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Writer's pictureKeren Obara

Key aspects in managing a business. Written by Keren Obara.


Starting a business is much simpler than running and maintaining one. According to Harvard Business Review (2023), systems and processes are key in maintaining informed strategies. Each ‘limb’ of a company must develop its own processes in accordance to company aims and objectives.

Those in managerial positions are responsible for designing duties and responsibilities of employees. A simple way to do so is by following the steps below.

  1. Determine the standards of the work to be performed.

  2. Evaluate the authorities and responsibilities for each job position.

  3. Build a relationship with different job positions.

  4. Regulate the rules of working in the organization.

According to the University of Minnesota, the following are ways in which business owners can achieve success through strategic management.

  • Research and Development. If one wishes to engage in an industry, it is important to learn the nature of the marketplace to make informed management decisions.

  • Know the basics of management. Accounting, finance, operations management, data driven decision making, supply chain management, and production are all interconnected in creating effective systems. You need to be a salesperson, as well as a decision maker and a planner.

  • Time efficiency. It is important to plan wisely when it comes to one’s time so as to keep priorities catered to and ensure that needed tasks are complete within reasonable periods.

  • Know how to manage people. Interpersonal skills, Human Resource, Hiring, keeping, and managing good people are crucial to business success.

  • Satisfy the customers. In today’s fast and dynamic world, attention spans are shorter than ever. Innovation management is important. Goods and services must regularly be improved upon according to changing client/customer tastes.

  • Know how to compete. It is wise to find one’s niche in the marketplace. That is, a carefully researched and tailored audience/ customer base that has a need for one’s good/service and has the means to purchase the product. It is also important to keep versatile, so that changes in the marketplace do not catch one off guard. Supply and demand forces in economics determine the success of many industries. However, with strategic and informed innovation, business owners can tailor demand and influence the supply-demand forces of economics.

References:

D&B, “D&B—The Challenges of Managing a Small Business,” http://www.dnbexpress.ca/ChallengesSmallBusiness.html (accessed October 30, 2008).

Farrell, M., “Risky Business: 44% of Small Firms Reach Year 4,” Forbes, http://www.msnbc.msn.com/id/16872553/ns/business-forbes_com/t/risky-business-small-firms-reach-year/#.Tl_xVY7CclA (accessed August 31, 2011).

Knaup, A. E., and Merissa C. Piazza, “Business Employment Dynamics Data: Survival and Longevity, II, Monthly Labor Review • September 2007,” Bureau of Labor Statistics, http://www.bls.gov/opub/mlr/2007/09/art1full.pdf, (accessed August 31, 2011).

Knaup, A. E., and Merissa C. Piazza, “Characteristics of Survival: Longevity of Business Establishments in the Business Employment Dynamics Data: Extensions,” Bureau of Labor Statistics, http://www.bls.gov/osmr/pdf/st060040.pdf (accessed August 31, 2011).

SBDC Economic Impact, http://www.score.org/index.html (accessed August 31, 2011).

U.S. Small Business Administration, “Office of Small Business Development Centers: Entrepreneurial Development,” Services, http://www.sba.gov/aboutsba/sbaprograms/sbdc/index.html (accessed August 31, 2011).

U.S. Small Business Administration, SCORE—Counselors to America’s Small Businesses, http://www.score.org/index.html (accessed August 31, 2011).

Keren Obara 2023.

Master of Science in Management.

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