How to Manage a Small Business Essay
A small business must be managed carefully and closely to produce the desired amounts of success to be obtained from taking a chance on future expansion plans and investment decisions, that will enable the organization to grow. Smaller businesses seeking the opportunity to expand or grow should practice the intensive growth strategy. A growth strategy should be implemented to ensure all organizations seeking growth in the future should utilize performance measurement systems and target setting. An organization must decide on a business form that will offer the owner freedom, as well as protection from any type of liability. Staffing and organizational structure are vital to the survival of any organization.
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The main challenge of performance management is determining what needs to be measured. Quantifiable factors should be the primary priority, because they are the key performance indicators that drive success for a business. Quantifiable factors and financial factors differ from one another, but they are both equally important. Customer service is very important because customers are what keep a company in business. An organization should stress the importance of keeping customers happy, but there are certain rules and stipulations that must be upheld, at all times to protect employees and the organization as well.
Target setting should be implemented as soon as an organization’s key performance areas have been determined. A manager must give each employee an n objective that must be met and why it is detrimental that the target is reached. In doing so, this provides everyone with a clear sense of what they are aiming for. “Strategic visions can be difficult to communicate, but by breaking an organization’s top level objectives down into smaller concrete targets, the objectives will be easier to manage, alongside the process of delivering the targets (Info Entrepreneurs)”. Kelly should strive to use the