Myth: Project management is only used by large corporations for big projects.
Fact: Any project, whether big or small, can greatly benefit from effective project management.
If you think project management is exclusive to large corporations, think again! Small businesses need effective project management to maximise productivity and avoid costly mistakes, as they have access to fewer resources and work with tighter budgets.
Let’s examine exactly what effective project management is, and how small businesses can benefit from implementing it.
WHAT IS A SMALL BUSINESS?
Small businesses are typically smaller than major companies in employee size, revenue, and premises. They can be owned by a sole proprietor or a partnership, and often have simpler organisational structures.
Due to limited resources, small businesses need careful and effective project planning to avoid potential risks that could lead to significant financial setbacks and other losses. Unlike bigger businesses which may recover quickly in the event of a loss, small businesses have a lot to lose if anything goes wrong with their project execution.
WHAT IS EFFECTIVE PROJECT MANAGEMENT?
Effective project management is characterised by the strategic application of skills, tasks, and outlined plans, to achieve a unique objective. This process involves following strict guidelines and completing each stage within a set timeline. The complete journey, from start to finish, is referred to as the project life cycle.
You should note that each project is unique based on its objectives, and therefore may require a different methodology. The typical stages of effective project management include:
- Initiation: Project feasibility is assessed and objectives are defined.
- Planning: Inventory is taken of the available resources and the resources needed, a budget is drawn up, and a timeline is created.
- Execution: The official project launch. All plans are implemented in this stage.
- Monitoring: Progress is tracked and the project manager keeps the team on course.
- Closure: The project reaches completion and the final result/output is reviewed.
A CASE STUDY EXAMPLE OF HOW EFFECTIVE PROJECT MANAGEMENT MAY LOOK LIKE FOR YOUR SMALL BUSINESS
Mary is a single woman living alone in a two-bedroom apartment in a residential area. As an added source of income and to make good use of the extra space she has, she starts a laundry service. Her business quickly wins loyal customers, but she struggles with efficiency and competition within the same area. Therefore, she desires to expand her reach beyond the area and stay ahead of her competitors. Mary makes this her goal and gives herself eight months to achieve it.
INITIATION: Now that Mary has a goal set within a very specific time frame, she then defines her goals (previously mentioned), and objectives (improved marketing efforts and customer service), and determines the key performance indicators (KPIs) of her progress.
PLANNING: Mary breaks down her tasks into smaller specific bits, does her resource allocation, and plans her budget (e.g. wages for hiring an extra assistant, extra equipment, employing a logistics company, and marketing campaign allocation).
EXECUTION: Mary sets about hiring and training a new assistant, getting an extra washing machine, steam iron, and packaging bags, optimising her social media accounts, and making small flyers to be handed out to her target audience in other locations within the city.
MONITORING: As the months roll by, Mary will monitor and make adjustments to several areas of the plan, as necessary.
CLOSURE: On reaching her eight-month mark, she will document lessons learned, and assess her KPIs in comparison to the ones she originally set during the initiation process.
BENEFITS THAT AN EFFECTIVE PROJECT MANAGEMENT STRATEGY PROVIDES FOR YOUR SMALL BUSINESS
- Efficient use of resources:
You get to use the resources at hand wisely, without waste. Lack of project management may cause losses which may lead to inadequate resources available for a re-trial.
- Clear direction for employees:
Clearly defining responsibilities for each member of your team streamlines operations and helps the team members understand the roles they have to play, from start to finish.
- Cost savings:
By minimising mistakes and delays, you will avoid unnecessary expenses that re-doing some processes may attract.
- Improved adaptability:
When you adopt efficient project management, you can respond properly and speedily to changing conditions. This gives you a competitive advantage in the market.
PROJECT MANAGEMENT TIPS FOR YOUR SMALL BUSINESS
Here are a few project management tips your small business can follow:
- Set SMART goals: Envision your business to be as successful as you want it to be. Outline the steps that will take you to that goal, and make sure that your team is well acquainted with it. Make sure your goals are specific, measurable, achievable, relevant, and time-bound (SMART).
- Plan for risks: Every project may have unexpected setbacks. Always have a backup plan in place. For example, if a logistics company bows out at the last minute? Have another lined up!
- Communicate frequently: Use digital tools to relay information seamlessly, and allow team members to ask questions.
- Manage resources wisely: Assess the tasks delegated to each team member, making sure that no one has been given more than they can handle, to ensure efficiency. Outsourcing specialised tasks is a good option that you should consider.
- Measure results: Make sure you keep track of your team’s and the project’s progress. Compare the outcomes of each stage to what you envisioned initially, so you can make adjustments when necessary.
Is project management still uncharted territory for your small business? Then you need the services of professionals to guide you through the best strategies. At Biz Vital Signs, we are on a mission to support small and medium-sized businesses in their growth. Let us empower you to make the best decisions for the future of your business.
Contact us today and stay tuned to our blog for more educational content.