Small and Medium Enterprises Development Agency of Nigeria

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MANAGEMENT PRACTICES FOR MICRO, SMALL AND MEDIUM ENTERPRISES It has been acknowledged that most small businesses fail not because of lack of funds but because of poor managerial skills, key issues in managing your business are: You plan your activities You organize your activities You lead your employees / apprentices to achieve the planned results You control the activities to ensure that you are moving in the planned direction

That is how to manage in order to get results. You need core management skills for small enterprises to avoid running from pillar to post, leading to businesses failure.
You are already been exposed to: How to start and grow your businesses How to develop a businesses plan How to create and retain your customers These are critical training for ensuring that you move your business forward. Yet there are core skills you need for the day to day effective managing of your business.

TIME MANAGEMENT SKILL Time is a unique resources. It cannot be saved like money or stored like goods. It cannot be retrieved. Time is precious.
To use your time effectively, it requires planning. Most entrepreneurs fall into the trap of not being able to manage their time, they have divided attention to every thing. A major step in managing your time is setting your priorities and knowing where your time goes every day.

External Time Wasters Internal Time Wasters - Meetings - Waiting replies Poor delegation Attitude

- Weak job Definition

- Bureaucracy

Disorganization
Indecision

- Travel
- Work overload - Interruptions - Changing priorities

Social life
Lack of planning Unclear Personal goals Poor discipline

TIME MANAGEMENT TECHNIQUES

* Set priorities and do essential tasks first * Do related activities together

* Break big jobs into small tasks

* Schedule events in a timetable (have a to do list daily)

* focus on one task at a time

* Complete tasks

* Organize yourself
* Delegate tasks as much as is possible * Take action now

THE INFORMATION MANAGEMENT SKILL Todays business world is information - driven Class Discussion: Write down five pieces of information that are important for success in your business. To manage information effectively, you must keep the following key points in mind: * * * * Obtain: accurate information Record: the information in a manner that is meaningful Store: the information in a manner that enables fast retrieval Evaluate: it regularly to ensure that it is meeting your current and future needs.

SOURCES OF BUSINESS INFORMATION There are two types of sources formal and informal Formal: Internal:
* Business documents invoices, receipts,

* Annual Report and Accounts

* Accounting Records * Files

EXTERNAL
* Business Journals, Newspapers and Magazines * Business Support Services Centres

* Chambers of Commerce, Trade Groups

* Research Reports and Studies

* Your Bankers, Auditors and Lawyer

* Internet - Websites

* Directory, Yellow Pages and Guide

* Seminar, Workshops and Training Programme * Government Ministries, Departments and Agencies

Informal Sources:
* Discussions with Staff / Corporate / Friends * Personal Networks * Grapevine Information System: * Filling of documents (manual) * Data base * Have e-mail addresses

INTER PERSONAL RELATIONSHIP / COMMUNICATION MANAGEMENT SKILLS Business enterprises like any other organization, are social systems. In every social system. people interact regularly.
Good inter-personal relationship management skill is important for your business success Effective communication skills is important in relating well with the following: Employees, Customers, Suppliers, Government Officials, Friends, Competitors, Business Associates and Advisers.

* You must relate decently with the opposite sex in the course of your business. * You must be a good listener in order to understand others views before responding or reacting. * Be sure to observe the 6cs of communication Is it clear? avoid double meaning, use simple terms Is it complete? delete things that do not add information, be brief Is it correct?- check that all information is correct Is it complete? Be sure you include all necessary information Is it courteous? make it pleasant, sincere and tactful Is it concrete? avoid abstracts be precise Assignment: write a brief message to a customer owing you N150,000.00 asking for the payment.

HUMAN RESOURCES MANAGEMENT SKILL In every enterprise or organization, human resources is the most important asset; particularly in small businesses with few employees and limited financial resources. Key issues in HRM in small businesses are: * Determine how many employees or trainees / apprentices you need (THINK BIG start small) * Hire or get people with the right skills and attitude for your type of business

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Give the personnel appropriate orientation Ensure that they buy into your vision for your business Hold periodic meetings with your employees / apprentices Pay fair but economic wage Be a coach to your employees / apprentices delegate duties where appropriate Take interest in their welfare and future Have respect for your employees /apprentices Train them in areas and skills that will enhance their performance

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Appraise their performance periodically, eg, every six months.

Avoid discrimination in treating them. Motivate your workers for greater productivity. Every organization has three vital assets your products / services, your customers and your employees. Mishandling any of these can lead to business failure

CONFLICT MANAGEMENT SKILL In your day-to-day business relationship, conflicts may arise between you and your customers, employees, business associates and competitors. Conflict management skill is critical to business success. What is conflict? A situation where people disagree on an issue or issues based on principle, perception or values.

Causes of Conflict: * Poor communication * Differences in values * Differences in goals, wants or needs * Differences in perception * Personality clashes * Competition * Change

HOW TO RESOLVE CONFLICT: To effectively resolve a conflict, it must be a win-win solution * Initiate discussion * Give good information * Get good information * Identify the core problem * Generate possible solutions * Jointly evaluate possible solutions * Decide together the most acceptable exit to the problem * Be committed to the agreed decision

SUCCESSION MANAGEMENT SKILL

It is said that the test of a successful entrepreneur is in successfully handing over his / her business for continuity.

Present Realities
Most micro, small and medium enterprises are family businesses Most small businesses are owner - managed Almost all of them have no succession plan When they die, their business dies with them Your business should continue even when you are not there.

HOW TO ENSURE THE CONTINUITY OF YOUR BUSINESS *

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Formalize your business through registration Put proper management structure, accounting records and information system Seek the support of business development and support services providers Identify potential successors, expose, train, guide and groom them Pick the ultimate successor It could be your son, daughter, another family member or a trusted non family member