Develop Core Competencies | Focus on What You are Good At

Dr. Elaine Williams-Morgan

Dr. Elaine Williams-Morgan

To gain competitive advantage, Entrepreneurs, and businesses should focus on developing their core competencies.  Figure what you are good at and focus! There is a danger in trying to do much - In trying to be all things to all men.

Core competencies are the harmonized combination of a company’s technical capabilities, intellectual capital, knowledge management and other resources. They distinguish the company from others in the industry, and allow it to be competitive in the market. Firms should effectively define competencies by identifying

·         unique human resources

·         material resources

·         coordination capacity

·         managerial skills

These resources should be combined with information technology (IT) to drive innovation and create a competitive advantage.  Innovation opportunities should be created by  focusing on a few core competencies. To effectively identify and define core competencies, it is recommended that firms pursue a coherent capabilities-driven strategy involving the following steps:

1.      Determine what you are good at

2.      Select three (3) - six (6)  mutually reinforcing capabilities, and develop them

3.      Align these capabilities with the company’s strategy  

4.      Align capabilities system with the right opportunities in the market

5.      Create value for customers

6.      Improve customer service through constant monitoring and feedback

Know what you are good at!  -   Focus on what you are good at!

10 Steps to Starting Your Business

YourBusiness Begins on the First Step

YourBusiness Begins on the First Step

1.       Write Down Your Business Idea

Your business idea can be written in a sentence, a paragraph or a page. Own it!  Begin by writing it down!

2.       Write Your Business Plan

Once you have written down your business idea, it is time to write your business plan.  The business plan details your value proposition to customers.  It is your blueprint for what your business will do and how it will be done.  If you do not know how to write a business plan, get help from a professional.

3.       Determine How You Will Finance Your Business

Will your business be financed from personal funds and savings, loans, venture capital, grants, or a combination of these.  When you determine your financing method, take step to secure the funding.

4.       Decide on Your Business Structure

Will it be a sole proprietorship, a partnership, or a limited liability company.  Take time to understand the different forms of businesses and select the one that is most suitable for the kind of business you intend to run.

5.       Decide on The Location of Your Business

If your business will be online, you need to create a website where your value proposition can be offered, otherwise you should identify a location suitable for the kind of business you will do. 

6.       Register Your Business

Register your business with the Registrar of Companies in your locale.

7.       Register Your Business With the Tax Department

Registering with the Inland Revenue department will provide you with the Tax registration number and permits required to establish your business as a legal entity.

8.       Set Up Office

Set up your office and create your website if your business is on location.  Develop your website if your business is online.

9.       Identify Help

Determine your staff requirement, identify and employ suitable staff for your business.  Alternatively, you can begin with help from family and friends and add staff as your business grows.

10.    Begin Your Value Creating Activities

When steps 1 – 9 are completed, it is time to take action to create the product and services for your target market.