SMALL BUSINESS MANAGEMENT
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There is no universal way to determine how big a small business should be. However if your business has not invited for capital from the public, I would simply consider it to be small. On the other hand, I am not ignoring the fact that they are businesses that are large enough to be considered as big businesses. A simple definition of a small business would therefore be any business venture that the investor does not want it to be so large such that he/she relinquishes control of it to external parties. This means that factors such as capital invested, number of employees and the expected returns form a basis for determination of a small business.
Research has shown that people who depend solely on their salaries end up frustrated later in life after their retirement. This calls for radical measures by every person who has a pay check every month. However, starting a business is not an overnight decision. There are very many factors to consider before engaging in any business venture. Of all the factors that one should consider, the most important is to know which business you would like to engage in. Other factors include: location, proximity to customers and suppliers, government regulations and the possibility of business expansion.
If you intend to begin any business, you should ask yourself why some entrepreneurs succeed in every business they begin while others fail even before they begin. There is only one secret behind success in business, and that is to know where to invest. If you make a wrong investment decision, it does not matter how right you choose the other factors. The fact is that you have already failed.
To succeed in business, you need to identify a need in your society. I need to take you back to your elementary studies. I want you to understand that there are three basic needs;
" Food
" Shelter
" Clothing
This is where you must begin. Research has shown that the richest people on earth are in one way or another involved in hotel (food) business. Think about the richest in your area, does he or she own a hotel, or a partner in one?
Investing in real estates (shelter) is one of the best investments you can ever make. This is because you are assured of a constant inflow of cash every month. Think of the next richest person in your locality and see whether he or she has invested in real estate.
Fashion changes on daily basis. Women want to put on new hair styles, jewellery and clothing, while men on he other side are nowadays turning stylish. You need to think about investing in the fashion (clothing) world.
You have to realize that no matter the economic status people must eat, wear clothes and live in houses. So go on and invest in any of the three.
We are considering a business where you have total control and whose single coin goes to your pocket. The first thing that you have to put in mind is that your sole purpose is to make profit. But you have to allow your business to grow old enough to begin producing some returns. I was once involved in the production of a local magazine. Our advisor told us that we should not expect any profits from the magazine till the 4th issue. This sounded absurd, but after we had produced the third issue, there were signs for some profits.
Secondly, you need to meet your customers’ needs. A business that does not put its clients first will die as soon as it came to being. You must know that the customer is the most important individual in your business and your business exits because of him/her. A satisfied customer will tell one or two of his/her friends. On the other hand, a dissatisfied customer will tell a least five of her friends about your poor services. Do not forget that customer needs include how you handle them.
Management of funds comes next. To increase your profits, you have two strategies at hand; either increase sales or cut down costs. Decide which one is best for your business. Nevertheless, the first strategy shows that your business is growing
EFFECTIVE LEADERSHIP AND ADMINISTRATION
Everyone is a leader in his own ability and capacity. The success behind any kind of organization is effective leadership and administration. However, there are people who are born as leaders but it's important to note that leadership and administration is an art and every art can be learnt. I have met many people who never thought of being leaders but have effectively learnt the art of leadership and emerged as leaders to be admired.
In any kind of leadership, the first area of effective administration is the administration of funds. Be it in business, government departments, church or any other kind of organization, you will have the most effective leadership if you learn to use the funds properly. If any of your employees wants to paralysis your operations and bring down decades your leadership, the first place to target is your finance or/and accounting department. Your employees in this area should therefore be people of integrity and who have internalized the vision of your organization.
The second area that determines how effective you will be in your leadership is managing people. The human resource directly affects the operations of your organization. You must begin by placing every employee in the department where he/she will work best. You therefore begin by identifying where to place your staff. This means that an effective leader is close his or her staff and spends time them. After placing them in their rightful places, you need to monitor their performance. Performance of your staff is closely tied to motivation. Every employee needs to be motivated. This entails different strategies. Know which kind of motivation to use. It is not necessary to promise your staff a reward for good performance. This may bring in unhealthy competition, hatred and lack of cooperation between staff who want to out-do each other. Therefore reward unexpectedly.
Motivation may be as cheap to the organization as recognition, but make sure you recognize a staff in the midst of others. Do not do it in a closed office. It may not serve the purpose. Other strategies may include promotions, gifts, added responsibilities and increase in salary. You must also ensure that your staffs are working as a team. Working together ensures the staffs are focused towards the goals of the organization.
Effective leaders give an ear to every stakeholder of the organization. Know that the whole organization is looking on you to give direction. Begin by listening to every stakeholder then give a direction. Sometimes it's necessary to give directions basing on what you believe is best for the organization regardless of other peoples views. But this should not be always because it does not mean that you are always right. Conflict resolution strategies are important. Know that there will always arise conflicts. The win/win strategy works best for most organizations. Therefore make sure that each of the conflicting parties does not feel offended.
