My partner and I have made the decision to open our very own partnership business. We have been working for S & J Home Repairs for the past fifteen years. We have studied all aspects of the business together;
bring S & J Home Repairs to a well established and reputable business for the owner. One day we went to the boss with a suggestion of us becoming partners in the company, because we were the ones actually running our offer down. By this time Jack and I decided we can do these ourselves.
One afternoon we sat down and worked out all the financial decisions and exactly what we both needed to bring to the table to get this done. Finally it hit us that, we are going to be our own bosses and there is no more set time, we have to motivate and organize everything ourselves. One of the decisions we made is to hirer three managers and twenty additional employees. The manager for the Queens region will get 6 employees to work with him, the manager for the Bronx will get 7 employees and Brooklyn the next 7 employees.
Being good managers is the first step to achieving success in your business. “Today’s managers must be self-aware, observant, and understanding.” (AllBusiness.com). It is important to give praise to your star employees, not because they are good at what their do, doesn’t mean they do not want to hear their boss say, “good job” or “well done.” Another good way is to let them know exactly what the company’s goals are and think about other strategies that will include them.
However, in business there is always that risk of failure, so you will want to devise a plan that will help avoid the four main failure mechanisms of small business which are:
• Managerial incompetence or inexperience
• Weak control systems
• Insufficient capital
In order to avoid managerial incompetence or inexperience, business owners must find different ways to develop their management skills, don’t depend only on common sense. Being competent in this phase of the business is extremely important for the foundation of the business. These skills allow you to make better decisions on, dealing with emergencies, recruiting, purchasing, book keeping, marketing, training, planning etc. To avoid failure business owners need to identify the things that is needed to be accomplished, their need to ensure that they organize their resources; they need to pay close attention to the performance and the task completion (need to be will informed). Business owners also need to look ahead and make plans for any future requirements and try dealing with any problems that may arise.
Avoiding neglect, business owners need to set aside devoted time for their business in order to succeed, especially in the starting up stages of the business. They need to pay attention to every detail of the business and its workers. Show your managers and employees that you are totally involved in the running of you business and that you need to be informed on any matter that relates to the business. Having a weak control system is also damaging to a business. Business owners need to an open communication between their employees and focus on growing the company profits before offering credit possibilities to it customers.
Starting a business with the right amount of capital can also lead to a successful business. First you need to ensure that you have at least one year’s capital because most new business start seeing profits after the first 6 months of business. So for the business to succeed and start profiting business owners must try to avoid the things that can lead to failures for the business.
Reference: AllBusiness.com 2007. (Home page). Become a Better Manager. Retrieved. September 7, 2007, from http://www.allbusiness.com/human-resources/workforce-management/1002-1.html
Sherlock, Joseph, M., Score Vancouver Chapter. How Not to Fail. Retrieved. September 7, 2007, from http://www.scorevancouver.org/business-tip4.html
Ebert, Ronald J., & Griffin, Ricky, W., 6th ed (2007). Business essentials. Pearson Prentice Hall