2018-08-08 01:15:06Growing a businessEnglishhttps://quickbooks.intuit.com/in/resources/in_qrc/uploads/2018/08/manager-composes-marketing-email.jpghttps://quickbooks.intuit.com/in/resources/growing-a-business/essential-business-management-skills/Essential Management Skills for Small Business Owners

Essential Management Skills for Small Business Owners

2 min read

If you’ve been working for more than a few years, you probably have a solid professional skill set. Running your own business is a whole new world with a new set of demands. The sooner you can develop crucial management skills, the sooner you can take your business to the next level.

Financial Management

When you own a small business, you alone are responsible for its financial well-being. You’re the one who seeks funding, oversees the budget, and decides how to spend each rupee. Solid money management skills can be a big help. At a minimum, you should know how to:

  • Make a budget
  • Set sales goals and forecast profits
  • Track expenses
  • Track cash flow
  • Manage credit
  • Create GST-compliant invoices
  • Manage payroll

The right accounting software goes a long way in helping you manage the company’s finances, especially as you’re learning the ropes. Programs like QuickBooks are simple and user-friendly, so you can get started right away.

Organisation

A business involves plenty of moving parts. On any given day, you might pitch a new client, approve a marketing campaign, direct an employee, and fix a problem with the office internet — all before noon. Carefully honed organisational skills can be a lifesaver during your busy days. Physical and digital organisation ensures that you can find any file or contact number in seconds. Personal organisation helps you stay on track and on time. Workflow organisation makes sure that your orders are met and inventory is balanced.

Self-Awareness

When you own a business, self-awareness one of the most important management skills you can develop. It allows you to recognise when your judgement might be clouded, so you can bring in outside help. It helps you seek and use employee feedback. When you’re aware of your own limitations, it’s easier to see how you’re contributing to a situation. This alone can do wonders for your interpersonal relationships with staff and vendors.

Strategic Thinking

Businesses are constantly changing to adapt to customers and market demands. As the owner, you need to be able to step back from the current state of affairs to see the big picture. From there, you must be able to look critically at all factors, anticipate things that might happen down the road, and plan accordingly. These strategic skills can help you design a realistic and efficient growth process. They also help you identify and adapt quickly to changes in the market.

Interpersonal Management

Great management builds a positive culture and increases productivity. Even if you have just one employee, you should be able to:

  • Communicate effectively with employees
  • Adapt to different working styles
  • Help employees work to their strengths
  • Motivate and engage workers
  • Provide big-picture leadership
  • Delegate work and focus on mission-critical tasks

Customer and Supplier Relations

During the first few years of a company’s life, you are the main point of contact. You talk to customers, present to potential clients, and make partnerships with suppliers. These relationships form the foundation of your company, so relationship-building skills are a must. If you can stay friendly while getting the best deal for the company, you can create relationships that carry your business through tough times.

Managing a company is an exciting and educational experience. By honing your skills and practising them daily, you can create a powerful, long-lasting business empire.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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