Have you got what it takes

Have You Got What It Takes?

20 Characteristics You’ll Need As a
Business Owner
1. The Desire To Be In Charge. As the boss, no one is going to tell you what
you should be doing or how or when to do things. From now on, it’s your call.

2. Imagination and Initiative. Being the boss isn’t just about telling others to
do things for you. You’ll need to come up with the ideas and the goals and
inspire others to work towards these too.

3. Strong Persuasive Powers. From the bank manager, to your friends and
family, to your staff and ultimately your customers, you are going to have to
persuade everyone that what you are selling is first-rate.

4. Caution. In the first flush of enthusiasm, it’s easy to rush out there before you
have thought everything through. Do your homework. Is everything in place
before you start? It is a proven fact that successful business owners are
moderate risk takers. Don’t take big risks. Test the waters and take advice. In
particular, make sure that you seek professional advice where it’s needed.

5. Drive. It’s all very well coming up with ideas, but you’ll need energy and
persistence as well as enthusiasm to get you off the ground.

6. The Ability To Work Hard. As they say, some people don’t know the
meaning of hard work. In the early days, you may have to give your business
every ounce of your energy. You don’t just put 24/7 on your business cards
because it sounds good. If you and your family can accept this, then you are
off to a good start. However, if you’ll resent the long hours and time away
from leisure activities, you’ll struggle. Be honest with yourself and find ways
to work so that you are committed for the long term.

7. Resilience. There will be times when business will slump. At times like this,
it is essential to stay positive and to find the ways and means to fight your way
back to the top.

8. Flexibility. We’re not talking Yoga moves here, but if things aren’t going to
plan, is there another way they could be done? Running a business is about
being able to juggle, revise and adjust.

9. Being Able To Accept Responsibility. As the boss, the buck stops with you –
whoever’s fault it is. Be prepared for this and learn how to be a fixer not a
blamer.

10. Having Problem-solving Ability. Good entrepreneurs don’t panic or stick
their heads in the sand when something goes wrong. Instead, they find a way

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to turn things around to their advantage. Face up to any problems and fix
them as quickly as you can.

11. Being Able To See Things From Other People’s Point Of View. You may
be the boss and your word goes, but make sure you also look at things from
the point of view of your customers and staff. Would you want to employ your
company? Would you want to work for you? You can’t please everybody all
of the time, but without happy customers and a happy team, you won’t have a
successful business. Be prepared to meet people half way if it will solve a
problem.

12. Self-sufficiency. If you are used to working alone this will not be a problem
for you. However, many people find that they miss the office environment and
the camaraderie of their peers. Be prepared for this when you decide how to
develop your business. If balancing books late into the night gets you down,
employ a bookkeeper to free up some time to spend with your family and
friends. If running a business feels like too much of a weight on your
shoulders, look into teaming up with someone who can share the burdens.

13. Leading by Example: Convey your good working practices to your staff.
Show them that you expect the same working standards that you set yourself.
Above all, motivate your staff.

14. Staying Grounded. Being the boss does not mean that everybody else gets
to do the hard work. Be fair to employees – delegate the tasks that your staff
are employed to do, but don’t expect them to make important decisions or to
tackle difficult problems that should be your responsibility. Always be
prepared to step into the breach if necessary.

15. Great Organisational Skills. In business you need to plan not just for the day
or week ahead, but also for the year or years ahead. Work out systems so that
you do not drop any plates along the way, whether this means redesigning
your office space, upgrading your technology or computer skills, or taking on
staff.

16. Being Competitive. Those that succeed in business want to be the best and
stay the best. Successful entrepreneurs never get complacent. They are
continually looking for ways to grow and improve their business and put a lot
of effort into staying ahead of their competitors.

17. Controlling. There’s no need to be a control freak, but make sure never to let
your business run away with you. Stay as many steps ahead as you can.

18. Honesty. Shoddy work, overcharging and promising what you can’t deliver
isn’t a long-term strategy for success. Customers aren’t stupid. If you
unavoidably run into difficulties, tell your customers. It is surprising how
many compromises can be reached by playing it straight.

19. Being Able to Do The Sums. Simply put, money coming in has to be more
than money going out. Make sure that you have a full understanding of all


your overheads and expenses so that you can be sure your profits really are
profits.

20. Being Willing to go The Extra Mile. Just that little bit of extra effort can go a
long way . . . making the time to attend to an emergency call out; having a
good stock of materials in your van to fix on the spot repairs; hand-delivering
flyers to houses in the road in which you are working; being punctual; being
neat; being cheerful. It doesn’t have to cost you a lot but that small effort
could be the difference between you getting your next job or your competitor.
Be prepared to give 110% to all areas of your business


Evaluate your entrepreneurial potential by completing the table
below. In each box chose between low, moderate or high and add
any comments. In the final column, add your action plan to deal with
any low-scoring areas.

Characteristics Low Moderate High Action Plan

Desire
To Take
Charge

Imagination

Persuasive
Powers

Risk Taking


Drive

Ability To
Work Hard

Resilience

Flexibility

Ability To
Accept
Responsibility


Problem-solving
Ability

Ability To See
Things From
Other People’s
Point Of View

Self-
sufficiency

Ability To Lead
By Example

Ability To Stay
Grounded.


Organisational
Skills

Competitive
Nature

Ability To Stay In
Control

Honesty

Financial Control


Going The Extra
Mile


Do you have the right business skills?

To be successful in business requires more than being a first-rate electrician.
On top of your specialist electrical skills, have you thought about brushing
up your computer skills, your skills in financial management, or employing
and managing staff?

Here are some areas to think about. If you answer yes to most of them, you
are raring to go. If you have quite a few No’s on the page, however, you may
want to take advantage of further training.

 Do you have clerical and bookkeeping
experience?
 Do you have first-rate communication skills?
 Can you negotiate credit terms with suppliers?
 Can you stay on top of money coming in and
having to be paid out?
 Can you create a spreadsheet on your
computer?
 Can you create a failsafe invoicing system?
 Can you manage your time efficiently?
 Can you manage other people?
 Are you a good presenter who handles meetings
successfully?
 Do you have good skills of negotiation?
 Can you close a deal?
 Can you motivate people?
 Can you write a persuasive letter or copy?
 Do you know the best ways to market your
business?
 Can you see ways to expand your business in
the future and to stay ahead of your competitors?


What are your training needs?
Experience counts for a lot, but in some areas it may be better to seek out formal
training. It is for you to identify and decide where these areas lie.

Skill/Course How will this be valuable to
my business?


Do you have time management problems?
Try completing the NCS Time Management Questionnaire to
identify any time-poor areas in your working day.

YES No
I procrastinate when faced with
decisions.
I find it difficult to get organised.
I often lose things.
I let myself get distracted by other things.
I take on too much.
I’m always waiting for other people to do
their job.
I am snowed under with correspondence.
I am often late to meetings.
I double book myself.
I often have to go back to clients to
confirm information.
I am not sure what is in my diary for
tomorrow/next week/next month.
I like to nip off work as soon as I can.
I can’t stop working even if it’s late at
night.
I find it difficult to prioritise.
I am too optimistic about the time needed
to complete a job.
I can’t believe that anyone can do the job
better than me.
I often seem to have miscommunications
with clients and people I work with.
I correct other people’s mistakes.
I am understaffed.
I don’t ask customers for feedback until
the job is finished.
I find it a struggle to stay on top of my
invoicing.
I am too busy setting goals and not
completing them.
I feel low much of the time and find it
hard to get on with the job.


I don’t have time for my family and
friends.
I don’t have time to pay my household
bills.
I don’t have time for me.

Managing your time effectively is key to a successful business. Read
through the questionnaire again and study your answers carefully. Try to
establish ways to deal with any areas where you have identified problems.
Remember, it’s not always possible to fix something overnight. Look for
ways to make small changes at first or simply address one problem at a
time. Every little helps.


Getting Professional Advice

You will almost certainly need to take professional advice about your
business, whether it is getting a lawyer to look over a contract you have
prepared, talking to a bank manager about a loan, or employing the
services of an accountant or bookkeeper to help you stay on top of your
accounts – and on the right side of the tax man.

Solicitors
A solicitor will advise you on all the legal aspects of your business.
Remember that solicitors’ fees can be high, so prepare well before your
visit. Be as clear as you can be about what service you want from them
and try to establish what details and documents they might want from
you. In this way you can enjoy a more productive meeting and save
yourself money.

Accountants
An accountant will advise you on preparing your accounts and on
dealing with relevant authorities about taxes, VAT and National
Insurance. As your business grows, using an accountant can take
a weight off your shoulders, particularly if you would prefer to be
out in the field selling and marketing your business.

Keeping track of financial affairs is not only essential to your
business, it is a legal requirement. Your accountant will advise on
exactly what records you need to keep. For example, you must
keep complete records of your earnings and expenses (including
all receipts).

Computer packages can also help you with accounting, but you
must make sure you have the skills and knowledge to use these
correctly. If you are not computer literate, you would be wise to
look for an appropriate course.


Bookkeepers

If you are organised and efficient at staying on top of your
accounting, you may not need the services of a bookkeeper.
However, in busy periods it is easy to forget to chase or pay
invoices, and it is tempting to allow filing to pile up. Additionally,
preparing your tax forms can be an annual headache, and a
nightmare if you have not kept on top of your invoices and
receipts. Employing a bookkeeper for a few hours a week will free
up your time and give you the reassurance that your accounts are
in good order.

Insurance brokers
Your business must be adequately insured. An insurance broker will
ensure that you have all necessary areas of your business covered,
including public liability and employer’s liability if necessary, vehicles,
tools and other business essentials. A good broker will not only get you
the best deals on insurance, but will give you reassurance that you are
covered if anything goes wrong. Insurance brokers do not charge you
directly, but instead take a commission on the premiums you pay.

Banks
Banks can offer you loans to get your business started, and will advise
you on the best way to manage your business account. Don’t forget to
shop around. Compare loans and interest rates before you commit and
don’t forget Internet banking.
Remember that before offering you a loan, your bank manager will want
to be reassured of the viability of your business. He will want a good
estimation of when the business will move into profit, as well as an
understanding of your cash flow and what security you can offer in the
event of being unable to repay the loan.

Don’t forget to take a detailed business plan along with you to any
meetings with people whom you hope to persuade to invest in your
business or to lend you money. They will want to see it.

Other organisations
There are dozens of organisations to help people who are starting their
own business. Some are initiatives set up by the government, while others
are run by the private sector. The services offered vary from the simplest
advice to in-depth counselling on the best way to organise your business.


You may be able to source training seminars and videos, specialist
libraries and information on different markets and industries through
them. Contact those organisations in your area which are appropriate to
your plans and ask what they have to offer.

Your local job centre will be able to give you some guidance as to where
you can get information.

The local Chamber of Commerce may have a Business Counselling
Team which can offer basic advice.

The Business Link Network is a major source of support, information
and advice for small business start-ups.

Mentors
Everyone needs someone to discuss their problems with. Don’t shoulder
your worries alone but try to make contacts who are happy to lend you an
ear and useful advice.


Visit HMRC website for up to date
information on VAT, Tax and other
relevant business information.

www.hmrc.gov.uk

VAT
Your accountant or solicitor will advise you on whether it is
necessary to register for VAT and how to go about doing so. If
your business turnover exceeds a certain level then it is obligatory,
but he/she may suggest that it is in your interest to register even if
your income is below that level so that you can reclaim the VAT
you pay on goods purchased for use in the business.

If you have set up your business as a sole trader, you won’t pay
income tax under the PAYE scheme, but you will have to complete
a self-assessment form at the end of each tax year. You will then
pay tax based on your profits in a series of lump sums.

Whether you run your business as a sole trader or as a limited
company, the cost of most of the things bought to run the business
are deductible from your earnings for tax purposes. As a sole
trader you are taxed on the remainder (less also your personal
allowances). The cost of things like new equipment and tools are
Balance Sheet items, and you can claim deduction by way of
Capital Allowances.

The position is more complicated if, for example, you use your
home phone or your car for both business and personal use. Your
accountant will tell you what are legitimate business expenses and
what are not.

Keep the receipts for things you buy before you actually start
trading, these may also be “allowable” expenses.


Have you got what it takes

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