| The latest question from the Ask a Mentor series comes from Ana Lucia Novak. |
Question:
“What habits should a new business owner form, such as how to manage operations, finances, marketing, networking, and competitors?”
Answer: The answer to this question could be hundreds of pages long, and entail reading a whole library of business books! Tom Farmer of Kwikfit, a chain of exhaust and tyre fitters started in Edinburgh, Scotland, recounted the real crux of financial control (and operations) as knowing exactly how many car exhausts he needed to sell each day to reach breakeven. In a sentence this might address ‘operations, finances and marketing’ in your question above. In order to breakeven, in addition to analysing your operational costs, you will also need to understand your customers, which in turn will lead you to how to market your product. A stab at a list of habits a new business owner should form would therefore be:
- Understand the precise cost of making or producing your product or service.
- Understand the flow of cash within your business, especially the length of time that capital is tied up between buying raw materials and being paid for selling the final product. This will also lead you to a better understanding of the financial needs of your growing business.
- Research your market by targeting a conversation with a customer every day. People like being asked their opinion.
- Networking is important, but improve on that by targeting exactly the individual you want to speak with, and plan your route to that individual. Don’t be afraid to pick up the phone to them directly, and ask them to share their expertise with you.
- Knowing what competitors are doing well, or things they are getting wrong, comes from having conversations with your customers.
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