Business Management Importance Benefits

A post in which we analyze the importance of giving the attention it deserves to the business management of any company. All companies must have their areas connected and synchronized to achieve a common goal. Keep sales, customer management, marketing, taxation, finance, human resources, and much more in check here.

One of the fundamental aspects of companies, but that at the same time is usually paid less attention, is business management. The business management as a concept is seeking activity, through people, improve the productivity and competitiveness of companies or businesses.

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

The Importance of Business Management
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Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government body.

Business Management as an Activity

A few days ago an entrepreneur commented: “the best management tool continues to be common sense”. I totally agree, but the first thing to keep in mind is that management must be part of our activity and we must devote as much time as we do to commercial strategy, production or innovation.

The financial and treasury management, the control of budgets and collections and payments, is 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, the management is coordination, staff, resources, and capital of the company. Not to mention, it is of little use to have a competitive advantage. Especially, if we do not know how to apply it correctly in the organization.

Obtaining feedback on the market in which we move, is vital to make decisions. And preparing our company for the continuous changes that are going to happen. Our orchestra must be in tune, all the instruments must sound good. But, in addition, there must be a director 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 verified with the figures of failure of the entrepreneurs. A person who has a business project invests a lot of time;

  • in the development of his idea,
  • the development of his business plan,
  • searching for financing
  • and even in the development of a good marketing plan.

However many companies, with great ideas and a good level of sales, fail 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 does not matter that the product is good. And, even, that it sells a lot if we have not done good planning of the profit margins. And the expenses of the activity, it is not about selling much. If not selling well and, today in day, also to charge.

It may happen that we have not foreseen the financial burden of the activity. And those sales are not enough to compensate for it. Other times, the lack of planning can lead us to a situation of a greater volume of activity. In general, than expected and not be prepared for it.

The management helps us to foresee all this type of situations, but it must be done in a rigorous way and give it the importance it really has.

The Reality of Management in Companies

Analyzing the conclusions of some studies we can highlight that:

A majority of companies consider that they do not need to use management control tools. Most of the Spanish SMEs are vulnerable to the current environment. Because they lack the information and the methodology necessary to carry out good management. The ability to react as a result of the application of adequate management tools. And would allow these companies to be better positioned.

Optimal management seeks to make the right things better. For that, it is necessary to identify the factors that influence success. Or an even better result of that activity. Put the means to carry out this task, it is much more important than we believe.

So, if we do not have the necessary knowledge or we do not have time because our activity does not allow it, we seek help in that sense. Because, in the end, the future of Our business can depend on it.

One of the fundamental aspects of the companies in the management of the business, with which we try to improve the productivity and competitiveness of the companies.

Contact the jmexclusives consultants whenever your business management needs arise.

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