Last updated on January 6th, 2021 at 02:39 am

Skills Required When Running a Business

2nd November 2020                                                                                                                                                                                                     

“Success demands resilience than hard work”. Most of the business fails because they fail to translate their passion into a successful business model. To convert your small business into a massive enterprise requires you to become Jack-Of-All-Trades. It is important to the strengths and weakness of the company at early stages.

The entrepreneurs have brilliant ideas but end up doing nothing, why? The following are the factors which holds back young entrepreneurs to dive into business start-ups:

  • The fear of failure
  • A lack entrepreneurial skills
  • Lack of exposure
  • An absence of big ambition

The following are the essential Soft/Hard skills that every entrepreneur should incorporate to overcome the above-mentioned issues

1. Delegation Skills

Delegation process includes assigning roles and responsibilities to other people for completion of work. The situation where the internal staffs and related stakeholders get involved in all routine activities of your business is considered as ideal position for any entrepreneur. Effective delegation involves achieving the correct balance between effective controls and allowing people to complete their job effectively.

2. Communication Skills

Communication is the key factor in all aspects of life, and it is often taken for granted. Effective communication is required in almost everything you do in your life. To stand out in the market requires powerful communication skills. When anyone hire an employee, the person with great communication skills has an upper hand over other. For an entrepreneur it is vital to effectively communicate their vision with passion and conviction. 

3. Negotiation Skills

Another important skill that every entrepreneur should have in them is negotiation skills. Almost everyone negotiates on daily basis formally or informally. Formal negotiation can be learned through experience and practice. People with negotiation skills are more effective in business than the people who have not participated in any formal/informal negotiations.  A successful entrepreneur knows what to say, when to say and when or when to make concessions. The key is to make successful negotiation with all the parties but at the same time it should be favorable to yourself as well.

4. Strategic Planning

To run a business, it is very important to have a strategic plan. The process of defining company’s strategy or direction and making decisions on allocation of resources is termed as strategic planning. The key to success is to have a vision and project your company’s future performance with a well-defined business plan.

5. Leadership Skills

Leadership is a process of getting things done via people. Leadership, a critical management skill, is the ability to motivate a group of people toward a common goal. Leadership is also the ability to take charge, assemble, mobilize, and motivate teams. The key is to know how to forge long-term relationships with prospects, customers, suppliers, employees, and investors.

6. Team Building Skills

Today’s workplace is becoming more technologically advanced and complex. With this rapid increase of technology, the need for analytical thinking also increases. Analytical thinking is the ability to objectively assess the present state of your business, to determine where you want to be in the future, and what to do in order to close the gap between the present and the future growth of your business. The key is to know how to gather, review, and evaluate data that is necessary to formulate and express compelling arguments.

7. Analytical Skills

Today’s workplace is becoming more technologically advanced and complex. With this rapid increase of technology, the need for analytical thinking also increases. Analytical thinking is the ability to objectively assess the present state of your business, to determine where you want to be in the future, and what to do in order to close the gap between the present and the future growth of your business. The key is to know how to gather, review, and evaluate data that is necessary to formulate and express compelling arguments.

 

8. Sales and Marketing Skills

Establishing successful sales and marketing methods and policies – from pricing and advertising to sales techniques – are essential in growing your business. The ability to analyse your competition, the marketplace, and industry trends are critical to the development of your marketing strategy. The key is to know how to craft and communicate a compelling message to the right target audience that generates new business, and in turn, builds profitable revenue streams.

9. Cash Flow Management Skills

Cash flow is generally acknowledged as the single most pressing concern of the small and medium-sized businesses. In its simplest form, cash flow is the movement of money in and out of your business. Cash flow is the lifeblood of all growing businesses and is the primary indicator of business health. The effect of cash flow is real, immediate and, if mismanaged, totally unforgiving. The key is to know how to monitor, protect, control, and put cash to work.

10. Financial Management Skills

Financial management is a set of techniques that an individual and business incorporate to manage their finances, especially the see the difference between income and expenditure and risk of their investment. For any business, the upmost priority is timely budgeting and reporting of financial performance. The key is to know how to understand and examine the financial statements, so that the factors affecting organization’s profitability should be rectified and resolved.

11. Time Management Skills

“Time is money”. Time management is a set of activities which helps you utilize your time in the most effective and productive way. This skill will empower you to achieve more success and indeed is very important skill to master. The key is to focus on activities most likely to bring value to your business.

Vinit Chimurkar

Vinit Chimurkar

Digital Marketing Analyst at AI Australia

Afioga Leota

Afioga Leota

Marketing At AI Digital Solutions

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