There are a number of reasons why utilising effective project management skills can really help to drive a small business forward in the marketplace. You can use project management skills to help your business maximise its resources in order to achieve its goals on time and under budget. You can also use project management to ensure your business runs as smoothly as possible. In fact there are many ways the fundamentals of project management can be an invaluable aid to small businesses, which is why small business owners and managers can benefit from developing a greater understanding of the key concepts of project management in the workplace.
What is Project Management?
Project management is primarily concerned with the management and organisation of resources in order to achieve a specific goal. Project management is something that good managers do without really thinking about it. There are a number of skills involved, but in general an experienced project manager will be able to effectively manage time, cost and quality so that the project is able to successfully achieve its objectives.
The 3 Key Areas of Project Management
- Timeline – All projects have a start and end date. Project management is about managing resources so that all tasks are completed on time.
- Budget – Project management skills can help you identify the costs involved in a planned project to maximise cash flow and ensure that the budget is not exceeded.
- Scope – Scope refers to the scale of the project. Bigger projects require a greater level of management to ensure they are successfully completed.
Project Management in a Small Business
Most small businesses provide a service or a product of some description. Project management skills can help you deliver these in a more efficient manner, which over time will enable your business to grow into a successful and profitable enterprise.
- Resources – Project management can help you better understand what your resources are and how future planned projects will impact on these resources.
- Costs – Project management skills can also help you better estimate how much a project will cost, which will enable you to put together more sensible quotes for customers.
- Cash flow – Cash flow is the life blood of all small businesses. Project management software enables more accurate invoicing for your time and services, which reduces errors and maximises revenue.
- Deliverables – Customers want their goods and services delivered on time and the more projects you deliver late, the more customers you risk losing. Project management skills can teach you how to manage project milestones so your business is able to streamline its delivery schedule.
- Minimise risks – Managing risk is an essential for all businesses, but especially for small businesses. Project management skills help you manage these risks so you can keep your customers happy at all times. In turn this will increase customer satisfaction rates, encourage repeat business and increase profits.
Small businesses can benefit greatly from utilising basic project management skills. The better you control your resources and projects, the more efficient your business will become.