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POPin Blog

Why Your Small Business Management Needs to Be on Point

Managing a small business isn’t easy. In fact, two-thirds of businesses with employees survive up to two years, and only 50% of these businesses make it to the five-year mark. The rates of companies going out of business have tapered off over the last two decades, and it affects a range of industries, from retail trade to food services and hotels. Effective small business management is essential to growing a successful business. If you have improper planning, poor management and leadership, and refuse to empower your employees, you’re setting your business up for failure. How do you become an expert small business manager? Read on to learn more. Tips for Small Business Management Effectively Manage & Support Your Employees Effective management and leadership are essential for small business management. If you lack either, you’ll end up with low morale amongst employees and reduced productivity. Happy employees are productive employees and are less likely to leave your business. You’ll ultimately spend less time and money recruiting and training new people to replace them. How do you empower your employees? Trust Them Avoid micro-managing your employees and trust them to complete projects without constant supervision. If you delegate tasks, however, make sure you’ve effectively prepared and have trained your employees to handle them. Communicate a Clear Business Vision As a boss and leader, you need to make sure everyone is on the same page. If you don’t define individual roles and clarify your company goals, your employees won’t be able to do their jobs effectively. Encourage Growth & Self-Improvement You should empower your employees to learn new skills and explore different areas. Employees love learning opportunities and will be more likely to stay on longer if they feel they’re growing. Inspire Creative Thinking Sometimes the best ideas come from unexpected places. As a manager, you should invite employees to brainstorm new ideas and processes, so they feel more inspired and engaged in their work. You can do this by fostering a positive company culture. If you’re not supporting and empowering your employees, you’re failing at small business management. Direct Energy Where it Matters As a small business manager, you should follow the 80/20 rule, which says 80% of your results come from 20% of your efforts. You should always focus on the things that will result in the greatest return on investment. Systemize Your Business The key to better business management is creating systems and processes that make operations run smoother. You should create a book of standard operating procedures, stick to your budget, and stay on top of your books so you know where your business is at financially. Other tips for systemizing your business:
  • Automate payroll and taxes
  • Use an online management system
  • Leverage company data
Final Thoughts on Small Business Management Being a small business manager isn’t easy, but you can survive and thrive if you follow these management best practices. Create a business plan, invest wisely, and support and empower your employees as much as possible.