Being your own boss, pursuing your passion and even making a name for yourself can be a hard dream to achieve, but it's one that many share. According to the Australian Bureau of Statistics (ABS), 96 per cent of the 2.1 million businesses operating in Australia are small businesses, run by people just like you.
There are many benefits of owning your own business such as independence, flexibility and financial rewards, and these have tempted many Australians to jump whatever ship they're on to become entrepreneurs.
Successful small business owners have - alongside passion and goals - great products and services, tenacity and several core skills that pave the way to long-lasting success. Here are the secrets to their success:
1. Communication skills
In all businesses, big or small, interacting with other people is key, whether it is with staff, suppliers, partners, customers or prospective clients. Strong communication and interpersonal skills are integral to providing quality customer service and ensuring you have a happy and united team.
You need to be able to listen and understand others and have the tools to express your ideas and needs. Without these skills your business could be floundering in a sea of confusion and unmet expectations. If you feel like your communication skills are leaving your business in the dust then seek out books, blogs and courses for communication strategies. While communicating may come more naturally for some people, it is not impossible to learn the gift of the gab.
2. Marketing and sales skills
Getting people to notice your business requires strong sales and marketing skills. You need to be able to attract the right customers and clients in order to be successful.
Marketing skills will enable you to conduct and understand market research and implement marketing strategies, based on this research, in order to connect with your key markets. Understanding the market as well as your target audience will allow you to apply your resources more specifically and efficiently. And in this digital age, e-marketing expertise is also essential. Online marketing strategies are proving more relevant and commonplace in today's society, and businesses that fail to utilise online channels risk being left behind.
3. Personal management skills
Procrastinators and daydreamers need to be wary of letting their workloads get the better of them. Acting as your own boss means self-discipline is key to keeping your business on track. You alone are accountable and responsible for your own actions and time, so managing these efficiently and keeping to schedule are imperative.
Developing your management and organisational skills can be a challenging task requiring a fair amount of discipline and determination. Acknowledging your bad habits and finding out what works for you are the first step and will help you put in place the necessary practices to stop your brain from straying. Prioritising and planning your workdays, and sticking to a schedule will help you keep your eye on the prize.
4. Financial skills
Understanding how to manage money is crucial to any business. Effectively managing your cash flow means having the right systems and processes in place to protect your business against loss and mismanagement. Business owners must also stay on top of their bookkeeping and accounting requirements.
Taking a MYOB or bookkeeping course is a great way to keep on top of things such as sales recording, reconciliation, inventory management, BAS transactions and payroll.
5. Writing skills
Being able to communicate well through the written form will be a great asset to your business. Website content, social media, marketing material and business proposals all require some writing skill. While some of these activities can be outsourced to professionals, the better you can write, the more professional you and your business will appear.
Basic grammar and spelling will get you by and maintain your credibility with your clients and partners. But if you really want to get noticed, you will need writing that portrays your voice and personality. More importantly, you will need to know how to keep your audience engaged while maintaining the branding and integrity of your business. If you want to learn how to do this, taking a communications course could be helpful.
6. Adaptability
For the small business owner, the ability to accept and deal with uncertainty will make you an excellent business owner. Markets, technology and customer wants and needs are ever-changing, so small business owners need to be adaptable to keep up with changing conditions.
Businesses need to remain relevant and up-to-date, and small businesses have the upper hand in this because of their size and the speed with which they can institute change. In order to adapt, businesses need to keep their finger on the pulse and understand how trends can affect their business model. The rise of social media as a business platform is a great example of how businesses need to keep on their toes with new technologies to change the way they connect with their market.
7. Problem-solving skills
Small businesses can often feel the effect of market changes more strongly than larger companies. This means that small business owners need to be able to think on their feet and find solutions without the resources larger companies can afford. Entrepreneurs need to think outside the box to find the right solution for their business.
Identifying issues and understanding where they originated from, brainstorming with others and conducting swift implementation can help small businesses overcome challenges and manage problems.
8. Networking skills
If you're preaching to an empty room, it can be hard to get your message across. Networking and finding people who can help your business grow and expand is a crucial skill for any business owner to have. Developing industry contacts will help you build up a pool of valuable talent and resources.
Entrepreneurs can network the old-fashioned way through industry conferences and events, or online through social media avenues such as LinkedIn, Facebook and Twitter. But remember, networking is a 'you scratch my back, I scratch your back' type of arrangement, so be sure to give as good as you receive.