Entrepreneurship #101: A quick analysis of Skills you Need To Build A Thriving Business

Entrepreneurship #101: A quick analysis of Skills you Need To Build A Thriving Business

Building a thriving business in a competitive environment is largely attributed by having the right set of entrepreneurial skills. Having good entrepreneurial skills helps the business get that extra edge that can take it from a merely surviving position to a thriving entity. Entrepreneurs today are valued for their consistent innovation to outperform their competition.

From 1955 to 2016, only 12% of the Fortune 500 companies have maintained their place at the top. The companies that dropped, unfortunately, couldn’t keep up with the creative pace that was fueling other successful businesses.

Walking the entrepreneurial path, one that is laden with concerns, doubts, and anxious thoughts, has never been easy for anyone. One question most entrepreneurs will often ask themselves then will be, “Do we have the skills needed to build the business.”

Although there are various definitive models, certain characteristics are predominant among those who are successful. We will try to highlight on few entrepreneurial skills, that if you work on, can help you become a better leader.

Knowledge on How to Manage People

Knowing people isn’t easy as 1,2,3 unless you have an understanding to two essential components.

  1. involves people and deals with encouragement, motivation, and leading.
  2. involves management of people such as hiring, training, evaluation, and directing.

While the two components seem poles apart, a perfect marriage between them is an entrepreneurial skill that few leaders possess. As an entrepreneur you should be able to harness the best in your employees to achieve organizational goals however this should start from within you.

A good manager is aware of his internal rhythms and can align actions to goals, topped with the discipline required to weather the ups and downs of any audacious goal.

Financial Management

When it comes to entrepreneurial skills, you may struggle to expand your business if you are unable to manage your finances and budgets.

Learning to manage your finances or getting someone to do it for you, helps ensure you have your finances checked, whether you are making a profit, loss or even breaking even. With a clearly written down vision, your plan on where and how much of that profit realized goes to keeps the vision intact.

Depending on the nature of your business, you may want to branch out, invest in new technology, or expand your operations.

Knowing How to Tackle Failure(s)

According to the Small Business Association (SBA), 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10. The association goes on to state that only 25% make it to 15 years or more. It may be scary that a business may fail to go beyond those years but your entrepreneurial skill matters and how you tackle situations.

Irrespective of how airtight everything is, an unexpected twist can shake even those with the strongest foundation. It is good to keep a contingency budget for any slumps or bumps and to be mentally prepared for the worst.

A Strong Decision-Making Power

Your judgement and decision-making should be the perfect blends of complex problem-solving skills, emotional intelligence, critical thinking, people, management, and coordination. Decision making usually involves:

  • Analyzing the situation
  • Understanding its implications.
  • Reorganizing the scope and possibilities.
  • Come up with solutions and oversee the implementation

It’s a tough entrepreneurial skill to develop considering it requires great focus, will power, and discipline, but when done daily it helps fire-proof the business with possible problems that can come up later.

Organizational leaders need to nurse these entrepreneurial skills to not only confront the present problems but to also be prepared for the upcoming storms.

Coordinating with Others

Managing people inherently comes down to power imbalances. Team leader and team member, manager, and employee. Great leaders know how to operate on either side of the equation. The person they are dealing with could be a fellow manager, their business partners, an investor, an important client, or any stakeholder who is playing a critical role in the business.

The objective is not to look at the world as a hierarchy but as one strong team. Great entrepreneurs recognize when there are mutual dependencies, or when those dependencies are one-sided or situational. For instance, an employee relies on their employer for income and the employer relies on the employee for output.

However, in the case of business partners, the situation is different as they are both looking for mutual benefits to their business model. The crux of knowing how to coordinate with each other lies in understanding people and having the right tools to efficiently manage mutually dependent relationships.

Conclusion

While having a thorough knowledge of the industry that one is operating in is crucial, there’s a lot more than goes into making a successful entrepreneur or business. Building a thriving business takes a whole lot of entrepreneurial skills along with industry-expertise. Each of these entrepreneurial skills can be trained over time and deployed but it requires self-confidence, dedication, and trust in others as well as self.

Most entrepreneurs and motivated professionals know the significance of investing in themselves by building valuable skills, working on their weaknesses, and improving their strengths over time.

Credit: Alisha S

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