There is statistical evidence that a very high percentage of many new businesses usually fail within the very first year of their establishment.
The reasons for this large-scale failure are always many and varied but most tend towards poor management.
Many new entrepreneurs always make the mistake of either neglecting these management functions or they do them in a shoddy way.
That mistake usually plays a very significant role in early business failure.
If properly and adequately done, these 5 simple management functions can go a long way to help the entrepreneur to avert early failure.
It is in the best interest of the new entrepreneur to: 01.
Ensure the new business has a clear vision.
It is very important to have on ground a very clear vision for a business before you start the business.
You need that vision to give the framework for you to create an organization with a clear philosophy which binds all the workers.
If you are unable to set up such a vision, your business idea may quickly flounder and die.
02.
Ensure the workers have proper job definitions.
Lack of proper job definition is always a recipe for confusion.
If jobs are well-defined, productivity is usually higher since friction is greatly reduced among the workers.
A new business owner must be able to define clearly what jobs she has in her business and what the duties of the workers are.
03.
Avoid majoring in minor things.
A new business owner must show clearly from the outset which duties are most important for the bottom-line of the business.
It is these duties which greater attention must be paid to particularly by the new business owner herself.
All other less important duties should be treated as such and with less attention.
04.
Avoid micro-managing any aspect of the business.
It is always a wrong business move for a business owner to want to do everything all by herself.
As an entrepreneur, your main duty is to develop strategies to manage and grow your business.
The technical and other procedural duties can be handled by well-selected and trained employees.
Management Experts believe micro-managing is bad for business and it should be avoided at all costs.
What is best for any business is to recruit good employees, train them to do their jobs as prescribed then give them adequate latitude/freedom to do the jobs.
05.
Ensure there are reliable systems and processes in place.
No business survives for very long without reliable systems and processes.
When these systems are good, the business usually runs effectively, efficiently and almost in automation.
Some systems like Input-supply systems, Processing systems, Accounting systems, Debt collection systems, Storage and handling systems etc, etc, should never be ignored.
I hardly know anybody who will go into business with the intention of failing.
Everyone goes into business to succeed in rendering a service and to make money as a result.
Everything a business owner does is always in the direction of success for her business.
For new entrepreneurs, the fear of failure is always present in most of their business activities.
In as much as they may want to avoid making mistakes, they also need to do things properly particularly at the level of management of their businesses.
If properly done, these simple management functions are capable of helping the entrepreneur to avert early business failure which is usually the lot of many new businesses.
This is because these functions are indispensable to any new business particularly at the very early stages.
You therefore need to imbibe them to help steer your new business through the most difficult and trying times of its establishment.