Small business management requires a business owner to be a jack-of-all-trades. Businesses use several different functions to maintain a company’s business operations and financial information. Production processes, accounting, human resources, marketing and customer service are a few major functions in business. Business owners may need to overcome challenges in their organizations. These challenges often relate to the coordination of several different business functions or activities.
Small business owners often face management challenges because of a lack of education or experience. Many business owners have specific expertise in producing products or completing services. This is why they chose to start a business; their expertise provides an opportunity to earn income. However, administrative business management tasks may present a challenge for business owners. Administrative tasks usually represent back-office functions business owners must complete in addition to generating sales.
Cash-flow management is a common challenge for many business owners. Cash flow represents the total amount of cash inflows less total cash outflows. Business owners may struggle with this concept if they are unfamiliar with financial reports or statements. Managing cash usually requires a lot of time. Business owners may also face challenges working with employees. Owners must carefully hire individuals who have the necessary skills to perform business functions. Employees may also need training to complete specialized business functions.
External management challenges can include creating business relationships, marketing the business and creating a competitive advantage. Business relationships allow the company to grow and expand operations with the help of vendors and suppliers. Marketing involves messages that may help inform consumers about the company’s goods and services. A competitive advantage allows the company to produce goods and services at a cheaper cost or better quality than other businesses. Accomplishing these tasks in the best manner possible can present a challenge for business owners.
Business owners may choose to grow their businesses slowly in order to limit the number of management challenges. Growing slowly also allows a business owner to learn various business management techniques for improving her company’s business operations. Business owners can also outsource certain administrative tasks. Outsourcing helps business owners use other individuals or companies to complete business functions and save time during the business management process.
The Small Business Administration (SBA) is a government organization that can help individuals operate a small business. The SBA provides many resources for managing companies and overcoming adversity. Many of these resources are free. Business owners use this information to improve their knowledge and understanding about business management. The SBA also operates offices in conjunction with local colleges and universities to provide business owners with the best information possible.
- &ldquo;Principles of Management&rdquo;; Tony Morden; 2004