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12 BUSINESS MANAGEMENT SKILLS CHECKLIST. 16 GOOD BUSINESS MANAGEMENT PRACTICES. 7 Reasons Why Do Businesses Fail?

Do You Have Business Management Skills?
To help you identify where you may need to develop your managerial skills,
complete MANAGEMENT SKILLS CHECKLIST below and see how you score. Do you have what it takes? You need to answer yes to these twelve important questions.
If you didn’t answer yes to all the questions, you now have a guide as to where to focus your management training efforts. Some of these skills will take time to learn while others increase with experience.

MANAGEMENT SKILLS CHECKLIST
Using the following questions, determine whether you have the management skills necessary to run your own business.

1. Could I cope with constant pressures and deadlines?
2. Could I handle stressful situations without “losing my cool”?
3. Could I fire an incompetent employee?
4. Could I maintain strict credit control?
5. Could I refuse credit to a good but slow-paying client?
6. Could I adapt to constant change?
7. Could I maintain control of my daily, weekly, and monthly finances?
8. Do I understand how my business is taxed?
9. Do I know what a break-even point is?
10. Could I delegate responsibilities to others?
11. Am I willing to increase my skills in the areas that are lacking?
12. Will I use a business plan and regularly revisit it?

 

 

Why Do Businesses Fail?
No one likes to think of failure, yet business failure statistics are high. If you know why businesses fail, you can avoid making these mistakes. There are seven main reasons why the majority of businesses fail:

1. No planning and poor management
2. Lack of cash flow and capital
3. Wrong location
4. Inadequate marketing plan
5. Competition not researched
6. Wrong choice of business
7. Business grows too quickly

 

 

WHAT IS GOOD BUSINESS MANAGEMENT?

  1. Providing the right service or product at the right time, in the right location, at the right price
  2. Knowing that profit margins can support overhead, pay salaries, and meet personal commitments
  3. Ensuring that the business provides a steady year-round income and that you have a plan B for quieter months
  4. Astute inventory management to ensure a regular turnaround
  5. Keeping accounting records up-to-date and closely monitoring financial figures
  6. Regularly reviewing marketing strategies for their effectiveness
  7. Changing with consumer trends, technology, and the changing economy
  8. Making time daily for follow-up, marketing, and paperwork
  9. Monitoring accounts receivable and keeping in touch with slow-paying clients
  10. Understanding all aspects of your business and the industry
  11. Providing a better service than your competitors
  12. Becoming known as the expert in your field
  13. Being an active member in your community
  14. Diversifying—not putting all your eggs in one basket
  15. Continual networking and follow-up
  16. Planning for growth and having an exit strategy

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