Business Management Strategies That Lead to Growth
Are you planning to start a virtual business? Do you own a growing startup company? Whatever type of entrepreneur you are, you have to make sure that your management strategies lead to the growth of your business.
How Management Influences a Business
Business management is responsible for the daily operations of a company. Growth-focused managerial strategies help keep a company on the right track – especially through periods of plateau and challenging times. Not having a clearly defined plan on how to run a company can lead to its eventual demise no matter how big of a potential it had.
Have a look at the following figures from Gallup.com that illustrate the influence of management in business growth:
- 70% of employee engagement scores can be traced back to managers
- 70% of US employees do not feel committed to their job due to poor management
- Only 1 out of 10 people have managerial talent. When put to supervisory roles, these leaders can contribute up to 48% increased business profits compared to average managers.
Fortunately, growth-focused business supervision is a skill that can be learned. Here are some business management tips and strategies that lead to growth:
- Operate from a clear perspective.
With business spanning many different channels, it is more important than ever to have brand cohesion. This can be achieved when the leaders of the company clearly understands its vision, mission, and culture.
These questions can help managers find clarity in what they do:
- Why does our company exist?
- What type of people do we aim to help?
- What do we offer?
- What are our short-term and long-term goals?
- How do we achieve these goals?
- What teams must do what tasks?
When you have clear answers to these questions, then you are poised to operate with a distinct purpose and using targeted actions. This sense of clarity also influences employees. From behaving according to company culture to strategically working towards goals, people performance improves when there’s a clear sense of direction.
- Plan your way to success.
According to business consultant Bob Wilson, a business owner needs “a destination and a plan to get there.” Whether you make money from home or operate a growing establishment, you need a business plan for sustainability and eventual expansion.
Research, edit, and continuously assess your plan to turn your business idea into a real money-spinner. Write business designs more strategically with the help of these tools:
- SCORE Business Plan Templates – a set of business templates to help startups and established companies streamline sales, marketing, and funding.
- StratPad – cloud-based planning software helping users how to start a small business or run one through a step-by-step approach.
- LivePlan – online tool that simplifies business planning and offers performance tracking, budgeting, and forecasting help.
- Enloop – business planning service where users can fill out details and generate plan through Enloop algorithms.
- 20Four7VA’s How to Write a Business Plan – a tutorial that discusses vital points to include when drawing up a business design.
- Know your funding options.
Sometimes business owners have the right plans but the wrong funding decision. Lending companies provide small loans but require big interests. Banks impose a long list of requirements and short repayment periods.
To be strategic in running a company, you must know different financing options and determine which one is best suited for you. These are just a few examples of the funding sources available to you:
- WIP or Work in Progress Funding – fast application with high approval rates. WIP funding requires firm guarantees for taking higher risks.
- Merchant Cash Advance – finances inventory production. MCAs are known for quick approvals but high payment terms.
- Equity Finance – business funding is provided in exchange for company shares.
- Embrace virtual outsourcing and all its benefits.
The exponential growth of outsourcing is evidence of its efficiency. It is more cost-effective than hiring in-house employees and more sustainable than working with freelancers. As far as labor regulations are concerned, working with a virtual assistant relieves companies of legal strains.
From the business management standpoint, hiring a virtual assistant will give you more time to focus on executive duties. It also means having specialized tasks done by the right people. Reap the many benefits of outsourcing by building your virtual staff through a credible staffing company.
- Avoid micromanaging.
It’s one thing to stay on top of things; it’s another to engage in all the goings on in your operations. Your employees are hired for their talent, knowledge, and experience. Give them the freedom and time to work on achieving the goals you set for them.
To avoid micromanaging, it’s important to have a solid onboarding process. Discuss company regulations and job responsibilities. Enforce the importance of communication and collaboration across different teams. When working on projects, clearly define deadlines, instructions, and objectives before letting your staff delve into their tasks. Set a specific time or manner to be updated on the progress so that everyone can get ready to report.
- Make leaders out of your team.
An effective manager makes leaders out of their staff. Give them the freedom to operate on their own while granting them more responsibilities. This kind of managerial tactic inspires engagement among employees, regardless of the corporate hierarchy.
It is an advantage to recognize and develop leadership skills among your current employees early on. Cultivating leadership among your associates also means giving them accountability in representing your brand. As brand ambassadors, they are the forefront of your operations – telling people directly and indirectly about your company values, product quality, and customer relations.
- Hold effective team meetings.
A lot of arguments have sprung up regarding the counterproductivity of team meetings. Some people attest that team discussions eat up more hours than they’re worth. Others stand by its practice – even suggesting the increase of its frequency for better performance.
What you must focus on, however, is neither the relevance or frequency of team meetings but the efficiency of one. Here are some pointers to help you there:
- Separate meetings for strategic planning and employee concerns.
- When working on campaigns, hold team meetings after members have assessed their progress against campaign objectives.
- Consider meeting with team leaders only to discuss industry points, employee performance, and long-term company goals.
Knowing Your Management Style
While there are different strategies that you can follow to foster growth in business, there is no single management style to guarantee it. Different teams need different levels of supervision, and it is up to you to find, adapt, and develop an approach that works best for your company.
When learning and developing your management style, make sure to take these considerations into account:
- The type and structure of your business
- Your personality, including both your strengths and weaknesses
- Your inherent leadership qualities
- The company culture
- The volume of work against deadlines
- The personality of your associates
To help you gauge which approach is most suitable for your situation, have a look at these business management styles:
The Democratic Approach – this type of management involves members in critical decision-making. Having a democratic atmosphere in your company gives people the freedom to pace their work within company terms. It also highlights employee trust and respect in their input in that you just arbitrate and not dictate how things are done.
The Transformational Method – transformational management works best with startups. When you are just starting an online business, rapid and several changes are expected to come your way. It is best to meet them with a transformational mindset. Leaders who are not afraid to transform adapt innovations and draw futuristic plans and goals. Just remember that some employees feel pressured when too much is happening too fast and may jump ship as a result.
The Collaborative Approach – with collaborative management, you encourage employees to share their ideas and opinions on different issues and problems while retaining the final say. This is the managerial approach often encouraged in creative industries such as advertising. Collaborative management cultivates deep commitment among employees. However, it requires intensive selection skills and the ability to communicate and stand by your choice while maintaining cooperation.
The Authoritative Style – the most traditional approach, authoritative direction highlights your role as the boss. It is often results-oriented and leaves little room for employee initiative and feedback. Authoritative management is often seen among small businesses. While this type of supervision keeps a company grounded, managers should learn to ease up and delegate some responsibilities as the business expands.
Because businesses go through different phases, the styles and strategies you use must not be set in stone. Be flexible but firm and resilient but forward-thinking. Learn to recognize which strategies will be most useful in your current situation and what management style resonates best with your personality and team.
Your business management approach and strategies will inspire e-commerce support, encourage employee engagement, and lead to the eventual expansion of your business. Use these takeaways to strategize your management, make better decisions, and increase the overall performance of your team.