The Best Small Business Management Advice From 15 Top Entrepreneurs
Business Management Advice: Running your small business effectively is key for its success. From controlling staff and finances, to formulating a strategy or even overseeing day-to-day tasks, your management decisions are essential in making sure everything runs smoothly.
To gain a better insight into how other entrepreneurs approach small-business management, we conducted a survey of 30 small business owners to:
What’s your top small business management advice?”
Here is what they had to say.
1. Empower Your Employees
“For businesses of any size, employees must feel a direct link to the development and success of the company. Even if they’re not equity partners, contributing to its success and being recognized as an integral part of it can give employees pride, as well as give them something useful on their resume that will boost morale and motivation.”
2. Promot Employee Growth
“Continuous training your employees is essential to ensure they become proficient at their jobs and stay engaged. I divide what I instruct my staff into two categories: direction/strategy for the business, and then competencies needed for success. Consistent communication and training are key in both cases – these should remain in flux.”
3. Systematize Your Business
“When transitioning from being a solo-preneur to an owner of the company who manages and not supervises his staff members, my top advice for small business owners is creating systems.”
Once your systems are in place, it’s possible to recruit someone with little understanding of how your company runs and have them discover a systematic method for conducting business the way you prefer. It isn’t common the first time you hire an employee – it’s like shooting from the hip. Once such systems have been put into place, duplicate your team and expand according to what has been established.”
4. Let Go of Full Control
“One of the most effective small business management tips I can offer business owners is to let go of control in areas you’re not skilled in. For me personally, accounting was never my forte – at first, hiring bookkeepers seemed cost-effective since all work could be done remotely; however, quickly realized I don’t enjoy doing bookkeeping and that my time would be better spent building the business rather than playing its accountant.” “Be the best at what you’re good at and ask others for assistance when needed – that way you can focus on what needs attention most efficiently.”
5. De-Clutter Your Business
“My top small business management tip is to eliminate things that don’t make your workplace and mind more relaxed, healthier and productive. If an employee isn’t performing their duties while others pay, a customer who consumes too many resources from the company or files of outdated documents that no one uses any longer – get rid of it!” By getting rid of unnecessary physical, emotional and mental clutter in both professional and personal life, you will become a more effective decision maker with greater assurance.”
6. Stay Focused on the Bigger Picture
My top advice for entrepreneurs is this: Get caught up in your business, but never forget to focus on it. Otherwise, you could spend all your time reacting and trying to put out small fires every day.
“While dealing with immediate needs, make sure to create opportunities to be proactive as well. Connect with other business owners and entrepreneurs, stay abreast of industry developments, attend professional development seminars, and organize sessions with your team to identify and start initiatives that will take your enterprise to the next level. Doing this will not only give you a leg up in the long run but also keep you focused throughout the process.”
7. Hire for Attitude
“My small business management advice is to hire people who will demonstrate attitude and develop the necessary abilities.”
Let’s face it: an employee with a negative attitude won’t help your company succeed, no matter their skill level. Unfortunately, there is no way to change an employee’s behaviour. But what if an employee has the right attitude? You can provide them with necessary training so they can succeed in your small-scale company – providing both business owner and employee an opportunity for growth.”
8. Leverage Company Data
“Data leveraging is one of the primary methods for improving employee management and business operations. From employee performance to sales insights and logistics planning, understanding how your company collects and analyzes data is an essential task for any entrepreneur.”
After collecting this data and analyzing it, it’s critical to implement your findings and make processes more efficient. Many companies collect information but fail to use it for making improvements to operations. Furthermore, when collecting employee performance data, make sure everyone involved knows that the purpose is to improve business operations rather than control employees’ performances.
9. Maintain Processes
“My small business management advice to other entrepreneurs is to document all their business procedures. In essence, this means creating an operational manual of all processes so that when they take a break or vacation from the office, employees can adhere to the guidelines in the manual. Documenting my processes has helped me examine everything within my company more deeply and made processes more efficient.”
10. Foster Transparency
I would encourage other entrepreneurs to foster a culture of transparency within their company. Offering honest and timely feedback will improve performance among team members and employees alike. Unfortunately, many business owners reserve formal reviews for when things get really crunch time in managing the day-to-day operations of their enterprise. Introducing transparency into employee management will enable employees to work more efficiently while also speeding up results for the business.”
11. Adhere to a Budget
“My top advice for small business management is developing and implementing an effective budget.”
This can benefit your business in two ways. Firstly, it provides you with an accurate picture of what needs to be sold to cover overhead expenses. Furthermore, it acts as a guideline for growth! Many businesses view budgets as restrictive; however, budgeting actually gives businesses insight into areas where they could improve and where they’d like to be after 12 months.”
12. Focus on Making a Big Impact
“As the owner of a small business, I understand the difficulty in managing multiple tasks. However, my coach gave me this helpful advice: If you can’t finish all your tasks today, focus on those which will have the greatest effect on product or service quality. At the end of the day, you will realize how insignificant these little jobs actually are while they make such a significant difference for overall success of your company.”
13. Cut Costs
“My number one recommendation for small-scale administration is being more stringent with expenses. Saving a penny often results in more earnings, so it’s essential to minimize spending wherever possible. Take advantage of tax incentives and outsource non-essential business functions when possible.”
14. Evaluate Every Three Months
“Reviewing your business progress every three months is essential for good small business management. At a minimum, take time out of each quarter to assess progress on projects and new ventures. Without this checkup period, owners may become too focused on one project to evaluate other areas of their operations effectively.”
“The single greatest risk to your business is failing to implement processes that produce results. By requiring quarterly reviews, business owners or entrepreneurs can avoid making poor decisions and provide themselves with the chance for successful expansion.”
15. Stay Ahead of Your Books
“Make sure you stay abreast of your finances and books so you always understand where your company stands financially, especially with regard to revenues and expenses.” This will help ensure a smooth running business operation for everyone involved. Hire a reliable business accountant and ask them to keep you updated with your company’s finances. One way to achieve this is by having the accountant contact you periodically during quarterly review sessions at their offices. Although it may cost you more for their services, the knowledge you’ll gain about your business’ financial health is worth every penny. Regular reviews are essential for planning growth strategies in the long term and should begin as soon as possible; simply getting into regular reviews does not suffice. It is not enough to simply be aware of your numbers on paper.