LEADERSHIP & MANAGEMENT
Characteristics of a successful SME business. Yes, passion is important, but overrated if you do not understand the fundamentals of doing business in South Africa. So says GUY DAINES, Business Strategist and Entrepreneurial Coach. He reminds us of some of the 'basics'... 3 Know your clients Implement ways to understand your clients and build better relationships with them than your opposition. Look at the lifetime value of your clients – their repeat business. Client retention is easier than taking on new clients, so don’t let yourself or team get complacent. Even in the ‘digital’ time we find ourselves in, personal attention and interactions are important. 3 Your staff You can laugh and cry with your staff, be happy for them, but never forget it is a business relationship. Your staff are employed to obtain results. Find staff that display a great attitude, and fit your personal and business values. Pay them more than the market rate, and push them to be more effective and efficient. 3 Your leadership and management style This will differ and should change as your business grows - there is a big difference in managing 4 staff as opposed to 20. Learn about leadership and demonstrate it by setting the example. It is an “every minute of the day” thing – not when you feel like it. Personally for me, leadership 16 YOUR BUSINESS | October-November 2020
and management are the biggest challenges facing SME owners in SA. Get a handle on your people skills! 3 Work on your business and not in
your business This is critical for business sustainability and to build a great team around you. Yes, maybe you are a control freak, but try to spend 70% of your time working on the business and 30% in your business. If you are a start-up, this will be difficult to achieve within your first 3 years of the Business Life Cycle – this is acceptable. So, what do you do during the 70% working on the business? Here are a few examples: • Continually look at your pricing strategy/strategies. • Revisit your business model in the last quarter or month. • Continually look at your systems and processes so your business and team can be more efficient and effective. • Put in place a competitive monitoring matrix where you can outsmart them. • Look at ways for your team to grow, multi-skilling. • Revisit your supplier base and look at ways to leverage your business with theirs. • Yes, spend lots of time thinking about different “what if” situations so you can be proactive.
