Effective methods and methods of the management system for small and medium-sized businesses. Learn how to properly manage projects and the company to achieve strategic goals
How to efficiently manage an enterprise?
According to statistics, 3-4 out of 5 newly created enterprises fail during the first two years of operation. The formal moment of registration of an enterprise, which many are afraid of and therefore often delay it for many months, is not the most critical and difficult to overcome. Subsequent actions are often much more difficult – regular and consistent development of their own business.
What are the results of the short period of activity and the volatility of start-ups? The economic crisis, strong competition, collapse of demand are just some of the possible reasons for the collapse. However, sometimes the quality of management is the main problem.
The business management process can be viewed at many different levels – analyzing it depending on the size of the enterprise, the theoretical model on which it is based, or the area to which it belongs (financial management, sales management, personnel management, business reputation management, and others). Let’s take a closer look at the management of microenterprises in which employees may or may not work.
Enterprise management is a set of activities (including planning and decision-making, organization, leadership, that is, people management and control) aimed at the organization’s resources (human, financial, material and informative) and carried out in order to effectively and efficiently achieve the organization’s goals.
Management can determine all the processes and actions taken to support the company’s operations in order to most effectively achieve its goals. In the entire process of enterprise management, four main types of activity can be distinguished:
- Planning includes a range of activities related to setting company goals – both short-term and long-term. In addition to setting goals, planning also determines the best ways to achieve them. This means that when planning, for example, an increase in the company’s revenues by 20% annually, we must also consider how we want to achieve this increase: winning new customers or selling new products or services to existing customers, or perhaps increasing prices?
- Organization means a grouping of activities and resources that should result in the achievement of planned objectives. Therefore, we are talking about translating strategies created at the planning stage into specific activities assigned to specific individuals with specific resources. When planning to increase revenue by 20% by attracting new customers, during the organization stage we must, for example, indicate new monthly sales plans, the number of recipients acquired, new sales patterns or vehicles for employees, which will make it easier to find new customers.
- Leadership is the process of managing people that will motivate and encourage them to be more productive and perform better for the organization. Otherwise, it is a set of processes that should encourage its members to collaborate in the best interest of the company. Attracting new customers and increasing revenue by 20% cannot be achieved without motivated employees from their boss.
- Controlling means monitoring progress and emerging barriers in an organization in achieving planned goals. It is the process of constantly monitoring the current situation and analyzing how it affects the achievement of the desired results. When planning a 20% increase in revenue, control will concern, for example, assessing the extent to which this increase has been achieved, what are the performance of traders and what type of risk may lead to the goal being missed.