There are many ways to approach business management and different management models that can be used. The key areas of business management usually stay the same, with some small differences here and there. All business managers, regardless of their industry, need to strategize and create mission statements that best explain the business’ purpose and goals. Marketing and research are other areas that affect every organization’s growth, and a business manager is responsible for overseeing them. When a good business manager takes the reins of a company, they add value, boost growth, and raise the morale of those working with them.
Having a business strategy is crucial to running a successful organization as the strategy is what all stakeholders are working towards. If there is no vision of what the business does, or a solid idea of how to get business done, the organization will flounder and eventually fail. All business managers should be involved in creating a vision and mission statement that tells their employees and customers what the company stands for, why they chose this mission and how they plan on fulfilling their goals.
Strategies also involve analyzing the market and determining where the best opportunities for the company lie. This includes how to access the opportunities and build on them to be as successful as possible. Strategizing involves the SWOT method, which stands for strengths, weaknesses, opportunities, and threats. This method is used to analyze the market and competition for the industry the company is in.
The strengths part of SWOT involves analyzing the company’s strengths by asking questions about how the organization is unique, what it does well, what is unique about the customer base and how the organization is better than the competitors. Weaknesses follow the same line of questioning except with a more critical twist, such as where are the organization’s weaknesses, how and in which areas do the competitors excel and if there are gaps in the products or services offered.
After the analysis of strengths and weaknesses, a business manager will look at the opportunities available for the organization in their industry. These opportunities can be in the form of filling the gaps indicated in weaknesses with new products and services. Opportunities could also include serving new clientele or updating the company’s brand or image. The threats in SWOT include which competitors are outperforming the organization, and what is happening in the industry that could negatively affect the company.
Business managers need to understand the industry their company is in and determine the best way to reach their customer base. A good business manager will study the market and assess the needs of the consumer before deciding on a product. By finding areas that have gaps, they can shape their product to fit the customer’s needs. Marketing should come easily as an answer to those needs. Marketing plays a crucial role in establishing, promoting, and sustaining a business’ brand, products and services.
A successful business manager will use marketing techniques to generate sales and revenue while also ensuring that the business is profitable. Effective strategies in marketing will not only generate new customers but maximize the existing customer base by increasing how much they buy in one visit. By researching and identifying what customers want, a good business manager can develop a product or service to meet those needs and drive consumer satisfaction.
Marketing involves enhancing an organization’s brand and image through promotions, advertising, and social media. A good marketing strategy can build a positive reputation for an organization that will make them stand out in the marketplace. With effective marketing strategies, a business can also identify opportunities to expand into new markets. This includes whether they want to expand locally, nationally, or internationally.
A good marketing strategy will also help a company be competitive in the market by offering unique selling points and highlighting the strengths of the company, such as exceptional customer service. This helps build strong customer relationships and provides the opportunity to engage with customers, customize their experience and build loyalty.
Market research provides valuable insights into market trends, consumer preferences and competitor activities. This information aids decision-making processes, allowing businesses to make informed choices related to pricing, product development, distribution channels and communication strategies.
Marketing helps businesses adapt to changing market conditions, customer preferences and technological advancements. Continuous marketing efforts enable businesses to stay connected with their target audience, identify emerging trends, and respond proactively. It is fundamental to business management because it drives growth, shapes brand perception, fosters customer relationships and guides strategic decision-making. Without effective marketing, businesses may struggle to reach their target market and maintain long-term success.
Marketing strategies and other business strategies are popular subjects in an accredited online MBA program, such as the one offered by St. Bonaventure University. This program provides a challenging curriculum that teaches students how to lead effectively, improve decision making and overcome business challenges. Opportunities to specialize in marketing, finance and business analytics are available. Alternatively, students can choose to enroll in a general track.
A good business manager will focus on the financing aspect of a company as they will need to provide potential investors or banks with a business plan. They also need to be able to budget for the future and forecast any expenses that may come up. The financial health of a company must always be uppermost in the mind of a business manager so they can try and predict cash flow as closely as possible. Areas that need to be considered when creating a business plan include staffing, rental fees for office, warehouse or storefront space, equipment, technology, and marketing. These and other considerations will need to be carefully assessed so an accurate budget can be developed.
No matter how small a company is, staff are usually needed to keep it running. Recruitment and staff retention are key areas a good business manager will take into consideration when running a company. It costs much more to hire and train a new staff member than to make accommodation to keep the current ones. In a workforce where some industries are facing labor shortages, a business can’t take their staff for granted and must work with them to provide job satisfaction. A successful business manager will approach this much in the same way as customer retention, by finding the gaps in staff happiness and finding what motivates them.
There are many ways a good business manager can boost the growth of a company, including hiring the right staff and creating an effective marketing strategy. When a business has a strong and dedicated workforce that understands the goals of the company, it is more likely to experience success and steady growth. Hiring the right staff also means offering a competitive salary, benefits, and other options that good workers will appreciate. The pandemic taught the labor force that they don’t need to accept subpar working conditions or unfair work hours. Talented workers need to be enticed with options that no one else is offering, and need to know that they are valued and part of a winning team.
When employees are motivated and dedicated to an organization’s goals it is much easier to find the potential leaders in the group and delegate some responsibility to them. Organizations that promote from within and offer people ample opportunities to develop their skills will have less turnover and more employee loyalty. This type of work environment can foster continued growth, creativity, and a positive work culture.
Maximize the existing customer base
A smart business manager will put effort and resources towards increasing the customer’s spending when they visit their location, website or office. Where customers may spend an average of $50 per visit, a good loyalty program or other incentives could increase that to $60 per visit or more. This is an easier way to increase revenue and is usually faster than trying to acquire new customers. Business managers can direct their staff to create a referral service where customers receive an incentive when they refer a friend. Loyalty programs are also great ways to increase business and customer retention. By incorporating technology such as reminders, apps and text blasts, a company can increase their profitability and still gain new customers through word of mouth and referrals.
There are many software programs available to help a company with maximizing their customers and it is also a good idea to find out if the competition is using any of them. By understanding what the customers want and how to give it to them so the company gets more of their business, the business manager can increase the revenue of their organization and solidify customer loyalty.
Key skills necessary for a successful business manager
Business management is not just about making a profit or writing a stellar business plan, it is about building relationships and motivating the workforce by providing an environment of creativity and collaboration. Other skills a good business manager should have include adaptability, problem-solving skills, customer service orientation, technology know-how, collaboration, and social responsibility.
It is important for leaders in business to be adaptable and able to pivot with the needs of the company and changes in the industry. The pandemic was a prime example of how important it is for a business manager to be adaptable. When companies were unable to open their doors or do business as usual, they needed to come up with alternative ways of doing business. Smart business managers managed to keep their companies afloat by finding ways to do business primarily online with staff working from home. Those establishments that were unable to adapt to this sudden change found themselves struggling or out of business. Adaptability is also important when the industry experiences a sudden shift. A successful business manager will see the changes happening and be able to make adjustments in business practices to keep up.
Problem-solving skills are crucial in business management as the ability to solve issues before they become unmanageable can make or break a company. A business manager should be able to solve problems for every department within a company, so it is important that they are well-versed in every aspect. Problem-solving means finding solutions and collaborating with internal teams to solve issues together. It is important that business managers are educated in areas such as finance, technology, and human resources so they can solve problems on the level of the staff they are dealing with. This will also earn them the respect of their staff because it shows they care about the situation and are not just trying to impose their will on others.
A business manager who understands how important customer service is will have a better chance of increasing loyalty and revenue than one that ignores it completely. The customer base of any company is its lifeblood, and all success revolves around how the customer feels about the company. A happy customer will help increase revenue by referring friends, participating in loyalty programs, increasing their spending and writing positive reviews online to boost the company’s reputation. An unhappy customer can wreak havoc on a company’s reputation and potentially take business with them in the form of other disgruntled customers or write reviews that will deter new customers from making purchases.
A business manager can hire technical employees, but they should also have some knowledge of technological innovations and software programs that can help their business. When a business manager is looking at creating a marketing strategy, they should understand how technology can help them gain valuable information regarding their customers and increase sales of existing clients. A strong leader will be a lifelong learner and take workshops, classes and seminars in various technical areas, so they are up to date on new trends in their industry.
This knowledge also comes in handy when problem-solving and gaining the respect of the workforce. If a business manager doesn’t think technology is important or doesn’t understand how areas such as social media can improve their business, then they will find themselves falling behind the competition in the marketplace.
Successful business managers understand that a collaborative working environment fosters innovation, creativity, and a positive company culture. When staff feel as if they are being heard and their opinions are valued, they are in a better position to try new concepts and take risks that can ultimately pay off for the company. The best way to grow a company is to have good people who are all working in the same direction for a common goal. This positive environment will also be shown when dealing with customer service issues as the employees will feel a sense of ownership and want to do everything that they can to solve the customer’s problem.
A collaborative business manager will also encourage their staff to voice their opinions on gaps in service and procedures. Employees can confidently share their opinions without repercussion and help solve any issues together as a team.
Nowadays, being socially responsible is a must for most companies. Consumers are very aware of products and services that use unethical work practices, or don’t live up to the standard they should. Socially responsible business managers will also work towards integrating a company into the community by organizing events that engage members of the community and community leaders.
Being socially responsible also includes ensuring that the company’s business practices are not damaging the environment or exploiting members of a population. When some companies in the past were exposed for using child labor, or dumping toxic chemicals into the environment, their reputations were damaged beyond repair. A good business manager will recognize the gaps in social responsibility in their company and fill them.
Business management is an integral part of any company’s culture, and hiring a good manager can mean the difference between the growth of a company or its stagnation. A successful business manager will be able to create a strategy for growth that involves effective marketing and sound financial planning, as well as hire the right people to implement the strategy. Effective business management can create an environment of collaboration and teamwork, where each member of the staff is motivated and committed to customer service and the goals of the company. The role of a business manager is crucial in the success and growth of any company.