7 Key Elements to Manage a Business More Effectively

Managing Business Effectively

Any business, be it small-scale, micro business, large-scale or an online business cannot be run without proper management of time, human resources, finance /money, updated technology, new and creative ideas, and co-operation among everything mentioned. Remember, “Customer is the King” for any business. An efficient businessman does not only lure new customers, but also maintains his/her old customers, so that he is able to make maximum profits, by providing the best of goods and services according to the current demands and needs of his customers. Losing a customer can be a setback, because one unhappy customer can turn down a lot more customers.

1.Effective Communication

Communication is the key to any business. Proper communication is necessary in order to deliver the best results, therefore, it should be made sure that the message conveyed to the last person is exactly the same as it was sent by the sender and has not been tampered. Direct communication is the most effective way, which does not only makes the message clear but also creates a sense of trust, responsibility and belonging in the employee, thus making him deliver better results.

Communication is a two way process. It’s important while discussion of the plan and delegating responsibilities that everybody is on the same page, which means everyone should have the exact same perception about the plan and its implementation and nothing is tampered with

2. Timely Brainstorming

Brainstorming is an activity which involves getting ideas from all the employees in a business. In case of hierarchy, it’s done at different levels in form of mini teams and finally ideas are discussed with the top management. And in small businesses, the businessman can organise a meeting with all its employees and get ideas about a specific situation.

The best part about Brainstorming is that you have the freedom to speak out your mind without being judged or questioned, given that you have logic behind your idea of course. This leads to getting new innovative ideas by all the employees be it experienced employees or the fresh new talent, giving each of them a sense of confidence and belongingness, further doing their efforts towards the best of the company.

3. Dynamic Environment

Any business that is static or closed to the changing environment of the world cannot expect to develop itself or retain the same market position as it had when it began, because adapting the latest trends keeps you going as you are able to cope up with the demands of your customers or the end-consumers.

“Change is the only Permanent Thing.”

Therefore, it is necessary for the business to adapt change be it in technology, product line, and demand patterns of the customers, or anything that might affect your business. Any business, large or small, should be flexible and dynamic, in order to be manage a business effectively. The human resources should be trained from time to time with the upcoming new trends or updated technology.

It’s not only with the demands or needs of the end-consumers but also the updated technology, a business needs to cope up with. We live in a tech-savvy world; therefore, keeping yourself updated and with the world is always the best way out.

4. Authority and Responsibility

Business can prove fruitful only when there is an appropriate delegation of authority and responsibility. There has to be an equilibrium or balance between “Authority” and “Responsibility” as they go hand in hand. In case the authorised person does not delegate the responsibilities constructively, it can create a loophole in the entire working system, because with authority comes great responsibility. The authorised person is also accountable and answerable for any obligation, trust, debt, or any kind of bridge gap between expected and delivered.

It’s very important to delegate some authority to the person you are delegating responsibility to, as it gives them the power to make necessary decisions rather than running here and there to take permission from the seniors. At the same time it also gives them the liberty and confidence to make decisions, hence developing them as better employees.

5.  Effectual Planning

Planning is an art which is futuristic and goal oriented. It becomes very important for a businessman to have at least two to three best plans (Plan A/B/C), so that any plan proves to be incapable or a business man needs to change a course of action in between he has an alternative plan ready, producing optimum maximum results.

The best way to manage a business effectively is through an effective planning. You can easily do this by planning a defined strategy for business. You first need to etch out a great strategy that should focus on both the positive and negative outcomes of a potential business plan. The best way is to prepare for failure rather than success as most first ventures have limited chances of success.

6. Team Work

Team is a group of people with different backgrounds, experience levels, knowledge status and thought-process. One and one is eleven, therefore, an efficient team can prove to be really fruitful and constructive. Effectiveness of a business is determined by the outcome from the action of employees and managers. If they demonstrate effectiveness in their workplace, it will definitely help in producing high quality outcomes. Customer Satisfaction and a company’s reputation are often dictated by the effectiveness of a team which include the way they put forward the company’s service or product.

It’s very likely that the team members work together towards the same goal and put forward their best foot. This can only be possible if there is co-operation, absolute understanding, thorough flow of communication and positive atmosphere among the team members. There might be a possibility that different ideas might create conflicts in a team, but a trait of strong and productive team is to develop coherence and come out as plausible and advantageous.

7. 4 M’s of Business

The four M’s of business are: Men, Materials, Money and Machinery. These are the most important resources any organisation must not only possess, but also utilise in an optimum way. Men contribute the human resources both inside and outside the business which include employees-labourers, stakeholders, retailers-wholesalers, CUSTOMERS, and everyone involved directly or indirectly. It’s very essential to retain and take care of the needs and demands of each and every human resource that is a part of the business.

The next M is Materials. This includes raw materials, work-in-progress, finished products and services. Timely management of materials is pivotal as they are the initial products that will further decide on how the final products will be that need to delivered to our end-consumers.

Source: Educba

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