06/ 21/ 2004
by Jim R. Sapp
Have you been thinking about going into business for yourself? If so, you must possess the following characteristics to be successful at running your own company.
1. Ability to Make DecisionsYou will have to make decisions on hiring, pricing, location, operations, marketing, advertising, even the size and style of the lettering on your business card. The list goes on and on. Owning your own business requires that you make literally hundreds of decisions every week, some big and some small. Can you decide whom to hire, whom to fire, what to buy, what to sell and how to price it? Many decisions are not black or white. Some decisions will be extraordinarily difficult, even controversial.
When faced with a difficult decision, my policy has been to ask myself this question, “What is best for my company?” When you have that answer, you usually know what to do.
Making decisions is not easy. You won’t make everyone happy with every decision you make. Sometimes, your decisions won’t make anyone happy. But as the owner, you must make the decision and go on. Get all the facts first, but the final decision is yours -- not another employee’s, not a committee’s. The buck stops in your office.
If the issue is serious, never make a decision on the spot. Think it over for an evening or a weekend, and then go into the office with your answer. Waiting a day or two to consider all the facts is fine. Waiting a month is too long for most decisions. You have other sales objectives and issues to handle.
Remember, as the company owner, it’s OK to change your mind about something as your company grows and changes or new information becomes known. But precious few businesses are successful if the boss can’t make a decision.
2. Ability to Say “No”You will have to not only make decisions but also know when to say “no.” It isn’t easy. There will be times when, for the good of the company, you will have to override the demands or desires of your employees, customers, vendors -- even family members. You must have your heart in your business, but you must manage with your head.
3. Ability to MultitaskAs a new business owner, you must wear many hats -- especially in the beginning. You won’t start your company with a big staff, so you will have to be the one to make telephone calls, order inventory, deal with customers, design advertising brochures, pay the bills and -- most importantly -- sell the product or service you’ve developed Sales and production should always be at the top on your to-do list. You will have to perform many jobs in tandem and be able to set priorities along the way.
4. Ability to NegotiateYou must possess the ability to spar with staff, vendors and customers in a manner that wins you service or allegiance. If you are either unable or unwilling to negotiate fairly with people, you won’t be able to successfully manage a small business.
As you negotiate, remember to focus on your main goals of increasing sales or production. If you are discussing price with a vendor, for example, keep in mind that a slightly more expensive but superior raw material will give you the edge when selling your product.
5. Leadership SkillsYou must be the role model for your company and its employees. Others will watch what you do and say, how you speak and dress. Employees generally will attempt to follow your lead. If you arrive at work every day at 8:30 a.m., but your business opens at 8 a.m., you will be hard-pressed to encourage employees to arrive on time or early. Your staff, customers, bankers and even the local community will take note of your actions. If you’re a perfectionist on production and services, your staff will understand that there is no room for sloppiness and will try to produce an excellent product.
This isn’t to say that if you work hard, everyone around you will, too. You will still need quality controls and work review to produce a superior product or service for your new company. But remember that what you do and say is very important. Business ownership is a great opportunity to show your leadership skills.
JIM R. SAPP is an international business consultant and speaker with more than 25 years experience as a business owner and entrepreneur. He is Founder and Director of the American Small Business Institute, and recipient of both the “Entrepreneur of the Year” award and “Blue Chip Enterprise Award” for inspirational achievement in business. His book Starting Your First Businessis available from www.sappbiz.com or by calling 800.570.5436.
