Tag: BUSINESS MANAGEMENT

BASICS OF BUSINESS MANAGEMENT
LESSON 5
LEADING

BEFORE WE GO INTO DETAILS OF THIS LESSON, HERE FIRST OF ALL THE DEFINITION OF LEADERSHIP IN BUSINESS MANAGEMENT:
Leading in management is typically taking control of a team to provide direction and make decisions that help achieve the goals they have set. It can involve motivating, inspiring and empowering those around you to follow your lead. Leaders can be essential for the good of all members within an organisation that they manage.
AS YOU SEE FROM THIS DEFINITION, IT COVERS THE LEADERSHIP IN REGARD OF A TEAM. BUT I AM OF THE OPINION THAT SOMETIMES YOU ALSO NEED SOME KIND OF LEADERSHIP WHEN YOU WORK ALONE IN YOUR BUSINESS. THEREFORE, I WILL FIRST CONCENTRATE ON LEADING WITHIN YOUR BUSINESS WHEN YOU WORK ALONE, AND THEN SWITCH TO THE QUESTION OF LEADERSHIP IN A TEAM (KEEP IN MIMD THAT EVEN IF YOU ONLY HAVE ONE EMPLOYEE, YOU BOTH FORM A TEAM).
WHEN YOU HAVE A MICRO OR SMALL BUSINESS – AND YOU WORK ALONE AND DON’T HAVE ANYONE WITH WHOM YOU CAN SHAREIT WHEN A PROBLEM OCCURS – YOU HAVE TO “LEAD” YOURSELF OUT OF THE PROBLEM. YOU MUST LOOK AT WHAT YOU WANT TO ACHIEVE – THAT’S WHY IT IS GOOD IF YOU HAVE A WRITTEN BUSINESS PLAN -, AND LOOK AT THE PROBLEM WHICH YOU ARE FACING. REFLECT OVER THE PROBLEM – WHICH IS MORE OR LESS DISCUSSING THE PROBLEM WITH ONESELF – AND THEREBY LEAD YOURSELF OUT OF THE ISSUE.
TO FOLLOW THIS PROCEDURE, YOU MUST DEVELOP SOME KIND OF LEADERSHIP. LET’S HAVE A LOOK AT THE DEFINITION AGAIN: LEADING IN MANAGEMENT IS TAKING CONTROL OF A TEAM – THE TEAM IN THIS CASE IS YOU – TO PROVIDE DIRECTION – SOLVING THE PROBLEM – TO MAKE A DECISION FOR THE SUCCESS OF THE BUSINESS, YOU CAN SEE THAT EVEN IF YOU ARE WORKING ALONE, YOU MUST PRACTICE SOME KIND OF LEADERSHIP FOR THE SUCCESS OF YOUR BUSINESS.
OF COURSE, THAT ACCOUNTS EVEN MORE IF YOU REALLY HAVE PEOPLE WORKING FOR YOU. YOU HAVE A REAL TEAM, AND YOU WANT TO ACHIEVE SOMETHING TOGETHER WITH THEM.IUTO BE ABLE TO LEAD YOUR TEAM, YOU MUST BUILD UP A RELATIONSHIUFFFFP OF TRUST. YOU HAVE SURELY CHOSEN PEOPLE IN THE “STAFFING” SEGMENT OF WHOM YOU THINK THAT THEY WILL BE ABLE TO ASSIST YOU IN ACHIEVING YOUR GOALS. NOW YOU MUST BE CONVINCING THEM IN DETAILS –GENERALLY YOU ALREADY HAVE TO DO IT IN “STAFFING” – WHAT THEY HAVE TO DO WITHIN THEIR WORKFRAME TO ACHIEVE SUCCESS IN THE BUSINESS. YOU MUST BE ABLE TO TELL THEM CONVINCINGLY THAT WHENEVER THEY HAVE A QUESTION, YOU WILL ALWAYS BE THERE FOR THEM TO ANSWER AND TO ASSIST THEM IN FINDING THE CORRECT SOLUTION.
AT THE SAME TIME, YOU SHOULD ALSO NOT FALL INTO A BLAMING MOOD WHEN THEY MADE A MISTAKE. EXPLAIN WHAT THEY DID WRONG, AND HOW THEY CAN DO IT BETTER OR CORRECTLY. BUT ALSO, IF THEY DO THE SAME MISTAKE SEVERAL TIME, AND THEY WON’T ACCEPT YOUR CORRECTION ATTEMPTS, YOU SHOULD NOT HESITATE TO DRAW THE CONSEQUENCES AND RELEASE THEM FROM THEIR DUTIES. KEEP IN MIND THAT A TEAM IS ONLY AS STRONG AS ITS WEAKEST LINK, AND IN ORDER TOSTRENGTHEN YOUR TEAM, YOU MUST BE CONSEQUENT.
THIS IS ESPECIALLY DIFFICULT IF YOUR EMPLOYEE IS A RELATIVE OR A GOOD FRIEND. BUT IF YOU WANT TO BE SUCCESSFU L IN YOUR BUSINESS, YOU HAVE TO BE CONSEQUENT IN ALL ASPECTS.
BUT LEADING IS NOT ONLY LOOKING FOR MISTAKES AND CORRECTING THEM. A BIG PART OF LEADING YOUR TEAM IS MOTIVATING THEM, REWARDING THEM FOR WHAT THEY HAVE DONE RIGHT. THAT WOULD GIVE THE TEAM AND EACH MEMBER THE FEELING THAT THEY ARE NEEDED FOR THE SUCCESS OF THE BUSINESS.
THIS REWARDING OR MOTIVATING CAN BE IN INCENTIVES – MOSTLY FINANCIAL -, BUT CAN ALSO BE IN GIVING THE EMPLOYEE(S) MORE RESPONSIBILITY.
LOOKING AT THE END EFFECT, A GOD AND RESPONSIBLE LEADERSHIP IS ABSOLUTE ESSENTIAL FOR A GOOD BUSINESS.

QUESTIONS:
1) WHAT ARE THE ESSENTIALS OF A GOOD LEADERSHIP IN MANAGEMENT?

2) HOW ARE LEADERSHIP QUALITIES NECESSARY WHEN YOU ARE WORKING ALONE IN YOUR BUSINESS?

3) WHAT DO YU HAVE TO DO IF AN EMPLOYEE MAKES A MISTAKE?

4) WHAT ARE THE DIFFICULTIES IN YOUR LEADERSHIP IF THE EMPLOYEE IS A RELATIVE OR A GOOD FRIEND?

5) GIVE A BRIEF SUMMARY OF THE LESSON!

THE MAIN PROBLEM FOR MICRO ENTERPRISES IS BUSINESS MANAGEMENTMANY OWNERS OF MICRO ENTERPRISES – SMALL SHOPS, ETC. – BELIEVE THAT THE MAIN PROBLEM WHY THEIR BUSINESSS HAVE DIFFICULTIES TO SURVIVE IS THE LACK OF ADEQUATE FINANCING. ALTHOUGH FINANCING PLAYS A VERY IMPORTANT ROLE FOR YOUR BUSINESS, I BEG TO HAVE A DIFFERENT OPINION, AT LEAST TO SOME EXTENT.

THE MAIN PROBLEM FOR THESE OWNERS IS THAT THEY DON’T MANAGE THEIR BUSINESS IN A PROPER MANNER. IT STARTS WITH THE PLANNING OF THE BUSINESS, WHICH IS ESSENTIAL BEFORE YOU EVEN START YOUR ENTERPRISE.

TO REMAIN WITH THE FUTURE SHOPOWNER: IT IS NOT ENOUGH TO RENT A SHOP, BUY SOME GOODS, PUT THEM IN THE SHOP, AND SELL THEM FOR A HIGHER PRICE, FOR WHICH YOU PURCHASED THEM. INSTEAD, YOU MUST INVESTIGATE WHICH GOODS WOULD SELL BEST, AND IF YOU COULD GET THEM CHEAPER THAN WHERE YOU PURCHASED THEM. IF YOU ARE LUCKY, YOU WOULD EVEN BE ABLE TO GET A WHOLESALE CONTRACT FOR SOME GOODS.

LET’S ASSUME THAT NOW YOU HAVE YOUR SHOP, AND YOU ARE STARTING TO SELL THE GOODS YOU HAVE.. NOW YOU MUST ALSO BEGIN ACCUNTING FOR YOUR BUSINESS. AS A MICRO BUSINESS OWNER STARTING YOUR BUSINESS, IT IS SURELY NOT NECESSARY TO APPLY DIFFICULT ACCOUNTING METHODS LIKE DOUBLE-ENTRY ACCOUNTING. BUT A SIMPLE INCOME/EXPENSES ACCOUNTING IS AN ABSOLUTE NECESSITY FOR YOUR START-UP BUSINESS, WHICH YOU SHOULD APPLY FROM THE FIRST DAY ON. ONLY BY DOING SO, YOU WILL HAVE A CLEAR OVERVIEW OF THE FINANCIAL SITUATION. AND IF LATER ON YOU DECIDE TO TAKE A LOAN FROM A BANK, OR MONEY FROM AN INVESTOR TO EXPAND YOUR BUSINESS, THEY WILL SURELY ASK FOR INFORMATIOIN ABOUT THE FINANCIAL SITUATION OF YOUR BUSINESS – CASHFLOW, MONTHLY NET PROFIT, AND SO ON. AND PLEASE, DIFFERENTIATE THOROUGHLY BETWEEN EXPENSES FOR YOUR SHOP AND PRIVATE EXPENSES, IF YOU TAKE MONEY OUT OF YOUR BUSINESS FOR YOUR PRIVATE USE.

TALKING ABOUT BANKS; I ALSO CONSIDER IT VERY IMPORTANT TO HAVE AT LEAST ONE BANK ACCOUNT THROUGH WHICH MOST OF YOUR INCOME AND EXPENSES WILL FLOW. THE STATEMENTS OF ACCOUNT YOUR BANK WILL SUPPLY YOU WITH WILL SURELY HELP YOU TO WORK OUT AN EXACT BOOKKEEPING. FOR A MICROBUSINESS ESPECIALLY IN THE RURAL AND SEMI-RURAL AREAS, YOUR LOCAL RURAL AND COMMUNITY BANKS SURELY OFFER SERVICES THAT WILL ASSIST YOU IN GROWING YOUR BUSINESS.

RELATED TO ACCOUNTING – AND PART OF BOOKKEEPING – IS KEEPING AN INVENTORY. THE INVENTORY GIVES YOU AN OVERVIEW HOW MANY GOODS YOU HAVE IN YOUR STORE AT A CERTAIN POINT IN TIME. THIS POINT IN TIME CAN THEORETICCALLY BE ANY DATE, BUT IN ORDER TO HAVE A BETTER MANAGEMENT BASE, IT IS ADVISABLE TO ALWAYS USE THE SAME DAY IN EVERY MONTH, E.G., THE LAST DAY OF THE MONTH. ON THIS DAY, YOU MUST REGISTER HOW MANY GOODS YOU STILL HAVE IN STOCK.  IF YOU DO THAT EVERY MONTH, YOU WILL SOON HAVE AN IMPORTANT INFORMATION ON HOW YOUR STORE DEVELOPS. IF YOUR INVENTORY IS TOO SMALL, THERE IS A PROBLEM WITH THE SUPPLY; IF YOUR INVENTORY IS TOO LARGE, THERE IS A PROBLEM WITH THE DEMAND.

BUSINESS MANAGEMENT GENERALLY COMPRISES FIVE ELEMENTS: PLANNING, ORGANISING, STAFFING, LEADING, AND CONTROLLING. SOME OF THOSE WON’T PLAY A BIG ROLE, OR EVEN NO ROLE, IN YOUR MICRO BUSINESS, IF YOU MANAGE IT , STAFFING AND LEADING ARE THEN MORE  OR LESS OBSOLETE. BUT AT LEAST THE REST OF THESE ELEMENTS MUST BE OBSERVED CONSEQUENTLY, IF YOU WANT TO BE SUCCESSFUL IN YOUR BUSINESS.

RECKLING ENTERPRISE IS CURRENTLY WORKING ON A BASIC COURSE IN BUSINESS MANAGEMENT, WHERE WE DEAL WITH ALL THOSE ELEMENTS. YOU CAN THEN HAVE A MORE THOROUGH IDEA OF WHAT IS IMPORTANT FOR YOUR BUSINESS SUCCESS.

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!