The business man as a concept isn’t a new idea. It sprung up from the days where it was realized that if a person have “trade goods” or a specific skill set that someone requires, that someone was willing to pay, or trade certain valuables to satisfy that specific need. To explain the concept of a business man running a successful business I will concentrate on a few specific points which will include ethics, management from a finance and accounting point view, and finally a Financial Managers take on running a successful business in the modern day era.
Running a successful business.
The general idea among people is that if I have a product or service that I think could be of use in the daily lives of the public, that I would make some money should that idea be realized.
The implementation of an idea and converting it to a profitable business seems as easy as it can get. The exact opposite is true however. Entrepreneurs all over the world scheme about ideas and dreams to make money and achieve high profits, but very few convert that dreams into reality. Some businessmen do make a living, although the dream never really took off. Then there are those businessmen that took the measured leap, and made a success out of those dreams. Names like Warren Buffet, Donald Trump, Sir Alan Sugar etc. comes to mind. The one thing that all these people have in common is the uncanny ability to reinvent themselves as individuals to address any situation that life throws at them. For me, the most important character a businessman should have is the ability to take any situation or circumstance, assess the situation and turn it into a positive for himself or his/her business.
It is one thing to turn a dream into reality. It is a whole other scenario to try and sustain a successful idea. This is where Management and ethics come into play.
The term Management usually refers to people who sit in their offices and bark orders to those unfortunate enough to be at the receiving end. Management though, plays a far bigger part in a successful business than that of giving out orders and demanding results. Management requires certain sub-segments to run successfully in any business. One segment is unable to function properly without the other and vice versa. Communication between different parts of management is vital to any organization trying to make a reasonable profit. Communication is one of the most important aspects that need to be established early on in any business, no matter how small or big the business is.
Communication needs to be accurate and thoughtful. It is of utmost importance that communication between different departments are fluent and timeously. A lack of in any of these instances regarding communication will have a negative effect on decision making and in turn will impact the way in which a business will approach new possibilities. Professionalism combined with human compassion contributes to the best communication “system” there is.
The right attitude when communicating with a colleague is important to the general well-being of any organization. Nothing demotivates fellow workers than an employee with a negative attitude towards his/her work. All employees in any given organization are different from each other. They all have different strengths and weaknesses, and to that end need to be approached differently by management. Some require personal interaction with management and others prefer to go about on their own terms within the framework of the business. It is the task of the top management in any firm to combine the correct skill sets to achieve and get the most out of their employees.
Top management will usually employ heads of departments which in return strengthen the skills and knowledge of the specific management. As a business grows the need gets bigger to employ the right people in the right positions at the right time. Internal controls have to be adjusted to maintain a certain level of control in the business. Competent employees in the correct positions will ease the stress and toll that Top management needs to deal with on a daily basis.
Once the correct people have been employed and all internal controls are in place, the top management can afford to take a step back. I say take a step back rather than sit back and watch, because even though you have people employed that meet all the standard and fill all the criteria, management still need a hand on approach on daily matters in the form of reports and individual meetings. Once this is achieved the transition from a medium to larger size business will be without some of the “growing pains”
Modern day living has taught us that sometimes we need to be ruthless and compassionate where decision making is concerned. However, standard ethics in all business dealings, external and internal, is a must for a successful business. To beat around bush will get you some results, positive ones as well, but they will be unsustainable. Honesty and integrity form a vital part of a profitable business.
Dealings and contracts decided on the above mentioned basis will always be the only sustainable ones. One of the things I feel is important to ad on here is never to promise something you know you won’t be able to deliver. It causes more problems than it solves.
Decision making is affected by one other aspect. Costs
To make a proper decision management need to now the cost involved and if that cost will eventually be turned into a profit. Yes, sometimes it is necessary to spend money to make some more. But that expenses need to be well placed and in the right direction. The task of the financial manager is to oversee all financial functions within in the business. From quotations to clients to job cards in the workshop. With or without the help of assistants.
Top management will look to the financial manager for reporting on every financial aspect before making a decision. In return the financial manager will depend on teamwork and fluency from his/her colleagues to get the right info needed to compose financially sound reports. Any manager in any company relies on information given to him/her by the respective departments to make the correct decision regarding his/her own work.
Many businessmen don’t put value on a financial manager; they argue that admin and accounting staff don’t convert into profit. They couldn’t be more wrong. To grow your business, and to maintain stability and profits, you need to have in depth analysis of what is going on where in your company. A salesman can’t sell cars if he doesn’t know what his target is or what the budget on that vehicle is. A managing director can’t go to the bank and ask for additional funding without the proper financial reports to back him up. An accountant or financial manager, depending on the size of the business, is of utmost importance to successful decision making.
There is a Japanese saying: “For want of a nail: the horseshoe was lost, for want of the horseshoe: the message couldn’t be delivered, for want of the message: the battalions weren’t ready, for want of the battalions: the war was lost. It translates to no matter how small the issue or information, rather deal with if it head on. If you throw it one side to deal with it later, it might just have bigger consequences than you first imagined.
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