Written by Nikita Buzhor, content specialist, for GetSmarter.

Managing a business can seem stressful, especially if you are running a small business. However, having a business plan can help you identify and formulate ways in which you can run your business with ease and convenience.

Contrary to popular belief, this plan is not just a document prepared for lenders and other investors. It will also serve as a guide on how the business will be shaped and managed. A plan forces the person starting a business to examine and understand all aspects of organising and running it, so it is an important management tool.

In this article, we will look at the focus areas of business management, how you can stay on top of your game and ahead of the curve, and the ways you can reach your customers. 

Strategy

This could be considered the most important area of a business as it’s essentially the “brain” of business operations. All potential business operators should create vision and mission statements so they understand what they want to do, why they want to do it and how they will do it.

Strategists should also determine where the opportunity for the business lies by analysing the competitive landscape and markets and then define how they will access that opportunity.

When forming a strategy, pin down the exact market you will aim to operate in, and then perform a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis on your main competitors and yourself. With this, you’ll have a clearer view of where you are in relation to your competitors in the market.

This will also help you determine your market access strategy, which involves positioning, differentiating from competitors and branding. 

The ability to take a high-level, strategic view of a business is a must to meet business goals. Always remember; a good business strategy should give you the following: 

• A clear vision of your target audience; 
• Your business’s unique value proposition;
• Available resources you can utilise;
  
• How to stay competitive and relevant. 

Finance

Most business plans concentrate on this area because they need loans or investments, as well as for forecasting and budgeting purposes. Since money is the blood that keeps a business alive, a business operator should always know how healthy they are financially.

For this, you’ll need a realistic forecast of cash flow, even though it can be difficult to anticipate the future. To do so, a business manager should form an expenditure budget and then paint a picture of revenue opportunities.

You can find the majority of this information by studying competitors with the same focus or target audience as you, an online short course in economics and finance, and adapting information to the new business. 

Marketing 

Marketing is one of the best ways to promote your business to the people who are your potential customers. Most times in this section, it is important to create marketing strategies and campaigns that will drive conversions because you might have some competition.

Make sure that you work with marketing managers, strategists or specialists to help you better understand your audience, how to market to them in ways that speak to them, and how you can formulate campaigns that will not only gain you profit and recognition but respect too. 

HR and People Management  

Your company’s people matter. Show them that they do by putting them first. Create working environments that are healthy for their growth and development, and always work to give your staff members the skills and growth they need.

A business that has happy and satisfied employees is most likely to succeed because everyone will reciprocate the energy they are given in the workplace. 

Technology and Equipment 

This involves not only equipment needed to operate the business but also such concerns as communications technology for marketing and sales purposes or transportation requirements.

It’s crucial to have a clear understanding of your needs and balance them with budget demands. At times, a business manager will also have to be creative about how they manage equipment and technology.

For example, some equipment may be expensive and remain unused at times. The business manager should then consider if there are rental opportunities or potentially outsource that aspect of production to another company that has the equipment. 

Data Analytics 

Ensure that you are always up to date with all your data analytics.

It is important to know who is interacting with your business and how. You also need to stay informed on trends and behaviours from target audiences in order for you to give them the best possible service and product delivery.

You can employ a data analyst or invest in a data analytics online short course so that you get knowledge on the ins and outs of data analytics and management for your business. 

Operations 

While business operations essentially include creating and delivering products or services to customers, in most businesses, this not only involves equipment but processes. In the case of start-ups, the owner will take on many responsibilities, some of which may include operations. This understanding of operations is often even what inspires some to start their own businesses. 

When it comes to new businesses, until a staff is curated, the owner will likely also perform operational duties. But there is a danger in this: focusing too much on “working the job” may distract from the owner’s actual focus of

managing and advancing a business. To mitigate this, it’s crucial that each aspect of business operations, from top to bottom, should be considered equally as important as delivering your service offering or manufacturing your product.

It can be argued that this is also a very common reason for business failure: the operator is more comfortable “doing” and so ignores other important aspects of management. 

Education Is Elevation

Business management skills are invaluable in all organisations and across a broad range of industries.

Employees, managers, and leaders in everything from start-ups to well-established corporations can set themselves apart by studying business management and understanding the underlying principles of running a business.

Gain key business, risk, and financial management competencies, and enhance your existing qualifications with business management courses online. 

Final Thoughts

Generally, the six functional areas of business management involve strategy, marketing, finance, human resources, technology and equipment, and operations.

Therefore, all business planners should concentrate on researching and thoroughly understanding these areas as they relate to the individual business.

Invest in the right sets of skills to better advance your business and yourself, and offer your customers top-tier products and services.

[Image – Photo by Scott Graham on Unsplash]