Management Control and Business Failure

Do you find yourself spending a lot of hours every week working, but at the end of the week you don’t really have a lot of money to show for it?  In many cases, this is just a sign of a lack of management control.

Here are a few questions that you should ask yourself to check the health of your small business:

  • Are you aware of what is going on in all areas of your business?  While you can delegate certain tasks to other people in the workplace, that does not mean that you can choose what you will know about in your business.  You should always be aware of what is going on.  After all, the business is yours and you will want to act as if it is.
  • Are you running your business, or do you expect it to run itself?  Businesses cannot simply run themselves, even though many business owners seem to think it is possible.  The only way they can run themselves is down into the ground.
  • Are you aware of your current cash flow situation?  You may have checked up on your cash flow in the past, but this is something that you need to do often to ensure that your business is on the right track.
  • Do you have a good understanding of the fixed costs required of your small business, and are there any ways you can minimize these costs?  Most businesses will find that they can do better when it comes to their fixed costs.  If you are not aware of the costs, then you will likely not have a way to improve them.
  • How well does your business’s vision relate to your current state?  The vision of your small business will help you to develop a strategy to improve your business.  This will help you to see where your business is headed.  You don’t just want to drift along.
  • How well do you communicate with your staff?  You should conduct staff meetings from time to time to see what they have to say about your business.  This will help to motivate everyone in the workplace and give you some new helpful ideas for ways to improve your business strategies.

If there is one key concept that you can take away from each of these questions, it is the fact that you need to have full involvement in each area of your business at all times.  When you hire people, you will want to hire people that will work well for you but you still want to stay involved with them.