Business management corresponds to the use of resources to ensure the implementation of the project from the creation of a business. What are the main activities of the manager?
It is above all about:
- The forecast of the objectives to be achieved;
- Monitoring the application of the commercial strategy;
- Proactivity to deal with the unexpected.
The foundations of business management.
The activity of management, accounting, and administration is essential to ensure the functioning and development of the company after its creation.
What is the Management of a Business?
According to the accounting plan, business management consists of using company resources to achieve the objectives set by relying on a well-defined start-up policy. In general, it can be assimilated into management. However, it tends to rely more on the financial aspect than the human one. Whether it is a company (SARL, EURL, SAS, SASU …) or a self-employed company, after having defined the legal status of its company, mastering the fundamentals of management is important to guarantee his success.
The main categories of tasks incumbent on the manager consist of:
- Set the objectives to be achieved in advance;
- Define the action plan;
- Implement the adopted strategy;
- Respond to unforeseen events;
- Ensure management control.
More concretely, being a manager can lead, even before the creation of the company, to carry out acts on behalf of the company information, to have a company stamp established, to carry out various audits in marketing or on its products, or even to ensure the recovery of debts, etc. Distributing these tasks between different people or outsourcing your accounting is still possible.
What is Management Control?
Management control is one of the tasks of the management bodies. It is defined as the way of analyzing the objectives, the methods, the means to improve the performances.
The main mission of management control is to improve the management of the company. Its activity focuses on finding ways to make it more efficient, in particular by improving productivity.
To do this, it develops and offers useful tools:
- Analyze the different services to propose new working methods;
- Control, manage and measure the activity of an organization;
- Perform internal audits to ensure the effectiveness of strategies and resource implementation;
- Improve the structure of the organization.
The Abnormal Act of Management–
The abnormal act of management is a concept resulting from accounting and tax law. In principle, entrepreneurs have a certain freedom in their decision-making and the tax administration does not interfere in the choices of leaders and managers.
However, when certain acts are abnormal for the tax administration, it does not hesitate to correct the company. The decision of the Council of State dated December 21, 2018 Society Core Suisse gives us a definition of the abnormal act of management: it is the act by which a company decides to impoverish itself. For purposes unrelated to its interests. For example, we find debt write-offs, interest-free advances, or sales of fixed assets for a value below their market value.
Also, the entrepreneur must be careful not to carry out such acts likely to lead the tax administration to adopt sanctions.
What is a Good Manager?
Since its job is to predict, analyze, implement processes, lead and review. Therefore, a competent manager must:
- Focus on results: Define ambitious but achievable objectives with a view to competitiveness.
- Knowing how to delegate: The manager has a global vision of each persons skills, he usually reserves complex assignments requiring a lot of analysis and delegates the less important and most repetitive tasks.
- Define your leadership: Encouraging and giving meaning to everyones work is increasingly important and expected by teams.
How to manage your business well: The 10 essential tasks of the manager?
Any business creator or buyer must have the basics of management. Also, for entrepreneurs who perform managerial tasks alone, there are training courses in business creation and management. Indeed, some rules are essential to know.
Find Out About the Cost Price–
To ensure effective management, it is important to know the cost price of the main products and/or services. This indicator makes it possible to clearly define the selling prices and avoid losses. In addition, knowing the cost price is essential in seeking to improve profitability and margins. It is therefore important to understand the costs generated by the activity to remain profitable and competitive.
Limit Costs at The Start of the Activity–
Limiting costs at the start of the activity ensures good management of the company and its development. To establish a solid base, the entrepreneur must favor variable costs and limit fixed costs when launching the activity. To do this, expenses must be subordinated to the release of profits.
Manage Customer Accounts–
The contractor must ensure better monitoring of accounts from invoicing to debt collection. For example, customer invoicing must be done quickly at the end of the service provided or upon delivery of the goods. This helps ensure a quick maturity for an immediate impact on the cash flow. Payment monitoring must be put in place to reduce the risk of non-payment.
Monitor and Manage Inventory–
Inventory management is one of the essential rules. The contractor must ensure that the level of stock is optimal to prevent possible difficulties. To avoid stock-outs, the company must operate with sufficient stock, neither too low nor too much. Indeed, too much stock leads to additional costs and cash flow mismatches.
Manage Relationships with Suppliers–
During the launch of the activity and the life of the company, the entrepreneur must ensure the management of relations with the suppliers to ensure the realization of the activities. It is advisable to diversify the sources of supply to obtain the best offers and services and to avoid supply disruptions. It is also necessary to monitor the situation of suppliers as well as your accounts payable.
Create Cash Flow Forecasts–
The good administration of the treasury is also essential to the good functioning of a business. To deal with possible financial problems, it is important to create a cash flow forecast. It is mainly based on accounting.
Master The Key Concepts in Accounting–
Knowing the basics of business management (cash agreement, the confidentiality agreement …) and accounting is necessary to properly run his business. Although the accounting can be performed by a professional, the creator or the buyer must know the following concepts to carry out a follow-up:
- The breakeven point or breakeven point (PM): The business plan must have a breakeven point to reach. It is only beyond the break-even point that the company generates its first profits;
- Working capital (FR): this is the capital available to ensure the daily functioning of the company. It is calculated as follows: FR = (equity + term loans) - investment expenditure;
- The working capital requirement (WCR): this is the companys cash flow mismatch. It is calculated as follows: WCR = stocks + trade receivables - trade payables.
- The cash flow statement: to find out the general cash flow statement, just apply the following formula: Cash = Working Capital (FR)
- Need for Working Capital (WCR).
Establish Quality Control–
The implementation of quality control makes it possible to assess the quality of the services and products offered and to implement improvement solutions if necessary. This method is essential to ensure the dissemination of a positive image of the company to customers.
To run your business, its important to measure your performance. This involves monitoring cash flow, identifying unnecessary expenses, defining areas for improvement, identifying development opportunities, and making financial projections.
In the area of business management, it is important not to forget to pay taxes on time before the closing date of the first financial year and others. Late payment can lead to significant financial risks and penalties.
In principle, the payment of taxes is carried out as follows in France:
- Corporate tax (IS): Payment of 4 quarterly installments to be made before March 15, June 15, September 15, and December 15;
- Corporate tax balance: Payment no later than 4 months and 15 days following the end of the financial year.
The Business Management Consultant: Role, Missions, Qualifications–
Hiring an advisor is an effective solution to ensure better management and guarantee better management. This professional is also known by other names such as consultant in economic intelligence, manager in the business organization, consultant in performance analysis, or consultant in organization and management.
Skills, Qualifications, and Salary–
To fulfill his role and carry out his missions, he must often prove certain skills. This professional must know the standards and procedures for quality, risk management, and internal control. It must also master the environmental and social protection regulations. Knowledge of the affiliation, recovery and pre-litigation process and procedure is one of his skills.
To become a business management consultant, following training courses such as a Master in economics tuition and social administration, business organization, management, commerce, or human resources is recommended. Justifying experience in the field is always an advantage. This is why many courses are alternated.