Good business management is the key to success of any business house. It is a creative force which helps in the optimum utilisation of resources of an organisation. The process of managing a business comprises several intertwined elements by which the goals and objectives of the organisation are achieved. Managing human resources and managing relationship with the customer's are the most important elements in the whole process of business management.
How to run a successful small business:
A small business owner faces challenges unique to the size and function of the business. He has to handle all the challenges of selling, delivering, financing, managing and growing the business with little or no staff, while trying to make it a success. The most important of all is to retain the interest of all stakeholders like customers, vendors and team to build momentum in a short span of time. Running a small business can be hugely rewarding both personally and financially.
1. Establishing Good Fiscal Practices
When you are planning your start-up budget, make sure that you have enough money to cover not only your start-up expenses, but also operational expenses for a several months in case you do not make a profit right away. Keep some money on hand for emergencies and large orders as well. Run your small business with financial efficiency by exploring all the options that banks offer small business owners and choosing the right bank for your business' financial plan.
2. Recruiting employees
Attracting and selecting the right people is crucial for your business. With a small business, you will likely have the opportunity to hire your own employees and get to know them. Since your employees may influence your success in business as well as the comfort level in your business environment, it makes sense to hire workers who are skilled and have a solid work ethic.
Promotion implies the process of informing and persuading the prospective customers about the products or services of the firm, so that they keep patronising the firm. No business enterprise can sell its products unless it undertakes various promotional activities effectively. Fliers, brochures, business cards and newspaper ads are good ways to advertise on a budget. You may also find affordable options in radio and cable television advertising. In addition, you may ask loyal customers to tell others about your business. Gain the support of other local small businesses by networking with other small business owners. Join small business associations and participate in community events to raise awareness of your business.
4. Managing Finance
Managing the finances of the firm in an efficient manner is the most important aspect of managing a business. An important part of running a business is establishing good financial procedures and systems to monitor the financial health of your business and ensure you meet your tax obligations.
They could include:
Developing goof financial procedures
Reviewing your finances
Providing credit to customers
Getting paid on time
5. Regulatory requirements
While managing your business, you have to take into account the basic regulatory requirements of your organisation. These regulatory requirements ensure that the organisation is functioning as per the statutory framework of the country. The most important regulatory requirement is the Indian Contract Act,1872, which regulates all the transactions of a company. It lays down the general principles relating to the formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The next important regulation relates to quality management by a firm. Bureau of Indian standards has been set up by the Government for enforcement of quality standards in the country. BIS has adopted the ISO 9000 standards set up by International Organization for Standardization (ISO) for quality control.
Risk, insecurity, unforeseen dangers and disasters are incidental to any form of business. This makes insurance is indispensable for any business organisation. The aim of insurance is to compensate the owner against the losses arising from a variety of risks which he anticipates to his life, property and business.
7. Filing & paying taxes
Small businesses often have to pay quarterly taxes and may be subject to tax requirements that individuals do not face. Keep records of all of your income and expenses, and file taxes according to the deadlines of your state and central tax agencies.
If you want to take your product or service to international markets, exporting can be a great way to expand your business and profitability. It can also help to spread risk and reduce dependence on local markets. Finally, by entering global market place, you are exposed to new ideas and marketing techniques and the skills developed in foreign markets will help you better compete in the domestic market.
9. Exit strategy
At some stage you will decide to leave your business; perhaps you have decided to sell, retire or do something else. Regardless of the reason, having a succession or exit plan will help you for smooth transition out of your business.
Deciding whether to sell or close your business is an important decision. There are many reasons to stop operating a business including:
• lack of turnover or profit
• you don’t want to run it anymore
• it no longer fits your lifestyle or personal circumstances
• wanting to do something different.
The size, profitability and structure of your business can also influence your decision whether to close or sell it. If you plan to sell or close the business consider:
• cancelling your business registrations, including business name and tax registrations
• employees and their entitlements
• lease agreements Keeping the business in the family If you decide to leave your business to a family member consider the legal obligations, as well as the impact on family relationships. Consider involving a lawyer or business adviser in discussions with family members to avoid disputes relating to inheritance, ownership or management.
Starting and running a successful business can be rewarding and challenging. Success requires focus, discipline and perseverance. However, success will not come over night - it requires a long-term focus and that you remain consistent in challenging environments. This initial checklist will help you to prioritize some activities in your planning and start up mode. There are no mysteries in business or in life, but there is just information that we do not know yet.