Entrepreneur skills: How can small business management be successful

Starting business in this era of covid19, takes a lot of time and energy. Small businesses are important because they provide opportunities for entrepreneurs and create meaningful jobs with more job satisfaction than positions at larger, firms.

They help local economies, keep money close to home, and support societies. Small business owners are responsible for managing all aspects of their business.

What is business management?

Business management is the alignment and coordination of multiple activities in an organization.

Business owners (entrepreneurs) uses management skills to achieve the goals and objectives of their firm. Small business management requires entrepreneurs to use a mix of education, knowledge and expertise to run their businesses.

What is an entrepreneur skill?

This are skill acquired by a person (entrepreneur) who starts a new business, bearing the most risks and enjoying the most rewards.

The entrepreneur is often seen as an innovator, a source of new ideas, goods, services and business.

He plays an important role in any economy, using the skills and initiative necessary to anticipate needs and bring in new ideas to market.

Important of small business management

Small businesses are important because they provide opportunities for entrepreneurs and create meaningful jobs.

1. It empower local economies: small business help infant economy by bringing money close to home.

2. Independence and autonomy: While small business ownership is a long-standing and traditional way of making a living, it responds to the ongoing trend of consolidation of large businesses, building economies of scale and spreading homogeneity.

3. Create meaningful jobs: Two in three new net private sector jobs are created by small businesses. That figure refers to the number of new jobs created after deducting the number of jobs cut.

4. Integral parts of local economies: Small businesses are an integral part of local economies and help create networks of financial interdependence that promote widespread prosperity.

Functions of small business management

1. Ethical Accounting Practices: The accounting function of a small business covers many areas.
Payroll, Accounts Receivable, Accounts Payable, Taxes, Financial Statements and the list goes on.

2. Human Resources: Small business owners are often amazed at the challenges of managing their workforce, which require expertise in human resources.

3. Facility management: Most businesses must live somewhere, have an address and a front door.
Facility problems arise as soon as a business grows to a point where an office facade or building is needed to run the business.

4. Information technology: Technology controls most of our lives.
Every organization depends on technology to run their business.

5. Customer focus: At the end of the day, customers pay the bills and our salaries. They need to be cared for.
Take the time to find out who your customers are and what they want.
Keep an eye on your customers to understand how well their needs are being met; because customer satisfaction is a crucial indicator of the health of your organization.

6. Website development: Why does a company need a website? The website of an organization is often the first impression a potential customer has of an organization.
A well thought out, organized and user-friendly website is crucial to attract and retain customers.

7. Social media: Why does a small business need social media?
Social media has become the new standard for business marketing.
The good news is that it is not expensive, but it does require some time, skill and strategy.

8. Search engines: Most people nowadays use the Internet to find a business or service.
Make sure your business website has a profile on all search engine business pages.

How can small business be managed successful

1. Have a written plan: Without a plan it is just a dream. It doesn't have to be a book, but you need a few pages of specific goals, strategies, financing, a sales and marketing plan, and a determination of the money you need to get things done.

2. Manage your accounting properly: You can hire a good bookkeeper or buy do-it-yourself accounting software. It is crucial that you keep accurate records of your income and expenses.

3. View your costs: Track all your small business expenses. These can add up quickly, but revising them can help you fine-tune where your money is going.

4. Control your ego and listen to others: Consultants are crucial because you need people to exchange ideas, inspect what you do and push you towards greater performance, holding you accountable for what you will do.

5. Keep track of everything and manage based on numbers: Make written systems for everything as you will reap the benefits later. In this way you train your employees and maintain consistency.

6. Delegate to employees and avoid micro-management: A manager's job is to delegate and then inspect progress. So don't be a control freak. Keep the business organization flat. When you delegate effectively, you become more and better than you expect.

7. Use the internet. It's incredibly powerful and very cost effective, but it takes time and some skill. It's about creating a community, using social media like Facebook, YouTube etc.

8. Reinvent your business: It's the net profit, not gross income, that you want to focus on. Separate yourself from your history and create a new competitive edge, be it a targeted niche or super service, but not by discounting.

Conclusion

Entrepreneurs who prove successful in taking a startup's risk are rewarded with profit, fame and continued growth opportunities. This are  how small business management can be successful.

You can drop your comment below, if you find this article helpful


Post a Comment

0 Comments