Business is an ongoing activity that doesn't run itself. As the manager, you will have to set goals, determine how to reach those goals and make all the necessary decisions. Between having to purchase or make your product, price it, advertise it and sell it you also have to keep records, determine costs and profit margin. You will have to control inventory, make the right buying decisions and keep costs down. You will have to hire, train and motivate employees now or as you grow.
Small Business Management - Setting Goals
Good business management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time. Establish priorities.
Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can't keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
Adams Financial Services assists small businesses owners in expanding operations, manage growth or launch new ventures. We have consultants that help small business owners finance, develop and manage their businesses.
Business Management - Record Keeping
The keeping of adequate records cannot be stressed too much. Study after study shows that many failures can be attributed to inadequate records or the owner's failure to use what information was available to him. Without records, the businessperson cannot see in advance which way the business is going. Up-to-date records may forecast impending disaster, forewarning you to take steps to avoid it. While extra work is required to keep an adequate set of records, you will be more than repaid for the effort and expense.
If you are not prepared to keep adequate records - or have someone keep them for you - you should not try to operate a small business. At a minimum, records are needed to substantiate:
Your returns under tax laws, including income tax and social security laws;
Your request for credit from equipment manufacturers or a loan from a bank;
Your claims about the business, should you wish to sell it.
But most importantly, you need them to run your business successfully and to increase your profits. With an adequate. yet simple, bookkeeping system you can answer such questions as:
How much business am I doing?
What are my expenses? Which appear to be too high? What is my gross profit margin? My net profit?
How much am I collecting on my charge business?
What is the condition of my working capital? How much cash do I have on hand? How much in the bank? How much do I owe my suppliers?
What is my net worth? That is, what is the value of my ownership of the business?
What are the trends in my receipts, expenses, profits, and net worth? Is my financial position improving or growing worse? How do my assets compare with what I owe?
What is the percentage of return on my investment?
How many cents out of each dollar of sales are net profit?
Adams Financial Services is your Small Business Solution.