By Dr. Tonya Smith | 06/09/2025
The Project Management Institute (PMI) was founded in 1969, and project managers have continued to evolve since then. According to Forbes, “A project can be defined as a series of tasks that need to be completed to reach an end goal. It is the art of bringing together a team to complete a project successfully.”
The science behind project management is complex. Unfortunately, many people do not fully understand what is involved in project management.
Years ago, someone walked into my office and said, “I want to be a project manager, and I know you went to school for it and have your project management professional certification. Can you give me a five-minute course? I do not want to go through all that.”
What many entrepreneurs do not understand is that project management is a crucial skill that supports successful projects and business growth. Project management can help entrepreneurs achieve their goals and increase their chances of business success. While they may not have large project teams, entrepreneurs can use basic scheduling techniques to reduce risk and increase efficiency.
The 5 Essential Steps in Project Management for Entrepreneurs
While project management has evolved over time, the core principles have remained consistent. There are five essential steps to mastering project management for entrepreneurs.
- Planning
- Organizing
- Executing
- Monitoring
- Controlling
Planning and Organizing
Effective project management involves setting clear goals and objectives. Identifying potential risks and factoring them into decision-making helps entrepreneurs stay agile and informed.
Effective project management also involves organizing tasks, delegating tasks, and overseeing project progress. It is essential to clearly define the end goal as well as organize the work to keep a business running smoothly. The skills and techniques used in successful project delivery can be applied across a range of industries.
Executing, Monitoring, and Controlling
In addition to planning and organizing projects and watching them go into action, it is also necessary to regularly monitor projects and evaluating their progress. In addition, identifying potential risks, controlling those risks and any resulting problems, and factoring risks into decision-making helps entrepreneurs stay agile and informed.
The Benefits of Project Management
Successful project management uses a structured approach to plan and schedule work. When projects are aligned with strategic and operational goals, the benefits are compounded, according to David Peterson on LinkedIn.
Project management enables businesses to effectively manage change, enhance efficiency, and increase profitability. Not only do project management techniques support an entrepreneur's business model, but they also provide a way to measure whether the startup business is running smoothly or not.
For a successful entrepreneur, the benefits of using project management are evident. Good project management helps to streamline processes, track progress, and avoid delays in meeting customers' needs.
When businesses focus on specific goals and break down complex tasks into smaller, more manageable steps, business objectives are more likely to be achieved. This structured approach can help save time and build a more efficient process.
Many of the small-to-medium sized startups that I work with are not familiar with the processes and focused approach that project management can offer. Working with them throughout the five phases of project management – initiation, planning, execution, performance, and closure – is a great way to educate them on the best practices of project managers.
For instance, after clarifying their vision, we create goals and develop 10-week sprints. The project team meets weekly to evaluate what was completed and what comes next.
Anything left unfinished the week prior requires a plan to get back on track. Working together, team members have accountability, which in turn fosters good collaboration and sustainable processes.
Project Management Tools
Choosing the right project management tools can help entrepreneurs stay organized and productive. Depending on the complexity of the projects, entrepreneurs can select what works best for them.
There are many factors to be considered when you’re selecting a project management software tool. This type of software helps entrepreneurs plan, execute, and track project progress.
While there are many different software options available, technology works best when expectations for use are agreed upon by the entire team and actively managed. In a startup, a team is usually small, and an entrepreneur may not be tech-savvy.
In these cases, simple projects and tasks can be managed and all the information can be collected in a simple tool like Excel®, which has a user-friendly interface. Excel allows entrepreneurs to manage tasks without investing in complex software tools that may go unused.
Later, as the company grows and the work become more complex, more sophisticated project management tools such as Gantt charts and Kanban boards can be adopted.
Dealing with Limited Resources
Entrepreneurs typically have small teams – if any – as part of their company. When resources are limited, decisions must be made based on capacity.
Resource constraints can be challenging, but they don’t have to be a roadblock if resources are used intentionally. With limited budgets, manpower, and time, entrepreneurs must maximize each resource’s potential while minimizing their risk.
Some entrepreneurs choose to outsource routine tasks to third-party providers. Sometimes, this strategy is a good option for handling some administrative processes.
Many resources are available overseas at a significant cost savings. However, it is important to weigh the pros and cons of outsourcing to ensure it aligns with your project timelines and quality expectations.
Building a Startup Team
Entrepreneurship requires a strong vision for the company and a flexible business plan. Startup teams typically manage rapid growth and innovation and must be able to adapt to their experiences as they learn in their environment. Clear and consistent team communication for each job is vital.
Unlike traditional project management, which has clear business objectives, defined deadlines, and predictable outcomes, entrepreneurs need to remain flexible. Often, they tend to adapt more of an Agile approach to keep the work on track.
Agile project management allows entrepreneurs to adjust their strategies, directions, and timelines as needed. Agile projects encourage collaboration, communication, and iterative cycles to keep current and future projects moving.
Project Management for Startup Teams
A successful business is a program, like one big project, that is made up of smaller projects and tasks. By using a program-based view of the business, entrepreneurs gain a clear understanding of current operations.
Learning the foundations of project management can help owners overcome early-stage challenges. Using project manager skills – such as resource allocation, time management, and budgeting – can also increase an entrepreneur’s chances of success.
Project Planning and Scheduling
To effectively build project plans, specific, measurable, attainable, relevant, and time-bound (SMART) goals must be developed. After clearly defining SMART goals, strategies can be established and actions can be prioritized. A project management plan outlines the steps to achieve project goals or objectives, including a timeline for each task and a budget.
Project plans provide structure, helping startup teams stay focused and aligned. The entrepreneur and each team member understand what they should be working on and when that work is due.
Everyone is aware of what is on schedule and what may be at risk. A robust project management plan ensures the work is completed and deadlines are met within the given timeframe and budget.
Risk Management
Entrepreneurs must recognize the unique position they are in; their personal finances and livelihood are often directly tied to the success or failure of the business. As a result, risk management becomes critical.
To identify risk, it is necessary to understand a business environment, the company, and the project. As actions and timelines are defined, potential problems should be anticipated and addressed early. Once identified, risk plans empower business owners to make informed decisions and stay organized.
According to the U.S. Chamber of Commerce, there are effective ways to minimize and manage risk for your small business. Entrepreneurs should regularly review and update their risk management plan.
The Critical Path Method
The Critical Path Method (CPM) is used to identify the most important tasks and establish realistic timelines for their completion. The project plan is broken down into individual tasks, and a timeline is created.
Dependencies and task durations are then analyzed, allowing project managers to identify the longest sequences or series of tasks required to complete a project on time. This sequence of activities is known as the critical path. Any delays in critical tasks can jeopardize the whole timeline.
Project Evaluation and Closure
Startup environments should adopt an Agile project management mindset, which emphasizes flexibility, iteration, and continuous improvement. An ongoing review and evaluation of a project’s successes and failures are essential for adapting to and improving the next phase of planning.
When projects are complete, the lessons learned from those projects should be documented for future application. Everyone involved in the project should participate in a post-project discussion to share their perspectives and evaluate the collaboration. It is important to identify what went well and what didn’t and use this information to improve the company’s performance in the future.
Entrepreneurship Degrees at APU
For adult learners interested in becoming entrepreneurs, starting their own businesses or upskilling, American Public University (APU) offers two degrees:
Courses in these academic programs are led by expert instructors with a deep knowledge of business and entrepreneurship. They cover topics such as idea generation, business plan foundations, innovation design and prototyping. Other courses cover the foundations of entrepreneurship, legal practices for entrepreneurs, and venture capital.
Both programs have specialty accreditation from the Accreditation Council for Business Schools and Programs (ACBSP®). This specialty accreditation ensures that AMU’s entrepreneurship programs have been rigorously examined by higher education professionals to ensure they adhere to high academic standards.
Excel is a registered trademark of the Microsoft Corporation.
ACBSP is a registered trademark of the Accreditation Council for Business Schools and Programs.
Dr. Tonya Smith is a part-time instructor for American Public University’s Dr. Wallace E. Boston School of Business. She holds a bachelor’s in project management from George Fox University, a master’s in leadership from Norwich University, and a doctoral degree in management from the University of Phoenix. She is a certified Project Management Professional (PMP) with expertise in program and operations management.
Dr. Smith is a member of the Project Management Institute (PMI) and an active member of the Phoenix Chapter. She is also an Advisory Committee Member of 12 Million Women, an online community for women aiming at, practicing in, or leading with project management.
