The skills, talents and expertise that you’ve accumulated over the course of your career have given you a strong foundation to build upon… you would be amazed at just how many small business owners lack some of these essential skills.
If you’ve operated successfully in a corporate environment, then you probably have what it takes to become a successful franchise owner.
Some of the transferable skills that you’ve acquired (and not always to your conscious awareness) include:
The art of motivating a group of people to act towards achieving a common goal is a key component of business success, regardless of industry. Having the ability to do this well will have a direct impact on your business success, as you will be better at hiring, retaining and motivating employees to do their duties the best that they can.
Even if you intend to run a one-person operation, you are still the leader of your clients, customers, suppliers and vendors. The ability to lead is crucial in business and it’s amazing just how few business owners can do this successfully.
The ability to communicate ideas clearly and concisely is a skill that comes with practice and experience. It can make all the difference between business success and failure. After all, business is about people and if you’re unable to communicate with those people then you’re going to struggle to get things moving in the direction that you want.
Good business planning is nine parts executions for every one-part strategy. Your ability to implement business plans is a mission critical component of success and having the skills to successfully execute is key to your success. Execution is an ability to finish what you start, getting the task or project across the line efficiently and as effectively as possible.
Planning & Strategy
Success doesn’t just happen. It’s planned for. Your attention to detail when planning and strategising allows you to effectively anticipate scenarios before they happen. Being able to put good plans in place, considering different scenarios and the input of others is key to business success.
Fiscal management is at the heart of any business – it is the one area that can help drive it forward. We find that while many corporate professionals have some degree of financial management skills, with a little extra knowledge and training, they can become excellent at this skill. It is certainly a skill worth learning as good financial management in business can mean the difference between business success and business failure.
The ability to see around corners, adapt when needed and to anticipate what the business needs is a priceless skill that only comes with experience. You may not even be aware that this is a skill that’s been developed but it’s one that can make a real difference to your overall success, allowing you to make the most of opportunities that come your way.
However, this is not to say that you have all the skills you required to run a business successfully. There are some skills that you will naturally be missing, laying dormant and undeveloped through lack of exposure or consistent practice.
Some of these skills include:
Understanding Management Accounts
Some of you may have experience running budgets and producing financial reports (maybe into the multi-millions) but few of you will have the broader experience of utilising management accounts to run your own business. Your management accounts consist of your cash flow, P&L/Income Statement and balance sheet, all of which are used monthly to monitor performance, forecast future performance and to make informed decisions. Small business accounting is very different to financial reporting found in corporate enviornments.
Lack Of Resources
As a small business owner you’re head chef and bottle washer. While you may be used to pitching in where required, small business ownership takes this to a whole new level. Human resources, IT, administration, marketing, sales – as a small business owner you are responsible for all and very often all at the same time. This is where a major benefit of franchising comes into play, as a lot of these resources are put into place for you.
Understanding how to handle small business finances
While this may seem like understanding management accounts, it’s not. Understanding small business finances is learning to understand the broader benefits that business ownership can bring you. It’s understanding how to handle personal salary, employee salary, expenses and pension contributions. It’s knowing how to handle the taxes of the business in a way that legally reduces taxes and generates additional benefits for the business.
If you look at this rationally you will see that, with the right approach, you can cover your skill gaps while building on your strengths. This is particularly true when it comes to franchising and why we’re such a huge advocate of it. The inherent nature of the franchising model means you can help plug your skills gaps, at least while you up-skill in individual areas, as you simultaneously build on your skills and magnify your strengths.