Five things your business needs to succeed

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In Australia, we’re a nation of small businesses: Nine out of 10 businesses in Australia are classified as small – that is, a business of under 50 staff. From e-commerce start-ups to restaurants, trades and professional services – we’re surrounded by examples of small businesses creating sustainable success within the community.

But nobody said it would be easy. The business world is shifting rapidly with digital disruption and the global economy demanding more advanced skills and business acumen than ever of our small-business leaders. That’s why these five things are essential for you to make your small business a success – now and into the future.

  1. Strategic management skills

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Sun Tzu

Sometimes the root of failure can be found in the basics. That seems to be the case for many Australian businesses. An ASIC report into corporate insolvencies (2011-2012) found that 44 per cent of the businesses failed due to a lack of strategic management.

Creating coherent goals, systems and milestones within a business, measuring and improving on them should be the basis of every business’ operational management framework. But often these key strategic stepping-stones are skipped over in the enthusiasm and stress of day-to-day business. Without stringent adherence to a strategy, things can quickly unravel – which will affect the bottom line.

  1. Leadership skills

At the forefront of every successful business is a strong leader. But what does that look like? Leadership can come in many guises, as every business operator is going to bring his or her own unique attributes and experiences to the team.

Attributes such as integrity, honesty, dedication and openness are all part of being a strong leader. If these attributes aren’t established, then distrust, dysfunction and business failure are all likely consequences.

Leaders are both born and made, which is why there are always opportunities for small business owners to develop their personal and professional leadership skills. The opportunities of post-graduate business studies, volunteering, work opportunities and board membership are some of the myriad ways emerging leaders can build their soft skills for success.

  1. Financial acumen

An obvious ingredient to small business success, but an important one nonetheless: financial finesse is crucial to sustained business growth.

Cashflow, compliance and accounting issues can demand a large amount of a business owners’ attention. Which is why you’ll need to develop or find astute financial management abilities.

This can be an internal function of the business or outsourced to trusted suppliers. However, the financial performance and responsibilities of the business will always fall to the management and directorship – which is why a strong financial education is important.

  1. Communication

How many problems in your working life or previous business ventures involved a miscommunication or inability to communicate effectively? Chances are you can find more than one example. Strong communication – internal and external – is seemingly simple, yet so important to the sustained success of a business.

As with leadership, communication prowess is a broad skill that can be honed through experience, backed with applied learning. Difficult conversations are part of the small business territory, so the sooner you can master this, the better you’ll be prepared for future challenges.

  1. Practical experience

Practice might not make perfect, but it can certainly help your small business towards success. Practical experience is a vital element to making your small business exist beyond the start-up phase.

In an agile business environment, being able to “fail” (and recover quickly) is seen as a plus when it comes to creating sustained business success. Every practical business experience you have – as an employee, intern, business student, small business operator or co-founder – will contribute something unique to your business capabilities.

Today, many small-business owners take advantage of the online study options available for business courses, like a Master of Business Administration. With the flexibility of online and part-time learning, business owners don’t have to sacrifice their studies to keep their businesses in motion and can apply their MBA education directly to their business – even before they graduate.

For future business leaders, creating sustained success is the ultimate dream. As the business world becomes increasingly fast paced and demanding, it pays to stay focused on the foundational elements of small business success.

Brought to you by Southern Cross University