Author: Richard Conyers

The old adage holds true in business: if you can’t measure it, you can’t manage it.

While statistical management cannot predict the future, understanding how to interpret business data and Key Performance Indicators (KPIs) can help you make informed, strategic decisions.

Many small business owners find data analysis daunting, but it doesn’t have to be. This article provides practical advice and actionable steps to grow your business and enhance profitability.

 

What statistics should you measure in your business?

There are no universal Key Performance Indicators (KPIs), as every business is unique. To start, identify the KPIs that are most relevant to your growth. KPIs should help you understand what’s working, what’s not, and where to focus resources for the best results. Once you identify the key KPIs, these will serve as a consistent measure of success and guide your strategic decisions.

Here are six commonly used ones that can help you monitor and improve your operations:

• Revenue Growth: Measures the increase in total income over time, helping assess if your business is expanding and the effectiveness of sales strategies.
• Profit Margin Shows the percentage of revenue remaining after all expenses. A healthy profit margin indicates efficient cost management and effective pricing strategies.
• Cost Per Sale (CPS): Measures the cost to acquire a single customer. This helps evaluate the effectiveness of marketing and sales efforts. (Sometimes, this can be called Cost Per Acquisition (CPA)).
• Customer Retention Rate (CRR): Indicates the percentage of returning customers, reflecting customer satisfaction and loyalty.
• Customer Lifetime Value (CLV): Represents the total revenue expected from a customer throughout their relationship with your business. Understanding CLV helps in making informed marketing and customer service investments.
• Inventory Turnover: For product-based businesses, this measures how frequently inventory is sold and replenished. A high turnover rate signifies effective inventory management and strong product demand.

Top tip: When launching a new product or service, reviewing your CPS, CRR, and CLV can help determine key factors such as pricing and marketing budget. For instance, a new product might not be immediately profitable, but a high retention rate could justify a “loss leader” strategy to enhance overall retention.

 

Practical Tools for Statistical Management

The right tools can simplify data analysis and support informed decision-making. Here are five tools that can assist with statistical management:

• Accounting Software: Tools like QuickBooks or Xero help manage finances by tracking income and expenses and generating basic financial reports.
• Google Analytics: Offers insights into website traffic and user behaviour, aiding in online presence and marketing strategy optimisation. Learn more about Google Analytics.
• Excel or Google Sheets: These spreadsheet tools are versatile for tracking business metrics, calculating, and creating charts and graphs. Learn more about Google Sheets.
• CRM System: Software like HubSpot helps manage customer relationships, track sales, and measure marketing effectiveness. Learn more about HubSpot.
• Google Looker Studio: A free, user-friendly tool for creating interactive dashboards and reports, allowing easy data sharing and visualisation. Learn more about Google Looker Studio.

 

How to apply statistical management for future planning

While statistical management cannot predict the future with certainty, it provides a foundation for making informed assumptions and strategic decisions. You can identify trends and patterns that guide your planning efforts by analysing past and present data.

Here are some ways you can use your data to make informed business decisions.

• Forecasting Sales Trends: Analysing historical sales data can help you identify seasonal trends and predict future sales volumes. This can help you effectively plan inventory levels and staffing needs.
• Budgeting for Marketing Campaigns: By tracking the performance of past marketing campaigns, you can allocate your marketing budget to the channels and strategies that yield the highest return on investment.
• Managing Inventory: Analysing inventory turnover rates helps determine optimal stock levels, reducing the risk of overstocking or selling out products in high demand.

 

How to Simplify Your Data Analysis

Many small business owners find data analysis daunting, but it doesn’t have to be. Focusing on the key metrics and using simple techniques can help you to make data-driven decisions without getting overwhelmed.

Here are some practical tips to help you interpret data effectively:

• Focus on Key Metrics: Concentrate on a few critical KPIs that align with your business goals. Avoid getting bogged down by too many metrics.
• Use Visual Aids: Charts and graphs can make complex data easier to understand at a glance. Tools like Excel and Tableau can help create these visuals.
• Seek Professional Help: Don’t hesitate to consult with a business coach or data analyst if you need assistance. They can provide valuable insights and help you make sense of your data.

 

How ETC Can Help

Effective statistical management is essential for the success and growth of your small business.

At ETC, we understand the challenges small business owners face and are here to help you maximise your time and achieve your business goals. Whether you need assistance setting priorities, implementing time management techniques, or identifying areas for improvement, our specialist consultants can provide you with the support and guidance you need. Please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

When resources are often limited and every minute counts, efficient time management is crucial for the survival and growth of small businesses.

Effective time management is not merely about fitting more tasks into your day but about making strategic decisions and using your time efficiently to achieve maximum impact, paving the way for business growth and success.

In a small business, effectively managing your time helps you meet deadlines, increase productivity, and, most importantly, maintain a healthy work-life balance. It also lets you focus on strategic goals that drive your business forward, streamline operations, reduce costs, and increase profit.

In this article, we aim to help small business owners and entrepreneurs improve their time management by providing practical strategies, outlining useful tools, and explaining how to overcome common challenges.

 

Practical Strategies for Effective Time Management

Implementing practical strategies for time management helps ensure that you are working smarter, not harder.

These strategies include setting clear deadlines to create a structured approach to tasks, tracking time to identify inefficiencies, implementing time-blocking techniques to maintain focus, and making time for regular reviews to reflect on performance.

By adopting these strategies, you can prioritise your workload, improve productivity, and create a more balanced and effective work environment.

 

Set Clear Deadlines

Deadlines are more than just dates on a calendar; they are crucial for maintaining momentum and ensuring that tasks and projects are completed on time.

In a small business setting, clear deadlines provide structure and urgency, guiding your team towards common goals and preventing tasks from dragging on indefinitely. Realistic and well-defined deadlines helps prioritise work, manage resources effectively, and keeps everyone accountable and focused on achieving measurable outcomes.

Here are some ways to help you set clear deadlines:

• Be Specific: Define clear, measurable outcomes for each task.
• Break Down Tasks: Divide larger projects into smaller, manageable tasks with their deadlines.
• Communicate Expectations: Ensure all team members understand the deadlines and their roles in meeting them.
• Allow for Flexibility: Build in some buffer time for unexpected delays or issues.

 

Track Time Spent on Tasks and Projects

Tracking time is essential for understanding where your efforts are going and identifying areas of inefficiency.

In a small business, knowing exactly how much time is spent on various tasks and projects can provide valuable insights into your productivity patterns and help you allocate resources more effectively. Time tracking allows you to monitor progress, estimate future work more accurately, and make informed decisions about prioritising tasks and projects.

By regularly analysing how time is spent, you can uncover bottlenecks, streamline processes, and ensure that your time is being used to its fullest potential.

Here are some tools and tips for time tracking:

• Use Time-Tracking Tools: Tools like Toggl, Harvest, or Clockify can help you monitor how much time is spent on various activities.
• Review Regularly: Regularly analyse time-tracking data to identify patterns and areas for improvement.
• Adjust Priorities: Use the insights gained to adjust your priorities and allocate time more effectively in the future.

 

Implement Time-Blocking Techniques

Time-blocking is a powerful technique that helps you organise your day by dedicating specific time slots to different tasks or activities.

For small business owners, time-blocking can be a game-changer in managing a busy schedule and preventing tasks from overlapping or getting neglected. By allocating fixed periods for specific tasks, you can reduce distractions, enhance focus, and improve overall productivity. Time-blocking not only helps you stay on track with your daily responsibilities but also ensures that you are dedicating time to both professional and personal activities, maintaining a healthy balance between work and life.

This technique can help you:

• Stay Focused: By allocating specific times for tasks, you reduce the likelihood of distractions.
• Increase Productivity: Knowing you have a set time to complete a task can increase your focus and efficiency.
• Maintain Balance: Ensure you allocate time for work-related and personal activities to maintain a healthy balance.

Top tip: When allocating time to a specific task, you should consider Parkinson’s law, which states that “work expands so as to fill the time available for its completion.” Ensure you review your previously tracked time for the task or similar task to allocate appropriate time.

 

Make Time for Regular Reviews

Regular reviews are a vital component of effective time management, providing an opportunity to reflect on performance and identify areas for improvement.

In a small business, taking the time to review how you and your team are spending your time can reveal valuable insights into productivity and efficiency. Scheduling periodic reviews allows you to assess progress, evaluate how well deadlines and goals are being met, and pinpoint areas where processes can be refined. By regularly reflecting on your time management practices, you can continuously improve and adapt, ensuring that you are always moving towards greater efficiency and success.

• Schedule Regular Reviews: Set aside time each week or month to review your progress. For smaller teams, consider conducting an audit every quarter.
• Evaluate Performance: Assess how well you met your deadlines and goals.
• Identify Areas for Improvement: Look for areas where you can improve efficiency or productivity.
  • Look for tasks that consume a lot of time but contribute little to your goals.
  • Identify and eliminate or delegate non-essential tasks that are wasting time.
• Refine Processes: Use the findings to refine processes and use your time more effectively.

 

Tools and Techniques for Better Time Management

For small business owners, leveraging digital tools such as project management software, calendar apps, and automation tools can streamline workflows and save valuable time.

Additionally, employing time management techniques like setting SMART goals, using the Pomodoro technique, and categorising tasks with the Eisenhower Matrix can help prioritise efforts and maintain focus. By integrating these tools and techniques into your daily routine, you can enhance your ability to manage time efficiently and achieve your business objectives.

 

Digital Tools

• Project Management Software: Tools like Asana, Trello, or Monday.com can help you manage tasks and deadlines.
• Calendar Apps: Use calendar apps like Google Calendar or Microsoft Outlook to schedule and remind you of important tasks.
• Automation Tools: Tools like Zapier or IFTTT can automate repetitive tasks, saving you valuable time.

 

Time Management Techniques

• SMART Goals: Set Specific, Measurable, Achievable, Relevant, and Time-bound goals to keep your efforts focused and productive.
• Pomodoro Technique: Work for 25 minutes, then take a 5-minute break. Repeat this cycle to maintain focus and prevent burnout.
• Eisenhower Matrix: Categorise tasks into four quadrants based on urgency and importance to prioritise effectively.

  

 

Overcoming Common Time Management Challenges

Time management challenges are inevitable, especially in a small business where responsibilities are diverse and plentiful.

Common obstacles such as procrastination, interruptions, and the need to balance multiple roles can hinder productivity and progress. However, understanding and addressing these common pitfalls will help increase productivity, reduce stress, and ensure that you are making the most of your time.

 

Avoiding Procrastination

Procrastination is a common challenge that can derail your productivity. Here’s how to combat it:

• Set Clear Goals: Define your goal and why it’s important.
• Break Tasks into Smaller Steps: Tackle smaller, manageable tasks to avoid feeling overwhelmed.
• Use Accountability: Share your goals with someone who can help keep you accountable.

Top tip: Consider whether you’re an “Eat the Frog” or a “First Pancake” type of person. The Eat the Frog methodology is about getting the hardest tasks done first, getting them out of the way, and making each subsequent task easier. First Pancake is based on the theory that your first pancake isn’t always the best, so do a task that doesn’t need to be perfect, allowing you to warm up to things and learn from mistakes.

 

Managing Interruptions and Distractions

Interruptions and distractions can significantly impact your productivity. Here’s how to manage them:

• Create a Distraction-Free Environment: Identify and eliminate sources of distractions in your workspace.
• Set Boundaries: Communicate to others when you need uninterrupted work time.
• Use Technology Wisely: Turn off notifications and use focus modes on your devices to minimise disruptions.

 

Balancing Multiple Responsibilities

Balancing multiple responsibilities can be challenging, especially in a small business. Here’s how to manage it:

• Prioritise Tasks: Identify the most critical tasks and focus on them first.
• Delegate Responsibilities: Delegate tasks to team members where possible to free up your time for more important activities.
• Use Time Management Tools: Use tools and techniques to keep track of tasks and ensure nothing falls through the cracks.

 

How ETC Can Help

Effective time management is essential for the success and growth of your small business.

At ETC, we understand the unique challenges small business owners face and are here to help you maximise your time and achieve your business goals. Whether you need assistance setting priorities, implementing time management techniques, or identifying areas for improvement, our specialist consultants can provide you with the support and guidance you need. Please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

Management meetings in a small business can often be seen as a waste of time or unimportant compared to that day’s priorities. However, they are, in fact, a fundamental way to grow your business and profits—no matter how small your business may be (even if there are just two of you).

As a small team, we understand the challenges you face in balancing customer needs and internal operations. It’s common to consider rescheduling or even cancelling management meetings in favour of immediate delivery. However, it’s crucial to remember the long-term benefits these meetings bring to your business.

Our goal is to help you free up your time as a business owner, increase efficiency, and grow your business and profits. This guide builds on our previous discussion about management meetings and goes beyond the basics to demonstrate the importance of prioritising these meetings and what to do when you simply have to reschedule.

 

Why regular management meetings are important

Management meetings provide a structured means for strategic decision-making. They allow you to step back from day-to-day operations and focus on top-level decisions that shape the direction of your business.

Management meetings also encourage transparency and collaboration among senior team members and give you an opportunity to review Key Performance Indicators (KPIs) to measure the success of business activities.

As a business owner, the more insight you have into business operations, the more information you have to make educated decisions to increase efficiency, grow your business and increase profits.

Learn more about the importance of regular management meetings and how to run an effective management meeting by reading our previous guide: Management Meetings: The Secret to Strategic Success for Small Businesses.

 

How to avoid rescheduling or cancelling your management meetings

The simplest way to avoid cancelling a meeting is to find a regular, typically quieter time. However, when unavoidable conflicts arise, keeping your meetings productive and engaging can remind members that prioritising attendance over operational needs does have its benefits.

 

1) Encourage each member to contribute to the agenda

Members are more likely to attend a management meeting if they have an invested interest or a purpose to show up. Before each meeting, ask each member to add an agenda item they would like to discuss. This method also allows you to better prepare meeting agenda topics and helps encourage quieter team members to participate.

 

2) Rotate the meeting lead

Rotating meeting leadership can foster engagement by providing a fresh perspective. Rotation can also create personal growth, a sense of ownership, and empathy by allowing each team member to prepare and experience the challenges of hosting a meeting for themselves.

Top tip: Ensure each meeting still has structure so important topics aren’t missed. This structure will also comfort anyone unfamiliar with taking the lead.

 

3) Share something new

While specific topics should be covered in each meeting, introducing new information can help keep meetings engaging and encourage members to prioritise attendance. New information can include new research results or activities.

Top tip: To maximise the impact, you can build suspense by sharing a highlight prior to the meeting but only reviewing the full information during the meeting.

 

Tactics for when things get busy

When you feel that the demands on the business outweigh the importance of a meeting, why not put some systems in place to ensure you’re at least getting the highlights?

Here are some practical ways to keep business insights transparent:

 

1) Hold a short business ‘health check’ meeting instead

Still have a meeting, but limit the meeting to 15 minutes and highlight the top-level KPIs, such as revenue, sales and cash flow. Avoid assigning any action points, but agree on a fixed (ideally immovable) date when you can have a full meeting.

 

2) Send a summary email

If a meeting needs to be cancelled or moved, outline the top-level KPIs in an email. You could also include a summary of any notable topics that need to be discussed in the full meeting. This allows managers to review things in their own time and prepare for a full meeting.

Top tip: Avoid having a meeting over email. Note any comments in replies, but encourage meeting participants to bring their thoughts to the full meeting.

 

3) Collaborate over messaging services

While a formalised in-person meeting is always preferable, practicalities can get in the way. If participants can collaborate over Messenger, you can set up a dedicated management Slack or Teams channel to post quick updates on critical metrics and urgent matters.

 

How ETC can help

Management meetings are vital for small business owners, and you should always do your best to keep up with regular meetings. These meetings help you make strategic decisions, track your progress towards objectives, and maintain the regularity needed to sustain growth. The transparency and collaboration fostered in these meetings can lead to more engaged and motivated team members. They are the compass that can guide your business toward greater efficiency, profitability, and long-term success.

If you need help finding ways to make your meetings more engaging or embracing the practice of management meetings, no matter how small your business may be – even if there are just two of you – we can help. Please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

As your business grows, so can your team, bringing new dynamics and challenges to the workplace. As a small business owner, your role in managing individuals within your business will become both an art and a science. People are the heart of your business, and your people-related skills are crucial in becoming more efficient and preventing disturbances that can drain resources.

In this article, we’ll explore practical strategies for effectively managing a growing team, from understanding individual motivations to fostering a productive and cohesive work environment.

 

The evolution of your team and how to get the best from them

Small businesses often start their growth by employing friends, family, or someone they already know and trust. These relationships can be mutually beneficial and more cost-effective. These individuals are usually motivated by something your growing business offers that an unfamiliar business does not; this could be loyalty, flexibility, or the potential of greater financial reward (a stake in the company).

While these circumstances can present unique challenges, such as maintaining professional boundaries or addressing performance issues, they can usually be resolved through your experiences as an established relationship.

As your business grows, you are more likely to seek talent from outside your known circle using a recruitment agent, LinkedIn, or a recruitment website. In the early days, these individuals could be considered ‘mercenary’; after all, they are likely to have no loyalty to your business, and the whole process is transactional – payment and rewards for services delivered.

Your people management skills are critical to moving people from a mercenary mindset to establishing long-term loyalty and managing the different goals and motivations between the two employee types. However, your investment in people management will help foster a productive and cohesive work environment.

 

Understanding individual motivations

As your team expands, it’s essential to recognise that each team member is unique, with their own goals, motivations, and aspirations.

Understanding individual motivations is a crucial aspect of managing a growing team. Taking the time to get to know your employees personally and understand what drives them is the key to inspiring, motivating, and empowering each individual to contribute their best to the team.

 

Managing motivation and productivity

With the introduction of new team members, maintaining motivation and productivity becomes increasingly important. Unlike hiring individuals you know personally, new hires may lack an established loyalty or attachment to the business.

To help establish loyalty and familiarity with goals and expectations (for both you and your employees), you can implement the following:

• Team meetings where you outline the current position of the business, your short, medium and long-term goals
• Hold regular review meetings with each employee, during which you can discuss individual expectations, goals, training opportunities, and potential progression

 

Building a positive work culture

Creating a positive work culture is critical to retaining top talent and fostering a sense of belonging within your team. You should lead by example and cultivate an environment of open communication, trust, and collaboration.

To help establish this, you can:

• Create a means of recognising achievements, such as a rewards scheme or a simple acknowledgement during a company announcement
• Organise away days to help establish team familiarity outside of the office or to ensure members meet up if you work remotely

 

Effective communication and feedback

Clear communication is essential for managing a growing team effectively. It’s essential to communicate expectations, goals, and responsibilities to all team members.

Regular feedback and constructive evaluations will help employees grow and improve their roles. Encouraging open dialogue and active listening is crucial to address any concerns or challenges.

 

Conflict resolution

Conflict is inevitable in any workplace. Establishing a process for addressing conflicts promptly and constructively is essential to overcome conflict in the workplace quickly.

It’s sometimes best to allow employees to address disputes directly with the individuals involved; this will help them self-regulate future conflicts and help employees learn boundaries and respect for one another. The goal here is to create mutual understanding and healthy team growth. It should not heavily impact productivity.

If a conflict escalates and has a negative or noticeable impact on productivity, as a leader, be prepared to mediate disputes when necessary and facilitate constructive dialogue to find mutually beneficial resolutions.

 

How ETC can help

Managing a growing team in a small business environment can be challenging, but it also presents a unique opportunity for personal growth and development. With the right strategies in place, you can manage your team effectively and enhance your skills and capabilities.

If you need help managing individuals, finding the right motivation strategies, or addressing team conflict, please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

As a small business owner, delegating responsibilities and assembling a management team are crucial to long-term success. These individuals drive business growth and foster a culture of collaboration, innovation, and trust.

This article explores the fundamental principles and strategies for building a management team that propels your business forward.

 

Why establishing a cohesive management team is essential

As a growing enterprise, entrusting others with your vision can be difficult. Yet, delegating responsibilities within your business is one of the best ways to grow your business.

A management team isn’t just about managing people; it’s about strategic oversight and decision-making.

To grow your business, you should bring together individuals with diverse skills, experiences, and perspectives to help tackle new challenges, make strategic decisions, and drive innovation.

 

Fostering Cultural Alignment

One critical factor in building a successful management team is ensuring cultural alignment among its members.

While diversity of skills and perspectives is essential, it’s equally crucial that team members understand your business goals and share your values and priorities. For example, a management team of individuals with conflicting priorities, such as revenue generation versus customer service, can lead to internal friction and hinder overall progress.

While there will always be some differences, it’s essential to aim for balance and foster a culture of respect and alignment to ensure cohesion and unity within the team.

 

Balancing Skills and Roles

Creating a well-rounded management team with diverse skills and expertise will allow specific areas of your business to flourish.

As a small business, merging roles is sometimes necessary to keep overall costs down. For example, you have one person to manage HR and daily Accounts. While this is cost-effective, you may find one role takes propriety over the other. As your team grows, you may start separating these responsibilities among multiple individuals.

As your team grows, you should assign roles based on individual competencies and ensure they align with your business’s strategic objectives. This will maximise the impact of each member’s contributions.

 

Nurturing a Collaborative Environment

Effective collaboration is at the heart of a successful management team.

Encouraging open communication, idea sharing, and constructive feedback among team members will foster a collaborative environment where everyone feels valued and heard.

Promoting a culture of teamwork and mutual support will empower your management team’s collective potential, helping them overcome challenges and seize opportunities together.

 

Make difficult decisions early

Your management team is there to relieve your pressure as a business owner by assuming specific strategic responsibilities. You also need to make sure your values are aligned, as this will help them tackle unexpected challenges similar to how you would handle them.

One of the most challenging things about employing people is removing them from the business. However, it’s important to stay agile in your hiring and ensure you’re filling your business with the right people. It’s not always easy to spot a bad hire during the interview stage, so be fair to them, but be honest with yourself and learn to make difficult decisions early.

 

How ETC can help

If you need help identifying which roles your business needs first, please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

As a small business owner, growth and profitability hinge on the effectiveness of your management practices. Regardless of how many staff you have, the management of your time, finances and resources all play a pivotal role in shaping the trajectory of your business.

Taking the time to establish a defined organisational structure is the foundation of your management success. Clearly outlining roles, responsibilities, accountability, and defining hierarchy (no matter how loosely) will give everyone in the organisation clarity, purpose and, most importantly, direction.

 

Why establishing an organisational structure is essential

Many small business owners and managers struggle with delegation. However, your business can’t grow if you do not relinquish specific tasks in favour of new responsibilities.

Establishing a company hierarchy doesn’t mean you’re creating an old-fashioned, authoritarian or tyrannical enterprise; in fact, it is quite the opposite. An organisational structure will:

1. Help staff identify leaders within the business.
2. Define those responsible and accountable for tasks within the business.
3. Create transparent progression pathways.
4.  Identify gaps within the organisation.

 

Identify leaders within the business

A clear organisational structure enables employees to identify leaders and decision-makers within the business. It also gives staff a clearly defined place to go for help and advice on business issues.

As your business grows, an organisational structure will help new staff
understand any change in dynamics and dispel any blurred lines in management.

By knowing who to turn to for workload distribution, guidance and support, employees feel empowered to seek assistance and collaborate effectively.

 

Defining responsibilities and accountability

Assigning roles and responsibilities will clarify expectations and ensure accountability for tasks and outcomes.

In defining responsibilities and accountability, employees understand their contributions to achieving the organisation’s goals, allowing them to take ownership of their work, leading to increased efficiency and effectiveness.

Responsibility
Responsibility is having a job or a task to do. For Example, if you’re responsible for feeding a dog, it means it’s your job to make sure the dog gets fed.

Accountability
Accountability is about taking ownership of what happens. So, if the dog isn’t fed and it gets sick; you’re accountable and may need to explain what happened to the vet. It’s being responsible for the consequences of the responsibilities, whether they’re good or bad.

An individual may be both responsible and accountable; however, it’s still always best to ensure this is defined and everyone understands their role.

 

Pathways for progression

An organisational structure provides visibility into career advancement opportunities and progression pathways within the company.

By outlining clear paths for professional development and growth, employees can feel more motivated to invest in their skills and contribute to the organisation’s success, reducing staff turnover and fostering talent retention.

 

Planning for the future and identifying gaps within the organisation

Creating an organisational structure with established roles and responsibilities can help highlight areas of overlap, inefficiency, or deficiency within the company.

Overlap of roles and responsibilities is to be expected in small businesses as business owners often wear many hats. However, by identifying every position within the organisation, you may find opportunities to engineer changes within the company to outsource or create a new position in which to delegate tasks.

 

How to create an organisational structure

Here are some simple steps that business owners can take to establish an organisational structure:

1. Start with roles and responsibilities
Create a list of all the roles within the business (actual and ideal) and assign a name next to each. For Example, you may need the following positions within your company:

• Accountant
• HR
• Head of Sales
• Director of Marketing
• Cleaner
• Receptionist
• IT Manager

One person may be next to several of these roles. However, this is the reason we start with roles, not names, as it can help highlight areas of overlap or unstable dependency within the business (if one critical person were to fall ill, is the business too vulnerable).

2. Create an organisational chart
This is a visual representation of the reporting structure of the company. There are many variations of this, some modern and equal, some more traditional and hierarchical. We recommend you do some research and see which model works for you – HubSpot has some further information. However, if you need a starting point, everyone is familiar with the hierarchical chart.

The hierarchical organisational chart depicts the chain of command from top management down to frontline employees. It typically consists of vertical levels, with each level representing a different echelon of authority within the organisation.

 

 

 

3. Create an organisational chart for the future
Once you have created an organisational chart for how the organisation works now, identify how it might look. This future model can be particularly motivating to the staff of small and growing organisations as it shows how they can either develop or recruit support in the future.

4. Regularly review and Update Structure
Ideally, you should review and evaluate your structure to ensure it remains aligned with the company’s goals and objectives. Don’t be afraid to adjust to accommodate changes in the business environment or business needs.

 

How ETC can help

If you need help creating an organisational chart, dispersing roles and responsibilities or streamlining your business management to increase your profits, please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.

As a small business owner, a fundamental way to grow your business and profits is to become more effective at management – in all its forms.

The term ‘management’ is often mis-associated with the management of people. However, it’s vital to recognise that its application spans all aspects of your business, regardless of size – whether you’re a sole trader or SME.

This guide aims to help business owners identify and implement simple improvements to the management of your business. Effective management will free up your time as a business owner, delegate responsibilities efficiently, and help increase your awareness of your business. In turn, you will experience increased efficiency, grow your business, and increase your profits.

 

The different types of management you need in a small business

 

Organisational structure

Establishing a transparent command structure within your organisation will give people authority, demonstrate a clear promotion path, and define responsibilities. Often, people work best when there is a healthy balance of autonomy and structure. As small business owners, you cannot do everything, so you need people you can trust to take responsibility for specific tasks.

Learn more about creating an organisational structure.

 

Building a management team

With the right people, your business will flourish, especially if you foster a culture of respect, collaboration, openness, and trust. While it’s important to diversify your management team, you also need to ensure goals and values align. For example, you need to mix people with different skills, but you may find conflict if some of your management team members are too driven by revenue while the others are on customer service. There needs to be a respected balance and cultural alignment.

Learn more about building a management team.

 

People management

Managing individuals is often viewed as more of an art than a science, especially for small businesses. People form the heart of your business, and people-related disturbances can become a massive drain on resources. You must understand the unique goals and motivations of each team member. This understanding becomes the cornerstone for devising strategies to inspire, motivate, and foster an environment where each individual can contribute their best.

Learn more about strategies for building and leading an effective team.

 

Management Meetings

It’s essential your management team, no matter how big or small, are all working towards your business objectives. Regular, structured management meetings are great for disseminating information and aligning company activity. The key here is to keep these meetings purposeful and avoid disrupting day-to-day operations.

Learn how to run effective management meetings and what to do when you simply have to reschedule.

 

Time management

Every business owner wishes there were more hours in the day. However, as much as we’d like to, we cannot control time, just how we use it. It’s important that you continually seek to be more efficient with your time. This includes setting deadlines, tracking time spent on projects/tasks and making time for reviews to reflect on performance and identify ways to become more efficient in the future.

Improve your small business operations, reduce costs, and increase profit with these practical time management strategies and tools.

 

Statistical management

In business, if you can’t measure it, you can’t manage it. Understanding how to interpret business data and key performance indicators will help you optimise performance and make informed decisions.

Better understand your business performance, discover the best statistics to measure, tools to help you monitor progress, and how to simplify your data analysis.

 

Change management

Change is inevitable, yet it is often met with resistance. Typically, humans don’t like change, and this can be most apparent with staff and customers when trying to implement unplanned change in an organisation. To reduce resistance, it’s always best to foster open communication and provide support to help any transition. Effectively managing change is integral to long-term business success.

 

Project management

A well-structured plan should always be the foundation for any undertaking. When starting any project, you should always clearly understand timelines, resources and projected/desired outcomes. Clear expectations and efficient resource allocation will always increase a project’s success.

 

Financial management

As a small business owner, you should always know your financial position; this isn’t your accountant’s job (as strange as it may sound). Accountants can tell you your history and provide a factual account of how much money you have. However, this information is only helpful if you combine it with your market experience and your sensitivity to risk.

 

How ETC can help

If you need help streamlining your business management and increasing your profits, please get in touch.

If you are new to ETC, why not contact us for a free new business review? We’ll spend two hours with you, giving you professional coaching and will leave you with actions for immediate implementation.