15 July 2020
The importance of business management
Save time: All companies must integrate their management and have their areas connected and synchronized to achieve this goal.
One of the fundamental aspects of companies is business management. Business management as a concept is the activity that seeks, through people, to improve the productivity and competitiveness of companies or businesses.
Some studies on the control of business management and its relationship with the effects of the economic crisis show alarming results. A large number of companies concentrate their efforts on their own productive and commercial activities, but pay very little attention to managing the results of that activity.
Management as an activity
The first thing to bear in mind is that management has to be a part of our activity and we have to devote as much time to it as to commercial strategy, production and innovation.
The financial and treasury management, the control of budgets and receipts and payments, are the daily routine of any company and have as much impact on business activity as manufacturing, customer service and sales volume. Moreover, management means the coordination of the company's staff, resources and capital. There is little point in having a certain competitive advantage if we then do not know how to apply it correctly in the organization. We have to take information from all the agents we interact with, customers, suppliers, competitors. Getting feedback from the market in which we move is vital to make decisions and prepare our company for the continuous changes that will happen.
Management in entrepreneurs
The lack of value that is given to this area can be attested by the failure numbers of entrepreneurs.
An entrepreneur invests a lot of time in the development of his idea, in the elaboration of his business plan, in the search for financing and even in the elaboration of a good marketing plan.
However, many companies, with excellent ideas and a good level of sales, cannot exceed the threshold of three years of activity and close.
Quite often, the explanation for this failure is the little attention given to management. It doesn't matter if the product is good and doesn't even have high sales. What matters is that there is good planning of profit margins and expenses of the activity, and also, nowadays, of receiving.
We may not have conjured up the financial burden of the activity and these sales may not be enough to compensate for it, sometimes the lack of planning may lead to a situation of more activity than expected and we are not prepared for it. Management helps us to predict all these kinds of situations, but we have to do it rigorously and give it the relevance it really has.
One of the fundamental aspects of companies is business management. Business management as a concept is the activity that seeks, through people, to improve the productivity and competitiveness of companies or businesses.
Some studies on the control of business management and its relationship with the effects of the economic crisis show alarming results. A large number of companies concentrate their efforts on their own productive and commercial activities, but pay very little attention to managing the results of that activity.
Management as an activity
The first thing to bear in mind is that management has to be a part of our activity and we have to devote as much time to it as to commercial strategy, production and innovation.
The financial and treasury management, the control of budgets and receipts and payments, are the daily routine of any company and have as much impact on business activity as manufacturing, customer service and sales volume. Moreover, management means the coordination of the company's staff, resources and capital. There is little point in having a certain competitive advantage if we then do not know how to apply it correctly in the organization. We have to take information from all the agents we interact with, customers, suppliers, competitors. Getting feedback from the market in which we move is vital to make decisions and prepare our company for the continuous changes that will happen.
Management in entrepreneurs
The lack of value that is given to this area can be attested by the failure numbers of entrepreneurs.
An entrepreneur invests a lot of time in the development of his idea, in the elaboration of his business plan, in the search for financing and even in the elaboration of a good marketing plan.
However, many companies, with excellent ideas and a good level of sales, cannot exceed the threshold of three years of activity and close.
Quite often, the explanation for this failure is the little attention given to management. It doesn't matter if the product is good and doesn't even have high sales. What matters is that there is good planning of profit margins and expenses of the activity, and also, nowadays, of receiving.
We may not have conjured up the financial burden of the activity and these sales may not be enough to compensate for it, sometimes the lack of planning may lead to a situation of more activity than expected and we are not prepared for it. Management helps us to predict all these kinds of situations, but we have to do it rigorously and give it the relevance it really has.
