According to the Small Business Administration (SBA), about 60 percent of businesses fail during their first five years of operation. Many business owners cite poor management as the number one reason for failure. Too often, small business owners lack management skills in areas such as finance, purchasing, selling, production, and managing employees. While project management cannot guarantee success, it can alleviate some of the pitfalls that cause businesses to fail.
What is project management?
While the term is very broad, project management generally refers to planning, organizing and managing resources in a business. Project management can also be used to describe certain software programs. Project management tools allow you to schedule appoints or manage your funds from various projects. More importantly, project management can increase efficiency, improve customer satisfaction, provide a competitive edge, and account for fewer errors.
Project management has proven to help small business owners get tasks done on time and on budget. This includes scheduling projects to finish at a certain date, planning important meetings and paying company bills, in the best manner possible. Project management can also provide you with raw data, which will allow you to create custom reports for clients.
Improved Customer Satisfaction
Another benefit of project management is this: when you can get a project done on time and on budget, your client will walk away happy. And a happy client is most likely to be a returning client. Project management can provide you with the tools necessary for managing a successful client relationship.
Project management can benefit your small business outside of the office as well. Superior service can spread like wildfire through your industry, which can secure your place in the marketplace, for example. Plus, great performance can lead to more opportunities to succeed in business.
Using project management software can result in fewer errors. The leading reason clients stop working with a company is because of mistakes. For that reason, preventing mistakes is paramount for a successful business. If you can limit the errors, and develop a process for handling and responding to client complaints, you can potentially increase customer retention and satisfaction.
With so many low-cost tools available today, project management is more accessible than ever for small business owners. The key to selecting the right project management tool is finding the product that best fits your management style and work procedures. For instance, at Kincaid, we use Autotask’s Project Management module to manage our clients’ tasks. Autotask is a PSA (professional services automation) for IT providers like us.
Dan is the Chief Information Technology Architect at Kincaid Network Solutions. Connect with him on Google+.