Susan says… Number 8 – what is the most important skill required for a small business to be successful?

Our Business Advisor, Susan George, is a highly effective economic development professional with extensive senior management experience in both the private and public sector. We wanted to make the most of Susan’s wealth of experience and she hints and tips on relevant topics throughout the year.

The answer is complex but adaptability and resilience appear to be very high on the list. These two skills encompass the ability to pivot, adjust, and respond to changing market conditions, customer needs, and internal challenges.

Here’s why I believe that adaptability is crucial:

Market Changes: Markets evolve, and consumer preferences shift. A business that can adapt its products, services, or marketing strategies in response to these changes is more likely to thrive.
Problem-Solving: Unexpected challenges arise in any business. Adaptability allows a business owner to think creatively, find solutions, and navigate obstacles effectively.
Innovation: Successful small businesses often succeed because they can innovate. Adaptability fuels innovation by enabling businesses to explore new ideas and approaches.
Customer Relations: Understanding and responding to customer feedback is vital. Adaptable businesses can adjust their offerings based on what their customers need and want.
Resilience: Economic downturns, competition, and other external pressures require businesses to adjust their operations to survive. Adaptable businesses are more resilient and better equipped to handle adversity.
While many skills contribute to success, adaptability allows small business owners to navigate the dynamic and often unpredictable environment they operate in, making it the cornerstone of long-term success.

So how do you develop your adaptability and resilience?

Here are my top 5 tips for developing adaptability and resilience as a small business owner:

1. Embrace a Growth Mindset
Why it Matters: A growth mindset encourages continuous learning and adaptability. Instead of seeing challenges as setbacks, view them as opportunities to learn and grow.
How to Implement: Stay open to new ideas, seek feedback, and focus on self-improvement. Encourage your team to do the same, creating a culture of learning within your business.

2. Build a Strong Support Network
Why it Matters: Surrounding yourself with mentors, peers, and advisors can provide valuable guidance, emotional support, and new perspectives during tough times.
How to Implement: Join local business associations, attend industry networking events, and seek out mentors who have experience in your field. Building relationships with other business owners can also provide mutual support.

3. Diversify Revenue Streams
Why it Matters: Relying on a single source of income can be risky. Diversifying your revenue streams can provide stability and reduce vulnerability to market fluctuations.
How to Implement: Explore new products or services that complement your existing offerings, consider different customer segments, or even look into passive income opportunities like online sales or content monetisation.

4. Maintain Financial Discipline
Why it Matters: Sound financial management is crucial for weathering economic downturns or unexpected expenses. Having a financial cushion allows you to respond to challenges without jeopardising your business.
How to Implement: Create and stick to a budget, build an emergency fund, and regularly review your financial statements. Keeping track of cash flow, managing debt, and avoiding unnecessary expenses are key to maintaining financial health.

5. Focus on Customer Relationships
Why it Matters: Loyal customers can be a stable source of revenue, especially during challenging times. Strong relationships with customers can also lead to valuable feedback and word-of-mouth marketing.
How to Implement: Prioritise excellent customer service, listen to customer feedback, and engage with your customers regularly through social media, email, or events. Offering loyalty programs or personalised experiences can help strengthen these relationships.

Building resilience as a small business owner is about preparing for challenges and staying flexible and proactive in managing your business. These tips can help you develop the mindset and strategies needed to succeed, even in the face of adversity.