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AN ENTREPRENEUR SHOULD BE A GENERALIST

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As entrepreneurs, we are different than most people. We have a passion for what we do and we need to have knowledge of most aspects in business. That is why I am saying an entrepreneur should be a generalist.

This means, you need to have knowledge of each at every area or department of a business. This includes, but are not limited to operations, finance, human resources, technology and marketing. It does not mean that when you lack in any one or two areas above, you will not be successful. It means you will either have to utilize the expertise of someone else in the area you lack or you will need to learn the skills and get the experience in the areas you lack.

If  you have knowledge and experience in all the above areas, it will make it easier and give you a better understanding of your business.

A general manager of a business needs to know each aspect very well, in order to be successful in his/ her position. The function and entrepreneur fulfils on a daily basis is similar to a general manager role.

There are many online courses available to teach or improve your knowledge of a specific are in business.

You can also utilise the skills, knowledge and experience of someone else to assist you and help you to grow your business.

 

If you need help with your business in any of the above areas, then the My Business Puzzle Explorer© program can help you to start the process to optimise your business.To learn more about our My Business Puzzle Explorer© program.

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HOW TO FOCUS ON BUSINESS ANALYSIS

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During tough economic times, we need to look at our business differently. It requires us to look with a magnifying glass at each and every system, process, expense and product. Look at each department or division and ask why do we have this here? Is this still relevant? Is this, the best way we currently do things?

Tough times allows us to actually sort of reset our businesses and reduce which is unnecessary. Things that was relevant yesterday, will possibly not be relevant tomorrow.

So most businesses, if not all, consist of the following departments. Finance, Operations, Sales & Marketing, Human Resources and Information Technology. There might be slight variations of these departments in some businesses, but mostly all of them consist of the ones above.

You need to go through each of these departments in your business and see what you need to change now, to make sure your business can be sustainable going forward from today. Throughout this exercise, you need to focus on your bottom line. Make sure you at least break even or you are profitable. If you do not achieve those two now in your business, you need to work the departments above to achieve that. Watch your cash flow, this is what sinks businesses quickly.

Finance

In this department you need to ensure your financial systems and processes are fine and you can quickly see what your financials tells you. Is your expenses to high compared to your budget or forecast or are they in line.

Operations

Here you need to make sure your operations runs optimal. It might need you to check to see if you still need to manufacture or procure is certain product or raw material. Maybe during the downtime this product’s sales decline, therefore your stock levels will also need to be reduced. The capex budget for any new equipment should be placed on hold and be reviewed to ensure whether it will still be feasible to buy the equipment based on the current sales levels.

Sales & Marketing

In this department, this is where you need to keep your focus during difficult times and try not to spread this department to thin. Here you need to try and continue with your marketing strategy as before. Focus on exploring online marketing by utilising Facebook ads, podcasts, videos, offline marketing (Flyers, postcards) etc.

On the sales front, you need to keep your prices competitive and do not increase prices, just because there might be an opportunity to do so. Unless your input cost has increased dramatically, maybe for now it will be good practise to sustain your pricing for now and review it every three months.

Human Resources                    

This is potentially your biggest expense on the income statement, but also your biggest asset in terms of your employees and the skills captured within your workforce. Review this department and possible retrenchments very careful and ensure you remain within the boundaries of the labour law when you embark on changes in this department, where this department has influence on your business.

Information Technology

With technology you will make your business more effective and potentially reduce expenses and minimize processes. Not all businesses can switch over and be completely reliant on technology. Some can switch over and run completely on technology only, while others will partially have technology involved in their operations. My suggestion would be, that if you do not have technology in your business, it is time you make this a priority. If you have technology, you can review it and see if it is working for your business and where you need to make improvements.

Remember, this process is not a quick rich scheme. You need to go through each element in your business to analyse it thoroughly and make a decision on what is the best way forward.

If you need help with your business analysis to improve your business as of today, then the Business Process Diagnostic© program can help you to start the process to optimize your business.