Skills For Running A Successful Small Business

If you have read the personality and attributes pages, you will know by now whether you have the qualities to be a successful entrepreneur. But what about your knowledge or skills? What are you expected to know in order to run a business?

It is worth spending time reviewing your skills because unlike the majority of attributes, skills can be learnt or acquired. Go through each of these skills and decide whether you have them or not. You will then know what to seek advice on in order to bring your skill set up to the required level.

Communication

Good communication skills are required in all aspects of a business – communication with your customers, with your suppliers, with your staff. You need the skill to be able to clearly put your message across so people understand exactly what you want of them. Success in business won’t be achieved if you can’t get people onto your wave length.

Good communication skills come in the form of logically presenting your ideas, both verbally and in written form. If you think you need to improve in this area then look out for courses and books on presentation skills and how to write clear letters and memos.

Good communication skills also extend to understanding body language. The ability to read other people’s body language can help give you that unfair advantage which is what all business owners seek! Was that gesture he just made a sign that he is ready to buy or was he signalling that he is about to walk away? Different situations mean different ways of handling them – learn to spot the difference.

Sales and Marketing

If you can’t effectively sell your product then you’ll never achieve success! Customers rarely buy totally on impulse – they need encouragement and an awareness that your product is ready to be bought. Distinguishing your product from your competitor’s is also important. Marketing skills involve:

• Being able to segment your market
• Identifying your target market
• Writing a Marketing Plan and implementing it
• Understanding different types of marketing

Having raised awareness of your product you then need to be able to convert interest into cash! This is where sales skills come in. Sales skills involve:

• Identifying a sales opportunity
• Being able to negotiate a better deal
• Handling objections
• Closing the deal

In each issue of Small Business Success we look at ideas and tips to help you improve your skills in these areas.

Organising Your Life

Running a small business is one job after another. You have to be organised so that your business runs efficiently.

• Can you be disciplined and organised enough to finish a job on time?
• Can you keep your office clean, clutter free and so making it easy to find things quickly?
•  Are you able to prioritise your jobs, concentrating on the jobs which will give you the greatest payback?

Being organised can make running your business easier and more profitable.

Keeping an Eye on the Cash

Messing up your finances is probably the quickest way to put an end to your entrepreneurial activities. As a wage-slave (employee!), managing your finances is simply a case of ensuring you don’t spend more than is in your account.

Running a small business involves more than that. The financial skills you’ll need include:

• getting your invoices out on time and paying the ones sent to you on time
• controlling your credit and being tough with the late payers
• knowing when it’s safe to write that large cheque
• recognising the importance of planning ahead and committing to completing a yearly budget and cash flow
• keeping monthly profit and loss accounts so you immediately know whether you are in profit or loss

There are a number of books and PC based applications which can help to keep you on track.

Finding and Coping With Staff

If you have quickly outgrown your one-man-band status you will have to employ staff. Your skills will have to include being able to identify the type of person most suitable for your business. Are you looking for an outgoing personality or a quiet, organised administrator?

After having identified potential candidates another skill you’ll need is how to be an effective interviewer. You don’t want end up with the wrong person on your team just because you failed to test him properly during the interview.

When you have taken someone on the next skill you’ll need is managing them. You have to make sure they understand their role, that they know what’s required of them. You have to be able to motivate and encourage them during the low periods in the business. This includes putting in place an effective appraisal system so you identify your good performers and help the poorer ones.

Review your current skill set. Don’t let your business down by coming in with outdated skills.

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Steps to Setting Up a Successful Small Business

Introduction

So You Want To Run a Business?

Are You Up To It?

Skills For Success

Got an Idea?

Is There Anyone Out There?

Your Legal Status

Choosing a Bank and Opening an Account

Getting The Right Premises and Equipment