A successful small business that is thriving and providing, has key characteristics. One of these characteristics is good management. Good management is not just about how to manage the business, but it is just as much about how you manage people. It is the people, afterall, who build successful businesses full of passion and provision.
When we look closely at what makes up good management, there are 5 fundamental elements that translate into a more effective business:
- Good Communication-
Just as in daily life, good communication is powerful and affects every aspect of your business. When a manager can clearly communicate with employees and the employees can clearly communicate to management, the business runs smoother and more effectively. This is a crucial piece to answering questions on how to manage a business. When there is good communication within a business, your time, resources and talents will be used more effectively.
- Goal Setting-
All businesses have goals, but successful business set intentional goals, track and monitor the status of reaching those goals, and go back to reevaluate the process. When managing a business, setting goals ahead of time, communicating clearly the goals and the strategy for getting your team there, and monitoring your goals along the way will create a more successful business because you had a plan!
- Accountability-
When employees know what is expected of them and know who they are accountable to, the dynamics in your company will change. To take this a step further, cultivating a level of taking ownership of responsibilities, areas of the business, and even the reputation of the business can be a powerful tool to manage your business. When employees are not just told to take responsibility and are held accountable, but then take on the responsibility and take ownership of areas they feel accountable for, this can increase your business’ success.
- Trust-
The ability to build trust in a company is crucial to running a successful small business. In his book, The Speed of Trust, Stephen M.R. Covey states:
“When trust goes down, speed will go down and costs will go up.”
(Source: Power Book Summary).
The good news is that the opposite is also true. When trust is built up, speed increases and costs go down. Trust can be built and it is both the ability to trust in people as well as the organization. The key components of how to manage a business with trust are competence and character. These are two things that you can improve within your company and will allow you to manage more effectively.
- Public Recognition-
*Warning Note: It can be dangerous to put public recognition in place before you have established the first 4 elements. It can actually backfire and create a culture that is not genuine or trustworthy. When you receive recognition from someone you do not trust or has poor communication skills, there is an increased likelihood that it could come across as manipulative. If an employee receives recognition for an achievement, but there were no clear goals or accountability in place, the recognition could come across as hollow and insincere.
To the extent that your management team is competent and skilled in their roles, this is the extent to which your employees can work and thrive in a successful small business. When these 5 elements are present in your business and are part of how you manage your business, you will be on your way to creating a company, with what we call passion and provision, and increasing your sustainability as a company.
Half a Bubble Out is a small business marketing and consulting company that can help you learn how to manage with these 5 elements so your business is successful and sustainable.
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