(i) Setting objectives: The setting up of business objectives is the first thing to be done by the management. Because after deciding the objectives, the ways and means will be determined to achieve the objectives. Management as well as every person concerned with the business should know the aim and objectives of the business.
(ii) Proper planning: After determining the objectives the work should be planned in all its perspective. Planning involves forecasting and laying down the course of action. Proper planning helps in achieving the desired objective of the business in future. Future is always uncertain and estimation of future happenings are very difficult. So, planning helps in estimation of future uncertainties and determining the possible course of action for future.
(iii) Sound organisation: Organisation is an arrangements by which tasks are assigned to the employees so that, they can work effectively
to achieve the actual purpose. The duties and responsibilities of all the persons are defined and they should know what they are to do. An effective organisation system is essential for the success of a
business.
(iv) Proper Financial Planning: The purpose of financial planning is to make sure that adequate funds are raised at the minimum of cost. The required capital should be made available at all times otherwise it will hamper the work. The scarcity of capital and to much of it both are bad for the business concern. A proper plan is necessary for providing funds for smooth running as well as for future development of the business. Location and Layout of Plant: Another important point to be
considered by the management at the time of starting a business is regarding the location of the plant. The plant should be located at a place where all factors of production are available at lowest cost. The location of business in suitable place also helps in achieving
the main objective of the business, Raw materials, Labour, power and markets for the finished products should be available near the place of location. After deciding about the location, the layout of the plant should be done systematically. The office building and warehouse should be located near the factory. Proper layout will be enable the economical use of available space. Proper location and layout of business are
necessary for the success of a business.
(vi) Marketing system: The marketing aspect of a business is more important than even production. There is no use of producing a thing if it cannot be sold. Marketing management is essential for earning profits. Hence management should decide about the channel
of distribution of their product in the market.
(vii) Research: In the changing technology world, it is essential to use latest devices for production and marketing of goods. Change is the essence of business. Everyday new methods of productions are found.
Consumer needs and preferences should be taken into consideration while devising the production and marketing policies. To cope with the changing situation research and development should be given due importance for the success of a business.
(viii) Dynamic Leadership: The success of a business will depend upon the efficiency of its management. The task of management is to plan, organise, coordinate and direct the various activities for achieving business objectives. This will be possible only if the leadership is dynamic. The persons managing the concern should have foresight, initiative, and aptitude for a change. The leader should possess these qualities to take the concern to the road of progress.
