Technology comes and goes, but there are basic skills that every new entrepreneur needs to master. They have all been with us for many years: unchanged – none of them are new or trendy. Businesses survive with owners who blunder along without them, but most fail to prosper. Ignoring the problem places a burden on the business that it likely to weigh it down with unnecessary ballast.
The essential minimum, the 3Bs includes:
- Business Planning
- Business Budgeting
- Book Keeping
Like most of the technologies needed to run a successful business, none of these are difficult, they just require application.
Your Business Plan
Your business plan tells all your Stakeholders just what your business objectives are. The length and degree of detail you go into depends on:
- how much time and money you will invest on your start-up
- the ‘shape’ of your Cash Flow – how long will it be and how much money will you invest before your business starts to turn a profit,
- The nature of your business: is it relatively simple – a plumber striking out on his own – or complex?
Some business plans can be written on a single page, some need a dense report to stakeholders, but Every Business Needs One
Your Business Budget
Your business budget is about numbers, mostly financial numbers to be sure, but also issues of ‘how many?’ ‘how much/’ ‘how often?’ etc.
It is also about time! How long will you give yourself to get the business up and running, and how long before it returns a profit?
Some of your stakeholders will want to see your budget, your business partners, your bank manager, your solicitor, but its main purpose is to help you. It is a tool enable you to measure your progress on a day to day basis and to identify where and how you are falling behind or exceeding expectations..
Your Business’ Book Keeping
Most entrepreneurs bring a strong skill set to their business: lawyers are good lawyers, plumbers are excellent plumbers. These are all very fine, but not in themselves the skills you need to run a business.
Book Keeping is a hum-drum business but it has to be done. It is commonly out-sourced to other small businesses that take on the day to day work-load involved. If you can afford it that can be a good way forward allowing you to focus on your skills. If not, well like most of the topics we touch upon, it’s not that difficult.