Establishing Your First Management Team

November 30th, 2015 by hesty No comments »

An entrepreneur has to get right the aspect of establishing the first management team for the enterprise due to its significance. For you the entrepreneur, the initial management team of your enterprise plays a vital role in laying the right foundation for your enterprise. This foundation comprises systems and subsystems, policies and procedures, personnel, ethics, culture, image, other resources etc that the enterprise relies on and thrives with. Future management teams will operate on this foundation and modify it gradually, if required. The team and its capability determines to a large extent the take-off and pace of growth and general progress hence the future and overall success of your enterprise. The team also sets the general direction and trend of events in the enterprise. Money follows management and investors invest in management hence your team matters a great deal.

Establishing this foundational team is one of the critical issues that you the entrepreneur have to consider at some stage of your enterprise. Normally you the entrepreneur are the first employee of the enterprise – especially for small enterprises. In some cases also close relatives initially come in to help you, though it is not very advisable to use relatives especially if they do not meet the job requirements. However, as the enterprise starts registering significant growth, and for it to have a foundation upon which it can launch out to greater heights of achievement, you need a solid management team. For small enterprises the need for a management team may not be so quick but for medium enterprises, and bigger scales of investments in the business, the need for a management team comes faster than one may think or imagine. In fact, most large-scale enterprises have management teams from the start.

You should have some wisdom to know when to start building a management team for your start-up. Most entrepreneurs are not good managers and hence a process to build a management team and delegate most aspects of enterprise management to it becomes mandatory. There is however, no single way in which you can establish your initial management team, as individual and unique circumstances of your enterprise determines the decision factors and the approach that you the entrepreneur will follow in this regard. Factors that you may consider in making this decision include your skills and competencies, your availability for the enterprise, your personal and enterprise vision, mission, goals and objectives, the size of the business in terms of investment, revenue, staffing, number of products, locations etc, cost implications of the management team, relevant statutory and regulatory requirements for some industries, and several others.

As an entrepreneur, you have to consider the vital functions in the enterprise, to guide your decisions on establishing your first team. Key members of a management team, for a sizeable enterprise, include the Chief Operating Officer (COO), Chief Marketing/Sales Officer (CMO), and Chief Financial Officer (CFO). Of course the overall leader of the team is the Chief Executive Officer or Managing Director. These titles in smaller enterprises may translate to Operations Manager/Officer, Marketing & Sales Manager/Officer, Finance Manager/Officer and so on. You should also not forget the human resource or human capital management role. You may not necessarily have all these positions filled at the same time. You may choose to do it gradually, depending on factors such as the urgency of the need, the costs involved, several operational issues within the enterprise etc. At times you may find that you the entrepreneur may play a role that may not warrant getting a fulltime officer for that specific function for some time.

You have to determine the management structure that is suitable for your enterprise, and this will guide you in establishing your team. The management structure is basically the functional framework that determines the positioning of the enterprise and its ability to handle challenges in the environment, enterprise adoption to the environment and the attainment of the overall goals and objectives of the enterprise. The structure also provides a framework for coordination of functions and people. Your managers should fit into positions within a structure that enhances flow within the enterprise, ensures responsibility and accountability including proper control, builds the culture of execution and also ensures efficiency and effectiveness within the enterprise.

Focus on what gives the desired results for your enterprise. Focus also on what is suitable. What works for one enterprise may not be the best for another enterprise. Your management team will depend on the structure for a guide so you also have to consider the hierarchy or the vertical layers of personnel within the system, and the chain of command or line of authority through which instructions pass in the enterprise. The bureaucratic structure is the most common though other structures such as matrix, network and virtual structures may be utilized by an enterprise. Structural transformations occur over time.

You should select members of your first team very carefully. The team should comprise people, that can effortlessly key into your vision and mission, being fundamentally aware of the enterprise and its growth and development goals and objectives, for the enterprise to benefit. They should be people, that can go the extra miles, even getting their fingers dirty; to get things done since building an enterprise at this stage has huge demands. People who have entrepreneurial qualities, and are street smart, are best suited for this beginning management team. If your enterprise is a small or medium-sized one, people with the big company mentality may not be suitable for this role.

By the way, do you desire to acquire more skills and knowledge in entrepreneurship? If so, check out Clayton’s book entitled The Wise Entrepreneur at Amazon.

Till then,

Clayton Mwaka

When do You Need a Financial Management Company on Your Side?

November 26th, 2015 by hesty No comments »

We live in a crazy world. Someone ought to sell tickets. It seems that people, especially those in the US, are always clamoring for products and services that they don’t need and ignoring those that they do. Financial Management is a prime example. Companies that provide financial management services are often inundated with requests from potential clients that really can’t benefit from their services while many people that should be using a financial manager of some kind are literally flying by the seat of their monetary pants without anyone to navigate for them.

So, how do you know when you need an accountant or financial manager of some kind working for you? Just ask yourself these questions:

o How many bank accounts do you have and what are the balances in each?

o How many investments do you have and what are their values?

If you couldn’t answer these questions without getting out files and statements to look up the answers, you may need to higher a company or individual to meet your financial management needs. If your bank accounts include a checking, savings, and maybe a CD or IRA account and you own ten shares of stock in some XYZ company, you probably don’t need a financial manager at this time.

Most reputable financial management companies will let you know up front whether you can benefit from their services. A few, however, will take on as many clients as they can, regardless of whether that client really needs a financial management team working for her.

Financial management companies can do a wonderful job of helping you turn your money into more of your money. Everyone would like to see a thousand of their favorite dollars become ten or twenty thousand of their favorite dollars. If, however, a thousand of your favorite dollars represents all of your dollars, you don’t need to worry about a financial manager at this time.

Property and Financial Management

November 22nd, 2015 by hesty No comments »

Property and financial management are both important aspects when you own commercial or residential real estate. There are many things to consider when trying running an organization or association, and many little things that need to be taken care of behind the scenes. This is why most associations will hire a management company to take care of things both little and small, so they can focus on dealing with homeowners and board members, instead of worrying about landscaping, security, and other maintenance issues that can become a nightmare. Placing the right personnel to run something smoothly will be the key to keep an association happy, and to keep members of a neighborhood or board of investors happy.

Some functions of the financial aspect of a management company are to collect paperwork and document everything accordingly. It is also their job to collect all fees and dues that are due each month from homeowners. If a homeowner is behind on paying their association fee, they will have to be properly warned and notified before fees can be issued. The financial management company will take care of all the paperwork during this process, and will be in charge of fines being sent to that specific homeowner. This part of management will also take care of paying out any services that have been hired by the management company, such as maintenance and repair work.

Property management works hand in hand with the financial aspects of the association. They take care of contracting on people to take care of the property. They will make contracts for yearly maintenance, monthly maintenance, and emergency maintenance. They will also take care of complaints from people who pay the association fee, such as streetlights that no longer work, or other problems. They will also be the ones who take in the bids of contractors looking to perform necessary work for the association. Everything that they do, they will send their bills and paperwork for the financial management team to take care of.

Property and financial management is very important to keep everything running smoothly for an association. This is also a big concern of homeowners. People who are living within a neighborhood want to be reassured that their association fees are being put to good use by hiring these types of companies to take care of their concerns, their requests, their association fees, and to make sure that the neighborhood is safe and worth living in.