Is Your Best Skill Aligned with Your Business Model?
When starting a business, most entrepreneurs excel at the specific technical skill set they need to deliver their services and products to clients. For example, if you own a bike shop, you are likely skilled in all things bike related. If you own a law firm, your strengths probably include understanding and interpreting the law. This skill is your core skill.
As your business grows, you need skills beyond your core skill to thrive. These skills will depend on your ideal business model.
Here are some examples of business models and the key skills you need to be successful.
People-Based Business Model = Leadership
If your business is one of the 25 percent of small businesses that have employees and you have a team that serves customers, you likely have a people-based business model. The revenue you earn is dependent on how your people perform and serve clients.
Examples of these types of businesses could include a mid-sized law firm, a nail salon, a marketing agency, or a mid-sized plumbing company. Each has a team of people that generates revenue.
These people need to be hired, trained, and motivated, and that’s where the skill comes in. If you have a people-based business model, you must excel at leadership, which includes managing people as well as hiring and firing. You should be great at developing a productive, happy team to reach your highest pinnacle of success.
Your core skill is still needed, but without leadership skills, you won’t grow to reach your full potential.
Acquisition-Based Business Model = Negotiation
Some companies grow through the acquisition of other companies. In this case, your top skill should be negotiation; you will need to make excellent deals to keep your business growing.
Project-Based Business Model = Project Management
If your job revolves around delivering large projects—for example, construction, IT or real estate—your business model might be project-based. While knowing how to be a general contractor may be your core skill, your skills must also include project management.
How well you manage the project timeline, delivery of materials, and project team all factor into completing the project quickly and effectively so you can get paid and move on to the next project.
Volume-Based Business Model = Merchandising
If moving large quantities of products or services is your business model, your revenue depends on volume and how much you can sell. Some examples of these types of businesses include grocery stores, software companies, some retail stores, and wholesalers.
How you display and market your products will affect how many customers you can get in the door and how fast you can sell your products. Your top skill should become merchandising and marketing your business.
The Secret to Future Success
These four business models demonstrate that once you achieve success, your core skill may no longer be the catalyst to future success. Developing skills beyond your core skill will help you grow your business and achieve the objectives you set out to achieve when you became an entrepreneur!