The Importance of Small Business Management: Tips and Tricks

The Importance of Small Business Management: Tips and Tricks

Most people start a small business because they’re passionate about what they’re selling. Some love the appeal of being their own boss, while others want to share their vision and make a huge change in their target market. What few new owners realize is the importance of small business management and how it can dramatically alter the trajectory of their business.

One of the key challenges facing small business owners is that while they’re experts in their field, they may not have the necessary experience to run a business. In addition to knowing their market, business owners must become experts in finance, marketing, and business management, all while handling their day-to-day operations.

It’s not impossible to start a small business without a business certification, but it certainly is more challenging. Understanding the basics of business management can significantly reduce your stress, especially during the formative years of your company.

Table of Contents

Why Is Small Business Management Important?

Reduces Costs

Improves the Lives of Employees

Creates Effective Working Groups

Allows for Better Resource Utilization

Assesses and Mitigates Risks

Key Management Functions

Many researchers have tried to define management and break it down into its constituent parts. One of the most popular models is the Koontz and O’Donnell model, which breaks management into five key functions:






Important Traits of Small Business Managers

Understanding the importance of small business management is only the first step to implementing correct management practices. Almost anyone can learn business management practices, but the challenge is implementing them in your small business. 

It’s also vital to make a distinction between management and leadership. Leadership is the ability to inspire and direct people to do their tasks effectively and well. Small business management covers a much larger range of skills that don’t involve the ability to lead. While being a good leader can make for a better management style, leaders don’t need to be good managers. 

Most small business owners have certain traits that make managing a business easier. Successful business owners will eventually acquire these traits during their learning process as they’re a key component to succeeding in business. 

These traits include:

  • Vision: Every business has certain goals. Vision is the ability to conceptualize these current and future business goals and have a method to get there. 
  • Passion: Most small businesses start due to a particular passion, and it’s important to keep that passion going. Both employees and customers respond favourably to business owners who love what they do.
  • Hardworking: Successful business owners are willing to put in the extra hours to help their business succeed. 
  • Decisive: Procrastination and indecision often result in missed opportunities. While having a modicum of caution is advisable, successful business managers must have the confidence to know when to act. 
  • Adventurous: A business’s path is seldom a straight line. Business owners should be willing to take risks and adapt their business to changing global and local trends. 
  • Willingness to learn: The world is changing faster than ever before, and business owners need to have the skills to navigate these changes. Managers have more management tools at their disposal than ever before, and using these tools can make running a business substantially smoother and more effective. 


Reaping the Benefits of Good Business Management

Every organization, no matter how big or small, benefits from having strong management. Good managers anticipate potential problems and find solutions that benefit the business. 

One of the most important challenges facing business owners is taking care of their employees. Finding the right group benefits plan can be difficult, especially when every insurance company has its terms and restrictions. 

Using a broker like Group Enroll can dramatically simplify finding the right small business health insurance that will scale with the business and number of employees. Group Enroll doesn’t just handle group dental insurance and healthcare; they also help business owners find group retirement savings plans, healthcare spending accounts, and group life insurance. 

Taking advantage of Group Enroll’s services is easy. All you need to do is fill in their online form, and an agent will get back to you with proposals from multiple providers. You can also contact us via email at or visit our offices directly at 10 Great Gulf Drive, Unit 5, Vaughan, ON L4K 5W1.