WANTED – SHADOW CHANCELLOR (NO PREVIOUS EXPERIENCE NECESSARY)

Being in charge of finance is not an enviable job. Everyone hates you because you stop them spending money and no-one understands the numbers you churn out every month. But the brave Mr Johnson has stepped up to the plate with (by his own admission) precious little finance experience.
The owner/manager of a small and developing business finds him/herself in a very similar situation. I certainly did when I started my business. Although I had trained as an accountant and should theoretically have known all about the business world I felt a bit like a newly bereaved Bambi when the doors opened for business. I opted for the "on-the-job-training" route as it seems to be cost-free.
Like being Shadow Chancellor, running a business requires a number of skills which most of us do not naturally have. Would it not make sense to complement day to day business experience with a little formal learning? Yes I think it would.
So how to go about it? I think it depends on one's own preferences. Being a bit of a compulsive reader, if I were starting my business again I'd probably choose a selection of management textbooks (of which there are hundreds) covering the main areas where I felt I needed a bit of guidance. This might relate problem areas highlighted by my psychometric profile (see previous article) such as motivation, time management, delegation, leadership etc or business areas such as change management, competitive advantage and innovation.
I'd attend a selection of courses too. They can seem expensive but costs vary and one well-targeted bit of training can pay dividends.
On a less formal basis, some of our more successful clients use non-executive board members or Chairmen very effectively. The one thing the aspiring business person does not have, however able, focused and motivated they may be, is experience. The right person, who will usually have a proven track record in the same business sector, will be able to impart a great deal of business knowledge and experience. You will of course learn more by making the mistakes yourself and learning from them but some mistakes are just too expensive.
Executive coaching is becoming more popular nowadays. Great care is needed here too as that person will inevitably have a lot of influence on the way you conduct your business and, like a Counsellor, will need to have a great deal of practical and theoretical experience coupled with empathy and a willingness to develop not direct.
For technology companies, an additional must-have would be a Scientific Advisory Council. If funding is tight, share options may be the answer.
Dealing with the cost issue, most people are happy to pay a five figure sum for a car, van or piece of equipment for the business even though the resale value may plummet once unwrapped. It's much more difficult persuading oneself to pay even a four figure sum for a service, however useful, as it seems less substantial and perhaps not such good value for money. But if we all appreciated the impact that good management could have on the business we would not raise these objections and barriers. As I have tried to set out previously, the most important cog in the wheel of the SME is the owner. The more knowledgeable, experienced and aware they are, the better the business will run.
So my call to action this month is to do a skills assessment. Look at the personal qualities you have and areas of weakness, look at the various areas of the business (finance, marketing, staff, legal and regulatory, systems and processes, technical etc) and areas which are important to you and start plugging those gaps.

Article Source: http://casinoarticles.us

Julian Stafford is a partner are an accountant Cambridge. Staffords Cambridge LLP, a leading independent Chartered Accounting company, and specialises in advising new and developing SMEs.

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