Business Management: A process that has to be carefully followed for success

Whoever wants to go into business needs to know beforehand the kinds of problems s/he intends to solve. In essence, businesses are to solve some kind of human problems or needs. However, to solve human problems is not eaAs business owners try to solve human problems, they meet various kinds of difficulties. Such difficulties may be looked at in terms of business processes such as registering the business, operating them for success and eventually winding up the business, as the case may be.To set in business one needs to complete a number of processes. 

First, you need to choose the business structure. This could be a sole trader, limited liability company or partnership.

Second, once a business structure is decided, the next process is to find your unique business-operating name. This name cannot be duplicated. Otherwise, the registration process will be rejected.

Third, once a business structure and name are decided; then the business owner may now register the business with relevant government body to make it a legal entity. Apart registering the name of your business, it has to have taxation registration for compliance purposes. Once these processes are completed, your business can obtain a license to operate. These are the first set of business problems an entrepreneur must go over.

The second set of processes in the business is to literally operate or manage it. This process also has its peculiar problems. For instance, one needs to find a place where to operate the business. Therefore, a location for putting up the offices of the business is required. However, with the advent of information technology, business location does not necessarily need to have a physical place. There are now millions of businesses that operate online.

Another important decision for operating a business is to fund it. How are you going to finance the business? These could be out of personal savings, grant, and loans and so on. Deciding how the business financed is crucial. If a loan is secured for this purpose then interests and principal will be paid back later.In addition to above, setting up a business requires human capital to run it. You will need experienced and skilled people to support all business functions. These may include an accountant, sales person, human resource people, production, and so forth. The resources are ploughed-back into operations of the business.The business owner may also need working capital to purchase inventory if there is need for that.

Putting all the above factors in place may not ensure the success of the business. Business owners normally experience a number of management problems. According to Cheryl Conner, in an article on Forbes, she mentions eight key problems. Some of which like funding and staffing are already mentioned in this articleFinally, winding up a business could be planned, or it may happen when continuing to operate it do not seem sensible or sustainable. A number of factors may force a business to wound-up. One of the obvious reasons is to wind up an undertaking when it continues to make losses.

Another reason could be a merger and an acquisition from a competitor. It sounds strange, but a lot is happening with business mergers and acquisitions these days. Even these aspects of business life has be handled as a process. There are complex processes of handling mergers and acquisitions.

In conclusion, this article demonstrates that business management is a process of registration (legalization), management and winding up. Next article will demonstrate detailed processes of the above three key parts.

Nicholas Okumu, MSc., FCMI, FIC.

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Nicholas Okumu MSc FCMI FIC
15.02.2019