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Planning the Management of a Company – Part 2

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Finance

Most business plans linger to this function because they are written to obtain loans or investments as well as for forecasting and budget. As money is the blood that feeds the company, a business operator must always know his assessment of financial health. It must therefore rely on a realistic forecast of cash flows (although these estimates are difficult to make). To do this, you should establish a spending budget, followed by an overview of potential revenue. Most of this information can be obtained by studying similar businesses and adapting the information that relates to the new company.

Human Resources

One of the mistakes that often planners make is to stick to financial considerations related to hiring. However, they should give equal importance to the ability to hire and the match between candidates and vacancies. For example, if an industry is facing acute shortage of manpower, the planner will benefit from understanding what attracts workers and give them what they want. Nowadays, managers must treat employees as customers and understand their behavior.

Technology and equipment

This function includes not only the equipment necessary for the operation of the business, but also issues related to communication technologies for marketing and sales, or transportation. You must identify the needs and then balance according to budgetary requirements. In addition, it may be required to demonstrate originality in the management of technology and equipment. For example, some equipment can be costly and be idle most of the time. The planner might want to consider its location if necessary, or outsource this aspect.

Operation

In most companies, this aspect is not only equipment, but also the process. Essentially, the activities related to the operation of the company are interested in creating products or services and their delivery to customers. In most situations, the business owner wears many hats, including that of Chief Operating Officer. In fact, it is often good knowledge of an area of operation that encourages most people to go into business.

The formula is simple: the better the leadership, the more successful the company. And, always being in the system and keeping an eye overall is really required for a new business to be operational and successful.

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