Dear budding WiserPrenuer™ (aka Entrepreneur) you’ve probably suspected all along that running a successful business is as much art as it is science. Well, you were right!
Not only do you need to acquire practical knowledge, solid business skills, develop sound judgment, practice foresight and… it helps to have some luck on your side!
While I can’t help you with luck, I sure can help you with developing solid business skills. Fortunately, business skills can be learned and refined over time.
Rest assured you can learn any business skill and reach almost any goal you set for yourself. Remember the quote: “The sky in NOT the limit; the only limits are those we place on our selves”. How true that is!
We’re all too familiar with grim statistics telling us most new businesses will fail, some in the first year and others within the first five. While it seems that businesses fail for many reasons, there really are only three main reasons businesses go under and they are:
- Lack of direction
- Lack of funding
- Lack of expertise
Business owners simply put out their shingle and expect things to happen, which rarely is the case.
It’s vital you have a well thought out and researched business idea before committing time and financial resources.
Take the time to develop a sound business plan – it’s absolutely crucial when testing and implementing a business idea.
- Do you know why you want to start a business?
- Do you know what you need from your business?
- Do you know what products or services you will offer to your market?
- Do you know what your market wants?
- Do you know who is in your market?
- Do you know if there is any competition?
- Do you know who your competitors are?
- Do you know… ?
Do you know your how, what, when and why?
Money is to business what blood is to the body. A business cannot exist without capital.
You must have money flowing into the business to sustain its existence – without it, it will wither away.
Remember that the purpose of a business is to make a Profit!
All too often new business owners are overly optimistic regarding their profits.
For starters they don’t have enough cash to start and keep going for a while until they at least break even. Further, they:
- don’t control their expenses tightly
- don’t keep good financial record
- demonstrate limited financial know how
- don’t know enough about their tax obligations
- don’t pay enough attention to their cash flow…
All leading to the gradual failure of the business.
Do you have enough capital to start and maintain your business at least until your business reaches breakeven?
Yes, you have your skills. In all likeliness you know how to do the technical part of your business, whatever it may be for you.
Your product may be a service (consulting, teaching, designing, counseling, etc.) or it may be selling a physical product.
You know how to work with your customers and how to address their needs. And you’re good at it!
But unfortunately that’s not enough!
You also need to have a solid set of business skills if your business is to thrive (and not just survive).
As a small business owner you need to have both skill sets: your technical skills and your business skills.
Do you have both sets of skills, strong skills?
How did you do?
Were you satisfied with your answer to the three questions?