Business Management: Definition, Functions, Components, Examples

Business management is one form of  planning that is needed when running a business.

The purpose of business management itself is to optimize all resources in order to achieve the expected business targets.

To make business planning or management, you can start by doing some easy exercises. 

For example, calculating capital requirements, total expenses, and all existing income.

In addition, you can also start learning some important aspects about business management through the article below. 

What is Business Management?

Understanding business management is the activity of planning, implementing, and managing a business or company that aims to help the company achieve its targets.

Through this explanation, it can be concluded that business management is the most important factor in determining the development of a company. Of course, good business also requires good management.

Business Management Function 

The explanation of the business management function is as follows. 

1. Planning

The first function of business management is planning. Of course, before you build a business, you need business planning, marketing, promotions, products to sell, financial bookkeeping and document archives, and so on. 

This plan must be well documented because it is a benchmark for future business activities.

Usually the thing that doesn't work when you start a business is not planning the accounting process or business financial bookkeeping. 

A good accounting process provides factual financial data to help you create a comprehensive business plan based on financial data. 

2. Organizing

Organizing is closely related to human resources, also known as workers. After the plan is complete, the next step is to create a working group. 

This working group consists of people who are given the same share of tasks, namely management, marketing, and field teams. 

This group division is intended to facilitate the work process. Evaluation of work results is also easier. 

Managers can easily determine whether an employee has worked according to his skills. 

Good organizing can help you achieve company goals. If the team is not doing well, the leaders can quickly swap it out so the company doesn't lose money. 

3. Staffing 

Staffing refers to existing resources within the company, such as product raw materials, production machinery, and supporting facilities. And even then must be regular so that the business can be promoted.

Therefore, the proper placement of resources must be adjusted to the company's needs. 

This can be done if the company has the right controls. Otherwise, resources will be used for non-priority, which will increase the capital.

This sometimes leads to the company's financial collapse while the work is inefficient and productive.

The risk is that if you don't get capital, your business will soon close, which is certainly not desirable.

Therefore, it is necessary to manage the business as early as possible. So that there is a good arrangement of resource use functions. 

4. Directing 

The next function of business management is directing which means setting or direction. Here, the leader's actions stand out as an incentive for the team to work on the plan. 

Direction is very important because it relates to the fulfillment of the plan. Working according to the planning guidelines will enable the company to achieve its goals. 

5. Controlling 

Controlling is an activity to monitor whether the work system has been carried out correctly or not. 

During the test, you will see important points that need to be evaluated and recorded. At the same time, the existing barriers can also be seen. 

Controlling is usually not carried out directly by the leader, but by the head or team leader. The team leader will then request a report directly from the team leader. 

Based on the report, management can take action for further planning. 

Business Management Component 

Components in business management are part of the activities that need to be based on the management system. Each component has a different function, here are some of them. 

1. Production Management

The first component in business management is managing the company's product production process or in-house. 

Of course, this also includes checking the feasibility and functionality of the production machine. Supervise production staff and product manufacturing process to completion. 

2. Distribution Management

This component of business management is responsible for monitoring sales activity. This management activity is intended to ensure that the product is in good condition and immediately distributed. 

3. Financial Management  

The third component in business management is making financial arrangements to balance inflows and outflows. 

All financial matters such as sales, purchases, accounts payable and receivables must be properly recorded to facilitate audits and preparation of financial statements.

4. Marketing Management 

Marketing management must also be managed properly. If someone who works in marketing or marketing can't work, it will be difficult to sell the product. 

For this reason, marketing management is very important to determine different strategies so that the product is accepted and attracts the attention of potential consumers. 

5. HR Management 

This management regulates all employee activities within the company. This includes managing areas of responsibility, work areas, and work disciplines.

It is not easy to do all of the above. The company's sustainability depends not only on management but also on commitment. 

How each element of management works together to implement the plan. Especially the cooperation between managers and workers. 

Corporate planning in the form of management, finance, development and marketing must be planned as well as possible. Good planning can support the success of the company. 

Examples of Good Business Management

The points of business management are as follows.

  • Understand the type of business from the start because you have to be able to explain it well, starting from that location and ending with possible obstacles.
  • Analyze products and trade competition that is happening. Analysis is needed to establish different strategies in both product manufacturing and promotion areas. 
  • Do the right marketing. Marketing can be done on social media or you can create content in writing or via video.  
  • Always check financial statements. You can use the services of an accountant to carry out the recording process. 
  • Always evaluate your products and staff. Evaluation is done to minimize more serious erorrs.

That some important information about business management that you should know. By learning how to manage well, you can also increase the potential for business growth.