When beginning a new company or project there are things we can control and other things out of our control.  The way we manage our company is within our control.  Market response, in most situations, cannot be controlled.  Consumer satisfaction and sentiment simply is what it is.  Once we recognize what can be controlled vs. what cannot be controlled a business owner can begin to appreciate the importance of effectively managing his or her business.  The importance of good management was first impressed upon me during my schooling at the University of Utah.  The professor teaching entrepreneurship (Ralph Little, a successful entrepreneur of many businesses) stressed that good management was by far the most critical of the three elements to a successful businesses—the other two being good ideas and money.  He argued ideas were “a dime a dozen,” and that an hour rarely went by that he didn't think of another great business idea.  He further argued that money (investment capital) follows good management; condensing the key ingredients to a successful new business as a good idea paired with good management.

Consider the well-documented battle between Microsoft and Apple: Although Apple had the better product, it has held only a 2 – 4% share of the personal home computers market, while Microsoft (in conjunction with IBM) has held well over 95% since the 90';, and has only just recently announced it had captured 8.8% of the market.  I would argue that although Microsoft produces an inferior product, it has continually beaten Apple by effectively managing its business.

Good management does not always include hiring full-time staff that require large annual salaries and benefits.  Many business owners have discovered they can have great talent to meet their managing needs, but not have to pay entire salaries by outsourcing certain managing needs.  Hiring a part-time CFO is a key management position that often does not require a full-time commitment by the company.  A part-time CFO helps fill the needs of a growing company by helping lay a solid foundation for growth and can be a great asset to any management team.  Regardless of how management is filled it is important to recognize that in many cases good management can be the difference in making a successful business.