24 January, 2020
Running a business now seems more complex than it has ever been, and this means that a broader and more comprehensive skill base is required by business owners and managers, who will undoubtedly relate to the feeling of wearing many hats in their business.
The key thing is in defining the “Hats” or capabilities that all businesses need to have to create a successful, sustainable business where quantifiable value is being built for all stakeholders. It is also important to maximise value that a business can assess and measure this and address what capability gaps they might have. To maximise the future sale value of the business it is also essential to have these “Hats” all resident in the business and not solely the owner.
It is challenging and unlikely for any one person to develop high levels of competency across all the key areas a business needs and there is also a risk in this, so amongst shareholders and key employees or external contractors there should be a spread of demonstrable expertise across key disciplines or capabilities. The “7 Hats” or capabilities that we see as crucial to the success, sustainability and value of any business are:
THE 7 BUSINESS HATS:
1) Sales & Relationship management
3) Operational/Transacting Business
4) Management Information Systems/Accounting
5) Compliance & Regulatory
6) People & Culture
7) Planning (business structure & strategic)
As a financier interested in encouraging success with customers we recommend that all businesses take the time to assess their capability, identify any gaps and then work to develop and maintain credible and demonstrable competence across all 7 areas in order to build realisable value and sustainability for all stakeholders. Business owners need to be able to accurately know the “Hats” that they possess personally and ensure that they have key resources that enable them to have all “7 Hats” operating consistently in their businesses at all times.