There is great appeal in being your own boss however it’s not always a bed of roses. Anyone owning a small business understands the challenges of running a business - from the long hours they put in to the sleepless nights worrying about the financial position of staying afloat, and trying to win that big sale that’s going to sustain the business. It’s a sad fact that in Australia 60% of new small businesses don’t survive the first 3 years.
As a small business owner, you wear many hats - finance, marketing, risk, legislation, operations. While it is ideal to have a good understanding of all facets of the business, trying to become an expert in all is impossible. Even if you are successful, key person risk develops and burnout is likely.
Rather than trying to master all aspects, a small business operator should identify their key skills and determine where they are best placed to add value while either surrounding themselves with individuals who can fill these gaps, or outsourcing tasks to a third party. An owner should be focused on working ‘on’ the business rather than ‘in’ the business.
One of the biggest challenges a small business owner faces is transitioning from being a technical expert to being the leader of a business. Michael Gerber calls it “the fatal assumption” when a new owner thinks that doing the technical work in a business is the same as running a business that does technical work. Transitioning from performing one job (the technical role) to now doing multiple tasks and wearing multiple hats is a sizeable leap. Once you have made that leap you need to question not only whether you can do these different tasks, but whether you enjoy doing them and, most importantly, where you add the most value.
Managing people is a whole new ball game. For any employer, their biggest asset is their people but dealing with people is also their greatest variable. Heart, effort and willpower are not enough.
Look at a chef for instance. They may make the best meal in the area with a souvlaki to die for but managing front-line kitchen hands is extremely different. For some, holding difficult conversations, performance discussions or even setting expectations may not come naturally. Building an aligned team culture with the right values does not come easily. These are skills that need to be acquired, worked on and refined.
You may have the greatest idea that you believe will be the next Netflix however launching that idea is far from easy. Bringing the idea to market, penetrating a market, making it profitable, scaling it up, and dealing with competitors responses are just a few of the challenges of making an idea a reality.
If you’re in this position and need some support, maybe having a conversation with the team at Samurai Leadership can assist in overcoming these challenges and ultimately improving business results while easing a few headaches.
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