Must-Have Components of Business Management

Business is the activity of selling goods or services that can provide benefits to the owner. Because the business processes for each field are unique and have different complexities, adequate management is needed to run smoothly. Business management must be calculated carefully to minimize risk.

Business management is the activity of planning, managing and operating a business. This business management includes managing all lines in the business process to achieve what the business goals are. Small and medium sized businesses also need business management. Business management consists of several components that will determine the pace of your business and meet the specified targets. The following are some of the components that business management must have:

1. Financial management

Good financial management is needed in business management. This is because it relates to the flow of money in and out of the business. In financial management, this means that financial circulation is managed properly, for example by planning, budgeting, checking, controlling, searching, and storing funds. Through this financial management, the business budget can be managed and used according to need. So that it will have an impact on the uncertainty of financial data that will affect the running of the business.

2. Marketing management

Marketing is an activity related to planning, determining targets, goals, to be achieved in the field of marketing. The purpose of this marketing management is to increase sales and product recognition in the market. Before goods are produced, marketing activities must be carried out. Basically there are three concepts applied in marketing, namely consumer orientation, integral marketing activities, and customer satisfaction.

3. Production management

This activity is related to how a production process runs well so as to produce useful goods or services. Aspects in production management include production planning, goods produced, quality of goods, quantity of goods, raw materials, and production control.

4. Distribution management

This management supports the performance of marketing management. In a simple business, distribution management is a management business that concerns the availability and distribution of goods to consumers. Distribution management that is not managed properly will disrupt the performance of marketing management.

5. Human Resource Management

Human resource management is related to employee availability and performance appraisal. This human resource management will assist you in determining the standard of employee skills or experience needed, setting employee wages, and providing clarity on employee rights and obligations. Every business, whether small or medium scale certainly requires good business management. This component must be prepared carefully to ensure all existing processes can run smoothly.