Project management is an essential function for many businesses as a technique for controlling how much time and money is used for a particular project. In addition, it can be administered to control how many company resources–whether it is staff, equipment or both–are needed and used for a project.
With a startup, it can become a juggling act when you have to coordinate various facets of the business. You must line up suppliers, create and execute marketing campaigns, hire staff and manage back-end operations on a limited budget.
If your business starts to grow, then ensuring continuity for all of your processes can become overwhelming. This is why project management is essential for startups.
1. Manage Risk
Launching a startup is risky. Project management can help to manage risk through anticipation and guidance around the avoidance of risk. Project managers lead an organisation towards a specific direction. With a project management professional certification in hand, well trained project managers are equipped to break the end objectives into smaller pieces.
Then, they set internal deadlines for the completion of each facet. Furthermore, project managers can decide when it’s necessary or worthwhile to take on risks.
For example, a startup may want to invest more in R&D. A project manager can also help company executives make informed decisions on whether R&D is where they should invest more of their limited resources.
2. Schedule Work Efficiently
Employees of a startup can juggle many roles. After a while, things can get confusing. Project management can make sure all the staff works on their assigned activities for each project.
The project manager then notes how long it takes to complete the task to help the company meet deadlines. Since the staff still has daily responsibilities, managing projects can be a challenge. Yet, this is exactly what project managers do.
3. Meet Deadlines
Even with the best of intentions, startups can find it difficult to meet deadlines on a consistent basis. Things can take longer than expected, the Wi-Fi may go down or you have to put out a few fires before you can even get started on work.
Yet, if you continue to miss deadlines, your investors will start to question your credibility. On the other hand, implementing a project management system can help a startup manage time and meet deadlines more consistently. Projects that take too long cost money with regard to lost productivity and overtime wages.
As a result, meeting deadlines are just as important as completing projects on a budget. To illustrate, if a startup spends $40,000 per day operating a manufacturing plant to meet a production goal, then the benefit of completing a project on time is around $200,000 for every week a delivery on time.
4. Improve Teamwork
Another benefit of project management is to ensure teams work together. As a startup grows, so will the varying departments. Yet, someone has to manage all of the separate groups. Plus, it takes many skills to bring a product or service to market. You need designers, manufacturers, software developers, marketers and more.
Not to mention, all of the work needs to be coordinated to ensure the project comes together seamlessly. A project manager has the skills to facilitate communication and settle disagreements. This is because project management deals with the allocation of human resources.
A successful project manager will bring the best out of each worker and enable an environment of mutual responsibility. Department cohesion ensures a project stays on budget, on time and on the specified course.
5. Protect Against Financial Losses
One of the major advantages of project management is to prevent significant financial losses. A startup needs all the capital it can get. Small businesses can’t afford to bleed money. Project managers are trained to allocate the right resources to complete projects on-or-under budget.
When a business delays its go-live date, it loses money because it is not selling any products or services. Then, there is the cost of reputation damage for not keeping its promises.
6. Final Thought
As a startup grows, project managers help to keep everything together. They ensure deadlines are met, team members communicate effectively and budgets are followed. The costs of not having a project management system in place is incalculable.
Even if your organisation can’t afford to hire a full-time project manager, it’s still beneficial to hire one on a per-project basis. You can then focus more on your core tasks while keeping budgets in line. Plus, as you continue to meet important deadlines, your reputation and credibility improves as well.