Small business owners need to keep learning
major factor causing the failure of small business owners is the lack of business management skills. Most owners get into the business because they are very good at what they do, usually to create a product, or a service, so they start their own business.
core skills are required
Regardless of what type of business you have, there are several core competencies that owners must have to succeed.
o Cash Flow Management
o Business development
These skills and knowledge are the basics needed to get more customers in your business and grow in the first six months of the year. If you do not know how to make these business skills then it is even more important for you to get specialized help in these areas or your business will suffer.
Knowing that the best way to get more customers to buy the product requires skills in customer service, selling technology, pricing options, buyers behavior and traditional values improve to get repeat customers. No matter what you are trying to sell you need to get formal training in sales techniques to ensure that you maximize the amount of customers who want to buy something when they contact you.
Cash Flow Management
Small business owners often live week to week on funding their cash flow. This means that you are at the mercy of customers when trying to pay your bills on time. Learn how to make cash even and consistent will save you endless hassles with your suppliers asking for payments and avoid late payment charges all add up the cost of business.
Learn about the different ways in which customers can pay you that will help protect cash flow. Consider discount for early payment, for example. I am not referring to the accounting training, but simply to keep track of payments are enough to cover your costs out every month to prevent you from overdrawing your account or lose your suppliers.
Each year is to lose some of your best customers through no fault of your own. They will no longer need the product or have moved elsewhere. The average company loses 20% of its customers each year. What this means is that you not only to create new customers to grow your business every year, but you’ll also get 20% new customers every year just to keep the same kind of company you are.
Most industry growth rate of 6% -12%. This means that you will develop:
o 6% of new growth just to be competitive with your
o 20% new business to replace the customers you lost this year
o 5% -10% new companies to try to gain market share from competitors
This means that every business owner needs to have strong skills in building customer databases and how to get new customers using several commercial promotion methods. Consider training in Business Development and customer relationship skills so you can build market share every year.
© Copyright 2009 by Paul Baker