Starting a small business is a daunting task and one that comes with significant risk. According to Inc.com, only one in 10 business startups that receive funding will actually succeed. The businesses that see the most success tend to share similarities, and if you are looking to take your own business to the next level, these seven management strategies may help you emulate them.
Set Goals for your staff
A ship without a rudder is doomed to wander aimlessly. Your staff needs direction in order to be efficient. While you may spend most of your time considering your own goals and those for your business as a whole, you should also set clear goals for your team so they have something to strive for. This will improve their motivation, as they will be driven by the hope for recognition and rewards when they hit the realistic goals you give them.
Get and use your talent effectively
In order for your small business to succeed, you need to define the exact skills that are necessary in each aspect of the company before seeking talent that is able to fill in the gaps. You may also find that your current team members are being underutilized if they are in positions that do not take full advantage of their skills and experience. Whenever you are onboarding new talent, make sure their role in the company will align with your business’s most important needs.
Don't treat change as a dirty word
Technology is evolving constantly, and the most successful businesses in this digital era are the ones that stay ahead of the curve. Most of the businesses that allow their competitors to gain a technological advantage fall into obscurity. In order to remain competitive, you need to be willing to change how you do things, which may include adapting to strategies your competitors are using and taking full advantage of new technologies.
Challenge yourself and your team
According to the Harvard Business Review, successful managers do not settle for business as usual. They are constantly looking for ways to perform better, which includes self-evaluation, and encouraging team members to take more initiative. If you are not challenging your business, you and your team will become complacent, and a competitor may outperform you and reduce your market share.
Always be teaching and learning
This sentiment goes hand-in-hand with challenging yourself, because if you are not a student of management and the industry your business serves, you are doing something wrong. Successful business managers attend seminars and enroll in classes that can help them improve their skills, but many of them still have a long way to go.
Anticipate problems and plan ahead
Effective leadership requires forward thinking. If you study the market, are aware of the weaknesses present in your organization, and have a thumb on the pulse of your competitors, you can predict problems before you have to face them. You should stay updated on market trends and demand, which will help you better determine when it may be time to expand, and you should also listen to concerns that your team has brought up. Paying close attention to trends, feedback and concerns will all allow you to formulate a strategy ahead of time rather than having to play catch up.
Reward initiative and success
In the same survey cited above, the senior leaders reported that many of their managers and team members were less likely to report mistakes when they received punishment instead of additional training. If you notice that a team member is struggling, but is still making a concerted effort, reward their initiative and help the employee learn how to perform better in his or her position. Provide additional incentives for a job well done.
Running a business is an accomplishment
If you are running a small business and have managed to make it this far, you should take a moment to congratulate yourself. While every business has room for improvement, the vast majority of small businesses never get off the ground in the first place. Feel proud of where you are, and remember, don’t be afraid of change.
Continually work to recognize the areas of weakness within your organization so that you can decide whether it would be more beneficial to provide educational opportunities for your team or to bring in new, qualified team members with the skills you need. As long as you are always striving to remain ahead of the curve and don’t get complacent, you can always make the improvements you need to continue your success.
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BBB of Southern Piedmont and Western N.C. contributed this article.