Though various reasons are attributed for starting a business the main reason without any doubt is to make money. People who start a business know very well that they can never become rich by working for someone else all life long.
To start a business and run it successfully, a range of essential entrepreneurial skills are necessary. If success is what you are after, then it stands to reason that you possess most of the essential skills or acquire them before you commence your business especially if you want to run the business yourself.
The other alternative will be to take in a partner or employee who possesses a particular skill or the skills that you are deficient in.
What then are the essential entrepreneurial skills the business entrepreneur should possess?
1. Planning Skill.
Proper planning is the fundamental first step you should undertake when you consider starting a new business. Feasibility of the business, marketing of the product, local competition and funding are some of the essential aspects that should be studied carefully. Good planning should be able to forecast and foresee the changing market conditions and adopt suitable strategies to counter or take advantage of them. They should also explore possibilities of adding new products or services to keep up with the changing circumstances and beat the competition.
2.Technical or Knowledge Skill:
If you are turning out a product, you should possess the necessary skills to produce that product. Experience gained in working in similar work places or a professional qualification will stand you in good stead. Of course for certain types of businesses, experience is not essential but to satisfy your customers and provide a good service, technical skills play an important role.
Furthermore it is absolutely essential to keep on updating your knowledge by reading books and attending seminars to keep ahead of your competitors.
Marketing is another very important essential skill on which depends the very success or failure of your business. It is the process of identifying your potential customers and persuading them to buy your products or services. Sales, Promotions, Pricing and Public Relations are some of the skills that are an essential part of marketing. Mishandling or negligence of this aspect can lead to failure.
4. Financial Skill:
Financial skills play a major role in the running of a business big or small. Book keeping, estimating, invoicing, negotiating credit terms, controlling cash flow are some aspects of the financial skills you should be able to handle. Negligence of this aspect can lead to recurring cash flow problems such as inability to purchase goods, non payment to suppliers and irregular payment of bank loans. It is obvious that with these problems no entrepreneur can succeed or have peace of mind in running a business.
5. Management Skill:
The need for management skills becomes necessary, especially if you have the intention of employing several employees. Skills in areas such as recruitment, team building, motivation, knowledge of employment law and health and safety requirements are all part of management skills. Knowledge of these skills and implementing them judiciously will help you build a team of motivated employees working for the success of your enterprise.
6. Organizational Skill:
Whether your business is big or small or whether you employ workers to run your business, your organizational skill will be tested fully as an entrepreneur. You have to set up systems to take orders, handle inquiries and maintain records. A knowledge of these skills will help in the efficient day to day running of the business.
Each and every entrepreneurial skill mentioned above is essential. If you do not possess some of these skills, acquire them. The easy way out is to go into partnership or employ someone who possesses these skills. Adopting these measures will mean that you are now on the right track to become a successful business entrepreneur.