An effective management can really help put a small business on the map. Small businesses are threatened by the changes in the market in which a company can be started with almost no infrastructure. They also need to spend much more on advertising than they did just a few years ago.
All this means that organizing the day to day operations in a way that saves money and increases productivity can help a small company stand out both with the customers and potential investors.
1. An office space
Designing an office space isn’t just about the aesthetics. The office should reflect the look you have imagined for your company and be used to impress the clients and customers coming in, but first and foremost, it needs to be designed for comfortable work.
There are a few things to consider when you’re designing a productive office. First, try to imagine how it will be used and what does the workflow look like on an ordinary workday. Secondly, keep in mind that the size and the location of an office can be used to represent the place an employee has in the company hierarchy.
2. Keep track of your expenses
Small businesses need to keep close track of their expenses since their profit margin is usually rather low and it’s important to try and save wherever you can. A good first step toward this is to make sure that you know where your money is going each month. When most of the payments are done digitally, keeping track of the expense becomes much less of a chore.
In order to make your future plans more effective and more lucrative, you should try to figure out how much of your expenses are fixed and needed on a monthly basis and how many of them you can direct toward other goals.
3. The software
The biggest obstacle toward creating a successful business is the infrastructure needed to organize it, but with the development of technology, this is becoming much less of an issue. Finances, business operations, and human resources can be tackled with a single software solution such as the one from The Leverage Technologies.
This software uses cloud technology to store company data which means that it’s safe and it can be used even when a business grows and changes its location and offices entirely.
Employees are the most important part of any business and the company needs to put in the effort in order to manage them and keep them productive. Small companies can’t offer large bonuses and big salaries, but that can be substituted with a good office environment and an HR department that values employees.
It’s best to have an individual file on every employee and to review it on a regular basis in order to make sure that each employee is satisfied with their standing and has a clear career path moving forward. That will also minimize office conflict.
5. Honor your commitments
Every business needs to work in cooperation with various other companies and individuals and this creates a set of commitments and deadlines that you need to keep. When you set up a schedule and a deadline you need to stick with it no matter what.
This is important for your financial standing and it allows you to get better loans and more of them. But, more importantly, it’s important for your standing in the business community where everyone knows whose word can be counted on.
6. An emergency plan
No matter how well you organize your business, sometimes things will go wrong. There’s no telling what can go wrong and whose fault it’s going to be, but it’s imperative to be prepared. The biggest part of this is obviously saving. If you have an emergency fund, you can handle almost any complication that comes your way. Make sure to leave as much as ten percent of your income in a savings account and use it only when it’s necessary to do so.
It’s also a useful idea to organize a few income streams for your business that will help you mitigate the effects of losing some of your profits due to some unforeseen events.
A well-organized small business can be more productive and more lucrative than a large one. By using the right tools and planning ahead you can offset the disadvantage you have in terms of infrastructure and finances.
|Emma Worden is a startup funding consultant from Sydney. She enjoys reading and writing on different aspects of entrepreneurship, usually finance and marketing. If you want to read more of her work, you can find it at Bizzmarkblog .|