Any business, be it small-scale or large, an online business cannot be run without proper management of time, human resources, finances, updated technology, new and creative ideas, and co-operation among everything mentioned. Remember, “Customer is the King” for any business. A smart businessman does not focus only on luring new customers, but focuses on maintains his/her old customers as well. One unhappy customer can turn down a lot more customers, therefore, it is important to form bonds and create a lasting impression. They need to also take care of the human resources in their business, i.e., the people working inside the organisation. It’s not the people outside, but also the ones inside that the business needs to keep happy, as they are the ones who can either prove to be an asset or a liability for the business.
Managing your Business:
Communication is the key to any business. Proper communication is necessary in order to deliver the best results inside and outside the company. Therefore, it should be made sure that the message conveyed to the last person is exactly the same as it was said by the sender. Direct communication is the most effective way, which does not only make the message clear but also creates a sense of trust, responsibility and belonging in the employee, thus making him deliver better results.
Furthermore, communication is a two way process. It’s important while discussing the plan and delegating responsibilities that everybody is on the same page. This will limit confusion, and strengthen efficiency.
Brainstorming is an activity which involves getting ideas from all the employees in a business. In case of hierarchy, it’s done at different levels in form of mini teams and finally ideas are discussed with the top management. In small businesses, the businessman can organise a meeting with all its employees and get ideas about a specific situation.
The best part about Brainstorming is that you have the freedom to speak your mind without being judged or questioned, given that you have logic behind your idea of course. This leads to getting new innovative ideas by all the employees be it experienced employees or the fresh new talent, giving each of them a sense of confidence and belongingness, further doing their efforts towards the best of the company.
Any business that is static or closed to the changing environment of the world cannot expect to move forward or retain the same market position as it had when it began. It is crucial to a company’s survival and success to adapt to the latest trends. This enables you to cope up with the demands of your customers.
It is necessary for a business to adopt change be it in technology, product line, and demand patterns of the customers, or anything that might affect your business as well. Any business, large or small, should be flexible and dynamic, in order to be manage a business effectively. The human resources should be trained from time to time with the upcoming new trends or updated technology.
4.Authority and Responsibility
Business can prove fruitful only when there is an appropriate delegation of authority and responsibility. There has to be an equilibrium or balance between “Authority” and “Responsibility” as they go hand in hand. In case the authorised person does not delegate the responsibilities constructively, it can create a loophole in the entire working system. The authorised person is also accountable and answerable for any obligation, trust, debt, or any kind of bridge gap between expected and delivered.
It’s very important to delegate some authority to the person you are delegating responsibility to, as it gives them the power to make necessary decisions rather than running here and there to take permission from the seniors. At the same time it also gives them the liberty and confidence to make decisions, hence developing them as better employees.
Planning is an art which is futuristic and goal oriented. It becomes very important for a businessman to have at least two to three back up plans, so that if any plan proves to be incapable or there needs to be a change of course, he has an alternative plan ready, producing optimum maximum results.
The best way to manage a business effectively is through effective planning. You first need to sketch out a great strategy that focuses on both the positive and negative outcomes of a potential business plan. The best way is to prepare for failure rather than success as most first ventures have limited chances of success..
Effectiveness of a business is determined by the outcome from the action of employees and managers. If they demonstrate effectiveness in their workplace, it will definitely help in producing high quality outcomes. Customer Satisfaction and a company’s reputation are often dictated by the effectiveness of a team which include the way they put forward the company’s service or product.
This can only be possible if there is cooperation, absolute understanding, thorough flow of communication and positive atmosphere among the team members. There might be a possibility that different ideas might create conflicts in a team, but a trait of strong and productive team is to develop coherence and come out as plausible and advantageous.
7. 4 principles of Business
The four principles of business are: Workers, Materials, Money and Machinery. These are the most important resources any organisation must not only possess, but also utilise in an optimum way. Workers comprises the human resources both inside and outside the business which include employees, stakeholders, retailers-wholesalers, customers, and everyone involved directly or indirectly with the organization. It’s very essential to take care of the needs and demands of each and every human resource that is a part of the business.
The next principle is Materials. This includes raw materials, work-in-progress, finished products and services. Timely management of materials is pivotal as they are the initial products that will further decide on how the final products will be that need to delivered to our end-consumers.
The next and very crucial principle is Money.. A business starts with a correct usage and allocation of finances and cost management. Therefore, it is the most significant resource to run or upkeep any business. Hence, a business should have a trustworthy source of finance and should maintain healthy relations with all the financial sources like Banks, Financial Institutions, Stakeholders, etc.
The last principle is the Machinery or the technology. For any business to survive in the long run, the essential factor is to be updated with the newest technology by training the employees and also being aware of the changing trends in the market. Thus, running ahead of time is of utmost importance, as it will help the business to be on the top of the market and create a benchmark for other organisations in the industry.
Learning to effectively manage a business is generally not a skill that happens overnight. Managing a business is a task that requires a person to not only to have a great deal of knowledge about their specific industry but extensive people skills as well. It is a learning process where the practices and approaches can change many times over the span of a career. There is no “one size fits all” approach to managing therefore, you must adjust yourself to each situation as well as individual. The basic principles of business management that always remain the same, however, include the abilities to successfully motivate and lead employees, increase business growth, smoothly operate the business, and follow business laws.