When you are applying for jobs, it’s helpful to seek individuals from within your field who are experienced and adept in the business management skills you want to improve. Such mentors can offer you insights on business management based on the experience they have accumulated over the years while working in competitive business environments.
Business Management Skills: Definition and Examples
Business management skills are attributes a person running a company should have to ensure its business goals are met. These skills are usually acquired through on-the-job experience or by studying them on your own time. Employers are more likely to hire employees with business management skills because such hires know the operations of every department in a company.
Business management skills, such as communication, problem-solving and decision-making, are abilities that will help you become more successful in your career. They equip job seekers with skills that improve their likelihood of being hired and employees with skills to be more productive in the workplace.
Employers seek to hire job applicants with business management skills because they have a broad knowledge of the various business disciplines, such as accounting, marketing, insurance, finance, administration, management science and human resource management. Job applicants with business management skills can oversee the operations of many different departments in a company because they have a good understanding of how each function. Business managers also observe market trends and advise their companies on how to respond to remain competitive.
How To Manage A Business: The 8 Keys
Learning how to manage a business is something that will take time to master. While you may have experience leading a team, managing a business will require new knowledge, skills, and strategies. Here are the 5 keys to managing a business:
Developing a thorough business plan: What need in a particular market are you filling? How do you plan to fill it? How will you acquire customers/leads? What’s your compelling reason for having the business? Include as many details as you can.
Identifying your customers: Be as specific as you can. Not just “homebuyers,” but “first-time homebuyers looking for starter homes in Imperial County, California.” Create an avatar of your ideal customer containing both demographic and psychographic information.
Planning your finances: It’s key you understand the numbers of your new ventures so you can confidently answer an essential question: What can I do to learn how to manage my own business? How will you generate income in your business? By when? How will you finance your start-up business costs? How do you intend to grow the business from a fiscal standpoint?
2. Build Your Infrastructure
Luckily, as a real estate entrepreneur, there aren’t the huge start-up costs associated with many other types of businesses. However, there are certain business expenses that we should be aware of before plunging head-first. And they include:
Business entity set-up: As a real estate investor, this will likely be in the form of a Limited Liability Corporation (LLC), which helps protect you and your estate from potential issues down the road (it also helps tremendously come tax time).
Marketing materials: This includes things like your website, a credibility packet, direct mail postcards, and even the email database tool you use to communicate with potential leads. Though you may not need every item of your marketing funnel completed before you get started, you must get as much set up as possible before you hit the ground running.
Team members: You may be just a one-person show at first, which is okay, but whether it’s hiring a part-time graphic designer or outsourcing your social media to a starving college student, it’s important to budget for additional members on your team.
3. Set Yourself Up For Success
Plunging into the deep end of the real estate business management pool can be daunting, especially at first. It can feel like you’ve got thousands of items on your to-do list, with just a few hours each week to accomplish them. Here are some keys to help you stay on track both personally and professionally:
Document as you go: No matter how small or large the business task, document the steps taken to execute it. This will make it easier to delegate the task later if desired and help you become more efficient.
Keep your marketing focused and targeted: One of the biggest mistakes that new businesses make is to try to market to everybody under the sun. This can make your marketing costs prohibitively expensive and quite ineffective. Make your marketing as targeted and segmented as possible and expand as required.
Set specific, realistic goals: The biggest reason entrepreneurs don’t reach their objectives is that their goals are too vague and unrealistic. Set actionable goals with a defined time period to help motivate you every day.
Go left, when everybody goes right: If the competition in your local market is communicating to clients and leads in a specific way, do your best to try something different. Take risks. Stand out. Don’t be afraid to be unconventional, yet still professional in attracting would-be customers and clients.
4. Tweak And Improve
It may take a little while, but once you’ve got your business up and running, it’s time to look for areas where you can improve and optimize the business. Learning how to manage a business means learning how to improve constantly.
Budget weekly time for education: It’s important to keep tabs on your industry. Whether it’s gathering more data about market trends, or mastering the latest social media marketing strategy, always be open to learning new things that can help your business. According to Nathan Kelsey, Managing Director at Make Me Local, aspiring entrepreneurs need to have a belief in their plan. Still, they also need to be smart enough to know that the learning never stops. “Take time out for self-development on topics that might not be what you are used to – e.g., managing cash flow. Invest in systems early; it’s easier to build these from the start rather than unravel them later,” says Kelsey.