Business Management – Business management is needed for those who have a business. Most people really want to have a personal business. This is not surprising, considering that everyone’s interests are different. However, opening a business is not that easy. There must be careful planning to support the progress of the business.
To run a business requires planning. In the sense that management is needed so that the business runs smoothly and achieves the target. There are so many examples, those who open a business without a proper plan end up breaking down in the middle of the road. Most of the time the capital does not return, goods accumulate, and what’s worse, you can get into debt too.
Usually this happens due to lack of anticipation of the loss factor. The factor of lonely consumers is also often ignored, so these new business actors are more focused on profits.
Even though for the initial capital, there must be several pockets. In the sense that there must be capital for spending on goods, capital to cover profits that have not been maximized, and others. The planning needed is in the form of business management. A plan that is carried out by optimizing all resources in order to achieve appropriate business targets.
To make a business plan is also not as difficult as imagined. Not even until you have to go to school again to get the knowledge.
Learning business planning can be started with easy exercises. For example estimating capital requirements, expenses and income from selling small items such as yellow rice. Henceforth, let’s learn about the notion of business management.
A. Definition of Business Management
In general, business management means planning, execution and monitoring activities in a business or business. All of these activities aim to make the business achieve its target.
Another understanding of this activity can also be a business that is deliberately carried out based on a plan in order to achieve a sales target.
This means that without management activity, it is very unlikely that sales profits will be obtained. Management applied to a business includes everything needed to achieve sales targets.
Starting from planning, controlling, action , and finally evaluation. Based on the four management activities, the progress of a business can be controlled, whether you want to move slowly or fast.
Referring to the above understanding, it can be ascertained that business management is the most important element that determines the development of a business. Naturally a good business is determined by good management as well.
Meanwhile, bad business is generally run based on poor management. Usually the running of the business also does not receive thorough supervision.
A business that consists of various important components must have a good management. This is because if one component fails it will interfere with other components because they are mutually supportive and complementary. Learn more through the book Introduction to Business Management .
Based on these facts, of course, the business that is currently owned can be reviewed. If an inappropriate plan is found, it can be re-made based on an even better plan. Because if you force it to work, what you will get is only losses and losses.
Read more: Definition of Management
B. Business Management Functions
After previously discussing the meaning of business management, what follows is an explanation of the functions of management that are applied to businesses. You will understand how important it is to study management after getting to know its functions.
Through the process of planning, organizing, directing and controlling the existing business in a company, the goals to be achieved are also affected. Sinaumed’s can find a deeper discussion of this in the Business Management book below.
This will be the basis for understanding the importance of having business management for those of you who will or already have a business. The following are some of the functions of business management that you should know:
The first function of business management is planning. Before building a business, of course, business planning is needed such as marketing, product promotion, products sold, financial accounting and archival documentation, and others. This planning must be well documented because it will become a benchmark for future business activities.
A common mistake that business owners usually make is not having a record-keeping process. Even though the correct recording or bookkeeping process can make it easier for you to control existing financial data. help you also make a business plan according to existing capital.
The main reason business people don’t keep records is because they don’t understand accounting. In addition, they also consider bookkeeping to be a hassle and take a lot of time. Even though it is completely untrue, bookkeeping is an important element in running a business.
Organizing is closely related to human resources, aka workers. After planning is made, the next step is to create a working group. This work group contains people who are given the same portion of tasks. Such as administration, marketing, field, and others.
The division of work groups like this to facilitate the work process. The process of assessing work results is also easy. Leaders will easily assess whether their workers have worked according to their expertise or not. Good
organizing will support the achievement of business goals. If the team cannot work properly, the leadership can replace it immediately so that the business does not suffer losses.
Staffing includes all company-owned resources such as machines, raw materials, supporting facilities, and others. Resources must be regulated in their use and adapted to business needs. This can only be done if the company uses good management. If there is no management, the use of resources can exceed priorities and cause capital to swell.
Things like this often result in financial losses for companies. Finally, the existing business was threatened with bankruptcy.
The fourth function of management is directing which is closely related to direction. Here the actions of the leader hold an important position as an encouragement for the team to work according to plan.
It is not uncommon for workers’ morale to drop during the course of planning. If this happens, the leadership must immediately come down to provide understanding and direction. Because inappropriate work performance and progress greatly affect the company’s income.
Directing is very important because it is closely related to adherence to planning. Work that is in accordance with the planning directions will make the business reach the target. But keep in mind to avoid reprimands that can make workers lose their will to work.
Controlling is monitoring whether the work system has been implemented properly or not. With controlling will be visible important points that must be evaluated and recorded. At the same time, you can see the existing obstacles.
Controlling does not have to be done directly by the leader, but can also be done by the team leader. Later the leader will ask for a report directly from the team leader. Based on the report, the leadership can take the steps taken for the next planning.
C. Business Management Planning
Planning is needed to make your business run smoothly and achieve the set targets. Without planning, your business will run without proper control. Existing capital can be used up just like that without proper planning. There is even the possibility of running out of capital to bankruptcy.
This is because in managing a business operation, it is believed that there will always be problems related to decision making both strategic and operational. Various examples can be found in the book Financial Management and Business .
The planning that should be applied to your business is also not complicated. There are several plans that can be used when starting a business, such as:
- Determine the goals and targets to be achieved by the company.
- Arrange the steps according to the target in order to achieve the goal.
- Determine the human resources and other resources needed.
- Set work standards to achieve target goals.
D. Important Elements in Business Management Planning
In order for the planning to be carried out properly, specifications for the complementary elements of the plan are needed. Here are some important elements that must be considered in a business management plan.
1. Clear Business Description
A business must have a clear description so that consumers understand the type of business you are. Your business must be clear in what field. Whether culinary, fashion, services, wholesale needs, or something else.
If your business type is not clear, consumers will be confused when looking for the product they need. They do not know the product specifications produced by your company.
Business description is very closely related to the company’s brand. You can start by paying attention to the name used for your business. A company name should be easy to remember and represent the type of business and related products being sold.
Then the company logo which is usually installed together with the company name. Logos also usually use images that are simple and easy to remember. The color on the logo is also generally the typical color of the company. It may seem insignificant, but in fact, the company’s name, logo and color are the first things consumers remember when shopping.
A business also needs a business address so that consumers are not confused. An address is also needed for the requirements to set up a business. In the future, the address will be used as a place to send and pick up goods. Consumers will also give a positive value because the company exists physically.
Then also product specifications must be clear. Indeed, there are many companies that produce several products, but usually they remain the same. For example, businesses engaged in accessories.
In addition to various types of handicrafts, there are also accessories in the form of bracelets, necklaces and rings. There are also types of silver accessories in the form of women’s jewelry. Isn’t it clear that there are many but similar products?
A clear business description will make it easier for you to market your product. Because consumers also know the type of your business as well as the types of products produced.
2. Perform Competitor Analysis
Knowing competitor products will make it easier for you to determine the type of product to be marketed. It could be that the product issued is of the same type, but must have better quality.
If a competitor’s product is better than your company’s product, it means that there must be an increase in quality in order to be able to compete.
There is nothing wrong with learning the marketing techniques launched by competitors. You can innovate yourself in terms of marketing so that consumers want to buy the products issued.
You can also study how competitors coordinate their workers. Maybe your competitors are implementing a discipline that can be applied in the company. In other words, having competitors means an opportunity for your business to be even better.
3. Have a Marketing Strategy
A business will be blunt if it doesn’t have a mature marketing plan. The initial step of marketing can be done by analyzing the product that consumers need. Then the marketing strategy can be launched through the right promotion.
This promotion is in the form of an introduction to the business brand as well as the products issued. Various promotions can be carried out, ranging from discount promos, to selling products with prizes.
This promotion also usually uses the media, meaning you have to start learning about digital marketing as well. Digital marketing is a marketing technique that uses internet-based media.
The marketing strategy in business management must be made effective and on target. Where this has an effect on creating customer value and building profitable customer relationships, as discussed in the Marketing Business Management book .
4. Financial Reports
The thing that is often overlooked by a business is financial records. Though bookkeeping is important to run a business. Good bookkeeping will later become a reference for company activities.
For example, how many stocks are there, how many stocks are issued. Likewise, recording of the delivery of goods is very important.
Besides that, bookkeeping is also needed to record the stock of existing resources. production of finished goods is more orderly and controlled when referring to existing records.
So as to avoid using excessive raw materials. It can also be anticipated if raw materials start to run low, and production can continue without a hitch.
Financial reports start from the company’s financial records. How much initial capital, and how much expenses are needed. Good financial records can prevent companies from going bankrupt.
From the financial reports it can be seen the benefits generated. Has the capital been used properly, have the sales proceeds covered the initial capital back, and is there a lack of capital?
Financial reports will facilitate control of the company’s financial activities. So that if production is known to exceed the initial capital it can be stopped first. Neat financial records are expected to prevent companies from going bankrupt.
5. Maintain Product and Service Quality
One thing that must always be maintained and improved is the quality of products and services. These two elements are closely related to marketing. If the quality of goods deteriorates, consumers will be disappointed and sales will decline.
Likewise with services, services that are fast in response and friendly will make consumers comfortable when shopping.
E. Components of Business Management
As for what is meant by the business management component is the parts whose activities must be based on a management system. Each component has a different function. The following are the components in question.
1. Financial Management
Financial management is management that regulates the company’s finances. By using this component, it is hoped that the company’s finances can be stable and used for the right purpose.
2. Marketing Management
This component is in the form of planning and monitoring activities on marketing activities. The purpose of marketing management is control over product marketing.
With so much business competition today, many companies are trying to find new marketing plans. As one of them is business management which has an environmentally friendly concept that Sinaumed’s can learn from the book Green Business Business Management with an Environmentally Friendly Concept .
3. Production Management
Production management regulates the production process of goods in the company. Of course, this also includes control over the feasibility and function of production machines. Supervision of production operators, and the process of making products to completion.
4. Distribution Management
This business management component is in charge of overseeing the distribution activities. This management activity is intended to ensure the condition of the product is good and distributed quickly.
5. HR Management
This management regulates all the activities of workers in the company. This includes regulating the portion of responsibilities, fields of work, as well as employee discipline. To carry out all the points above is not easy. The sustainability of a business besides depending on management is also influenced by commitment.
How each element in management synergizes with each other to carry out the plan. Especially the cooperation between leaders and workers.
Business planning in the form of management, finance, development, to marketing must be planned as well as possible. Because good planning in a business is the main thing supporting success.
Good business management will be able to bring the company in a better direction. Business planning can be described as functioning well if it can still run with all the obstacles that exist. Strategies in business must also be made with the aim of increasing the company’s competitiveness. Of course, with the aim that the company can survive in the midst of intense competition.
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