Do you have the required business skills that are essential in running and managing a business?
Starting and running a business requires specific business skills, for this reason, it is essential that you:
- First, identify the business skills you already have, and
- Identify the business skills you may need to improve or develop.
You will find that improving your skills and those of your team members can help you succeed in your day-to-day running and managing of your business’s operations.
This article is prepared to help quickly and easily understand the essential Business Skills you need to run and manage your business. Here is a list of the skills that are essential:
Financial Management Skills
You will find that you need to run everything from servicing your customers/clients to preparing your business’ financial accounts. This means having to:
- Manage and forecast your business’s cash flow and sales;
- Monitor your business’s profit and loss; and
- Maintain your business’s financial records
Having sound financial management skills is vital for understanding the financial state and cash flow of your business. Furthermore, it is important that you understand just what all the financial reports and figures mean in practical terms for your business.
Find out more about planning and managing your financials
Marketing and Sales Skills
It is important to be able to promote your business’s products or services effectively. Having an effective marketing and sales strategy in place will help you to generate sales and in turn increase your business’s revenue.
Find out more about sales and marketing strategies
To be successful in business you must be able to attract and retain customers/clients. An essential aspect of sales and marketing is being able to determine what products or services your customers/clients need and then determine if your business is providing these required products or services to clients/customers.
Having effective verbal and written communication skills can help you when you are negotiating with your suppliers, potential investors, customers/clients and even your employees. Having effective written and verbal communication skills will help you to build good working relationships.
If you employ people, then leadership will be a key skill. You must be able to:
- Motivate your staff so that you can get the best out of them and improve their productivity;
- Allocate time to mentor and coach your employees; and
- Attract and select the right people for your business.
Project Management and Planning
Starting a business means you will have to manage a range of projects, such as:
- Setting up a website,
- Arranging the fit-out of your premises, and
- Developing a range of policies and procedures.
Knowing how to effectively manage your resources, including time, money and staff will help you to achieve your business goals.
Find out more about understanding the principals of project management and planning
Failure to delegate is a trap many business owners fall in to usually because they are reluctant to let go of control. For example:
- Managing your time effectively may mean delegating responsibility to someone else in the business or even outsourcing this responsibility, and
- Identifying who you can delegate tasks to, will allow you to concentrate on those tasks that generate revenue.
However much you plan, you will encounter problems in your business. This means you need to be able to make good decisions, and these decisions will sometimes have to be made under pressure.
Building good relationships through networking will help you to grow your business and give you the support you will need. You will find that an industry or business association (or group) brings together like-minded business people who are connected by industry or profession.
Running and managing a business is a demanding task. To provide your business with solid foundations, you may find that you have to further your knowledge and skills, this may include:
- Having to seek assistance if you are unsure about your abilities and skill;. or
- Having to improve or develop your existing
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DISCLAIMER: This blog post is of a general nature only and does not constitute professional advice. I strongly recommend that you seek your own professional legal and accounting advice in relation to your particular circumstances.