Small Business Management

A small business may be defined as a business with a small number of employees. The legal definition of “small” often varies by country and industry, but is generally under 100 employees. The common characteristic that sets them apart from large enterprises is that they posses less tangible properties.Small business management pertains to the independent ownership, supervision and control of assets, resources, products, services, workforce and profits of an enterprise which is not prevalent in its area of operation.In an economic atmosphere that breeds and sustains entrepreneurship, a lot of individuals are attracted to the prospect of possessing and directing his own business. They choose having a small enterprise to be close to costumers–enabling fast, flexible, and personalized service, to innovate less expensively, and to manage solely.Managing both small and large businesses involves the five major functions of management–planning, organizing, directing, controlling, and coordinating.The mistake that most small business owner-managers commit is giving less attention to planning and controlling functions. These two, when fulfilled effectively would result to excellent goal setting. And the success of every business relies heavily on its long-range goals.The most popular approach applied to most small businesses is management by objectives or MBO. The reason for this is that it is result-oriented and jobs are perceived in terms of achievements rather than simply functions.The first step in developing an effective MBO program is to define your business. A transparent and attainable vision of the business is critical for planning, marketing, product development, building and equipment, and financial and staff needs.The next step is to set both short- and long-range business goals. Long-range goals would serve as the mold from which your company’s MBO program would take form. These goals would triumphantly be attained through management and employee communication. The staff should also take part in the formulation of goals, to increase their sense of commitment in fulfilling them.The third step in developing the MBO is devising a work plan. The work plan should address the following areas: (1) goal–should be specific and concise; (2) measurement–benchmarks to be used; major problems to be anticipated; (3) work steps–most essential steps to be completed at a fixed time; and (4) supervisor’s goals–employees should identify which of their manager’s goals relate to their own.The fourth step would be to report progress. An MBO program must include a provision for regular progress reports. Goals and objectives can only be attained through conducting regular record and review of progress. Progress which is below expectation can enable problem identification.The fifth and final step would be to evaluate performance. This is done by compiling and reviewing the past results of the steps done in the development of the MBO. Measure every element and know if each coordinated and supported each other.Small businesses face an array of problems most commonly, bankruptcy and under- capitalization This is often a result of poor planning rather than economic conditions – it is a common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses.Getting into small businesses is not as easy as it seems. To avoid the problems stated above, the owner-manager should first ensure that he has or would be able to raise enough funds. And no matter how small his enterprise is, he should not fail to apply the major functions of management.Copyright 2007 Ismael D. Tabije

Using the Benefits of Another’s Experience and Expertise – Online Business Manager

Starting a business of any kind, anywhere, can be very risky. Starting an online business can be even more risky considering that:1) the online business world is booming2) it is still a relatively new frontier and3) technologies change so quickly it is almost impossible to keep up.Having an online business manager can help fill in the gaps of your own knowledge, keep you headed in the right direction and, most importantly, keep you from having to learn every lesson the hard way.A manager does not have to be your very best friend, but you should be able to connect with him or her, especially in the very beginning- you will need to be able to feel like you can call them at any time with questions and concerns.Look for a manager who has similar tastes, styles and ideals as your own or you may clash repeatedly over the plans you have for your business. Remember, the final decisions are always your own, if you can’t get that concept, perhaps you are not ready to be a business owner. You will not always agree with your manager one hundred percent of the time. Take ideas and suggestions into consideration, but do not take them for law.Always look for a manager who has succeeded in a similar business, especially if your business is online. It is not enough to have business acumen when considering an online business; the game is far different online than it is in the traditional business world. You have to keep pace with the technology as it changes; you need to know how your market place is changing and what the predictions for the next big thing will be. Your methods and strategies will be very different online. Basic concepts may still be in place, but you will still be looking at some very different ways to get your concept brought to life.Managerial skills can be provided not only by someone who is successful in the business world, but familiar with the computer and technology world as well. It is better to consider having a online business manager who is familiar with both, especially considering that: – An old-school online business manager will not be of any help with the new online world, and – A computer and technology expert will not necessarily have any business skills.Finding an online business manager who is a perfect blend of both business skills and computer experience is important, but so is finding one with the right blend of drive and support. You do not want someone who is going to drag his feet or try to slow down and stall every idea. You also do not want someone who is going to try to push you into ideas that you think are too risky to be valuable. The running of your business, and the ultimate decisions that you make, should be yours alone- if you are finding that your online business manager is making far too many of the decisions without consulting you, it may be time to end that relationship and find a new online business manager.  

Business Management Degrees – The Stepping Stones to Success

Successful businesses are the cornerstone of any well performing economy. The ever increasing pressure on business and governmental agencies to enhance performance at local, national and international levels is a constant reminder of this. As the quality of the management team directly affects the performance of any business, there is growing demand for competent and successful managerial staff worldwide. The rewards are immense, from high paying wages to careers that provide intrinsic and extrinsic benefits and a feeling of achievement and self worth. However, to enter the competitive world of management, an individual must possess the skills necessary to survive and thrive in this environment.The activities of planning, organising, directing, controlling, implementing and evaluating lie at the heart of the skill set required to evolve into a successful manager. Without these skills and knowledge, the doors of opportunity will likely never open. This is why it is important to get the necessary training at a high performing tertiary organisation that has a proven and successful background in delivering internationally recognised and revered business management degrees. Due to the rising complexity of business and the work place, the origination of many niches within the managerial function have been created, which require unique and customised skills to perform in that role. Some examples include human resource management, communications management, production and information technology specialists, to name a few. Reputable training institutions will be able to provide a wide array of skills pertaining to the specialisation in management that you wish to take.Not only are there internal pressures to perform, but the business environment is coming under increasing scrutiny to adhere to ethically and socially responsible business practices and managerial ethics. It is essential that in your base of education when studying for a business management degree, those social and ethical responsibilities are incorporated into the education. No matter how successful or large the business may become under your managerial direction, if a company is seen to go against socially desired ethics, such as adhering to ‘green regulations’, then consumers may turn to an alternative company that is seen to be performing ethically. Leading business managers have not simply complied with specific legislation that enforces a company to comply, but have realised that socially responsible actions are in fact good for business. Being proactive in promoting socially responsible business practices and models, creates a positive perception from consumers, as well as the general public, which ensures that people will continue to purchase from the business. Additionally, consumers utilising the services of other businesses will switch to a business that is well viewed and liked in the public eye.A competent manager who is socially and ethically aware of the business decisions that are made in the name of the company will have a bright and rewarding future. However, you require the in depth knowledge and skills required to enter the industry which are only accessible through quality tertiary institutions. Enrol now and start laying your stepping stones to success.