A few prime examples of companies built around great business concepts include Amazon and TiVO. When you think of these companies what is the first thing that comes to mind? Hopefully the word innovation flashes across your mind. Amazon was the leader in creating an online marketplace open 24/7 to anyone with an internet connection. TiVO was one of the pioneers in time shifting recording, allowing users to record their favorite TV shows and watch them at their convenience. Both companies were built around innovative ideas that clearly provided value to end consumers, but neither company was profitable in their early years of existence.
Only a few entrepreneurs are able to take start-up companies out of the red and into the black. For all those other entrepreneurs who bring great ideas and innovative thinking to the table, bringing an experienced management team into the fold can turn a cash strapped start-up into a financial giant. Because most entrepreneurs don’t understand the fundamental business principles that can make a business profitable, relying on experienced managers can really make a difference on the bottom line.
An experienced management leader often brings structure, accountability, and direction to a young company. New management teams typically implement a number of different business reports in order to establish the necessary structure, accountability, and direction the company requires.
Structure – Most grass root start-up companies lack structure. One business report management will typically create and distribute to their employees is an organizational chart. Such a chart helps clear up any confusion over where the power lies within the company. The organizational chart also helps determine who reports to who within the company and just how open the lines of communication really are within the company.
Accountability – One of the first things the management team normally implements is a schedule for business reports within the various departments of the organization. A business report can help outline the areas individual employees will be held accountable for. Delegating responsibility to individual employees can help them really take ownership in the company and improve productivity.
Direction – Because some smaller companies lack direction, the new management team may put in writing the vision it has for the future. As time progresses management may choose to distribute a management updating the employees on the progress the company has made achieving its vision. Such reports help the company continually make headway as it progresses down its chosen path.