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Brick No10: A-B=C
By Matt Weston, Tuesday 21 October 2003 Capitalise on your strengths, and overcome your weaknesses - that's the secret of business success. Today, I'll show you how to work out your 'C list' - a list of skills, knowledge and experience that you need, but don't have. The best selling careers book in the world is Richard Nelson Bolles' 'What Color is Your Parachute?' - it's sold 7 million copies, and counting. Bolles uses this simple formula to get the reader thinking about your strengths and weaknesses – A-B=C First, draw up two lists - A) Skills and knowledge that you will need to build a successful business B) Skills and knowledge that you have already. Minus your 'B list' from your 'A list' and you come up with a third list - C) Skills and knowledge that you need but don't have. You need to tackle your 'C list'. If you're currently planning your new business, then working out how you tackle your 'C list' will give you the guts of your business plan. Your business plan needs to detail your strengths and how you are going to address your weaknesses. Bolles' formula can alert you to current and future problems - face them now, and you will save a lot of worry later. If you're already up and running then you can use your 'C list' to help you work out the best way forward - do you need to learn new skills, bring in a partner, outsource tasks or employ people? The best approach is usually a combination of those suggestions - for business bricks I've bought in a 'hands-off' director and worked hard learning skills that I didn't need in my previous job. 'A list' - Skills and knowledge that you NEED If you're starting a business you need to do a thorough job of drawing up your 'A list'. Leave your own skills aside for a second. Research existing, similar businesses in your industry, including your competitors. What skills do they have? What skills do they bring in from 3rd parties? The more you can find out about your market, your product and your competitors, the more comprehensive and useful your 'A list' will be. If you're up and running already this should be an easier task. Dream a little - picture the ideal business operating in your market. What skills, knowledge and experience would help you achieve your business goals? If possible, try to write down the level of skill required, and rank your 'A list' too - put the most important at the top. To help you draw up your 'A list' think about the following 7 areas: (1) Financial, (2) Day-to-day Operations, (3) Marketing/Sales, (4) Technical/IT, (5) Customer Service/Delivery, (6) People Management and (7) Industry Specific. 'B list' - Skills and knowledge that you HAVE ALREADY For your 'B list', be realistic. Like many entrepreneurs, I'm sometimes too much of a 'can-do' person. I bite off more than I can chew, and think I can do tasks I can't. It's an urge we entrepreneurs need to tame. Even if you think you're an allrounder it's very unlikely that you'll have all the bases covered. In my experience, having met a lot of them, entrepreneurs always have gaps - 'I've got a great idea for a new product, but am scared about having to go out and sell' or 'I'm great at coming up with new ideas, but terrible at getting the day-to-day admin out of the way'. Look at the levels of skill you've outlined in list A - do you really possess those skills, experience and knowledge? If you have a business partner or employees, include their skills too - involve them in the process. It's worth getting someone to give a second opinion on the list that you draw up, or even to draw up list B on your behalf. Just make sure you pick someone who's not scared to give you honest feedback. 'C list' - Skills and knowledge that you NEED BUT DON'T HAVE Subtracting the items on your 'B list' from your 'A list' leaves your 'C list' - the skills, experience and knowledge that you need but don't have. You need to address these gaps if your business is going to be successful. Take each gap in turn and use one of the following approaches - (1) Do It Yourself Your first option is always to try to 'Do It Yourself' - especially if budgets are tight. As a small business owner, my approach has been to acquire at least a working knowledge of every business function - even if I have no intention of doing the function long-term. As a result I've got a better understanding of web development, day-to-day finance, databases etc. I know the value and the likely cost of work. (2) Training I'll go into more detail another time about the numerous government and private schemes available for small businesses, but as a starting point try these links - Business Link Learn Direct Trade Association Directory (3) Outsource Outsourcing may be the answer - especially if the skill isn't something you're likely to need on a day-to-day basis. Always get at least 5 quotes - and remember, everything is negotiable. To find a freelancer try the Professional Contractors Group (4) Take on staff A big step - but long-term it is usually more cost-effective to invest your money in your own staff than carry on outsourcing to third parties. But make sure you can justify the extra pair of hands, and that work isn't likely to dry up. (5) Get a partner on board To find the right match, use A-B=C. It's important to partner with someone who has complementary skills to your own. Th 'Company Partners' website launched recently – it puts potential business partners in touch with each other. (6) Get a mentor on board I've written before on the big advantages of having a mentor on board - '9 qualities you need to look for in your mentor'. A good mentor can open doors for you, help you see things from a detached perspective and add a weight of experience to your business. This A-B=C exercise shouldn't be something that you do just once. It needs to evolve, just like your business and just like the marketplace. Put your lists on your wall or noticeboard, and discuss them at strategic meetings with your partner, mentor or employees. A-B=C isn't just a simple formula - it's a great business tool. Remember to sign up: back to top |
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