How to manage a business
What’s your biggest business obstacle? If you answered scaling your business, you’re not alone. We recently surveyed entrepreneurs and small business owners around the country, and we found that only 69.5% are confident in or certain of their growth and scaling tools. But these are tools any CEO needs – especially if you plan to sell your business for a high price.
The day-to-day concerns for how to run a small business may differ from large corporations, but you can always operate with a growth mindset. Whether or not you plan to grow your business to multiple locations or simply create a profitable small company you can eventually pass on to your children, success starts with learning how to manage a business.
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Hiring the right people
Before you can learn how to manage a small business effectively, you have to make sure the right people are in the correct position. As Tony Robbins says, if you continue to be involved in every decision, “You don’t have a business, you have a job.” To prevent yourself from making this mistake, you must build a team that works. Putting a good recruiting and hiring strategy in place is the best way to attract employers who are a good personality fit, are hungry for success and who will help you create a healthy and successful organizational culture.” Putting the right team in place lets you focus on the task that should be foremost on your list: managing a business.
How to manage a small business
It can be difficult to give up your day-to-day involvement in the company you love. But a truly successful business can operate when you’re not there. As a CEO, your job is to get your company to that point – and much of this rests in the hands of your managers.
Nobody likes a micromanager. Trusting your managers is an absolute must. But how do you manage a business without micromanaging?
Hire great leaders.
They’re confident, decisive and resourceful. More importantly, they’re aligned with your company’s purpose and vision and they inspire others to take action.
Create a system.
A certain amount of flexibility is essential to innovation. But everyone needs to be on the same page when it comes to time management. Use Tony’s Rapid Planning Method (RPM) to shift managers’ focus to what really matters. “Where focus goes, energy flows,” so make sure the focus is in the right place.
Hiring great leaders means nothing if they don’t have the resources they need to innovate. Professional development, the latest tools and proper training are crucial.
Managing a business: Leverage vs delegation
Here’s a fact you may find surprising: How to manage a business does not mean you need to delegate. Delegating can actually take more time – and time is money. You want to use the power of leverage. What’s the difference?
Delegating starts with the “what” and the “when” – you tell employees what you want them to do and when to do it by. Then, you review their work and provide feedback until they get it “right.” This means you’re still very much involved in day-to-day tasks, which is what you want to avoid when learning how to manage a small business.
When you use leverage, you start with the “why.” You help employees understand why the task is important and how it will help your company. Then, you let them be the expert – while checking in frequently for updates. Delegating is telling people what to do. Leveraging means inspiring them to do it themselves.
Creating a business plan
Not even the best teams can make your company successful if you don’t have a plan for them to get there. A large part of effectively managing a small business is creating a business plan – or even better, creating a business map – that gives your team the path you want them to follow and the “why” behind the goals you want to achieve. A business map makes you answer important questions about your business such as “What business am I really in?” and helps you discover ways to identify aspects of your customers’ lives and how you can provide them value. It also helps you connect your goals to your values, which increases emotion and creates customer loyalty.
Focusing on constant innovation
As Tony often says, where focus goes, energy flows. When you focus on strategic innovation while managing a small business, your products or services will never become outdated and you will protect your company from disruption. Schedule regular strategy sessions with your management team to discuss new technology, creating or changing buyer personas and other plans that will keep you on the cutting edge of your industry.
Embracing the role of the leader
If you’ve learned how to manage a business properly, you’re inspiring your employees to become leaders themselves. You’re living your purpose and bringing passion to the workplace every day. You are flexible, but decisive. You provide vision, but also stability. You are approachable and communicative.
Leadership is 80% psychology and 20% skills. When you change your mindset, you change your life – and your business. The professional is personal, and a business is only as strong as the psychology of its leader.
Ready to lead your business to success?
Sounds like a lot to think about, doesn’t it? You can learn everything you need to know about how to manage a business at Business Mastery. Break through your barriers, elevate your business to the highest levels of success and achieve the life you dream of.