Introduction
Today, I want to drill down on skill gaps in your business and help you think about what those gaps are costing you. Whether you’re a solopreneur or running a full-scale operation, identifying and filling these gaps can make all the difference in your growth.
You might be handling everything yourself, from being the head cook to the bottle washer, or perhaps you have a business partner and a few managers overseeing various departments.
No matter your structure, one thing remains: if your team isn’t skilled in all the fundamental areas of business, it could hinder your progress.
The Five Fundamental Disciplines
I always talk about the five fundamental disciplines of running a successful business. These core areas should be covered, either by you or your team, to ensure that your business runs smoothly:
- Finance
- Operations & Systems
- People (HR)
- Sales & Marketing
- Corporate Governance
If you’re not proficient in all of these, or don’t have a team to plug in the gaps, then it’s like driving down the motorway with your windscreen blacked out, eventually, you’re going to hit something, and it could be painful.
Finance
The first fundamental is finance. Do you have someone who understands finance deeply, or are you relying on a bookkeeper to handle only the basics?
It’s not just about having an accountant; you need someone who can:
- Analyze trends and see what’s happening with your numbers.
- Spot potential issues before they arise.
- Run forecasts and manage cash flow.
- Interpret financial statements like profit and loss reports.
Finance is the backbone of any business, and it’s crucial that you either understand it yourself or have someone on your team who can stay ahead of the game.
Operations & Systems
Next is operations and systems. Do you have systems in place to manage and streamline your business?
Who is managing them?
Systems are the spine of your business, people run systems, but without solid systems in place, your business will struggle.
Here’s what you need:
- Someone to set up and maintain your systems.
- People to run KPIs (Key Performance Indicators) to ensure everything works as it should.
- Efficient processes that allow for scalability, like those seen in McDonald's, arguably the best small business in the world.
If your systems are weak, the entire business suffers, and no matter how good your people are, they’ll be working in an inefficient environment.
People
The third area is people. Who’s handling the recruitment, development, and training of your team?
A strong HR function isn’t just about filling vacancies; it’s about creating an environment where your people thrive.
Consider these questions:
- Do you have someone overseeing performance and measuring progress?
- Who is making sure your team is equipped with the right skills?
- Are you giving your people the training they need to excel?
Great people are your most valuable asset, but only if you’ve invested in managing and nurturing their growth.
Sales & Marketing
The fourth discipline is sales and marketing. How are you getting your message out there, and how do you ensure it’s effective?
Many business owners fail to establish a solid sales process, and they end up making it up as they go along.
Here’s what you need:
- A solid sales process from initial inquiry to final sale.
- Someone to monitor the effectiveness of marketing campaigns and ensure the return on investment (ROI).
- A strategy for customer acquisition that aligns with your business goals.
Both sales and marketing need a clear, measurable strategy. Without it, you risk wasting time and resources on ineffective methods.
Corporate Governance
Finally, we have corporate governance. Whether you’re a solopreneur or leading a large team, you have legal obligations that must be met.
These include:
- Filing your tax returns on time.
- Ensuring your business is properly insured.
- Complying with regulatory requirements and legal obligations.
Even if you're a small operation, failing to address governance could result in costly mistakes. Do you have someone managing these legal and regulatory aspects?
Filling the Gaps
If you identify skill gaps in these five areas, don’t ignore them.
Whether you need to upskill yourself or hire the right talent, filling these gaps is crucial for growth. Here's a simple exercise to help you assess where you stand:
- Break down each of the five fundamental areas.
- Score yourself (or your team) out of 10 in each area. For example, “Finance: 7/10”, “Operations: 4/10”.
- Identify where you need improvement, and start looking for resources, training, or new hires to fill these gaps.
It’s a simple exercise, but one that could have a massive impact on your business.
Don’t wait until your business is hitting walls, take proactive steps to close those gaps and set yourself up for success.
Conclusion
The key to business success lies in understanding where you need help and filling those skill gaps.
Whether it’s finance, operations, people, marketing, or governance, each element is vital for the overall health of your business.
Take the time to evaluate where you stand, and ensure you have the right skills in place to move forward successfully.
Always here to help you start, grow, and thrive. Let me know how I can support your next big move.
