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Accountants and business advisors
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Facing up to the small business challenge
Whilst this is definitely a possibility for long term success stories, the truth of the matter is that owning and operating a small business is very hard work, can be stressful and the owners are often stretched financially until the business gains momentum. It is, therefore, important for individuals who are contemplating owning or starting a business to be aware of the challenges and reality that can be present in day to day operations.
Management
Operating a small business requires an individual to draw on a diverse range of skills. Often, the owner has strengths in some core areas and has weaknesses in others. Hopefully, this was identified in the business plan. Irrespective, business owners must face facts that they will need to outsource or hire personnel when skill deficiency presents. Trying to be an expert in all the business facets can drain organisational resources and draw the business owner’s attention away from core business imperatives. Part of good business management is knowing how to focus and use your skills in the most appropriate and productive way.
Finance
Financial responsibility is an often overlooked and misunderstood area of business operations. This is often the case in organisations that are run by sales personnel who are strong at generating and closing business but not so good at running operations. It is also important that the business owner consider outside advice from an accountant to assist with the financial and strategic direction of the organisation.
Employees
Maintaining strong company culture has many fringe benefits for business operators. Staff who respect managers and are content with their work environment are inevitably more productive and do not take as many sick days. Lower staff turnover reduces staff replacement costs. Building a business requires dedicated and focused staff. Investing in staff training also raises operational IQ and allows managers to delegate tasks to individuals who have upgraded skills. This improves the overall organisational effectiveness. Maintaining good staff relations is an important and often overlooked area of small business management.
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