An entrepreneur always plays multiple roles, one of its manager. An entrepreneur has been to a good manager as he has to manage a lot of things to make things fall in place. An entrepreneur is said to be managing the 6 Ms - materials, machines, money, market, method and men.
1.Material management :
Material management involves planning for manufacturing of the product. Raw materials cost and its transportation cost to the site of production holds greater per cent of capital.
While getting raw material, an entrepreneur should consider the appropriate time, quality, quantity, price and place. These factors should be looked into critically, after making comparative analysis, to get good quality raw material at the proper cost.
Also, maintaining a stock of the raw material is essential, to meet the demands of the product.
2.Marketing management :
When a product has to reach its customers, marketing should be planned and executed properly. In the initial stage of a startup, marketing plays an important role.
Marketing planning involves 4Ps - Product, Price, Place, and promotion. These factors are discussed in the previous blog - Marketing Planning. Marketing helps to convey the features and benefits of the product to the target customers and also its advantages over other existing competitors products. So the product should be marketed such that it appeals to the customers and makes its place in the market.
3.Personnel (Men) management :
Some enterprise starts with few employees, but when an enterprise is to be scaled up, the entrepreneur needs to employ more people to manage the increased workload.
It involves manpower planning, recruitment, selection and training, compensation- wages, bonus, incentives, and performance appraisal -job evaluation.
The employee is the second component after the entrepreneur, who can drive the enterprise towards successful.
4.Capital (Money) management -
To run an enterprise a lot of hard work is required and also investment is made to get good returns from the enterprise. So, an entrepreneur has to crucially determine and distribute funds to essentials. Also, an entrepreneur needs to keep aside some amount to bear losses, since failures are part and parcel of entrepreneurship and capital cant be carelessly managed. Though an entrepreneur can start with bootstrapping his business, later can also get seed funding. Both of these have their pros and cons, to know more about them read these blogs - Bootstrapping, Seed funding and
5.Machine management -
From clothing to plasticware industries require machines, and they make the work easier and fast, therefore they are the important component that an entrepreneur can't overlook. The machine management involves cost if the purchase, maintenance, repair, energy and men require to run them. Some machines require well-trained personnel, to operate them to produce the intended output, while some machines are fully automated, which that does not require personnel to attend it.
6.Method management -
Methods are the process or standard operating protocols (SOP) for manufacture for the product which is required to be considered. The resources and its quality should be unchanged as it would affect the product quality. Also, all the protocols should be followed strictly, otherwise, it would affect the output and the other resources and capital invested would go vain.
So an entrepreneur should consider all these 6Ms and its different elements to succeed.
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