Why project management matters for small businesses

Many small business owners think project management is something that’s only important to large, enterprise-level companies. But in reality, project management is critical for any organization that values achieving goals and getting work done on time and on budget. Using that metric, it quickly becomes clear project management is quite possibly even more important to smaller businesses since time and financial diligence are precious commodities.

Rethink what’s meant by “project”

A project is defined as any activity, large or small, that needs to be undertaken which has a definitive starting point, an end point, and something that needs to be accomplished or delivered upon completion. That includes everything from product development and testing to advertising and marketing to payroll and accounting.

Embrace agility to maintain productivity

Small business owners and employees wear many hats. Flexibility is a skill to have, but without an agile project management process, it’s easy for productivity to suffer because of distractions. Urgent fires will always need to be put out, which requires pausing one task while jumping to another. Having an effective system of project management processes in place will help maintain productivity through all the stops and starts by making paused projects easier to return to because work can resume based on where it is in the overall process.

Develop a system to maintain progress

All projects are comprised of several tasks that need to be accomplished in a methodical manner. Often the best way to do that is by breaking bigger tasks into smaller deliverables so that no single task seems too large. By making things feel more realistic and doable, they won’t be overwhelming or fall victim of procrastination, which is human nature. This also helps create numerous points along the way where feedback can be given and challenges addressed.

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The benefits of project management:

Once you put an effective project management system in place, you’ll experience a range of different advantages. Many will be unique to your individual business and industry, but other benefits are more general and apply to every organization. For example, here are a few:

Improve your chances of success: Frequently, success or failure comes down to whether or not an effective schedule was established at the beginning of a project. After all, time management is an often-overlooked skill. But by setting milestones, things can be evaluated as they progress, adjustments can be made when necessary, obstacles can be overcome, and everything can be kept on track.
Stay on budget: Every business is concerned with the bottom line, but that need is all the more important for small organizations where there’s no room for error. Effective project management allows you to keep a close eye on budgets. It also lets you track expenses and monitor where employees are spending their time.
Maintain control: When projects spin out of control, they tie up resources and interfere with other important tasks by pulling workers away from what they’re working on. The best way to preserve control is by utilizing project management tools that establish protocols and practices and keep everyone on the team working toward a common goal rather than each heading down a different road.
Track accountability: Employees at small businesses wind up tackling a variety of different jobs, so it’s important to define roles and expectations. That way, multiple people won’t wind up spending their efforts on the same tasks. Similarly, it’s critical to make sure other work doesn’t fall between the cracks.
Effective evaluation: Once a project is complete, it’s always a good idea to evaluate what went wrong and what went well so improvements can continue to be implemented. A good project management system will enable that because it provides documentation regarding what milestones were achieved, where delays occurred and what the sticking points were.

A roll-out checklist:

To maximize the effectiveness of your project management system, make sure to keep these guidelines in mind as you start introducing things within your organization:

Remember to identify the business drivers for your company, then prioritize where it’s most important to first apply project management techniques.
Take a simple, proven approach to project management; if things are too complicated, employees are less likely to follow it.
Train people at all levels to use your project management tools so everyone can take advantage of keeping things on track and maintain their value to your business.
Focus first on those employees who have the least amount of project management experience—they have the most to gain and will see the benefits come quickly.
Empower people by providing them with the right suite of project management tools.

Getting started

When you’re ready to take your business to the next level of project management, consider small business software that includes a project management app (project management software) with the power and flexibility to help make complicated processes simple and lets anyone manage projects regardless of their expertise.

What’s more, when your project management app is integrated seamlessly with software for small business and an entire suite of productivity apps—versus a stand-alone app—your business gets additional timesaving, workflow, and ease-of-use benefits.

The Microsoft 365 team is focused on sharing resources to help you start, run, and grow your business.

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Business Insights and Ideas does not constitute professional tax or financial advice. You should contact your own tax or financial professional to discuss your situation.