Good Management Matters for Early-Stage Business Owners
Good management is like a compass. It helps you stay on track and reach your destination.
Good management is essential for business success, it helps businesses navigate challenges and helps bring business owners' visions to life. Without good management, businesses can - and more than likely will - lose direction. energy and profit.
In the early stages of a business, establishing good management practices is essential for success. This is the time when you're laying the foundation for your company's future. You're setting the culture, defining the processes and building your team. If you get this wrong, it will be very difficult to recover later on.
Here are just a few reasons why good management matters for early-stage business owners:
It helps you build a strong team. A good manager can attract and retain top talent. They can also help their team members develop their skills and reach their full potential.
It helps you set clear goals and objectives. A good manager knows what they want to achieve, and they can communicate this vision to their team. This helps everyone stay focused and aligned.
It helps you make sound decisions. A good manager has the ability to gather information, analyse data, and make informed decisions. They can also think strategically and plan for the future.
It helps you manage risk. A good manager knows how to identify and mitigate risks. They can also develop contingency plans in case things go wrong.
Research shows that good management can have a significant impact on the success of a business.
Gallup, a global analytics and advisory company, found that effective management positively affects employee productivity and job satisfaction. With employees achieving 21% higher profitability. (Gallup, 2019).
According to a study published in the Journal of Business Research, companies with strong management practices are more likely to generate and implement innovative ideas, leading to a competitive advantage and business success (Zhang et al., 2019).
A study published in the Journal of Applied Psychology found a strong positive association between effective management practices and financial performance. The study concluded that well-managed firms are more likely to achieve superior financial performance compared to poorly managed firms (Huselid, 1995).
Good management isn't easy, so how do you start to become a good manager?
Here are a few quick tips:
Set clear goals and expectations - Make sure everyone on your team knows what they're working towards and what's expected of them.
Delegate effectively - Don't try to do everything yourself. Empower your team members to take on responsibility and make decisions.
Communicate effectively - Keep your team informed of what's going on and get their feedback on important decisions.
Be a role model - Lead by example and demonstrate the behaviours you want to see in your team members.
Be flexible and adaptable - Things don't always go according to plan. Be prepared to change your course of action if necessary.
By following these tips and mastering the art of management, you can start to set up your early-stage business for the long run, and you should be well on your way to reaching your destination and achieving your business goals.
Cheers,
Nic Calvert
Citations
Gallup. (2019). Employee Engagement on the Rise in the U.S
Zhang, X., Qian, Y., & Gong, Y. (2019). When does strong leader support lead to more or less employee creativity? It depends on employee creative efficacy. Journal of Business Research, 94, 74-85. doi:10.1016/j.jbusres.2017.10.018
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635-672. doi:10.5465/256741