Foundation: Business Administration

“The administration of a business includes the performance or management of business operations and decision making as well as the efficient organization of people and other resources to direct activities toward common goals and objectives.”

~Wikipedia

The administration arm of your business is where the magic happens. This is everything you do behind the scenes that keeps your organization running.  As a business owner, you play an important role in entire foundation of your business, but majority of your time will be spent on the administration pillar.  How well you manage it echoes through every part of your business.

This function can be likened to running a sophisticated piece of machinery.  You need to know how it acts when you push certain buttons or pull different levers.  When it’s not performing correctly, you need to find and diagnose the problem. If too much power is being used in one system, it is draining power from other.  Running this sophisticated machine becomes a balancing act and it needs regular preventative maintenance to ensure it keeps running in an efficient manner.

Every part of your business needs to be managed in one way or another and you can’t do it all.  This is why we hire people to help us.  We delegate activities that allow us to free up time to concentrate on more growth oriented activities. We also create systems and process that help us to establish a framework for which delegated activities are to be done.

Unfortunately, you can’t just set them and leave them.  You will need to establish baseline metrics and control limits for ongoing management.  This will also help you to ensure the job is being done in a manner that is consistent with what you want.  What gets rewarded gets done, so make sure you are rewarding the right activities.  Here’s a great article by Jeff Haden at Inc. on “How to Automate Your Business for Fast Growth”.

Business administration is no easy task.  There are many facets of an organization and it is difficult to keep an eye on all of them.  Not only are you managing activities that affect public opinion, but you’re also managing activities that affect internal opinion.  Your employees can be your greatest assets.  Treat them well and they will move mountains for you.  This can be true on the clock as well as off the clock.

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“Stop Doing the Mundane, and Start Getting Weird!”

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