Osmond Vitez, Demand Media
Principal Features of Small Business Management
Small business management requires individuals to have a wide variety of business knowledge and understanding. Business owners must often learn new skills as they work in a company and expand its operations. Individuals can often take college courses, attend seminars or review websites to increase their knowledge a small business management. Business owners may also consult with other owners or review information from the Small Business Administration (SBA) regarding small business management techniques.
Business owners must be the leader of their organization. They often provide the mission, values and goals for the small business. Leadership and business ownership are two different things. Many business owners can run their company and complete operations with few problems. However, leading other employees can be a completely different issue. Business owners who expand their operations often need employees to complete various business functions. Leadership requires business owners to work through employees, not around them.
Accounting is an important business function. Business owners often use accounting to record, report and analyze information relating to financial transactions. Small business accounting usually encompasses several different features. Overseeing company cash flow, paying bills, collecting money from sales on account, entering journal entries, and preparing the general ledger and financial statements are a few small business accounting features. Business owners must be able to understand and apply accounting terms, principles and guidelines to their company&rsquo;s information. Accounting information can also be used by business owners to conduct a performance measurement analysis for business decisions.
Business owners must pay careful attention to the human resource needs of their company. As a company begins to grow and expand, the hiring of employees is usually an essential part of small business management. Business owners must understand the current job market and how to set wages for various job positions. New employees can also create significant paperwork or administrative issues for small businesses. The performance of background checks and drug tests, and the collection of personal information and other paperwork are all involved with hiring employees. Business owners must decide whether this process will be completed in-house or through a third-party employment agency.
Operational management is a key part of small business management. Business owners carefully review their operations to ensure goods or services are produced in a high quality manner. Business owners are also responsible for acquiring economic resources to use in their business operations. Operational management can include production processes, customer service, marketing and other various activities. Smaller or home-based businesses are usually easier to manage. Business owners with larger organizations must usually spend more time managing business operations and ensuring all functions are properly completed.
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