4 reasons why small businesses succeed (or fail) eval(ez_write_tag([[300,250],'businessknowhow_com-box-3','ezslot_0',122,'0'])); - red necklace and earring set
Last update: On April 22, 2019, there was nothing successful about the enterprise that plagued the enterprise?
The answer is in these four key management technologies.
S. business management system has been appreciated and followed worldwide.
This system has two psychological features in Americans :(1)
Passion for the future and for making things better, and (2)
Open and willing to change in order to achieve this goal.
No society in the world is better or more prolific than the American capitalist system in creating new businesses, but we are often busy commercializing ideas and starting new businesses, so much so that we don't have time to learn the basics of the principles of successful management that our big companies have developed.
Many entrepreneurs are technical experts in what they do, but start a business without any formal training or experience in managing practices and principles.
"Management" here refers to successful management
Technical business, "background" activities.
Many small businesses failed in the early days due to poor management.
They fail not because of their weaknesses in the product or service concept, but because the business is not properly managed in the background.
Once the enterprise develops to a certain extent, the management technology must be changed, otherwise it will be in trouble.
This level is $1 for many small businesses
Annual sales of 3 million or 5-15 employees.
Sometimes the tipping point is smaller and sometimes larger, but when it happens, the owner or manager of a small business must evolve from the manager of things to the manager of people, from the technical expert to the strategic thinker.
This is often a difficult task, as it has developed a deep-rooted habit over time, but failure to grow as a manager is a major task, perhaps it is the main business to shake the weight of their own stagnation or even collapse.
However, what are the companies that have problems that have not succeeded?
First of all, the owners of a successful business have formed personal traits that are manifested in their business: they always take a positive attitude towards their business and life.
"In 20 years, you will be more disappointed with what you have not done than what you have done.
So throw the bowling ball.
Sail from Hong Kong.
Catch the letter wind on your sail. Explore. Dream. Discover.
"Mark Tewin they are committed to their efforts.
"The only place you can find success before work is the dictionary. " May B.
Smith, they are patient.
"Entrepreneurs are just those who understand that there is no difference between barriers and opportunities and are able to take advantage of both at the same time.
"Victor Keem they persevere.
"Many failures in life are those who don't realize how close they are to success when they give up.
"Thomas EdisonRelated: the rules for successfully running your own business Secondly, the owner of a successful business has developed a business blueprint called a strategic business plan, the blueprint clearly describes their mission and business philosophy.
In this document, they set goals for individuals and companies and set specific timelines and strategies to achieve them.
Third, the owner of a successful business has developed an organizational structureoiled machine.
This structure, including all its policies and procedures, encourages all employees to do their best.
It rewards outstanding people who are proportional to their contributions.
It also binds those who deviate from acceptable behavior.
Definition and communication of positions, tasks, duties and responsibility and measurement of performance on a regular basis.
Training, work enrichment programs and incentive compensation programs are designed to encourage each employee to stand out from the crowd.
A successful boss sees employees as the most valuable asset and resource.
Fourth, finally, the owner of the successful enterprise developed the operational support system.
These may or may not be financial.
Finance, labor, or automation.
The goal of these systems is to support and make all activities of the organization efficient.
They are well structured and also reduce the management of daily activities, giving owners more time to be strategic thinkers.
The information provided by these tracking systems provides key information on sales, cash flow and other financial performance data so that senior management can act in a timely manner when changes occur.
The red flag appeared very early before the problem became difficult to manage.
To sum up, the four keys to the success of small business management are :(1)
The owner has developed the habit and character of being positive, committed, patient and persistent. (2)
A living strategic business plan has been developed. (3)
An organizational structure has been put in place to encourage people to do their best and to help them do that. (4)
Operational support systems are used to track performance and mitigate the day-to-day details of senior management while providing them with critical data to manage their business.
Let's dive into the implications of a strategic business plan.
Successful businesses operate within the framework of the plan.
The strategic business plan is to write at least three or two years after the current budget year.
The plan describes the company's mission to serve its customers.
It analyzes its company and marketing advantages and how they will be leveraged.
It addresses its weaknesses and how to overcome them.
It identifies target markets and pricing strategies and identifies and describes strategic alliances or business partners that may be critical to success during the planning period.
The plan describes the position of any other issue that is critical to the long-term health or survival of the business.
With current and meaningful business plans, the company has the best opportunity to continue to succeed and achieve.
Without a viable business plan, the company will face the best risk in the old saying: "No plan is a plan failure ".
Now let's take a deeper look at what we mean by organizational structure.
The basic components of the organizational structure of the enterprise are: when all these organizational components are in place and often used, the organization will have structure and purpose.
Employees will feel like they know where the company is going and what their role is in helping the company achieve its goals.
They will know the boundaries of the expected acceptable behavior, and they will realize that good performance will be rewarded.
Now, let's take a deeper look at what the OS means.
The simplest system type is a form such as an employment or credit application, a product return authorization, or a shipping release document.
More complex examples of systems such as cash forecasting and management, budgeting, variance reporting, and incentive allocation.
These more complex systems typically include automated methods such as Microsoft Excel. ®More professional software.
For small businesses, the system that usually involves the most is the accounting system.
This could be a relatively simple system like QuickBooks. ®Or peach trees. ®.
These Canning systems
The manufacturing industry that simply buys and resells goods.
In addition, they manage customers, suppliers, accounts receivable and accounts payable well.
Finally, they have the ability to write excellent management reports.
Modification for manufacturing or other enterprises (add value to)
Products after the purchase of materials or a larger point-of-sale retail business may be more appropriate for industry-specific software.
However, it should be very careful before purchasing these systems because they (1)
In the long run, it is usually much more expensive than a simple system ,(2)
Provide excellent product cost accounting, but usually do not have a General Accounting Report and (3)
Has a strict reporting format that is difficult to modify or adjust.
No matter what type of business it is, some type of accounting software package can capture the day-to-day transactions truly
Easy to operate time environment
Internal personnel are required.
In today's fast-paced business world, it is an unacceptable strategy to rely on accountants to provide regular statements of company performance weeks or even months after the fact occurs.
Small businesses should have other systems: If you don't develop them, the task isn't as daunting as it seems at first. Plug-
In the system, it can be obtained at a moderate cost from many sources, including backup training and support (
A source like this can be found at the profitmanagement institute. com).
To sum up, the management principles discussed above can be visualized as stools with four legs.
A stool with two feet is completely unstable.
The stool with three legs is more stable, but can be tilted if the weight transferred from one side to the other is too large.
The most stable is the stool with four legs.
The four legs that support our profitable business model are once again: businesses with these four key components are much more likely to succeed than those without such equipment. Copyright 2004-
Institute of Profit Management Limited