People management skills – the ability to interact with other people and to influence, motivate them ensuring they are helpful and efficient. Problem solving skills are very important when it comes to dealing with staff. Ability to give people the opportunity to express their concerns, disappointments and anger face to face, put things right, or help them see where their thoughts and feelings are misplaced.
Recording and checking performance of the business – a key role for the business owner is to monitor how well the business is doing so that action can be taken if things are going the wrong way. There are four steps to follow in order to record and check the performance of the business:
Setting performance standards – setting targets that are relating to aims and objectives of the business. It’s important that the targets involve levels of quality, quantity and time.
Measuring the actual performance –
How much production has taken place
Haw many sales were made
The quantity of returned items
The amount of money left in the bank
Comparing the actual performance to the standards set – considering changes if the targets are not met
Taking action of required – if the targets are not being met actions need to be taken to ensure the business is going to improve
Personal selling - if the product does not sell well it necessary to encourage potential customers to buy. There are few key skills needed to sell product effectively:
Effective meeting and greeting customers
Identifying products needs in the customer
Persuasive presentation of the product
Good product knowledge
Good listening skills
The ability to effectively close sale
Administration – poor administration can let the business down. It is essential that all details are recorded accurately. Without good administrative backup the owner can run out of stock, forget to dispatch orders or don’t collect payments from customers correctly. Providing good administration to a business involves being well – organised, having good attention to detail and have good communication skills.
Previous experience – previous experience is always useful to offer to a new business. This skill may help to achieve success and avoid potential problems.
Strengths and weaknesses – no one is good at everything and it’s important to asses own skills before starting business. Performing personal skills audit will help to establish what things we can and cannot do, it also help to choose strategy and build the business around those things we are good at.
M2
Analyse the skills needed to run the business successfully
It seems that entrepreneurs themselves do not generally have an excellent education which is not an important factor for them. Most people agree that experience in the university of life is what develops an entrepreneur.
It is no doubt that there are plenty of skills, knowledge and behaviours some business owners are lack of. Being a successful entrepreneur, a person must be good at problem solving and decision making to run the business successfully. In order to find out the strengths and weakness personal SWOT analysis can be carried out.
Once skills gaps have been identified, it is important to plan ways in which these personal development needs are to be met.
Training may involve self- study, research, attending courses, mentoring or coaching by professionals. The local college will run variety of courses to meet skills need. Relevant subjects may include accounting, management skills, office and administration skills and business planning.
Business support agencies such as the Business Link, the Chamber of Commerce will provide information on the various aspects of starting up and running a small business.
Some information and advice may be available free but college courses may cost several hundreds of pounds. However small firm training loans are available from banks to pay certain training costs.
Training and development plans must be scheduled so that the appropriate skills are acquired by the time they are needed. The key is to make the most of the assets and take action to address any gaps. Skills gaps may be bridged by personal development or by bringing business partners with appropriate skills, by recruiting skilled employees or outsourcing.
Succeeding in business is about ideas, motivation and ambition as well as confidence to sell the ideas. Every entrepreneur should know own strength and weaknesses and when to seek advice.
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