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 manage 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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Managing a business: What you need to know
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. If you’ve put the right team in place, they’ll appreciate that you trust them enough not to micromanage and exceed your expectations.
1. 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.
2. Focusing on constant innovation
As Tony often says, where focus goes, energy flows. When you focus on strategic innovation while managing a 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. Encourage your team to innovate by listening to all of their ideas with respect and an open mind and soliciting feedback and input from all levels of your organization.
3. 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.
How to manage a new business
Many of the same principles of how to manage a business apply whether your company is eight months old or eight years old. There are some differences, especially when it comes to establishing a brand, honing in on your core values and developing the right organizational culture. These are important when it comes to how to manage a new business because putting all this in place right away enables you to hire the right team and create a solid marketing message you can use throughout the life of your business. If you don’t start with the basics, you’ll find yourself in a situation down the road that requires rebranding, massive layoffs or even closing the company.
Hiring the right people to manage your business
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?
Ways to manage a business
Every business is different, which is why it’s crucial to identify your company’s unique strengths. Not only will this help you stand out in a crowded world, but it will also help you choose which tips on how to manage a business to follow.
1. Hire great leaders
2. 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.
3. Provide support
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. While you don’t need to be available 24/7, being accessible to your team when they have questions or concerns is an important part of how to manage a business.
How to manage your business successfully
There are hundreds of tips on how to manage your business successfully and deciding which ones to implement is based on your unique situation. None of these tips will work, though, if you don’t follow this one guideline: keep your ego in check and listen to your team as well as others – such as mentors or business coaches – who you trust. Practicing humility and gratitude for what you’ve built and those you work with is the best way to ensure you build a business and a life you can be proud of.
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.