 Most Small Business owners find themselves running a business due to a number of reasons and often they have the knowledge and skills to deliver a service or make a product however it soon becomes evident that behind the scenes, there is a wide array of other skills needed to successfully manage a business. Often there are gaps in skill ability that are not evident until the business is operating and careless mistakes are made. As the business grows and a variety of challenges occur, the business owner soon develops new skills through the ability to learn from mistakes and prevent their reoccurrence. Through the development of procedures, systems and workplace policies and with much hard work and persistence, the foundations are laid to employ staff of outsource experts for who have certain skill sets to assist with further driving the business forward. By creating a systemized environment, tasks are able to be delegated by the business owner which then frees up time to work on other areas of the business. To manage and operate a successful small business skills are required in three main areas - technical, managerial and personal Technical skills: include trade and professional skills that are maintained and updated regularly
Managerial skills: include planning, leadership and administration to ensure the business is a success
Personal skills: include processing information, decision making, problem solving, communication and leadership Often it’s the technical skills a business owner has while the personal skills are developing on the job as required however its usually the scope of managerial skills required that is a never ending challenge to acquire for small business owners. There are many managerial skills required and they can be categorized under the five main headings below. Use the below list by ticking off those skills you think you have under your belt and identify those you need to work harder at or acquire additional training in to further develop. Planning
Setting goals, strategic planning around goals, developing processes, writing policies, allocating budgets and developing new products and services Administration
business structure, GST and tax issues, insurance, licenses, permits, legal requirements and legislation compliance Marketing
research, creating a competitive advantage, understanding the target group, devising a marketing mix for reaching the target mix, advertising and promotion, monitoring marketing effectiveness, gathering feedback from customers Finance
Organising finance for the business, monitoring and maintaining cash flow, managing debtors and creditors, understanding cost of producing goods/services, pricing, producing financial statements, maintaining a record keeping system Operations
Monitoring business performance, maintaining equipment and systems, information management, human resource management and complying with OH&S requirements Don’t worry too much if there are many gaps in the above list, many small business owners acquire additional help in developing their skills further or outsourcing an expert assistance to fill the skill gap from a number of sources such as: - Accountant
- Bookkeeper
- Solicitor
- Information seminars on certain topics
- Training Courses
- IT specialist
- Web Designer
- Graphic Designer
- Business Consultants
- Business Mentors
- Business colleagues
- Networking groups
- Temporary staff
- Employing skill specific staff
Tips for becoming a successful small business owner: - Have Initiative and motivation
- Be a self starter with a positive attitude
- Have confidence in your knowledge and abilities
- Have passion and determination when it comes to achieving business success
- Focus on setting goals, prioritising and achieve them
- Ensure you plan and strategise for success
- Work hard at understanding your businesses finances and monitoring your cash flow
- Organise yourself and delegate work when under pressure
- Accept responsibility
- Make decisions and trouble shoot based on facts
- Ensure you are able to work under pressure, meet agreed deadlines and cope with crises
- When you commit to projects ensure you complete as per scope of work agreed and within specified time frames
- Develop processes and systems to streamline your business operations
- Gather feedback from your customers and integrate into your systems and processes
- Source new business, sell and negotiate successful outcomes
- Deliver promises and commitments to customers
- Network and promote your business
- Take on board constructive criticism and use it to improve your business
- Communicate non emotively
- Work on effectively leading, inspiring and managing your team of people
Wendy Fogarty is a Small Business Management Specialist with a Training and Business Mentoring background. Wendy works one on one as a mentor to business owners and assists them with developing skills in the areas they are lacking knowledge in to best manage and grow their business. For assistance with your business and to be fully equiped on the road to success, contact Wendy Fogarty on 02 42832221 or email wendy@i-ibs.com.au |
