The statistics on the number of new businesses that fail within three years of starting out make frightening reading. In some cases, such enterprises fail to ensure because the products or services they supplied were at fault and sometimes it is the result of changes in the marketplace that could not have easily been foreseen.
However, there are some businesses that fail simply because those in charge made poor decisions. Learning the best way to run a business is something most entrepreneurs have to pick up as they go along, but if you want to do the best possible job of managing your enterprise, here are a few things to bear in mind.
Monitor and Measure
If you suspect you are allergic to a particular food, the quickest way to identify the problem is to meticulously record everything you eat and the effect it has on you. A similar approach is also the best way to assess your management skills. It is only if you monitor your progress and the results of your decision on a regular basis that you can have a starting point for determining your strengths and weaknesses.
Carry out a mini-appraisal of yourself on a monthly basis, looking at all aspects of your performance and that of the company, and use this as a learning tool to improve both your own skills and the future prospects of your business.
If your competitors are willing to invest in better, more efficient systems, then they will gain an edge. Be sure to keep up with developments relevant to your field and investigate whether there are new technologies or procedures on the market that may be of assistance. You should also ensure you are using all of your current technology and platforms in the most efficient way possible.
SAP already allows you to manage every aspect of your business but integrating all the systems can sometimes result in data duplication which in turn can lead to stumbles in productivity and workflow operations. Such issues can easily be resolved through the use of an SAP-certified third-party platform, such as Omnia from Weaveability, which enables you to display real time master data to customers on an external portal.
You may be happy with your management of your company, but are you certain that the companies that form your supply chain are being equally well run? Without creating any antagonism, you should also let your suppliers and vendors know that their contracts are subject to review and that they need to remain at the top of their game if they do not want to be replaced by competing firms. Although this sort of hard-nosed management style may not ideally suit you, it’s important to possess the ability to make sound business decisions based on what is best for the company and your employees.
Solid business relationships are important and the more contact and communication you can have with the members of your supply chain the better, but never allow such relationships to become a weakness in the way you manage your enterprise.