You’ve decided that you want to get out of the corporate rat-race and be your own boss. You have realized that there are many benefits to being an entrepreneur.
As you begin planning how to start your own business from home, you begin listing down what you want to do and what you can do, what you like and do not like in a business. You start to assess the things that you can do well, maybe you can do research, design a website, write content, and with 10 years of experience in legal and administrative support.
But then, you ask yourself, “What skills do I really need to have to succeed as a home-based entrepreneur?”
If you are thinking of starting a business, you will need a broad array of entrepreneurial skills to succeed in today’s competitive market. You must possess the basic skills necessary to enable you to start, develop, finance, and market your own home business enterprises. There are a number of qualities and skills you need to have, including personal attributes, business skills, and management capability. While you may not have all of them right now, there are five basic skills you really must have to run any kind of business.
The SIX (6) skills that every entrepreneur need to succeed are:
1. Ability to see things through
Successful entrepreneurs are visionaries. They are able to see opportunities that normal folks do not see. They have a clear idea of what they want to do. But more than this, successful entrepreneurs have the ability to transform that vision into reality. They don’t just dream; they work hard and smart to see into fruition the dreams in their heads. They don’t just think that they want to achieve something; instead, they do everything they need to do in order to achieve what they want. They don’t shy away from the challenges, fear, and the sheer amount of work needed to get things done.
2. Sales and marketing skills.
Sales and marketing are the two most important skills you must have when you plan to start your own business. A business is nothing if it has no customers. You may have the fanciest computer with the latest graphics software, but if no one is knocking at your door to hire you as a graphic designer, then you better rethink why you are in business in the first place. Maybe you are better off employed by a firm. To have revenues and profits, you first need to have customers. To get customers, you must be able to market your business and possess the skills to close the sale.
As you plan your business, you must begin to think about how to reach your target audience and the people who may need your products or service. This entails understanding the concept of marketing and using the tools that your budget permits. You must have a knack for understanding what people wants, listening to their needs, and interact well with other people.
It would be extremely helpful if you possess excellent written and oral communication skills to help you sell your products and services (more so if you are a solo entrepreneur who will be doing everything by yourself). You need to create a buzz about your business by talking to people and presenting to them your business. You need to write ads, press releases and story ideas about your business. Starting a business is a time to get out of your timid self and begin to aggressively market your venture. That’s the only way you can succeed.
3. Financial know-how.
You are in business to make money. Therefore, the most important skill you must have is the ability to handle money well. This includes knowing how to stretch the limited start-up capital that you have, spending only when needed and making do with the equipment and supplies that you currently have. You also need to identify the best pricing structure for your business in order to get the best kind of return for your products or services.
Success in business is not limited to those who have tons of capital in the beginning. Look at the failed dot-coms with funding of as much as $100 million. Even if they are awash with cash, they still ended up as a failure because they were not able to manage their money well. They lavished themselves with high-tech office furniture and gave their CEOs fancy jets to fly, only to have their cash flow depleted in less than a year.
If you are able to manage your cash flow well when the business starts to run, you will be able to survive the ups and downs of self-employment. The important thing is to always focus on the bottom line. For every spending, always ask yourself: “How much will this contribute to my bottom line?” If it will not give your business anything in return financially, better think twice before opening your wallet.
4. Self-motivation skills.
As an entrepreneur, you do not have the luxury of bosses and bureaucracy to tell you what needs to be done. Everything rests on your shoulder from thinking where to get the money to fund the business, to develop the product, to determine how to reach the customer, and so on. Only you will create the plans, and change them should the situation shifts. You need to be smart enough to know when you need to go ahead, and when to stop.
To succeed in business, you must be a self-starter with a clear desired goal in mind. You must have the confidence in yourself, and in your ideas (how can you sell your ideas to others if you yourself do not believe in them?). More importantly, you must be willing to focus your energy and work hard towards each and every step that will make your enterprise a success. Especially if you work at home, it is doubly hard to get into the work mindset: sometimes, the television is just too tempting that it is hard to get out of your pajamas and begin typing on your computer. You, therefore, must have that extra drive and commitment to make sure that you are taking the necessary steps to make your dream of a successful business a reality.
5. Time management skills.
The ability to plan your day and manage time
is particularly important for a home business. When you wake up in the morning, you must have a clear idea of the things you must do for the day. Especially if you are running a one-person operation, you must have the ability to multi-task be the secretary at the start of the day typing all correspondences and emails, become the marketing man writing press releases before noon, make sales call in the afternoon, and become a bookkeeper before your closing hours. Imagine if you are selling products and you still have to create the products, deliver and fulfill the orders, rush to the bank to cash the checks. Lots of jobs for a simple home-based business! No, you don’t have to be a superman (or superwoman). You simply have to know how to manage time and prioritize your tasks.
One difficulty of working from home is that you can never seem to stop. There are simply too many things to do as if work never stops (and it doesn’t!). Part of having good time management skills is knowing when to stop and when to leave work, and begin doing your other roles in your family as the husband, wife, mother or father. You must be able to know how to keep your home life separate from your work life and ensure that there exists a balance between the two.
6. Administration skills.
If you can afford to hire an assistant who will organize your office space and file your papers and mails, lucky you! However, most start-up entrepreneurs cannot afford such luxuries. Over and above the tasks of managing, marketing and planning your business, you also need to possess a lot of administration skills. You need to file your receipts so tax time will not be a trip to Hades. You need to do all the work in terms of billing, printing invoices, collecting payments, and managing your receivables.
Starting a business is never easy, even if you have the perfect background and possess all the above skills. Having all the needed skills and qualities will not even ensure your success. But having these basic skills will, at least, lessen the pain of the start-up process, giving you a greater chance of seeing your business grow and prosper.
Recommended Books on Skills Every Entrepreneur Need to Succeed:
- Entrepreneur Unleashed
- Making Sense of Business: A No-Nonsense Guide to Business Skills for Managers and Entrepreneurs
- Building a Successful Business: The entrepreneurs’ business plan and management skill instruction manual, tip sheet, and workbook
- Quick Skills: Skills For Entrepreneurs
- The Top 10 Distinctions Between Entrepreneurs and Employees
- Harvard Business Review on Succeeding as an Entrepreneur (Harvard Business Review Paperback Series)
Article originally published on February 4, 2013. Updated on January 11, 2020.
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