Business management is a subject that interests businesses of all sizes.
Although we are talking about an individual company, where the owner does everything by himself, it is essential to know how to conduct actions aimed at sustainable business growth.
As a matter of fact, especially in small and medium companies, where sometimes there are more tasks than hands available to accomplish them, the attention must be doubled.
But if you are or wish to hold a position in a major player in the market, you cannot dispense with this knowledge.
Any mistake can shorten the entrepreneurial dream and bring a good business idea to the wreck.
That’s why we built this article with everything about business management.
Along the reading, you will have contact with concepts, information and relevant tips to qualify you for this challenge.
Besides knowing the definition of business management, we will highlight its importance, benefits, tools and much more.
You will also discover how to become a well prepared manager and when to resort to business consulting.
What is business management?
Business management is a strategy of conducting business to better results, starting from actions that involve the organization of processes, the control of finances, the administration of human and material resources and everything that is essential for their maintenance.
Understand that we are talking about a broad concept, since it is aimed at all areas of the company.
And it couldn’t be different, since every company is like a complex machine, which depends on the proper functioning of all its sectors to optimize performance and achieve increasingly better results.
Being the owner of the business does not mean being a company manager.
To do so, it is essential to master concepts and adopt the best practices and tools aimed at survival, growth and business expansion.
This is not a luxury, but a necessity.
Although the company in which the manager acts is the only one in its market, which is quite rare, it will only have a future if ahead of it is an austere, competent and committed professional.
On the contrary, she will skate before the competition and market instabilities, having her longevity swallowed by her own mistakes.
On the next topic, when we talk about the importance of entrepreneurial management, all this will become clearer to you.
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What is the importance of business management?
Business management, as we have seen, is a comprehensive concept.
It is related to the definition of goals, organization of processes, strategic planning, cost analysis, purchases, sales, payments and receipts, hiring and dismissals, in short, everything that involves the environment of a company.
Each one of these areas depends on specific good management practices, either to take better care of the finances of the business or its employees, for example.
But in its macro definition, we can understand that the business management is not only important, but fundamental to conduct actions in the right direction.
Spending more than it bills, keeping obsolete equipment, not increasing productivity efforts or not implementing efficient collection processes are management failures that don’t take long to charge their price.
The Business Demography Survey, released by IBGE (Brazilian Institute of Geography and Statistics) at the end of last year, revealed that the country registers more companies closing than opening – and that this is a movement that has been repeated for two years.
In 2015, 708,600 businesses were opened, while another 713,600 closed their doors.
Despite the poor performance, it was higher than that recorded a year earlier, when the balance had 944 thousand companies closed and 726.3 thousand opened.
Specifically in the commercial sector, the data for 2016 were not encouraging either.
There were 46,322 establishments closing their activities in the year, with a reduction of 265 thousand jobs.
But what do all these negative statistics have to do with business management?
Unfortunately, the relationship is total.
And the deficiencies in business management are always on top of the negative ranking.
According to the entity, more than 25% of business do not reach the second year of life.
It points out as common mistakes the lack of knowledge about the market, including competition, suppliers and the target public, as well as failures in financial control.
So, when asking about the importance of entrepreneurial management, understand that, without it, your business project will not work.