Approximately 60% of startups fail, according to Forbes. The causes that can condemn a company to failure are many, from an economic crisis and drastic changes in the market to unpaid bills. Although you can not control all the factors, knowing how to run a business will minimize the chances of your business being shipwrecked since the success of a project depends to a large extent on your ability to project into the future and the way you deal with the problems.
How to run and manage a company
Make a business plan.
Many good ideas have failed because they have not found a niche in the market. Designing a business plan before starting your project is the best way to avoid an economic disaster. The business plan will not only become the letter of presentation of your project to find potential investors, but also allow you to assess the viability of your idea, outline your buyer persona and conduct a market study that reveals unattended niches or you help you get an idea about the costs and benefits you will have when you start the activity.
Clarify and transmit your business objectives.
Running a business without having clear objectives is like stealing a boat without knowing in which port to land. Knowing the direction in which your business will move is essential to design your action plan and take advantage of good opportunities when they arise. It is also vital that you be able to transmit that vision to your team and get their enthusiasm and motivation, so that the entire organization looks in the same direction.
Intelligently manage your time and learn to delegate.
Managing a company is not a race of speed but of resistance, so you will need to concentrate on the activities that really add value to your business. You can not take care of each and every one of the details. If you want to grow your business, you will have to surround yourself with a good team and delegate. This means that you must also learn to lead work groups, so that you bring out the best in everyone, create a good work environment and maintain an efficient work flow.
Establish an effective communication channel.
Maintaining a channel of fluid communication with employees is essential for the efficiency of a company, especially as it grows. As a leader, you must be aware of all the areas of your business and keep an open channel so that everyone can raise their concerns and ideas. A constant flow of information will facilitate collaboration between different areas of the company, improve the organizational environment and promote mutual growth. You can rely on platforms such as SharePoint, which facilitate work communication and project management.
Design a structure according to the size of your company.
At the beginning, when the company is still small, it usually has a horizontal structure and tasks are divided among the partners but as the business grows you will have to define different areas with relatively independent functions. Designing the structure appropriate to the size and activity of the company provides organization, avoids the overlapping of functions and optimizes human resources.
Keep finances under control
To manage a company and achieve success is essential to start with good financial planning, which involves careful management of cash and an intelligent use of financing. Remember that the cash flow and management differs in a business that recovers money continuously from another where you work based on the sending of invoices. Therefore, review the balance of costs and benefits of your company and make sure you have sufficient liquidity. This way you can guarantee both the survival and the growth of your project.
Recruit and retain talent.
Human resources are the heart of the company, so you should not only make sure to recruit people who can add value to your organization but you should also implement strategies to retain that talent. Directing a company does not consist in adding employees but in incorporating valuable people who can provide a unique vision and have the potential to become leaders in their sector. In this regard, the businessman Russell Simmons said: “I have been fortunate, I have found people smarter than me, and they have helped me to execute my vision”.