“To every thing there is a season, and a time to every purpose.” — Ecclesiastes 3:1

Over the years, I have observed two recurring weaknesses that contribute to small business failure: a limited understanding of management and an incomplete grasp of business systems.

To address these weaknesses, I created the Management of Business Systems Matrix — the ManOBiz Matrix.

The structure is simple. Across the columns are the five functions of management: planning, organizing, staffing, directing and controlling.

Down the rows are the five business systems: value proposition, finance, marketing, operations and training.

Five times five gives us 25 cells. Each asks a practical question: How well are we applying this management function to this business system?

Consider the finance row:

Planning means preparing a budget.

Organizing means setting up bookkeeping systems and bank accounts.

Staffing means engaging a competent bookkeeper or accountant.

Directing means managing cash flow day to day.

Controlling means reviewing financial results against the budget and taking corrective action.

Or take the value proposition — the reason customers choose your product or service. Planning means defining the problem you solve and for whom. Controlling means checking whether customers still value what you offer.

The power of the matrix lies in discipline. Entrepreneurs may be strong in some cells while neglecting others. They may market well but fail to control their finances. They may have a good product but never train their people to deliver it consistently.

The ManOBiz Matrix prompts you to examine your entire business. An empty cell signals an area that needs attention. Left unaddressed, that gap can cost you customers, cash or people.

Do not try to fix all 25 cells at once. Use the matrix as a checklist. Identify the gaps that pose the greatest risk, then pick one cell each week and strengthen it.

For each cell, ask: What needs to happen? Who is responsible? How will we know it is working?

When all five management functions are applied to all five business systems, you build the discipline to move from hustle to enterprise, from self-employment toward a sustainable business.

That is corporate governance in practice for the small firm.

Dr. Basil Springer, GCM, is a corporate governance adviser. His columns may be found at www.nothingbeatsbusiness.com.