When I left the Australian Army after 14 years, I was told to forget everything I’d learned because business was completely different.

I never really agreed with that.

The Army is an enormous organisation that has to get thousands of people working together towards a common goal. There are systems, procedures, training programs and clearly defined responsibilities. People understand their roles and how they contribute to the overall mission.

When you think about it, those are exactly the things a growing business needs.

One of the things the Army does particularly well is doctrine. There are written procedures for just about everything, which means people aren’t constantly relying on someone else to tell them what to do.

I’ve seen plenty of business owners struggle because everything still depends on them. They’re making all the decisions, answering every question and solving problems that their team should be capable of handling.

If you want your business to grow, you need to put systems in place, train your people properly and give them clear responsibilities.

But there’s one important difference between leading people in the Army and leading people in business.

In the military, there’s a formal structure of authority and discipline. In business, your staff can decide they don’t want to work for you anymore. They can walk out the door and go straight to your competitor.

That means you have to give people a reason to stay.

They need to respect you, understand what you’re trying to achieve and feel that their contribution matters. I learned even more about this when I led a volunteer organisation, where people were giving their time without being paid.

When people aren’t motivated by a pay cheque, you quickly learn the importance of purpose, appreciation and making people feel valued.

Those lessons apply just as much to a small business as they do to a large organisation.

Some lessons you have to learn the hard way

After leaving the Army, I started a property investment business and a landscaping business with my brother.

Before joining the military, I’d worked as a landscaper alongside him. Fourteen years later, we decided to go into business together.

Unfortunately, our approaches to running the business were very different, and that caused problems. We eventually shut the business down after about a year.

It taught me to be cautious about going into business with friends and family.

What this means for business owners

Running a business means making difficult decisions, holding people accountable and sometimes having uncomfortable conversations. When personal relationships are involved, those things can become much more complicated.

I’m also cautious about partnerships where two people have equal authority but different ideas about how the business should operate. At some point, someone needs to be responsible for making the final decision.

I’ve had a few businesses fail over the years, and I’m quite open about that. There’s no point pretending everything I’ve tried has worked.

Business is competitive, and there are plenty of things you need to understand before you take the leap.

One of the biggest mistakes I see is people assuming that because they’re good at their trade or profession, they’ll automatically be good at running a business.

You might be an excellent builder, electrician, landscaper or technician. But once you start your own business, you’ve also got to find customers, market your services, manage your finances, deal with administration and meet your legal obligations.

Suddenly, you’re spending a lot of time doing things that have very little to do with the work you originally enjoyed.

And if you want to grow, you’ll eventually need to employ people and learn how to lead them.

That’s a very different set of responsibilities.

Learn before you take the leap

I’ve often questioned whether people should have to demonstrate some basic business knowledge before starting a company and employing staff.

You need a licence to drive a car, but you can start a business and take responsibility for other people’s livelihoods without having to demonstrate that you understand how to run one.

I raised this question with two successful entrepreneurs who’d appeared on Shark Tank Australia. Interestingly, one agreed with me while the other believed people should be free to take the risk and learn through experience.

I can understand why people have different views, but I still believe aspiring business owners should do as much preparation as possible.

Find mentors who’ve already done what you’re trying to do. Read business books, ask questions and learn about the parts of running a business that you don’t yet understand.

And be very careful before putting your house or your family’s financial security on the line for a business you don’t know how to operate.

Looking back, the Army gave me a strong foundation in leadership, systems and accountability. Running businesses taught me how to apply those lessons in a very different environment, along with a few lessons I had to learn for myself.

If you’re running a business, take the time to develop your leadership skills alongside your technical skills. The better you become at leading people and organising the business, the less everything needs to depend on you.

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