What It Takes to Manage a Small Business
- all a person has to give
- as much as ten to fifteen hours a day
- a lot of the business owner’s own money.
Small business management needs dedication to the task
There is a difference between the ownership of a business and its management. The tasks are different and a small business needs a manager for the business to go forward. This may be the owner in the early days but is an important task to get right so having dedicated resources is a priority.
If this task is done by an employee, it is important that the owner of the business has oversight to make sure the business is running smoothly. One important area for the owner to ensure they keep a good handle on is the cash flow. In my view, the owner needs to keep control of the checkbook and have good systems to remove any temptation from employees handling money.
Training in management skills
Managing a small business is not easy so it is important for the business owner to get training. The good news is that every city has classes that individuals can take when starting a small business. These classes are usually free or inexpensive because cities want small businesses to open up. Small businesses are generally the economic backbone of a community.
The number one mistake business owners make is thinking they do not need training. There is something for everyone to learn at these classes and most business owners that do not attend these classes end up failing at their small business. This is why it is important not to have too much pride and always have an ear for education when it comes to the small business world.
Poor management skills are a major contributor to business failure statistics. Consequently it is very important to do this task well.
- It is very easy for a business owner to get so busy doing the work that the management of the business suffers.
- It is no good doing the work if you are not getting your invoices out and collecting the money.
- It is no good making sales if you are unable to fulfill the job requirements, whether that is providing goods or services.
- On the other hand, it is no good having the resources to do the fulfillment if you are not making sales.
All of these things come down to good business management. You may be able to do this yourself when you begin but as your business grows you will need to take on employees in this role. Of course, taking on employees adds a whole new challenge to the business management process as there are many rules and regulations in relation to employees.
So take our advice and make sure you get some training. After many years in business I would say the best book I have ever read is ‘The EMyth Revisited. Why Most Small Businesses Don’t Work and What to Do About It’ by Michael Gerber. I highly recommend it to anyone starting a business so here is a link if you are interested.