Category: BUSINESS MANAGEMENT

ON THE NEED OF MICRO AND SMALL BUSINESS OWNERS TO HAVE BASIC KNOWLEDGE OF BUSINESS MANAGEMENT

THERE ARE THOUSANDS AND THOUSANDS OF PEOPLE IN GHANA – AND PROBABLY ALL  OVER AFRICA – WHO WANT TO BE OWNERS OF MICRO AND SMALL BUSINESSES. EVEN THE HAWKERS IN THE STREETS OF ACCRA, KUMASI, OR ANY OTHER BIG CITY IN FACT RUN MICRO BUSINESSES.

THE PROBLEM IS THAT MOST OF THEM CONSUME THE MONEY THEY MAKE SOON  AFTER           THEY HAVE EARNED IT. I HAVE POINTED THAT OUT IN MY ARTICLE ON THE NEED OF MICRO AND SMALL BUSINESS OWNERS TO HAVE BASIC FINANCTAL KNOWLEDGE. THE FOUNDATION OF SOLVING THE PROBLEM OF CONSUMING TOO MUCH OF THE BUSINESS CAPITAL IS TO HAVE AT LEAST A SIMPLE ACCOUNTING. I WILL ELABORATE ON THIS FURTHER IN A DIFFERENT ARTICLE, BUT FOR NOW THE HINT IS ENOUGH THAT FOR THE START, YOU CAN USE A SIMPLE INCOME/EXPENSES SYATEM. IN THIS SYSTEM, YOU PUT THE INCOME FROM YOUR BUSINESS ON THE LEFT SIDE, AND THE EXPENSES ON THE RIGHT. AT THE END OF THE MONTH, YOU SUBTRACT ONE SIDE FROM THE OTHER. BY THAT, YOU WILL SEE WHETHER YOUR BUSINESS MADE A PROFIT OR A LOSS.

BUT THE FINANCIAL SIDE OF THE BUSINESS IS NOT THE ONLY PROBLEM OWNERS OF MICRO AND SMALL BUSINESSES FACE. MANY OF THEM LACK THE BASIC KNOWLEDGE OF BUSINESS MANAGEMENT, WHICH MIGHT LET THEM FAIL AT THE LONG RUN. BUSINESS MANAGEMENT COMPRISES OF FIVE COMPONENTS WHICH OVERLAP WITH ONE EACH OTHER IN A SUCCESSFUL BUSINESS WHATEVER THE SIZE. THESE FIVE COMPONENTS ARE PLANNING, ORGANISING, STAFFING, LEADING, AND CONTROLLING. EACH OF THESE COMPONENTS IS AS IMPORTANT AS THE OTHER FOR THE SUCCESS OF A BUSINESS, AND THE FOUNDATION OF ALL THESE COMPONENTS IS A COMPREHENSIVE BUSINESS PLAN.TO ELABORATE SUCH A BUSINESS PLAN IS NOT A ONE-TIME EVENT, BUT IT MUST BE REVISED EVERY NOW AND THEN THROUGHOUT THE LIFETIME OF THE BUSINESS, TO ADJUST IT TO REALITY. THERE MIGHT BE PROBLEMS WHICH YOU DID NOT SEE WHEN YOU FIRST WORKED ON THE BUSINESS PLAN, AND THEN YOU HAVE TO SEE HOW YOU CAN SOLVE THESE PROBLEMS. ALL THIS MUST BE DONE THROUGH THE BUSINESS PLAN. THERE ARE A LOT OF TEMPLATES ON THE INTERNET, AND IN MY COURSE “BASICS OF BUSINESS MANAGEMENT”, I HAVE POINTED OUT THE ONE WHICH – IN MY OPINION – IS THE BEST TEMPLATE FOR MICRO AND SMALL BUSINESSES. YOU CAN ACCESS THE COURSE BY PASTING THE FOLLOWING LINK INTO YOUR WEB BROWSER:

https://recklingenterprise.com/courses/basics-of-business-management/31

AT THE MOMENT, LESSON 4 OF THE COURSE – “STAFFING” – IS COMPLETED. LESSON 5 AND 6 – “ LEADING” AND “ CONTROLLING” – WILL BE COMPLETED WITHIN THE NEXT FOUR WEEKS. A SUMMARY WILL THEN FINALISE THE COURSE.

IF YOU HAVE MORE QUESTIONS, YOU CAN ALSO WHATSAPP ME ON +233200523362. I CAN SURELY ASSIST YOU WITH ANY PROBLEM YOU HAVE IN YOUR BUSINESS.

SEE YOU!

BEFORE WE DIG INTO THE MATTER AT HEART, WE MUST KNOW WHAT THE DIFFERENCE BETWEEN DIGITISATION AND DIGITALISATION IS:

 

Digitization converts analog info into digital form, while digitalization transforms processes using digital tech. Digitization is about converting information, while digitalization improves processes and creates new opportunities. (COURTESY OF BING)

 

SO, NO MATTER WHAT THE DIFFERENCE IS, BOTH WORDS HAVE TO DO WITH DIGITAL TECHNOLOGY. AND DIGITAL TECHNOLOGY IS THE ISSUE OF THE DAY. DIGITAL TECHNOLOGY APPEARS EVERYWHERE IN YOUR LIFE NOWADAYS. AND FOR WHATEVER SUBJECT YOU RESEARCH LITERATURE FOR SCHOOL OR WORK, YOU WILL COME ACROSS DIGITAL TECHNOLOGY. BIG COMPANIES, BANKS AND OTHERS, DEMAND KNOWLEDGE OF DIGITAL KNOWLEDGE AS A FOUNDATION FOR JOBS THEY OFFER. A GOOD EXAMPLE FOR THAT IS THE NEW DEVELOPMENT BANK – THE CENTRAL BANK OF THE BRICS COUNTRIES BRAZIL, RUSSIA, INDIA, CHINA, AND SOUTH AFRICA. IN ITS STRATEGY FOR THE YEARS 2022-2026, THE BANK DEDICATES A WHOLE CHAPTER TO EXPLAIN THE IMPORTANCE OF DIGITAL TECHNOLOGY FOR THE WORK IN THE BANK.

 

GHANA HAS STARTED TO IMPLEMENT DIGITAL TECHNOLOGY IN THE LIFE OF EVERYONE, AND THERE SHOULD BE NO WAY BACK. FINANCIAL INSTITUTIONS AND OTHER ENTERPRISES WOULD LOSE TJEIR COMPETITIVENESS WITHOUT TECHNOLOGY, AND THAT WOULD SURELY BE OF DISADVATAGE FOR THEIR BUSINESS.

 

OF COURSE, DIGITAL TECHNOLOGY CAN ONLY BE USED PROFITABLY, IF THE FOUNDATIONS FOR THIS ARE BUILT. THE INFRASTRUCTURE OF DIGITAL TECHNOLOGY MUST IMPROVE, SO THAT THE USE OF THE INTERNET AND OTHER SERVICES ASSOCIATED WITH DIGITAL TECHNOLOGY CAN BE GUARANTEED WITHOUT INTERRUPTION (REMEMBER THAT THE USE OF THE INTERNET IS WIDELY CONSIDERED AS PART OF HUMAN RIGHTS).

 

AND APART FROM THE TECHNICAL FOUNDATION FOR DIGITAL TECHNOLOGY, THERE IS THE NEED OF THE EDUCATIONAL SYSTEM TO BE REFORMED IN A WAY THAT DIGITAL TECHNOLOGY BECOMES THE BASE FOR TEACHING AND LEARNING IN SCHOOL FROM THE PRIMARY LEVEL ON. TEACHERS MUST BE EQUIPPED WITH KNOWLEDGE ABOUT TECHNOLOGY, SO THAT THEY CAN PASS THIS KNOWLEDGE OVER TO THEIR STUDENTS EFFICIENTLY. FURTHERMORE, SCHOOLS MUST BE SUPPLIED WITH MATERIALS AND DEVICES THAT ENABLE STUDENTS TO BECOME ACQUAINTED WITH DIGITAL TECHNOLOGY.