| Business management refers to one's ability to | | | | if it is not implemented properly. That is, traditional |
| manage a business effectively and efficiently while | | | | business management must seamlessly marry itself |
| retaining profitability. But what does that mean? | | | | with technology. |
| Anyone can 'manage' a business, right? | | | | So, now you have this traditional business model to |
| But do we really know how to manage a business? | | | | think of, and you also have to think that the model |
| And if we do, what does that entail? Do you just run | | | | has incorporated technology. You see, managing a |
| around your company telling people what to do or | | | | business is not as easy as it sounds. When you look |
| run to the bank and make deposits at the end of the | | | | at this business model I know for sure that you have |
| each week? Is that business management? | | | | never looked at your business in this way before. |
| If that is all it takes to run a business, why isn't | | | | Believe it or not, graduate schools teach this stuff |
| everyone a business owner? If managing a business | | | | and larger companies obviously have the money to |
| is so easy, why are there consultants? Simple | | | | pay someone to think of this stuff, but what about |
| answer: business management is more daunting a | | | | the small business owner? |
| task than we may think. | | | | Small business owners do not have the financial |
| I have always said that no matter how large or small | | | | resources to pay for this thinking and consulting |
| a company is, it is an overwhelming task to manage | | | | companies for some reason; do not necessarily |
| the everyday issues. We could all use a little bit of | | | | speak to the small business owner. Why not? Most |
| help. | | | | consulting companies are always looking to fry the |
| Traditional business management, which is what I | | | | "big fish", the 1% of businesses in the United States |
| have studied and is the methodology I use when | | | | that can afford the phenomenal fees they charge. |
| discussing business issues with clients, takes into | | | | Larger consulting companies do not have the time or |
| account all aspects of running a business, large or | | | | the desire to speak to small businesses, nor will they |
| small. | | | | change their fees which range over $400.00 per hour. |
| Whether it is a million-dollar company or a billion-dollar | | | | One of the comments I hear often in small |
| company, all companies run the same. | | | | businesses is, "Great idea, I wish I could get my |
| Traditional business management is pretty much | | | | people to do that, but I can't expect them to change |
| self-explanatory; it is managing business through | | | | their ways." I say, "You'd better get them to change |
| traditional methods that have been used for many | | | | their ways or you could be out of a job"! |
| years. | | | | Oddly enough, small business owners are reluctant if |
| Those traditional methods incorporate three aspects: | | | | not skeptical in getting help for their business. To this |
| sales and marketing strategies, efficient operation | | | | day, I have yet to figure that one out. Why don't |
| and productions methods, and finance and accounting | | | | small business owners look for help? |
| (SG&A). I believe all business owners should have | | | | I firmly believe that business is business regardless of |
| some understanding of these areas of business and | | | | the size of the company, the annual revenues, or the |
| try to manage them as best they can. Most large | | | | number of employees. Keep in mind that the largest |
| companies focus on these areas in that they have | | | | businesses in the world were once small businesses |
| the resources to pay employees who specialize in | | | | and today they are worth a great deal of money. All |
| these particular areas. | | | | businesses "managed" their way to the top, |
| For example, consider some of the largest companies | | | | regardless of the industry. |
| in the United States like Home Depot, Starbucks and | | | | I have seen numerous multi-million dollar businesses in |
| Dell. These companies require precise and expert | | | | every industry, to include contractors, restaurants, |
| management of their business operations at all times | | | | service companies, and manufacturing companies. |
| while maintaining a positive financial position for | | | | And I have also worked for companies that are |
| investors. These businesses pay full-time employees | | | | worth billions and billions of dollars. They all have one |
| to function in the company in particular capacities. | | | | thing in common: They all run the same some just |
| When we look at small businesses in the United | | | | have more revenue than the other. |
| States, we have to ask, "Do small businesses have | | | | I have always said that no matter what you produce |
| the financial resources to pay for similar resources | | | | to sell, HOW you produce it is what is of paramount |
| such as a chief financial officer, or a qualified VP of | | | | importance to the growth of your business. |
| Sales"? Quick answer: no! Actually, no is the only | | | | Your business is not too small or too large for a |
| answer. | | | | review of its current business processes. I have not |
| When we look at larger companies and how they | | | | met a business owner, a president or CEO of a |
| manage their sales and marketing efforts, we find | | | | company who can tell me that their business is |
| that larger companies have the financial resources to | | | | running so smoothly that they don't need to change. |
| hire employees on a full-time basis who are experts | | | | That is simply not true. |
| in sales and marketing. | | | | The natural stirring of the U.S. economy is what |
| We can say the same for the third aspect of | | | | causes the need for change in all businesses of all |
| traditional business management, operations and | | | | sizes and I guarantee that if you are not constantly |
| productions. Once again, large businesses have the | | | | rethinking your business strategies, your competition |
| revenue available to have full-time positions for a | | | | is. |
| general manager, a production manager, and | | | | Can you say that your business is flexible enough to |
| sometimes, a Vice-President of Operations. | | | | manage your competition and stay ahead of the |
| Again, small businesses rarely have the opportunity to | | | | curve, or that your business can handle the daily |
| pay experts full-time salaries, which could cost a | | | | economic fluctuations in the U.S.? |
| business thousands of dollars annually. | | | | Ask yourself some of the following questions. |
| So, now we know that traditional business requires | | | | 1.Have your total revenues gone up or down from |
| the expertise of individuals in particular areas, such as | | | | last year? |
| finance, marketing, sales, production, operations, and | | | | 2.Has your profitability gone up or down from last |
| management. | | | | year? |
| As a small business owner, can you pay the full-time | | | | 3.Where is the next dollar coming from? |
| wages of each of these employees? Do you have to | | | | 4.Are you tired of going to work? |
| hire all these employees in order for you to spend | | | | 5.Do you have adequate inventory levels? |
| less time in the office worrying about business | | | | 6.How many employees report to you on a daily |
| issues? | | | | basis? |
| I have seen many million-dollar companies and I have | | | | 7.Do your employees actually do what you ask and |
| seen a few billion-dollar companies; the only | | | | expect of them? |
| difference is that one pays for expert full-time | | | | 8.Do you have a management team in place? |
| employees and the other doesn't. Obviously, the | | | | 9.Is there business expenses you wish you didn't |
| larger companies have the money to pay for expert | | | | have? |
| employees, and small businesses don't. | | | | 10.Does every employee in your company have a |
| So how does the small business owner learn the | | | | specific job function that justifies their labor burden? |
| basics of business management without paying for an | | | | 11.Do you remember when owning your business was |
| MBA or spending thousands of dollars in annual | | | | fun for you and your family? |
| salaries for experts? | | | | 12.Do you believe your company operates as |
| Recently traditional business management had to | | | | smoothly and efficiently as it could? |
| make room for a new aspect of business: | | | | 13.Do you have a long-range plan? |
| technology. | | | | 14.Do your employees share your vision of the |
| Through the years traditional business management | | | | business? |
| has had to marry its strategies with the proliferation | | | | 15.Who do your employees go to when there is a |
| of technology where every business owner from | | | | problem? |
| Starbuck's to Jim's Auto has had to incorporate | | | | 16.If you actually met me, would you be able to tell |
| technology into its everyday operations. | | | | me that your business doesn't need to change, or |
| The problem is that business believed that | | | | that it is truly profitable? |
| technology was going to be the solution for every | | | | If you are ready to move your business forward, |
| problem, but it wasn't until recently that business | | | | get some help. Believe it not, the success of your |
| management thinkers realized that technology will fail | | | | business is important to this great Nation. |