Business Management Skills

To run a successful business you need a diverse range of business management skills. If you’ve previously worked as an employee you’ll be used to the support of many other departments such as sales and marketing, accounts, human resources and information technology (IT).

When you start your business it’s likely that many of these functions will become your responsibility.

How confident do you feel in your ability to manage them?

It’s a good idea to plan ahead of time how you’re going to manage each area which may include delegating various functions to a business partner, undertaking additional training or contracting a specialist advisor such as a bookkeeper, graphic designer or merchandiser.

Remember that although you need to understand, manage and take responsibility for every aspect of your business, you don’t have to do everything yourself. Some of the key areas you’ll need to think about are outlined below.

MARKETING, SALES AND PROMOTION.

Marketing is more than just selling and promoting your business. It's about identifying your customers and working out how to get them to purchase your product or service. Go to Marketing for more information. The SBDC runs a number of workshops which cover market research, costing and pricing and marketing and promoting your business.

Human resources

Human resources is about managing and looking after your staff. You may find that you’ve got employees to manage before you even start your business which is highly likely if you’re buying an existing business or taking on a franchise.

Understanding business financials

The primary objective of any business is to make a profit. Good financial management is essential to ensure your achieve this goal, and the first step involves understanding your financial statements which is crucial to running a successful business.

Communication and negotiation skills

Business is all about people regardless of your industry or the product or service you’re offering. You will encounter a range of people on a daily basis in the operation of your business from customers and suppliers to employees and business associates. Developing your communication and negotiation skills will be invaluable in a range of situations from negotiating a supplier contract to dealing with a difficult customer.

Knowledge of business legal issues

Starting a business can be full of legal potholes for the unwary, whether its industry regulation, tax requirements, industrial relations, business structures, negotiating a commercial tenancy lease or contracts with suppliers. There are many legal issues to be aware of, so before you start a business, it’s a good idea to engage a lawyer to advise you in these areas.

Logistics expert

Logistics is about managing the procurement, supply and maintenance of products and operational goods. One of the major concerns for a business owner is stock control and there are many different approaches and programs to stock management.

Before you start your business you should think about how you’ll ensure you have the right amount of stock at the right place and at the right time. Efficiently managing stock is important and will ensure your capital isn’t tied up, and protects production if problems arise in the supply chain.