Complete Business Skills TIER LIST

Summary

The video script offers a tiered list of essential skills for business growth, starting with sales as the foundational skill for new entrepreneurs. It emphasizes the importance of understanding customer fit, financial management, offer development, and product development. As businesses mature, communication, human resource management, negotiation, hiring, and marketing become increasingly vital. The speaker suggests focusing on the basics first, then scaling up skills like M&A and advanced marketing strategies, ultimately aiming for a well-rounded mastery of all business aspects.

Takeaways

• 💡 The foundational skill for any new business is sales, which involves the exchange of money for a product or service and is crucial for understanding customer fit.
• 🔢 Finance is about managing money within a company, with a focus on understanding core numbers like revenue, margin, and net margin to guide business decisions.
• 🛍️ Offer development is key for maximizing value for customers, involving pricing, packaging, and verbalizing the offer in a compelling way.
• 🛠️ Product development is essential, as a good product can market itself; starting with an MVP (Minimum Viable Product) allows for iteration based on customer feedback.
• 🗣️ Communication is vital in business for conveying information effectively, setting expectations, and ensuring mutual understanding among team members.
• 🤝 Human resource management involves nurturing and supporting employees, with proper onboarding being the first step to ensure a positive and productive workplace.
• 💰 Negotiation is about resolving mismatches in expectations through understanding leverage and the desires of the other party, rather than simply persuading or coercing.
• 🔎 Hiring and recruiting involve enrolling talent that supports the business mission, with the focus on understanding the talent acquisition funnel and how to attract potential employees.
• 🏢 Mergers and Acquisitions (M&A) is a consolidation of companies or assets, which is less relevant for new business owners but becomes more important as the business grows.
• 📢 Marketing is the promotion of business to make it known, with various channels available, and the importance of understanding the audience and their preferred platforms.
• 🏆 As a business grows, all skills become increasingly important, moving to a tier S level, emphasizing the need for a well-rounded skill set to scale the business effectively.

Q & A

What is the first skill mentioned in the script for someone new to business?

The first skill mentioned is sales, which is the exchange of money for a product or service. It's crucial for new business owners to understand and be able to sell their offerings effectively.

Why is sales considered a Paramount piece of the business?

Sales is considered Paramount because it serves as the bridge between marketing and the back end, allowing business owners to learn a lot about their customers and understand who is a fit for their product or service.

What is the second skill discussed in the script and why is it important?

The second skill is finance, which involves the management of money within the company. It's important for understanding core numbers that guide business decisions, such as revenue, margin, and net margin.

Why does the speaker suggest not creating a profit and loss statement yourself when starting a business?

The speaker suggests not creating a profit and loss statement yourself because it can be outsourced to a firm for a few hundred dollars a month, allowing the business owner to focus on driving sales, marketing, and business growth.

What is offer development and why is it considered a high-priority skill?

Offer development is about creating goods and services that maximize value for the customer. It's a high-priority skill because getting the offer right can make everything else in the business much easier and provides leverage.

How does the speaker describe the process of product development for a new business?

The speaker describes product development as the process of bringing a product from concept to market. For new businesses, it involves understanding customer needs, creating an MVP (Minimum Viable Product), and iterating over time based on feedback.

What is the role of communication in business according to the script?

Communication in business is about sending and receiving information to make something known. It involves writing emails, speaking to the team, setting expectations, and ensuring mutual understanding between different stakeholders.

Why does the speaker suggest that listening is a key part of learning to communicate effectively?

The speaker suggests that listening is key because it teaches you to take different perspectives, which is essential for understanding how to speak to various stakeholders in a language they understand.

What is the speaker's view on the importance of human resource management for new businesses?

The speaker believes that human resource management is important for new businesses because it involves properly onboarding people, giving them context and skills, which can solve many problems and make the business more productive.

How does the speaker rank the skill of negotiation for new business owners?

The speaker ranks negotiation relatively low for new business owners, suggesting it's not the most imperative skill at the beginning stages, and that understanding leverage and the other party's wants are key to effective negotiation.

What is the speaker's advice on hiring and recruiting for new businesses?

The speaker advises new businesses to understand the talent acquisition funnel and to focus on enrolling talent that supports their cause or mission. They should learn how to acquire leads and speak to potential hires through various channels.

Why does the speaker consider marketing to be a tier A skill for new business owners?

The speaker considers marketing a tier A skill because it involves promoting the business to make it known, and it's essential for acquiring customers. They suggest focusing on one marketing method and making it as efficient as possible.

How does the speaker view the importance of mergers and acquisitions for new business owners?

The speaker views mergers and acquisitions as largely irrelevant for new business owners, as it's a different skill set and not typically a priority when the business is just starting out and hasn't yet established a product that people want to buy.

What changes in the importance of skills as a business grows, according to the speaker?

According to the speaker, as a business grows, all skills increase in importance and move to tier S. The focus shifts to being the best coach for the best team, emphasizing the need to excel in all areas to grow the business.