Small Business Project Management: Six Pros and Cons
Small Business Project Management: Six Pros and Cons
You may rather be thinking immediately what has this got to do with project management? to know that we first need to understand the elemental differences between projects and day to day business operations. Whilst many of the talents required to manage your "business as usual" activities are equivalent to those needed to manage projects, there are some crucial differences. Amongst the foremost significant differences are that project work tends to be a minimum of cross-functional and sometimes cross-organizational and each project is going to be unique in how instead of following the predictable pattern of business as was common. These characteristics of projects introduce opportunities and risks over and above those encountered in business as was common. In short, projects are riskier than day to day business and thus need a special management approach.
Projects are how we introduce change in organizations. All businesses that are making any plan to adapt to face future challenges have projects. Common samples of projects in small businesses may include fixing a corporation website, establishing the office during a new location, or implementing a replacement product but it is often any temporary activity or set of activities that have a selected output related to it. Businesses increase their productive capacity one project at a time. Indeed, for ambitious small companies looking to grow and expand, the necessity to initiate the proper projects and achieve the specified results is even more vital l than it's for huge national and multi-national businesses
Despite the apparent need for a project management (PM) approach, most small businesses don't bother. This constitutes an enormous missed opportunity as effective project management impacts rock bottom line. for instance, research by the CBP shows that project management improvement initiatives improve project performance by up to 50% for the primary project and may continue for every new project if the business offers ongoing project management tools and support. We could emphasize now further by citing the Standish Group, who in their CHAOS Report conservatively estimates that 20% of cash spent on projects is wasted because companies do not have a uniform approach to project management.
Let's take a glance at six reasons I often hear from small business owners that choose to not bother with project management then critically address the misconceptions behind these reasons.
1. Project management practices take longer
Having a process to follow may add time to the duration of an activity. Doing something properly will nearly always take a touch bit longer than adopting a slapdash approach. However, if you were building a house, would you rather have a top-quality outcome that took a touch longer, or would you favor to possess it done quickly but with many problems? as long as poorly executed projects are often completely de-rail a little business if they are going badly, doing it well is important, and PM processes help ensure things are done well.
2. Project management eats into the cash that I want to grow my business
A common misconception is that it's hugely expensive to implement the PM process. the truth is that there are many free or low-cost sources of recommendation, techniques, tools, templates and project management services readily available and accessible through the web. If done correctly, any small business can implement PM processes, techniques and tools with little or no cost. The chances are that tiny business owners are already using software and other tools which will be used for project management. for instance, certain email software, spreadsheets, and other common software applications offer good templates for project management, especially if utilized in collaboration with a number of the low-cost project management services available for little businesses
3. Project management requires skills that I do not have and can't afford to rent
Although it does require specialized skills and knowledge to be an accomplished project manager, these are skills that will be learned over time. to maneuver further up the training curve faster, it's possible to require a PM course in as little as four or five days. Most small business owners tend to possess the knowledge needed for project management, and courses like the Prince 2 Practitioner course would repose on these skills while introducing the precise theories, tools, and processes essential for project management. Whilst business owners won't emerge from a course as a project expert, they might certainly learn valuable skills to use to their small business.
4. I do not need the effort or paperwork for project management.
Every entrepreneur that starts their own business will, at some point, got to do a risk assessment, a marketing campaign or apply for finance. Being knowledgeable in project management and applying associated tools like stakeholder analysis, communication planning and risk management won't only assist in many of those tasks but will provide your small business with a competitive edge over competitors who don't approach.
5. Project management will slow me down and that I got to stay agile.
Modern PM methodologies all acknowledge the importance of a tailored approach to project management. If your project requires speed, the proper methodology can enable you to maneuver quickly. even as important, however, it'll provide you with techniques to know whether some proposed projects are worth pursuing in the least. Rushing into situations without thoroughly understanding your environment is hazardous to the health of any project and potentially to the health of the business as an entire
6. I'm an expert in my industry, I do not need project management.
Most small businesses are started by an individual who already has some expertise in their industry. this is often unquestionably an advantage; however, project management should still be wont to convert plans into reality. the most reasons for project failure tends to be poor planning, lack of capital, and lack of management. Project management, while not a cast-iron guarantee of success, will assist the tiny business in mitigating a number of the common risks that so often cause project failure amongst small businesses.
Even a quick check out the explanations often posited by small business owners for failing to approach projects during a systematic and different way that recognizes their inherent riskiness and addresses a number of the tougher aspects of project work shows them to be of dubious merit. Without question, the standard of project outputs would be greatly enhanced and therefore the cost of and time taken in delivering project benefits employing a project methodology appropriate to the size of the project.
