Small Business Management, Administrative Techniques

Every small business has to apply administrative methods. A small business does have different needs to that of a larger concern and in this article we will be discussing some vital administrative techniques.

Cash flow

One of the most important factors of small business management is "cash flow", although small business management encompasses many different and varied aspects. Without cash flow you can do very little. So a firm grasp on this concept is vital. "Cash flow" is the amount of money that is available to keep the small business operating. Remember to overestimate on operating expenses and underestimate income. Keep extra cash flow for unexpected expenses and work from a regularly revised budget.

Cash flow is and has always been a big issue for small business managers. Factoring is a way in which small business management can take advantage of improved cash flow to improve the chance of growth.

Keep Inventory Moving

It might be tempting to stock up on too much inventory in order to be prepared. This is not necessarily true and can be wasted money. Inventory should not go beyond a quarter of what is required in order to keep it moving. Calculating inventory is based on realistic values according to sales.

Marketing

Small business management has got to include marketing. Marketing should never stop as it is the only way that customers will be aware of the business. If marketing stops, the business will stop. Funds should be set aside in the monthly budget for marketing purposes. Marketing may be conducted through use of the internet, flyers and newspapers relatively inexpensively and has to be an ongoing process.

The internet is a powerful marketing tool that is becoming the center of the world of trade. If your small business is aimed at an international market then it is vital to take advantage of this powerful marketing tool.

Target the Marketing

Targeted marketing is essential. If the small business is marketing and not receiving a response, then it is advertising in the wrong market. Get to know who your potential customers are and target business marketing to them. In this way it will be noticed and will not be a waste of money.

Books and Finances

All books must be kept up to date, this is the only way to keep you finger on the pulse of the finances in the business and is integral to small business management. You must make it clear to customers that products and services have to be paid for in good time. Keep all invoicing, tax and purchase receipts at hand in an orderly fashion. Learn to use and read profits and loss statements.

Presentation

If the business is situated in premises, part of small business management means that the premises have to be kept in a clean and presentable way. In particular the area in which customers come. This leaves a good impression on the customer; it is true that "cleanliness is next to Godliness". A dirty shop front will not attract old customers back nor encourage new customers to enter.

Brian Layne writes for Trianglease Magazine and has helped to compile a resource list for self-employed small business owners at http://www.organizedlivingworld.com/recos4independent.com

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