Setting up your own business is exhilarating because you can choose to work on your own terms, and you get to create your own vision of success. But, sometimes, in the excitement of getting started, you can overlook the business knowledge you need to ensure you have a successful micro or side-hustle business.
With Business Knowledge, Does Size Matter?
The latest government statistics show that the vast majority of the UK’s six million private sector businesses are micro – that is, businesses that employ fewer than nine people (76% of those businesses don’t employ anyone at all!).
Within that ‘Micro’ description sits a whole host of business sizes and types from artisans to solo-preneurs, the self employed and the side-hustlers.
But as a Business Mentor, there’s a question lots of people ask before they take the plunge.
“What do I need to know?”
They want to know if there is one place they can go to get the definitive list of the business knowledge and skills they will need to have a successful business.
Unfortunately, that doesn’t exist.
So, What If I Don’t Know Enough About Business?
It’s a good question.
After all, as a micro business owner (or a side-hustler!) the buck stops with you.
You’re in charge of everything…
…from telling HMRC about your business, doing your accounts, and making sure your tax is paid on time…
…to helping potential customers find you online, keeping track of enquiries, and ensuring your product or service is properly delivered.
(Phew!)
But the good news is, you don’t have to know EVERYTHING about business!
My mantra is “do what you do best, then outsource the rest.”
What that means is, you can save yourself precious time – not to mention forehead worry lines! – by focusing on what you’re best at, then finding a good ‘person who can’ for other things.
So, if you’re terrible with numbers, work with an accountant. If you don’t know one end of a website from the other, find a web designer.
And so on.
OK, so these services generally aren’t free.
But a successful business costs money as well as makes money.
Plus, by outsourcing the things you don’t know as much about, or don’t want to do, you’re allowing yourself to focus on the profit-making areas of your business!
Getting Back to Business (Knowledge): The Basics
As with most things in life, knowledge is power.
And business knowledge is no different.
While you don’t have to understand everything about business to be successful, there are some types of knowledge that will give you a head start.
Many people think they only need to know what I refer to as the ‘bright and shiny stuff’ about running a business.
Things like web design, social media and marketing.
But – please believe me – these things are the least of your problems if you don’t understand the business basics.
Take it from someone who has learned that the hard way!
(Practical) Knowledge Is Power
Please don’t yawn, or worse, run screaming from the room.
Basic administration and organisational skills are essential.
I work with a lot of business owners who label themselves as ‘creative’ and have palpitations when I talk to them about getting their processes, systems and automations working.
What do I mean?
- Have you ever spent time searching for that ‘essential’ document on your laptop?
- Missed a new customer opportunity because you’re not sure where you noted down their phone number?
- Found that a number of your key customers have stopped buying from you because you haven’t nurtured them – you have been so busy searching for new customers?
- Lost a potential sale because you just can’t remember who asked you for it?
How do you stop these things happening?
By cretating systems, processes and automations.
Taking the (to some) painful step of implementing good administrative practice is the type of business knowledge where many new (and well-established) businesses fall down.
Where Business Knowledge is Concerned, Planning is The Missing Link Between Passion and Profit
Getting to grips with basic planning, such as:
- who is your customer?
- what do they buy – and how often?
- how much money do you need to make to cover your costs?
- on that note, how much money do you need to make to turn a profit?
- so, how many customers do you need to make a profit?
- which of your customers would fall into your VIP list? (20% of our customers bring us 80% of our income. We need to take extra-special care of them)
As I said, this is basic planning; the who, what, where, when, how stuff.
You can have the greatest idea or a truly magical product, but without planning (and all those lovely processes, systems, and automations) having a successful business will be a lot harder, less enjoyable and not as rewarding – both spiritually and financially.
Next Steps to Upping Your Business Knowledge
Well, you could dip your toe into the water of business planning and download my One Page Business Plan.
This will help you get started on answering those important planning questions.
And, if you’d like to talk about what else might be holding you back, why not book a complimentary Breakthrough Session with me?
I can’t wait to hear more about your brilliant business idea!