What Are 5 Skills Of An Entrepreneur?
Say you’re planning to embark on an entrepreneurial journey. Several questions may cloud your mind, such as, “Where do I get the capital?”, “How much ownership should an investor get?”, “Where can I find a mentor?”, and “How long should a mentoring relationship last?” Asking the right questions is a great place to start. But, it would be best if you also prepared your mental self for an emotional roller coaster.
Building, running, and maintaining a business can be one of the most fulfilling things you’ll ever do. But on the flip side, it can be scary and frustrating. It doesn't help to know that around 20% of startups throw in the towel within the first year. If you want to rise above these disturbing stats and keep your doors open, you'll need to have a unique set of skills.
So, what are 5 skills of an entrepreneur? While there are countless skills you need to harness, we’ve narrowed down the key ones to these. Every entrepreneur needs the following combination of hard and soft skills: strategic planning, the ability to execute, communication skill, financial fluency, and the ability to keep learning.
Strategic Planning & Thinking Skills
Before you can set your business plan into motion, you must have a fully developed one ready to go. Having a strategic plan for the direction of your business will help you stay on course. That starts with laying down a clear vision of where you want your company to be in the future. It'll help you pick the right employees, investors, mentors - the works!
Not having a plan for your business is as good as shooting in the dark and hoping for the best. Take the time to figure out your business goals and what you hope to achieve. Once you have a vision in place, it's easy to develop different strategies for how you'll get there.
The Ability to Execute
Having a ground-breaking idea is a great start. But, the difference between success and failure lies in an ability to execute a vision. Too many entrepreneurs come up with grand ideas, but their plans never materialize.
To ensure that's not your fate:
Learn how to implement your strategy effectively.
Document your thoughts.
Create action steps, then focus, and dispassionately assess your plan.
Be willing to change your tactics as you need to.
Communication Skills
Every entrepreneur needs to be an effective communicator. Social awkwardness needs to go out the window the minute you decide to become an entrepreneur. You’ll need to effectively communicate with your potential investors to get them to buy into your vision. You’ll also need to communicate with your employees to share your ideas and motivate them. You should also be able to communicate with your customers, suppliers, and creditors. The list is endless. Mind you; it’s not enough to only be effective at verbal communication. You’ll also need to brush up on your written correspondence, including email and online messaging skills.
Financial Fluency
Part of the reason why most small businesses fail is due to the mismanagement of funds. In many cases, entrepreneurs may fail to separate their business and personal expenses. They often use the former to cover their personal financial emergencies instead of investing the profits back into the business. Sometimes, it’s just a matter of failing to optimally deploy the available funds where needed the most, while still saving for contingencies. Whatever the case, it's crucial that you practice effective financial management. Enroll in a financial management course if you have to. Cut down on unnecessary spending, draw up a budget then stick to it, and you should be able to stay on top of your finances.
Learning Skills
The above mentioned skills all fall flat if you're not open to learning. Learning is one of the most critical skills every entrepreneur should master. Take every situation as a learning curve. Ups and downs characterize the entrepreneurial journey. Learn from your failures, as well as successes. Learn from your employees, mentors, customers, and even competitors. The business landscape is ever-changing and evolving. Learn and adapt to the latest trends. Only then can you experience real business growth.
Conclusion
Business is about taking risks. Sure, not everyone has the knack for running a business, otherwise we’d all be doing it! But failing to equip yourself with these five key skills significantly lowers your chances of success. And while some of the skills may come naturally, others won't, but the good news is that you can learn them along the way as your business grows!