It is very common to entrepreneurs of small businesses start the company giving priority to facilities, manufacturing process if one industry and sell action. This is quite right, but the management organisation, allowing a good management cannot be left for later. Must be mounted right at the beginning of the business, or the company may have problems of viability for lack of competent management. Here are some tips for an easy structuring process of the company's management, as the basis for good management and decision-making. Consider that in a company, the management process should use two forces, what I call "push" and "pull". Or, is the adoption of an important aspect of management, force the development easy to other parts of the process. And the result is that, without too much complication, the Manager will have business domain, to secure decisions, which is what matters in the end. So, to start a process of competent management, take care to have in the company, since the beginning, the four management indicators below, which will pull the other components of the management organisation:
Any associate who in one way or another are connected to the management, should care about the liquidity of the company. To require to meet the cash flow including payment and revenue projections, will be LEADING the company to have excellent control of receipts, including predictions (accounts receivable) and control of payments, including his predictions (accounts payable), as well as the control of balances of provisions, which help in the preservation of capital.
Any associate who in one way or another are connected to the management, should care for the assessment of results of the company. If you generated a profit or not. But properly discharged. To require to meet the monthly result, properly calculated, will be LEADING the company to control in detail, demonstrable form, spending, in the form of expenses and costs, and revenue, in the form of established rights.
Allocation of profit (economic):
Any associate who in one way or another are connected to the management, should care about the destination given on a monthly basis to the profit. The important point is that, to explain where is the profit generated on a monthly basis, the operation must be able to handle economic and financial relations with suppliers, take account of economic and financial relations with customers, give an account of the resources available and applied in banks or other assets and realize investments or expenditure on acquisitions.
Any associate who in one way or another are connected to the management, should care about the possibilities of profit growth and the possibility of recovery of the company in the market. With the adequacy of the management, the goals of profit and the value of the company will be focus of relations between the partners. The main way to achieve these goals is through the process of selling products and services. The important thing here is that at this stage, with the management, evolve the sales process, innovate and renew, create new strategies and partnerships, will be the order of the day.
This push-pull system take the company to the professionalism of its operations. Everything will be under control and subordinate to strategy. Because what matters will be guaranteed: what: sell, deliver, receive, pay, profit. Do this all the time in growing volume, without incurring risk of financial or legal disaster.
Antonio Carlos de Matos
Consultant on business management and Management Training
Director of operations IBELG
Executive Director MR Results corporate management