Proverbs 4:7-8 holds a piece of wisdom that can benefit every Christian entrepreneur. The verse advises, “Getting wisdom is the wisest thing you can do! And whatever else you do, develop good judgment. If you prize wisdom, she will make you great. Embrace her, and she will honor you.” Business management is no different. If you want to manage your business effectively, you will need to acquire wisdom and develop good judgment.
Business management requires planning. If you don’t have the right strategies to implement systems, your business will run into trouble. This blog post and corresponding episodes of The WealthBuilders Podcast reveal 7 keys to effective business management. They are:
1. Document a plan with KPIs
2. Develop a Dashboard based on those KPIs
3. Document and identify the key areas of your business operations
4. Identify and document positions for each area
5. Create recipes for success for each position
6. Manage and oversee the activities that are being done
7. Measure the results
1. Document a plan with KPIs
Andrew Wommack says, “If you aim for nothing, you will hit it every time.” Christian entrepreneurs are called to steward our businesses well, so we need to have a plan in place.
What are your KPIs (Key Performance Indicators) for the next three to five years? Your quality control process should revolve around these. First, define what success looks like for you and your business. Then, organize your KPIs and business objectives into categories. These KPIs will help you measure whether or not you are successful. They will also inform you of adjustments that could improve your business or ministry.
2. Develop a dashboard based on those KPIs
After you list your KPIs, you’ll need to develop a dashboard or a system that you can use to track them. You don’t need a fancy system to manage your business when you’re getting started.
You can’t manage what you don’t measure. That’s why organization is so essential in business management.
I list out my KPIs and use a spreadsheet as my dashboard to track them. I outline categories like my budget, year-to-date variance, and month-to-date variance.
If you’re lagging in any area of your business, this is a sign that the activities on your dashboard aren’t being done effectively. My team and I review the KPIs on this dashboard weekly so that we can make adjustments to our plans that will keep us in line with our goals.
3. Document and identify the key areas of your business operations
You’ll need to identify your business operations’ key areas and activities for effective business management. Once you identify your business operations and key areas, it’s important to document them.
One great way to identify our business operations is through The Business Model Canvas (BMC). The BMC is a one-page business plan that will become the foundation of your business operations.
We have many teachings about the BMC at Wealth Builders University. If you’re unfamiliar with how to create a successful BMC, you can start by reading the following blog: The Business Model Canvas Explained.