Managing your Business

Many businesses fail to understand the significance of proper resource management at every level. Imagine the kind of mess a company would be in if it didn’t have a proper set of rules defined for its operation; everybody who is anybody would be implementing their own rules as they see fit to ensure fulfilment of personal interests. Although this is the ideal situation of a completely dysfunctional, it is unlikely that such an activity would take place in reality. But does it help to identify the real meaning of management? Does it help in any way in shaping the company’s policies before it sets out to begin operations?

Businesses are like people; they are not isolated, thriving in an environment of thorough competition. Fortunately, not all people are alike and have different specialties, thus creating a market of varying skills. Discipline drives a sense of organisation within individuals and businesses, assisting in developing a system to operate within a tough environment.

A clear and well set out organisational structure, as a first, must be established to ensure that no employee overrules their authority figures under any circumstances. Quality assurance is one of the key elements that customers look for in products and services provided by companies of all sizes and types. To the consumer, the size of the organisation is a non-issue; they prefer to get quality goods with a quality service from companies. Proper management results in satisfied personnel, translating into satisfied customers.

Good customer management and dealing is imperative in the customer-oriented marketing system that has evolved over the years. This suggests that all businesses ensure the proper care of consumers, who are the end-users who are unable to access the companies directly most of the time. Some companies manage a well-organised customer relationship system, this helps them assess the trends customers follow, which in turn assists producers and suppliers to target the market appropriately while reducing their costs. Research and Development is not an easy task and is generally based on past data, thus any decision made should incorporate the effect of the time passed during the collection of the data, analysis and output.

Managing your financial resources is another factor that you should look out for. Most companies just don’t care how money is spent as long as they are achieving what they want. In fact, what they fail to understand is that whatever their profitability indicates, it is based on past performance and has been generated on the accruals concept of accounting, as opposed to actual occurrence. Accruals concept requires companies to prepare profit and loss statements on whatever has accrued during the financial year and not what has actually happen. A significant level of cash, defined as an amount good expending constantly and repeatedly throughout the period is essential for all companies throughout their lives.

Having a good relationship with suppliers goes hand in hand in maximising from having the best quality delivered at better rates where possible. They may even show leniency when your company has landed in trouble, provided they too don’t face a crisis of their own. You may be able to operate the JIT stock management system if the supplier agrees to provide fast and timely delivery of orders to match requisitions. This helps the company drastically reduce stock holding costs, although there will be the bare minimal required to stock just in case delivery is delayed due to unexpected circumstances.

Overall, good management practices go a long way to generate company goodwill, resources, employee relationship, and of course increased wealth and value.

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2 responses to “Managing your Business

  1. Well written, while reading one of the company pop up in mind and I guess we both worked in that which really fits in one of the para that you mentioned. 😉

    Regards,
    Majid.

  2. Well written, while reading one of the company pop up in mind and I guess we both worked in that which really fits in one of the para that you mentioned. 😉

    Regards,
    Majid.

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