Small Business Management
Small Business management is an activity operated for the purpose of earning a Profit by providing a service or a product. It involves a business person putting money into the business activity.
What is Business Management?
The main duty of the business owner is to ensure all business activities are done as required and profit is made. The process of running the business makes the business owner to relate with other people for different reasons.
Business management has got big roles in order:
- To Recognize the things required for business to operate
- To identify the challenges of business owners
- To Appreciate qualities of successful business owners
- To Know the importance of value addition
What is Profit?
The amount that remains after subtracting the cost of providing the service or product from what one gets after selling. The opposite of profit is loss. When the production cost is higher than sales, the business makes a loss.
For your business to succeed, good management practices are needed. Surely, Business management involves planning and ensuring business activities and networks are running as expected.
For Example how are you doing the under listed?
- Planning business activities
- Buying the right material at the best prices at the right time
- Controlling business transactions and ensuring there is money to meet business needs
- Meeting the customern's needs
- Keeping record of the small business finances, stock and investments
- Ensuring the business is growing and making profit
Personal qualities that enhance success in business could be easily learned while others are inborn. The Business people need following qualities for them to succeed;
- Good leader
- Good manager
- Good organizer
- Good people skills
- Can make good judgments and decisions
- Willingness to sacrifice time, money and resources for the sake of the small business
- Committed to succeed
- Has or is willing to gain experience
Adding value to your Business
Adding value refers to improvement of the product or service. A value added product or service aims at giving more satisfaction to the customers and therefore is willing to pay more for it. The purpose of value addition to the business is to earn more money while improving and increasing the customers’ satisfaction. Your adding value is very important step in any business since the goal is to make the product or service worth more to the customer.
The whole incense of having proper business management is to have
- The customer who NEEDS what you are selling
- The CUSTOMER who is ABLE to buy what you are selling.
- The CUSTOMER who is WILLING to buy what you are selling.