Essential Skills for Business Success
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Since becoming involved with the organizing industry, I’ve seen many people become successful, but sadly, I’ve seen many others who started an organizing business only to shut it down after a few years, or even a few months. Sometimes there’s an unforeseen change in health or family situation, but often it’s because they lacked the skills required to effectively manage a business.
It makes sense that most professional organizers choose this line of work because they have a passion for organizing, and if you are someone else’s employee, that may be enough. However, the moment you decide to start your own organizing business, you assume managerial responsibilities, and unless your education and previous employment have prepared you for this role, you’re going to be facing challenges you never contemplated.
You are not alone in this. In his best-selling book, The E-Myth Revisited, Michael Gerber refers to it as the Fatal Assumption. Here’s what he said about it:
… you fell victim to the most disastrous assumption anyone can make about going into business.
It is an assumption made by all technicians who go into business for themselves, one that charts the course of a business — from Grand Opening to Liquidation — the moment it is made.
That Fatal Assumption is: if you understand the technical work of a business, you understand a business that does that technical work.
And the reason it’s fatal is that it just isn’t true.
In fact, it’s the root cause of most small business failures!
The technical work of a business and a business that does that technical work are two totally different things!
But the technician who starts a business fails to see this.
According to Business School Edge (site no longer online), there are 21 skills that are essential to succeed in business:
- Written Communication
- Social Networking (in the traditional sense, rather than using online platforms like Facebook and LinkedIn – though those are useful too!)
- Public Speaking
- Sales
- Negotiation
- Strategic Planning
- Project Planning
- Financial Planning
- Risk Planning
- Logistics Planning
- Time Management
- Meeting Management
- Leadership
- Systems Planning and Implementation
- Personal Productivity
- Imagination
- Inventiveness
- Problem Solving
- Brainstorming
- Connecting Ideas
- The ability to switch off and relax
Since March is Improve Management Skills Month, take some time to study this list and identify any areas where your skills are not as strong as they should be. I’ll be sharing some ideas and resources to address some of these skills throughout the month, so feel free to share your challenges in the Comments section or ask a question privately.
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Janet,
really loved this post and will invest even more time and attention to the “base” of my business. Even coming from a business management background, having your own to run, invest, make it become a source of both pleasure and income is quite challenging. It’s always rewarding to learn, but I’d pass the mistakes! 🙂
Helena, do you think it’s harder for people who start a business in order to make a living doing something they’re passionate about (such as organizing or website design) to break out of what Michael Gerber calls the “technician” role, than it is for someone who decides to do something mainly because they think it will be profitable?
Wow, that’s a lot of skills! Seems intimidating to see it laid out like that. Yet, it is all true. I think so many people excel in making the “product” of the business, but lack skills for running the business itself. We are lucky here to have an organization called SCORE, which is volunteer retired business professionals who come alongside new business owners to help them, at no cost. You can meet one-on-one with a coach, and also attend various events that cover aspects of running a business. It’s such a great organization!
That sounds like a fabulous program, Seana! When I was starting out, I took advantage of free help from what was then called the Small Business Enterprise Centre. It’s now called the Hamilton Business Centre, and they offer free workshops and courses, mentoring, one-on-one consultations, and access to tons of resources. It’s great because many other programs are fee-based or have strict eligibility requirements, but this one doesn’t.
When I started my business, I knew that being good at something was only (maybe 25%) part of the battle. I was lucky, having come from a background TV and degrees in communications, so I had marketing, PR, writing/blogging, and public speaking in my wheelhouse. But not all of those skills listed were in my wheelhouse. I had negotiated television contracts, but what did I know about when to set my business boundaries vs. when to negotiate them. There’s a LOT that we don’t know that we need to know. I purposely didn’t start my business until I read every book I could lay my hands on regarding business start-ups, but I still didn’t understand business taxes. I went to the Small Business Development Center (which helped me identify and work on skills) and SCORE (as Seana mentions) but old, white, sexist dudes refused to believe that professional organizing and productivity coaching existed as a profession. (Nobody taught them social skills, apparently!)
And #21, knowing when to shut off and relax? Well, that’s a skill I’m still learning.
I can’t imagine anyone starts out with ALL of the skills! I feel like I have a good handle on most of them, but I sure wouldn’t have said that when I was starting out 20+ years ago.