5 Signs You’re Managing Your Small Business The Right Way
WORDS: Peter Minkoff PHOTOGRAPHY Supplied
Here’s some defeating news: according to reports, while four out of five small businesses push through the first year, only one in three small businesses reach their ten-year anniversary. Obviously, starting and running a small business is interesting and fulfilling, it’s also very challenging for managers. Some owners and managers are satisfied if they achieve a good level of stability, but those who have big dreams and want to expand their business can expect a lot of issues along the way.
Growing a small business requires patience, determination and good management that will point the team in the right direction and ensure all tasks are executed perfectly. So how do you know you have what it takes to be a good manager? Are you doing a good job and pushing your company towards growth?
You’re meeting your goals
The best sign that you’re a good business manager is that you’re meeting your goals regularly. Grab your original business plan and examine your set business goals. Where are you on your way to meeting them? To securely measure your company’s performance, you might want to conduct a financial analysis that includes looking over your income statements, balance sheet and cash flow. These statements will show you how profitable your business is and if all your financial goals are met.
You have consistently high demand
Hopefully, your small business had a time when it was impossible to keep up with the demand. New buyers were popping up, asking about new products and new locations. You had a long waitlist for your products and needed a bigger stock room. All of these indicate that your business was doing great at that time. But what about today? To prove that you’re a great manager, your demand needs to be consistent for at least a year, with repeat customers willing to stay loyal to your business. Your employee loyalty should also be high thanks to your stress-management tactics and focus on wellness. Look into your sales numbers and analytics, and if you find proof of consistent demand, you’re doing a good job and might even want to consider expansion.
You have a good team
Managers, even in a small environment, need to run around trying to keep the business going by pointing their workers in the right direction. Not everyone can manage people, so if you have a team that can handle no matter what comes their way, it means you’re doing a good job for now. If you’re considering expansion, however, expect much more pressure on you and your teams. You might trust your team to take care of issues, but with more workers, especially contingency workers who are becoming very popular in big business markets like Australia, managing might become too hard to handle. Luckily, you can always make the right decision by hiring a company that offers contractor workforce solutions in Australia to manage contingent worker quality, efficiency and risk. A helping hand will also keep your costs down, allowing you to focus your budget towards growing your business even more.
You don’t have to be present all the time
Managers have many daily duties, especially those who are planning an expansion. But if you notice that your company can run smoothly and stay socially conscious without your constant attention, you’re doing a very good job being a manager. By implementing and developing new systems of handling operations, as well as systemizing and streamlining your processes, your company can successfully run itself while you network and create new business goals.
The business has been strong for years
Trends come and go, so certain businesses might be very profitable at one point, and struggle once the hype dies down. A good manager achieves strong demand for years and runs a business with a long history of success. It’s important to understand that businesses go through rough periods and experience unforeseen costs, but with years of steady profitability, you can pat yourself on the back and consider growing the business.
Good managers are the key to a successful small business, so do your best to show off your managing skills, and you’ll have a loyal team of expert workers pushing your business to success.