Management Functions for Starting a Business

Getting a business off the ground requires creating an organization before you open your doors. No matter what type of business you start, you’ll need to manage a variety of areas of your company, such as marketing, sales, finance and administration. Understanding the basic functions any business must create for a successful lunch will help you start a successful career as an entrepreneur.

Business Plan

The first function of starting a business is writing a business plan. This not only helps you determine what you’ll need to launch the business, but also will help you secure a loan or investment capital and operate the business after you open. You can get free assistance writing a business plan from an organization such as your local chapter of the Service Core of Retired Executives, or hire a business consultant to help you.

Product Development

Even if you will sell only one product, someone must make sure it stays relevant and competitive in the marketplace. This means keeping an eye on the competition, looking for ways to make the product at the lowest cost, evaluating the price on a regular basis and adding new features.


Someone will have to handle the money side of the business, including creating budgets, paying bills, collecting receivables, handling payroll and paying taxes. The person who manages the finances of a startup doesn’t have to be an expert, but will need to hire and work with a qualified accountant or tax attorney.


Every business needs to let customers know they exist, what they offer and how to buy. Marketing is a macro function that includes the planning and execution of advertising, promotions, public relations, brand management and sales. Each of these areas might have a department head as the company grows, but all will report to the marketing director.


Managing employees is a critical and ongoing task for new businesses. Start with a policy guide that outlines how you will hire, train and fire employees. Include rules on attendance, office dress, personal time off, discipline, pay, annual reviews and dress. Create an organization chart so you can hire proactively, rather than reactively, and create written job descriptions for each position.


Most businesses rely on computers, phones and other technology, regardless of whether they offer a product or service. Many small businesses initially hire a part-time individual or contract with a tech company to set up and manage their technology needs. If you use contract help to handle your IT needs, a staff member will need to manage that aspect of the business.


Business owners face a host of safety, human resources, product quality and tax laws. Whether it’s registering a corporation, obtaining a business license, following employment laws or filing taxes, a business must have someone keeping on top of the company’s legal obligations.