The Six Honest Working Men of Management Success

The Six Honest Working Men of Management Success

By Mike McLoughlin,
Youth With A Mission, Marketplace Mission
Visit the Scruples Small Business Forum at www.scruples.net for more information.

"I have six honest working men

Who taught me all I know.

Their names are: why and what and when;

And who and where and how."

Rudyard Kipling

1. WHY? The Business Mission or Purpose:

The Vision: What business are you in and why?

The Mission: What direction do you intend to pursue in your business?

The Values: What is important to you and to God and what principles will you abide by? (Like a Constitution.)

2. WHAT? The Business Plan:

The Goal: What are the specific steps you will take to accomplish your mission and achieve your vision?

The Objectives: What measurable targets will you work towards and finish by certain dates?

The Strategy/Tactics & Rationale: The method to achieve the target & why?

The Tasks: The activities that must be done to achieve the target.

The Policy: The general direction that the organization will move, consistent with the values of the organization

The Procedure: The specific steps to implement the policies.

The Organization: How are you going to organize the business legally to best accomplish your plans? Sole Proprietorship, Partnership, Limited Company, and Cooperative.

The Legal Structure: Certificate of Incorporation, Legal Registration of Name, Business Licenses and Insurance, etc. Do you have copies of legislation affecting your business?

3. WHEN? The Business Calendar:

What is time line for starting the business? When are you going to do what?

What is the annual business cycle for sales orders; for supply; etc.?

What is the calendar of activity for your business? When is your slow time? When is your high volume time? What are you doing in anticipation of the ups and down's of business? E.g. Bakery business increases in the winter months. Retail business increases in November & December but is slow from January to March.

When do customers make their largest purchases? At month end? After pay day? How can you plan your sales promotion to take advantage of the right time of the month?

4. WHO? The Business Organization:

The Organizational Chart: Who is doing what?

The Roles/Job Descriptions: Tasks divided up into definable roles for people.

The Stakeholders: Who is on the outside and what role do they play?

A Directory of Contacts: Whom do you know? Who do you do business with?

5. WHERE? The Business Location:

The Economic Environment: What is the context within which you are doing your business?

The Physical Location of the Business: Where is it? Why have you chosen that location? What are the terms of the rental or lease?

The Market Niche for your products or services. What segment of the market are you focusing your efforts on?

6. HOW? The Business Financial Organization:

The Financial Forecast & Cash Budget: The financing of the organization

The Record Keeping System: How will you account for and measure your activity, financial, inventory and other wise.

The Income & Expense Statement: What are your revenues and your expenses? Over what time period? Annual, Quarterly or Monthly.

The Balance Sheet: What are your assets and your liabilities?

The Audit: How did you do?

The Appraisal. How much is your business worth?

A Checklist of Items needed for A Simple Record Keeping System

Bank Account & regular monthly statements.

General Ledger Book. All expense and revenue entries listed in order of date.

Accounts Ledger book. Entries listed by date and by type of account.

Accounts Receivable Register.

Accounts Payable Register.

Cheque Book.

Deposit Book.

Cash Book: Register list of all cash sales.

Receipt Book.

Invoice Book and Pro Forma (Quote) Book.

Payment Voucher Book.

Petty Cash Book.

Purchase Order Book.

Any others?

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