In the post Small Business Growth Simplified I introduced our small business growth model. Two factors (leadership or owner and management or company factors) impact a business’ ability to grow.
Under the company category the 4 areas are:
- Financial Assets
- Personnel Resources
- Business Assets
Why Business Management is a Critical Skill to Master
Look at these areas, then ask yourself, “How well have I master each of these key areas?” They are foundational for business growth, so you must master them.
Now, you don’t need an MBA or to manage a Fortune 500 company, but you do need to have some basic business management skills. If you don’t then how will you hire or outsource to other to manage your business for you?
Even if you hire or outsource the day-to-day management, then you better understand how these functions operate. If you don’t, how will you lead or hold managing accountable for doing what necessary for your business! Good examples here are hiring a part-time CFO to assist with your financial resources, and then getting a Professional Employee Organization (PEO) to administer your personnel resources.
Systems Make Managing Easier
A huge obstacle for many owners business management ability is creating systems to manage business resources. Systems are key to scalability, which is a key factor for investors and business buyers look for when purchasing a business. By developing business systems you can rapidly scale your business increase your company valuation.
Why? Because good business systems create predictable cash flow! Cash flow is the life blood of any small business and business management! But how do you fix your cash flow?
Management Simplified by Tuning Your Revenue Engine
A good place to start is by understanding the concept of the revenue engine. The revenue engine is a metaphor DE, Inc. created to simplify the business management for small business owners to learn how to create better cash flow. By tuning your revenue engine you can fix your cash flow problem, improving business performance and your growth potential. To better understand the concept read the article Cash Flow: An Entrepreneurs View or watch our the short video below:
Do you agree that improving business management so you can fix cash flow and will fix many problems for a small business? What are some things you’ve tried that have worked? What about things that you’ve tried that did not?
If you are ready for a fresh perspective that is operationally focused (marketing, sales, and production) take a closer look at our business management model. We would welcome an opportunity to discuss how it can help you in growing your small business.