A post in which we analyze the importance of giving the importance that deserves to the management of any company.

  • All companies must have their areas connected and synchronized to achieve a common goal.
  • Control sales, customer management, marketing, taxation, finance, human resources, and much more

One of the fundamental aspects in companies, but which at the same time tends to receive less attention, is business management. Business management as a concept is the activity that seeks, through people, to improve productivity and competitiveness of companies or businesses.

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According to some studies on the control of business management in Spain and its relationship with the effects of the economic crisis, the results are, to say the least, worrying. A large part of the companies focus their efforts on the activities of the productive and commercial activity, but pay very little attention to the management of the results of that activity.

Management as an activity

A few days ago a businessman commented “the best management tool continues to be common sense. I totally agree, but the first thing to bear in mind is that management must be just another part of our activity and we must dedicate as much time to it as to commercial strategy, production or innovation.

The financial and treasury management, the control of budgets and collections and payments, are the day to day of any company and have as much impact on the business activity as manufacturing, customer service or sales volume. In addition, management is coordination of personnel, resources and capital of the company, it is of little use to have a certain competitive advantage if then we do not know how to apply it correctly in the organization.

You have to get information from all the agents with whom you interact, customers, suppliers, competitors. Obtaining feed-back from the market in which we move is vital to make decisions and prepare our company for the continuous changes that are going to happen. Our orchestra must be tuned, all the instruments must sound good, but, in addition, there must be a conductor who knows how to take advantage of each one of them.

Management in entrepreneurs

A very clear case of the little importance given to this discipline can be seen with the failure figures of entrepreneurs. A person who has a business project invests a lot of time in the development of his idea, the elaboration of his business plan, the search for financing and even in the elaboration of a good marketing plan. However, many companies, with great ideas and a good level of sales, do not manage to exceed the threshold of three years of activity and close before that date.

In many cases, the explanation for this failure is the lack of attention paid to management. It doesn’t matter if the product is good or even if it sells a lot if we haven’t done a good planning of the profit margins and the expenses of the activity, it’s not about selling a lot but about selling well and, nowadays, also about getting paid.

It may be that we have not foreseen the financial burden of the activity and these sales are not enough to compensate, other times, the lack of planning can lead to a situation of a volume of activity greater than expected and not be prepared for it. Management helps us to anticipate all these types of situations, but we must do it rigorously and give it the importance it really has.

The reality of management in companies

Analyzing the conclusions of some studies we can emphasize that:

  • Only a third of Spanish companies seem to have an adequate level of management control.
  • A majority of companies consider that they do not need to use management control tools.
  • Most Spanish SMEs are vulnerable to the current environment, because they lack the information and methodology necessary for good management.
  • The ability to react as a result of the application of appropriate management tools would allow these companies to be better positioned.

Optimal management seeks to do the right things better, that is why it is necessary to identify the factors that influence the success or best result of that activity. Let’s put the means to carry out this task, it is much more important than we think, if we do not have the necessary knowledge or do not have time because our activity does not allow it, let’s seek help in that sense because, in the end, the future of our business may depend on it.

One of the fundamental aspects of the companies is the management of the business, with which we try to improve the productivity and the competitiveness of the companies. In addition, having the right management tools will be one of the key factors to achieve our goals of success.

More than 90% of business failures are due to mismanagement, mainly due to inappropriate decision making. This percentage has grown with the rise of new technologies, causing competitive advantages to be short-lived. Faced with this scenario, companies are forced to innovate constantly, without losing the essence of their brand, to survive and not be devoured by competition. In this context, the business management of managers and owners is particularly important.

Business management is the set of measures and strategies that seek to improve the productivity and competitiveness of a company. This function is usually performed by consultants, directors and managers. The key to the success of a business depends largely on good management, which helps to identify the factors that influence the best outcome of the company and also to find problems in time to solve them.

Management, like many other functions within the company, is based on four main tools:

  • Business plan: set of activities related to each other for the development of a company with the aim of achieving the planned goals. It is a guide that facilitates its creation or growth.
  • Business structure: determines the responsibilities that correspond to each person within a company and the legal constitution of the company.
  • Accounting: studies the financial movements of an entity during a certain period of time.
  • Checklist: a guide for preparing a complete business plan and determining whether the initial objective is likely to be achieved.