When it comes down to it, management is all about defining goals, tracking progress, and managing differences.
Real Story: As my software company grew, from two employees to five, then ten, I saw how difficult it is to manage a startup or a small business that exists naturally.
In a startup, the first few employees are treated as friends rather than employees. What I learned in my MBA organization and management classes didn't apply. We teamed up and worked side by side. How was I going to take a step back and evaluate my work?
Perhaps it was the ex-hippie in me, but I believe it happens to most of the founders, startups, and small enterprises. After you've grown the business, you'll need to create an organizational structure and conduct structured reviews. It starts with a swarm of mice devouring a large piece of cheese.
Business planning's management magic
That is how I came to understand the power of business planning in management. I don't necessarily mean a formal, written business plan for outsiders, but rather genuine business planning—Lean Planning—which entails setting goals, tracking results, and then reviewing and revising them.
Then bring everyone together once a month (or so) to go over the results. And then there'll be management, and then there'll be accountability. It becomes second nature, a natural part of the process. Plus, there's no need for anyone to take a step back and switch roles to go from friend to boss and back.
Setting expectations, tracking results, and managing the discrepancy is all part of management. It's also about saying no at times and yes at others. When everything is Construct into proper company planning, why create a separate system of worker assessment and the extra structure that goes with it? It's more natural, and it's more effective.
A Lean Business Plan is the first step.
To use your business planning process as a management tool, you don't need a formal business plan document with extended summaries and descriptions. Begin with a straightforward Lean Business Plan:
1. Create and execute a strategy using your Lean Plan.
In the real world of small businesses and startups, business strategy isn't intellectual or subtle—focused. it's
Saying no a lot and yes only when it's necessary is a strategy. A Lean Business Plan, which describes the planning in a few bullet points, is something I believe strongly. Then, when you're distracted by the next shiny new thing, you may use it as a reminder.
2. Use your strategy to connect tactics with your plan.
Tactics carry out the strategy.
Pricing, distribution, messaging, promotion, social media presence, branding, and content are all marketing approaches. They also include things like launch dates, features, versions, and packaging in the product plan. They have included financial and group recruiting strategies.
Make sure the tactics are in line with the overall strategy.
3. Create specifics.
List your assumptions, assign responsibilities, establish realistic significant milestones, establish performance measurements and criteria, create things to track, and create a monthly review schedule to analyze results and change as needed.
4. Project your Key business figures.
A sales projection, a spending budget, and a cash flow strategy are all included. Examining your financial's daily basis keeps your firm on track.
Although no one has a crystal ball, making realistic forecasts can help you & your team better grasp what they're working toward and whether their strategies are successful.
