to get the purchases right to have the most optimized stocks possible, fulfilling 3 objectives:
- Not having an excess of stocks, due to the financial cost that these entails.
- Not to be out of stock, due to sales losses and the bad image that it implies.
- Avoid buying product references that will not be sold later, and will lose value over time, in addition to impacting liquidity.
You may also be interested in Do bicycle brakes work in the rain?
