The importance of good business management

[jrineakter]

Running a business is a bit like conducting an orchestra. Many people think it’s about composing a good score and putting it in the hands of the right musicians, but it’s more about getting to know those musicians in depth, giving them every possible means to give their best, and creating internal cohesion between them through their workflows. Sound familiar? Yes, it’s business management, pure and simple.

Because, at the end of the day, running a company is not just about having a good idea, but about building an entire infrastructure (human, technological, administrative) around that idea and optimizing its internal functioning.

That is, in fact, the big problem with many of today's start-ups that don't survive beyond three years: they start with a fabulous idea and get immediate positive results, but they pay so little attention to business management that they end up doomed to failure. If you don't want the same thing to happen to your company, read this article that delves into the importance of good business management.

Business management today
But let's start at the beginning and ask: what is the general state of business management in Spain today? A quick scan of the Internet is enough to find significant data on this subject... Data that, for example, indicates that only a third of companies in our country have an adequate level of business management.

Mainly, because most of our companies canada number data consider that they do not need dedicated tools in this regard. This leads directly to a potentially critical situation in which most Spanish SMEs are currently in a vulnerable state due to a lack of sufficient information and methods to carry out optimal business management.

How can we avoid this potential danger? By understanding that, after all, business management is just another activity that requires attention within our workflows. Period.

Management as another activity
Let us consider, for a start, that business management is the activity that organizes the members of a team in the search for an overall improvement in the productivity and competitiveness of a business. This implies that, in order to succeed in the correct growth of a company, one must dedicate as much or more time to business management than to other well-known areas such as sales strategy, production or R&D.

Therefore, never neglect important business management tasks such as financial management, budget control, organisation of collections and payments, coordination of staff and resources or treasury management. When defining workflows, these business management tasks should be given as much time and resources as production tasks, for example.

Why is good business management important?
Let's use logic to demonstrate why good business management is important. If you think about it, the growth of any infrastructure means that that infrastructure will become more complex. In turn, an increase in complexity usually equates to a greater and inevitable number of errors.

Good business management, usually supported by tools that allow the automation of tasks (along the lines of what business management software like Holded makes possible ), will help to solve these errors. And, again using logic, fewer errors equal lower risk in operations as well as greater customer satisfaction.