The importance of business administration when it comes to running any business, irrespective of size, has never been as crucial as it is now and is a skill often underestimated by the man in the street.
For any business to thrive and prosper, the administration side of the company is at the center of everything, from the day-to-day running of the business to the marketing and promotion.
With that in mind, let’s examine some different ways business administration is integral to running an efficient business.
A higher chance of success
A shocking statistic shows that 90% of new businesses will fail within the first five years. Even though you will probably hear many reasons why a company has failed, bad luck, the economy, supplier going out of business, etc., the fact of the matter is that often the reason a business fails is due to poor business administration.
A good business administrator would have spotted anything which would later be perceived as bad luck long before it happened by following business trends and how they can affect a business.
The economy will always make its way from recession to growth and back again. Still, a business with a good administration structure will be able to notice any trends and react accordingly.
A business whose supplier goes bust will have alternatives in place, and any existing suppliers will be closely monitored should any warning signs become apparent. And it is the business administration side of the business that will ensure everything runs smoothly.
As an example of how poor business administration can devastate a business, let’s look at a fictional character called Bill, who owns a bar.
It is Bill’s job to ensure that his bar meets all the legal requirements that the licensing authorities have put in place.
It is also Bill’s responsibility to ensure enough beer, wine, and spirits are stocked to satisfy the demand of his customers. Also, to ensure that his staff are well trained so that his customers feel welcome and are keen to keep returning to the bar.
These are just a few of the tasks Bill must tackle daily, and if he falls short on them, the effect on his business will more than likely mean the end of his enterprise.
If the legal requirements are not adhered to, Bill could find that his license is withdrawn, so he wouldn’t be allowed to trade.
If he didn’t order enough stock, his customers would probably go elsewhere, and if his staff were poorly trained, it would also mean that people would not be eager to visit his bar.
Each one of these problems would be rectified by good business administration. While a business could blame other factors for going to the wall, it is often due to poor business administration.
A profession that is in high demand
Business administration is a profession that is in high demand because a good business administrator can make the difference between a business thriving and a business failing. This applies to businesses of all sizes, from small enterprises to multinational companies.
Before we go any further, it is worth pointing out that studying for an MBA Online Degree with a highly reputable provider would be hugely beneficial because this qualification can open the door to opportunities that may otherwise stay shut to you. Kettering University MBA is regarded as the gold standard for business administration degrees which will help take your career to the next level.
There has always been a demand for business administration graduates, but the opportunities now have never been greater for many reasons.
The present economic climate means that it is a case of survival of the fittest, with the possible up-and-coming recession meaning many businesses could fail.
Some pundits are calling the state of the economy the ‘cleansing fire,’ which means that any business that has not been run properly, in any way, will no longer be able to survive.
Adequate business administration systems will ensure that businesses that are run properly will be able to survive the cleansing fire and, in turn, prosper when the underlying economy begins to rise again.
Even though a qualification in business administration covers every aspect of the profession, a graduate will be in a position where they can specialize in the part of business management that appeals to them.
For example, someone with a head for figures could go down the accountancy route and control the administration from that side of the business. An individual interested in marketing could have a massive impact by working and managing that department.
Those are just two examples, but as you would probably expect, numerous roles within a business fall under the category of business administration. It would be true to say that any individual with a degree in the subject would have no shortage of choices as to which aspect of the business to concentrate on.
Controlling the running of the business
A good business administrator will make their instructions easy to follow, even if there is complex reasoning behind them, so it often seems that the instructions are merely common sense.
For example, suppose an employee has proven over time that they are more productive in one task than another. In that case, the business administrator will notice this and ensure that this person continues with that task instead of being moved to another.
It sounds like common sense, which it is, but you would be surprised how many poorly run businesses would not take these facts into account and carry on regardless.
The core skills that are required
We have already spoken about the different types of positions that fall under the business administration umbrella. However, there are several core skills that an individual will need to use regardless of their required tasks.
- Organized – It is hugely important that a business administrator is organized and ensures that everything is planned out for the day, the week, the month, and beyond. This is not one of those positions where everything is done at the last minute; everything needs to be planned to ensure the smooth running of the operation.
- The ability to solve problems quickly – It is the nature of the beast that problems will occur with any position. It could be staff members not turning up for work or suppliers failing to deliver the latest order. There is no use in dithering and wondering what to do. A business administrator must think quickly and devise a solution to any problem.
- Be a good listener – A good business administrator will never brush off the concerns of a staff member, a customer, or a supplier by telling them they are too busy to listen to any concerns and to come back later. Being a good listener is part and parcel of the job, so any concerns must be listened to and dealt with in a caring and sympathetic manner if required.
- Attention to detail is a must – It doesn’t matter what industry the business administrator is involved with; attention to detail is so important, both in the administrator’s actions and the instructions they give to staff members. For example, it is not good at all to give vague instructions to anyone; precise and to the point is always the way to go.
- Lead from the front – If the business administrator has more of a management role, they must lead from the front. Nothing encourages staff members more than a manager rolling up their sleeves and leading the way instead of barking out orders and criticizing if those orders are not followed correctly.
- When the going gets tough, the tough get going – There will no doubt be good times and tough times in any business. The administrator’s job is to keep their nerve when a company hits a rough patch and use their knowledge and experience to guide the business through the storm and into calmer waters.
- Being able to look at the big picture – It is easy to get bogged down with negativity when any business is not achieving the expected results. For example, the economy could be hit by recession when it can be difficult to see the light at the end of the tunnel. However, if the business administrator can carry on their duties in an effective way, when the recession ends, which it will, the business will once again be able to prosper.
The future opportunities for business administration graduates
It is clear that there is a very bright future for Business Administration graduates who will be handsomely rewarded by businesses who realize that a top-quality business administrator is worth their weight in gold.
The Bureau of Labor Statistics (BLS) estimates that suitably educated individuals earn around $100,000 per annum, with nearly 30,000 new positions set to be created by 2030.
Exciting times indeed for Business Administration graduates and proof that businesses of all descriptions realize that these positions can positively impact their business.
Also, don’t forget that the earnings estimates presented by the BLS are for graduates in the early stages of their careers.
Those with experience will find themselves in the enviable position of being in high demand and able to negotiate a higher pay scale depending on the length of time that they have held business administration roles.
It could be said that for business administration graduates, it is a case of the ‘perfect storm’ but in a positive way. It is a profession in high demand with many positions available, both now and in the future, with the added benefit of attractive salaries.
There should be no doubt whatsoever that business administration is integral to running a successful business.
A good business administrator will have their finger very firmly on the pulse of many aspects of the business, including accountancy, marketing, and the company’s day-to-day running.
If a business is unsuccessful, it is often put down to bad luck, but we all know that it is often the case that the company hasn’t been run properly in one way or the other.
An astute business administrator can nip any problems in the bud before little issues turn into something catastrophic, just a small example of one of the many tasks a business administrator will carry out.
They will ensure that the staff are not only happy but are also being utilized in a position that ideally suits their skill set to get the very best out of them.
They will also be aware of any trends within the industry and be confident enough to adapt and take advantage of these trends of which competitors are unaware.
There is no end to the difference a suitably qualified Business Administrator can make to a business. It doesn’t matter if the economy is booming or in recession; there is nothing more reassuring than an administrator quietly working in the background, ensuring that the business is run profitably and efficiently.