Owning and managing an organization is a huge responsibility as the entire business operations are dependent on the owner who calls the shots. As an owner, the person has to be aware of every operational activity undertaken on a daily basis along with supervising the managerial decisions, meeting with prospective clients, overviewing the cash flow and of course engaging in people management activities. In general, business owners are responsible for the growth, stability, direction and daily operation of the business.
Hence, the role of a business owner becomes very critical as the person has to utilize his time in the best productive manner to attain the business objectives at a constant pace. This article is all about emphasizing the most important roles that a business owner should undertake for continual business operations. However, before that, it’s vital to define who is a business owner and how different he’s from an entrepreneur as both of them has similar characteristics but with striking differences.
Business owner vs Entrepreneur
Not every entrepreneur is a business owner. They might have started as an entrepreneur but once they are settled in managing their existing business, be it a new venture, a family business or even buying a franchise, they are Business owners as they own the business and work solely to run their current business. An entrepreneur on the other hand, creates a vision for a new business model, they innovative business ideas, and acumen but they don’t settle in one business or continue to run it over the years. Therefore, both are very lookalike, however, are miles apart by their virtue of work.
Designing the framework
All the activities undertaken by a business owner are very diversified in nature. A business owner has to wear the architect’s hat as he designs the framework of the business which is undoubtedly the most important role. He formulates the master plan of the business along with defining new services, products, business plans, and new business models. These tasks are of high relevance to the business and hence must be taken very seriously by the owner.
If the owner is able to align the system and internal processes as per the nature of the business, it helps to minimize the efforts the owner has to put in every day.
It’s all about how efficiently and effectively the owner is able to define his framework on the drawing table and executes the tasks with sheer accuracy which results in cutting down his time and efforts in a big way. Developing an SOP is a part of the owner’s job role which proves very helpful for the employees in future.
Employee management
The business owner knows about his business well and therefore he’s the best coach or mentor for his employees. It’s important to invest in the personal and professional growth of your team members as it increases productivity and enhances the level of teamwork. The owner has to educate his employees about the working guidelines, sharing best practices, and conducting refreshers sessions about the updates in the SOP. An ideal owner should believe in ‘macro’ managing things like defining the organizational chart, believing inconsistent ‘success factors’ and managing supervisors.
Building and nurturing your team is an integral component for achieving business goals and therefore a business owner has to monitor if the employees correctly follow the system or still there is a scope of training and utilizing the staff to get the best results.
Marketing
Even if you have the costliest gem of this universe until you showcase it your friends and relatives, nobody will ever come to know. The same logic applies to the business front too. Even after devising the best business model, you need marketing and sales to drive your business. Depending upon the nature of the business, the owner has to design a proper marketing strategy and use multiple platforms like print advertising, public relations, online marketing, networking, or even cold calling. A good way is socializing at events and sharing your business cards with your prospective clients. Use of social media platforms such as Twitter, Facebook, or even emails can also be effective means of promoting your business in today’s modern era. However,
The owner should be very sure and convinced in finalizing the type of marketing as it can make or break your future as this task is dynamic in nature.
Financial management
One aspect where an owner has to play a key role is financial management which in actual terms is much more than doing accounting! Although your accounting person can manage the daily tasks like day-to-day accounting, check writing and reviews, it’s the owner’s job to foresee and provide the financial stability to the business. You are accountable for reviewing the quarterly financial performance, annual forecasts/budgets, and audits. It’s the owner’s role to manage the organization’s financial resources in the best way to achieve its objective of getting maximum returns. It includes mapping the financial and non-financial resources with the business goals to ensure the running of the business is improved.
Irrespective of the size of the organization, the owner should have an idea about how to raise the capital, investment areas and lastly how to utilize the flow of money into the business. You can take a help of a tax consultant for taking the allowable deductions and paying your taxes on time.
Communication
As an owner, it’s your duty to get the job done and without having a positive communication system in place, this is never possible. You have to make sure that your viewpoints and directives are understood and recognized at all levels. It’s important to communicate effectively to create the right balance between you and your staff. Your decisions, viewpoints, and corrective measures, everything should be communicated to the concerned person or team. Also, discuss the same with your supervisors to ensure you are not missing something important. Allowing stakeholders to provide a positive feedback and incorporating the changes is the best form of 2-way communication which has to be initiated by the owner.
To read more articles related to this topic click here: How Predictive Analysis is doing Wonders in Retail !!! | YRC,How to write Standard Operating Procedures for Furniture Showroom | YRC, How to Develop Standard Operating Procedures for Quick Service Restaurant (QSR)?, Manage Staff Problems in 5 Most Effective Ways, 05 Most effective ways to get free from Daily Business Operations, How to write Standard Operating Procedures for an Apparel Brand?, Do I Take Franchise or Start My Own Business…? | YRC 5 Most Effective Ways to Manage your Team | YRC.
YRC is an “Expert Service Division” of Mind-A-Mend Consultancy Pvt. Ltd.
