Do I have the right skills to run my own business?

Just being good at your job doesn’t necessarily mean you can run your own business. The reality of running your own business is that you will hold overall responsibility for everything from IT, finance and marketing, to how to deal with your daily post bag and business administration.

 

Skills audit

A good place to start would be to look at what you can and can’t do, through carrying out a skills audit, asking the following questions:

• What can I definitely do myself?
• What can I learn to do either for free or for a minimal cost (networking, books, internet, training courses etc)?
• What do I need professional help with?

After you’ve answered these questions, allocate the resources, the cash and the time you have to deal with them. There are plenty of areas of running a business that you’ll want to look at, here are the most important areas to consider.

 

Sales and marketing

You’ll need the skills and experience to identify your target market and its receptiveness to your offering. You’ll need to understand what makes them buy and how to acquire new customers. A good marketer will know the methods of building a brand and then keeping it in the target market’s conscience.

A marketing plan is one of the most obvious ways to plan ahead and can help you capitalise on the opportunities available to you depending on the resources that you have.

 

Finance

You can do a lot yourself, but professional help will have to be used for some aspects of finance. You can however, go about securing start-up capital by taking a good business plan to finance houses and venture capitalists. Once this has been done, you’ll want a good grounding in the following:

• Budgeting and forecasting – keeping a tight rein on spending and realistically estimating income is key to a successful business
• Bookkeeping – basic accounts, wages, VAT returns etc, all need to be done by someone. You can invest in some fairly low-cost bookkeeping software packages
• Managing debt and credit – stay up-to-date in maintaining cash flow, making sure you get paid on time and can pay your bills on time
• Stock control – the value of your stock can fluctuate and have an impact on your profit.

 

People management

If you have employees, you’ll need to know how to recruit, retain and motivate them, while complying with all the necessary HR and Health & Safety legislation that comes
hand-in-hand with people management. Other areas you’ll have to tackle include payroll and pensions.

 

Legal issues

Getting professional legal help is almost unavoidable when it comes to running a business, but if you do your own research you can use them economically. For example, there are a number of HR compliance services available that will cut out the costs of hiring a lawyer to write an employment contract and can leave you with cash in your pocket to tackle the more technical issues such as copyright and patents.

 

Miscellaneous

It’s possible you may also need the following skills along the way:

• Computers and accessories – is your knowledge sufficient to purchase, set-up and network all your computer equipment?
• E-commerce – if you want to set up your own website or running an online store
• Administration – keeping on top of the day to day tasks is vital to your business.

 

Keeping ahead of the game

Just like when you were in employment, you’ll need a regular personal appraisal. Personal development is still important to you and your business and not paying attention to this could be detrimental. Make sure you do these things to stay ahead of the game:

• Keep up-to-date with your industry through the trade press, visiting websites and exhibitions and networking

• Plan ahead by working out where you want to be in twelve months and what you need to do to get there. Getting a sound business plan is key here 

• Keep growing your skills set whether online, at night school or on day courses. It will increase your knowledge, your confidence and your ability

• Consider a mentor to help you. Find someone with more knowledge and experience than you in running a business, preferably from a similar industry. Business Link (www.businesslink.gov.uk) can help you find an appropriate person

• Consider solutions that are designed to make tackling key business areas such as financial management easier.

From planning your business right through to your retirement, keep your skills up-to-date and appropriate. Identify your priorities and plan your time well. A good grounding in everything is an advantage, but there are some areas where you should get help if you don’t specialise.