How to run business successfully
Here’s are the 5 tips that help your business run successfully:
1. Strategic Management (P, O, L, C)
You need to undertake some activities like Planning, Organizing, Leading and Controlling (POLC) for the purpose of archiving a goal, this is called a strategic management.
First, you need to set a goal and plan how to achieve them. Activities can be planned to achieve long-term goal (eg: become market leader within 10 years) or short- term goal (eg: increase sales by 5% this year).
Next, you need to organize your employee and other necessary resources to carry out the plan. For example, you can design some tasks to your worker and set the due date of the task to them to so that they can help you to achieve the goal. It is necessary that to develop an organization structure so that your employee know who they should approach whenever they face bottleneck.
Followed by leading process. Whenever your employee is lack of motivation in work (maybe because they are having some argument with other colleagues). The supervisor or manager will need to motivate his/her employee so that the employee will be motivated to work. For example, by giving them year-end team bonus if they can achieve the target that set for that year.
Lastly, for the controlling process, you need to compare the actual result with the targeted plan. If employees are achieving the target this year, then it will be good. However, if your employees cannot hit on the target, you will need to take some action (maybe you can discuss with them why they can’t achieve the target and maybe because your expectation is too high) so that you can set an achievable goal for next year. This will let your employee will feel that they are valuable to work for the company (because you listen to their voice) and they will work more harder next year.
2. Human Resource Management (Training, Recruiting, Compensation)
Besides that, you need to have well- planned human resource management so that you can attract talent to work for your company. In recruiting process, you need to set a criterion for candidates so that you can filter some unqualify candidates and you can select the best candidates that suitable to your company. Offer a good compensation package is also a essential way to attract people and retain people to work for your company, if your compensation package is attracting, your company turnover rate will be reduce and it will be more cost-effective than hire a new one. Furthermore, if you want your business run successfully, you need to send your employee for training so that they can improve their skill and knowledge, and this will increase your company performance too.
3. Operations (Processes, Work)
For the operation process, you can set a clear standard of procedure (SOP) so that employee can carry out the daily routine activities and this will avoid misunderstanding between the employee and others. Besides, this will increase efficiency of the employee when doing the tasks. Besides, effective computer information systems and programs can aid your company reduce the mistake. Other than that, you can encourage employee’s innovation and collaboration throughout the company to improve efficiency.
4. Marketing (Relationship, Sales, Responsiveness)
For the marketing process, you need to build strong customer relationship (no matter individual customer or business partner) so that they will help you to introduce your company to other people as well. This will increase your business opportunity and increase the sales. Besides, good customer service will help to increase your sales too, being responsive in replying enquiries from customers will let them know that your company is a high efficiency company and you are indirectly building trust to them so that they are supporting your company’s product or services more confidently. Besides, make your company presence in everywhere that your targeted customer located. People will indirectly store your company information in their mind and they will put you in the first choice whenever they want to purchase your product and services rather than choosing other’s.
5. Finance Management
Lastly, it is crucial that you need to manage your company’s finance well. If you are not managing company finances well, there will be a chance of your company going to bankrupt and shut down. However, if you invest less, chances of your business growth will be less. Furthermore, you need an enough cash to pay for utility, rental, facilities and new equipment (if have) and so on. That’s why company need accountants in the company to look over for the budget.