Small business management pertains to the independent ownership, supervision and control of assets, resources, products, services, workforce and profits of an enterprise which is not prevalent in its area of operation.
In an economic atmosphere that breeds and sustains entrepreneurship, a lot of individuals are attracted to the prospect of possessing and directing his own business. They choose having a small enterprise to be close to costumers–enabling fast, flexible, and personalized service, to innovate less expensively, and to manage solely.
Managing both small and large businesses involves the five major functions of management–planning, organizing, directing, controlling, and coordinating.
The mistake that most small business owner-managers commit is giving less attention to planning and controlling functions. These two, when fulfilled effectively would result to excellent goal setting. And the success of every business relies heavily on its long-range goals.
The most popular approach applied to most small businesses is management by objectives or MBO. The reason for this is that it is result-oriented and jobs are perceived in terms of achievements rather than simply functions.
The first step in developing an effective MBO program is to define your business. A transparent and attainable vision of the business is critical for planning, … Read the rest