The Importance of Proper Management for Small Businesses

Do you have what it takes to be an entrepreneur or part of an entrepreneurial management team? Though the term entrepreneur is sometimes used loosely today, it means much more than someone who came up with a good idea and found a way to make money. The child who plans to babysit for cash is much different from the child entrepreneur who sets up a New Year’s Eve babysitting service with a set time, cost, and clear parameters. Do you see the difference?

To be an effective and motivated part of an entrepreneurial management team you have to have the ability to wear many hats at once. Below are some examples.

Financial Team:

Finances can be the issue that will tear a management team apart faster than anything. You need to have a system of checks and balances in place so that each member of the financial team (who is probably also a member of every other team) has the ability to offer input. Hint: If you cannot pay your own bills at home, then you need a qualified financial team member. If you find finances, including bookkeeping and other accounting procedures, too difficult to do yourself, then you may benefit from outsourcing a professional. Accountants like Dave Burton will be able to address any issues you may have about tax or bookkeeping, and walk you through it.

Production:

Who is going to actually make the items you are developing? How will they be compensated? If you have a three-man crew, it is likely that each of you is going to be a part of each team. The key is to play off of each other’s skills. If you cannot manage a hammer and you are trying to build unique doghouses, stay out of the production area and put your skills to use somewhere else.

Marketing:

How are you getting the word out about your product? You cannot sell what people do not know about.

Keep in mind that the team must work towards the same preset goal while each is using their own skills. This does not mean that any skill is worth more than another. The key element is to recognize your weaknesses and fill your team with stronger members that can improve your business. Learn the keys of delegation and hold the team responsible, then reward for quality performance.