Businesses are like organisms — they constantly evolve to adapt to outside stimuli. Some businesses grow incredibly large, while others remain small for the entirety of their existence. The reason why there’s such a discrepancy between different companies, often in the same industry, is the difference in management.
How different is it to manage a large business compared to a small one? It’s different, but there are also several universal management truths that work on all businesses, no matter their size. Here are a few.
Value the Employee
Employees are the basic building block of any business. Yet, they are usually the first ones to feel the effects of budget cuts when push comes to shove. Taking care of your employees and placing them near the top of corporate priorities is a great way of building a foundation for sustainable growth.
A dedicated team that is fully committed to your company’s mission will be effective, but more importantly, happy to follow your instructions to the fullest. By taking care of your employees through decent salaries and other benefits, you’re ensuring that your company has a future on the market. This applies to businesses of all sizes, big or small.
Create a Good Leadership Structure
Leadership is essential to growing or even maintaining a business. Small businesses have simpler leadership structures with very little lateral organization. Larger businesses have a defined lateral as well as vertical leadership structure. Delegation of tasks and responsibilities is the only way to successfully run a business, especially in a highly competitive environment.
By delegating non-critical decision-making to your subordinates, you’re freeing up your schedule so that you can work on more important matters. More importantly, you are showing your management team that you trust them to make the right decision. Good leadership is the foundation that supports everything else in a company.
Automation Through Business Software Solutions
Even though we’ve only been actively using computers for 30 or so years, the modern business probably couldn’t function 5 minutes without all the software that is currently available. Software engineers from WebFletch note that many tasks that required hundreds of man-hours to complete are now done by computers and dedicated software. Anything from employee selection, payroll, task management, and even basic customer support is done through the use of dedicated software.
It is a common misconception that only massive corporations depend on software to keep things running smoothly. In reality, even micro-businesses heavily rely on software where it can replace entire teams or even departments. A software suite will give a small business the force multiplier it needs to compete with larger entities on the market. Software is an invaluable tool these days, no matter how large or small your company is.
Focus on Training
Recruiting is arguably one of the most expensive and time-consuming parts of running a company, but also one of the most crucial ones. If you want to ensure that your business is running buttery smooth, you’ll need to invest in recruiting and training new employees. That means selecting the right person for the job and then investing in said person through training, education, and more.
Of course, all of this requires you to properly vet all recruits and focus on those who show long-term potential. It might take some time, especially if you’re running a larger company, but you’ll start noticing that your entire business is operating well with minimal input from yourself or other high-level managers.
Having skilled, trained, and experienced people working for you means that you won’t have to micromanage everything. It also means that your entire management structure is under less stress since everyone is trained to do their job and is presumably doing it sufficiently well.
Rewards Positive Behavior
The management’s job is to make critical decisions, allocate resources and generally ensure that the company is moving in the right direction. That being said, a manager has another critical job — rewarding positive behavior. Quality employees are worth their weight in gold. In many cases, you can’t afford to lose quality people in key positions.
This is why rewarding positive behavior and good results is key. You need to show your team that the company cares about them and that initiative will always be rewarded. There are different ways you can reward individual employees, ranging from various bonuses to promotions. That is completely up to you.
Universal Truths of Running a Business
Everything we’ve mentioned above applies to companies large and small. These are some of the universal truths of modern business that are applicable across a wide range of corporate structures. Once you understand that employees are the basic building block of any enterprise, you’ll start seeing patterns in terms of management techniques that can be applied to just about any kind of company, no matter its size.