Tips to Better Manage Your Business
Check out the advice of Ricardo Correa, from the National Quality Foundation (FNQ), to improve the management of your company
Small companies that adopt management standards have higher profits, are less indebted and invest more. This is what a study was done by Serasa Experian, at the request of the National Quality Foundation (FNQ) shows.
According to the survey, companies that use the Management Excellence Model (MEG), disseminated by FNQ, recorded an Ebtida margin of 19.9% in 2009 against 14.6% of those who do not adopt the model. They also had a lower level of total indebtedness on shareholders’ equity (107% against 116%) and increased their investments by 11.4% in the year – against 8.2% in other companies in the same segment.
“The survival of small businesses depends on their ability to compete in the marketplace. By identifying its main needs, the company is able to adopt a system that improves its management, increases its competitiveness and provides more chances of success “, emphasizes the FNQ executive director, Ricardo Correa.
Here are 10 tips from the executive to better manage your business, increasing your chances of success
1. Plan strategically
Establish strategies to achieve the company’s objectives, taking into account information about customers, markets, suppliers, employees, their ability to provide services, produce and sell. “This allows us to position the organization competitively and ensure its continuity,” said Correa. Not enough is only in planning. The next step is to create action plans, defining the people responsible, deadlines and resources needed to carry out activities that aim at reaching the main goals and strategies.
2. Promote continuous improvement
Innovating in products, services, processes and management methods is a key step in ensuring business growth. Listen to collaborators’ contributions and search for information in the market – sources can be other companies, competitors, universities, research centers, and associations, among others. “The implementation of a permanent program of improvement and search for excellence contributes to increasing the competitiveness of the company,” says Correa.
3. Control the performance
The creation of indicators and goals that allow to control the main activities and analyze the performance of the business is essential to ensure a good management. “Regular meetings with the leaders of the organization are fundamental to measure the results obtained and to take corrective measures when necessary,” says the FNQ director. The indicators and targets should cover the main areas of the company, including finance, production, sales, suppliers, customers, employees and environmental issues.
4. Do not neglect finances
Keep an eye on cash flow and always have a budget plan for at least a year. Correa points out that this is “a good strategy to ensure the availability of resources for the purchase of materials and services, the payment of employees and expenses, as well as investment in equipment for marketing, service delivery, production and delivery.”
5. Organize the information
Information necessary for the execution of the company’s activities, analysis and conduct of business should be organized into a standardized system, which includes tools and technologies effective to meet the needs of employees. “The company must share the information in order to allow the proper execution of the functions. When recorded and documented, this information enables continuity of activities in the event of professional replacement, “Correa recommends.