What’s next for small businesses? This is one of the questions I have been made to tackle in my undertakings to save my clients from collapse of their businesses. The global economic crisis is not only a nightmare to big businesses but has threatened to bring down the entire economy which is generally made of small businesses. Small business managers are therefore faced with the challenge of remaining in business and also ensure continued profitability.
A good manager that wants to ensure a continued growth and profitability must first understand that the world is really facing a crisis. This calls for new strategies to curb the problem. You do not need to close your business but come up with a mode of adaptation. Some managers have ignored this fact only to be ambushed by unpaid debts and other under performances.
Secondly, know that the challenges of the crisis can as well be used as opportunities. It is very unfortunate for managers who are struggling to keep down costs instead of trying their best to increase sales. I want you to know that while cutting cost may increase your profits, it’s a clear sign that your business is not performing to the required standards. A good manager will take time to study and see what can be done to increase sales. Do not give up; there are businesses which have recorded increase in profits, yours is the next on line.
Thirdly, you must do your best to satisfy your current customer needs. The current world economic crisis has also brought up current customer needs. Know them, satisfy them.
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.
Wednesday, July 15, 2009
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