Saturday, September 24, 2016

Leadership Skills for a Small Business

My last post's topic was, "Skills Needed to Run a Small Business". In that post, I mentioned leadership as one of the vital skills to run a small business. Now, in this post I'll briefly explain what leadership skills are required to effectively manage a small business:

Leadership is not a single item. It is a combination of many skills. Some of the important leadership skills a small business owner needs are as follows:

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Decision making: A small business leader should be confident & quick when taking a decision. The decision should be based on data or past knowledge. If necessary do some brain storming, research or consult your team members. Once you have all the necessary information then with a calm mind make a timely decision and stick to it. Usually little or lack of information delays a decision making process.

Communication: Good communication is a vital ingredient of any business' success. In a small business, communication should be frequent and clear. A good communication is not only important within an organization but it also helps the business owner to build good relationship with his customers, vendors, bankers, employees etc. Also, it helps in networking with others related to the industry.

On the other hand bad communication causes misunderstanding and confusion. Also, often it is the reason behind the poor performance of a business.

Delegation: Survival & growth of an organization in a long run is impossible without delegation. It not only empowers other team members but also develops future leadership. Also, it gives more time to the business owner for thinking, planing and improvement.

When a business leader shares his/her responsibilities with other team members, it makes them feel important and develop team spirit. Also, it results in increasing employees' morale, confidence and productivity. This eventually helps a business to perform better.

Adaptability to change: An ancient Greek philosopher, Heraclitus, said, "There is nothing permanent except change." Understanding and adapting the change is the key to business survival & growth. Now things change more rapidly than ever. Organization which are slower in change or do not believe in change cannot last longer.

Organizations with a climate of learning and seeking opportunities in the changing environment easily survive & grow than those which are afraid of it.

I hope you found the above helpful. Please feel free to comment.

Thursday, September 8, 2016

Establishing & Managing a Small Business

There are certain skills which one require to effectively run his/her small business. Unlike big businesses you can not afford to hire professionals for different jobs. In a small business owners need to wear different hats as per the requirement.

Some of the essential skills needed to run a business successfully are as follows:

Leadership: It is the key skill a businessperson needs to establish & effectively manage his/her business. Leadership includes planning, motivating employees, problem solving, communication, coaching employees, decision making, setting short term & long term objectives etc.

Accounting: It is one of the most important skills one needs to establish & successfully run a business. The small business owner should be able to make budget of his/her business and should be familiar with bookkeeping. Successful business owners  understand their financial responsibilities and timely execute them.

Marketing & Sales:  Small business owners should be able to market and sell their product/services. They should know who their customers are, understand their needs and maintain a good relationship with them. They should work hard to ensure that customers are satisfied with their products / services.

Networking: It helps a business to survive & grow. A business owner needs to give his time & energy on regular basis to make his/her business a success. Networking makes a business stronger as when you meet new people you get new ideas, meet potential customers, meet more vendors and others related to your business. This helps to manage business easily & effectively.

Social networking can be done by actually going somewhere and meeting the people, contacting them by phone or through internet.

Risk Taker: A business owner is always a risk taker. Taking a risk does not mean jumping from an air plane without a parachute but one should take calculated risks. When starting a business the owner should be well prepared to face all the challenges. He / she should have a good understanding of all aspects of the business.

Negotiation: It is also one of the necessary skills a small business owner needs to be successful. This skill is vital to satisfy customers and to strike good deals with the vendors.

I hope you found the above helpful. Please feel free to comment.