Management is all about reaching the well defined goals of a business with the minimum use of available resources and workforce. Small business organizations require proper management because of the limited availability of resources. If you own a small business or SME then good and efficient management is a must for the growth and development of your business. Some of the major management areas are:
1) Finance management: A small business is always cash or money sensitive, a proper management of cash flow is very crucial. Develop a budget for every month or even week. Make sure that all the spending are being done according to the budget only. Finance management provides financial strength of a small business. Improper flow of cash and less returns on investments can even put the survival of the company in risk.
2) Production management: Managing the quality and quantity production of products or services on time and as per demand is very important for a company. As an owner of a small business always try to manage your company’s production. The quality of the product should be up to the mark and the quantity should meet the demand.
3) Employee management: Employee management is the core element of managing a small business. As the employees or work power defines the actual potential of a company, you need to manage them properly to ensure the growth of your business. A small business have a limited number of employees and hence the management of employees is quite easy in small business. The management of employees requires communication, leadership and motivation. For managing your work force and getting the best out of them you need to communicate with your employees regarding their views on various work related issues. You should act as a leader and make your employees understand what kind of work you want them to do. Motivate them for for doing their best and encourage them for their good work.
4) Work management: Identification and division of work are the core functions of the management. In order to manage your business effectively, you need to identify all the work that your organization has to do and divide the work among the various departments or employees of your company. A manager should assign duties and responsibilities according to the skill of the workers. Proper division of work and assignment of duties allows timely and speedy work.
5) Client management : Client management is always the most difficult part of managing a small business. Limited number of clients make it important for a small company to maintain good client relations. Client management requires proper understanding of the client’s need. Efficient serving and fulfillment of client’s needs ensure good client management. Most of the small businesses need mouth-to-mouth publicity to a great extent. Proper client management will influence the existing clients of your company and persuade them to recommend your company with other similar clients.
Management is an art of knowing what you want to do, and then seeing that it is being done in the best and most economical way. Managing a small business is not an easy task as smaller businesses are more vulnerable to risks.