What's your skill-set?

In brief

• Why you need to know your business skill-set
• Work out what you know and what you don't
• How to fill your knowledge gaps
• Is going into business right for you?
• What to do next

There are many skills required to run a successful business. You might have a great head for figures, but be less instinctive when it comes to dealing with customers. You may have a flair for selling, yet find team-leading more of a challenge. Knowing your strengths and weaknesses, as well as the experience and training you bring to your business, is the first step to rounding out your skills base.

The following section will help you identify the core skills needed in any business and identify if you, or any staff you employ, have them. Only you will understand what proportion of skills you need in each area, depending on the type and size of your business, but it's useful to be aware of the most common requirements, because your needs will change as your business develops.

Personal skills

• What skills will you bring from previous jobs or businesses?
• Will a personal passion or interest drive your business?
• What personal qualities can you bring to your business?
  For example, self-confidence, commitment, initiative.
• Do you have computer skills?
• Do you have the organisational skills to manage the day-to-day running of your business? For example, time-management awareness to help you achieve the optimum results.

Business planning skills

• Have you written a clear, detailed business plan?
• Can you think strategically about long-term goals?

Marketing skills

• Do you understand your customers' needs?
• Can you supply a product or service that meets those needs?
• How will you price, position and market your product successfully?

Buying skills

• Are you confident with tendering and managing contracts?
• What stock control and inventory systems will you use?

Selling skills

• Can you make new contacts to increase sales?
• Are you able to sell your product or service and handle objections effectively?
• How will you close sales?
• What after-sales service will you offer?
• How will you track competitors?

Leadership and people management skills

• Can you motivate a team?
• How will you set goals and reward performance?
• Can you lead your business forward?
• How will you manage change?
• Are you aware of employment law and regulations?

Communication skills

• Are you able to communicate effectively with suppliers, staff and any investors or lenders?
• How will you tell customers what your business has to offer?
• Do you have good interpersonal skills to help with networking?
• Are you a confident public speaker?

Financial skills

• Are you able to produce financial forecasts?
• How will you manage cashflow?
• Are you confident about financial record keeping?
• Can you manage your invoices?

Once you've answered the questions above, you'll have a clear understanding of the skills you have and those you lack. But before you rush out to fill those gaps, ask yourself whether or not your enterprise really needs expertise in every area. For instance, depending on your business, public speaking or managing a stock control system may not be a requirement.

If there are areas where you do need extra help, you can get it in four ways:

• Delegating Don't ignore the skills within your business. Your staff may have experience and knowledge that you do not have. It's not a sign of weakness to ask them for it; it is good management. Recognising skills and providing opportunities is a great way to motivate employees.
• Training Finding ways to learn new skills for yourself and/or your employees is often cheaper than recruiting a new staff member with the skills you need. As you already know the business, you can adapt any training to fit your systems and methods.
• Recruiting On occasion it makes sense to employ a person to do a job you can't, or which will take your time and attention away from tasks you're better skilled at. A bookkeeper, for example, could manage your payroll and invoicing, or you might hire dedicated sales staff to pitch your product.
• Outsourcing You can hire expertise as and when you need it, whether an accountant to do your annual audit, a PR company to manage your promotion, or an IT consultant to handle complex computer solutions.

Discovering more about your skill-set can be rewarding for anyone starting or running their own business. But the experience may not always be so positive.

After answering the questions above you may discover that you don't have the necessary skills, experience, or even the desire to start your own business at this juncture.

Don't abandon all your aspirations. You might benefit from working as an employee within your chosen business sector, and thus gain knowledge and experience before branching out on your own.

You could find out about training, which will add to your skills and confidence.

Or you may find it helpful to do further research and perfect that business plan before you get started. Finally, you might want to consider becoming a franchisee and so benefit from the ongoing training, support and business model that comes with an established brand.