There are a set of business skills which every entrepreneur needs to increase their chances of running a successful startup . The Good thing about these skills is that they can be learned. An Important thing about any business is that it should match with market dynamics.
Skills to Learn Before Starting a Business
An amalgamation of hard skills and soft skills is a powerful weapon for setting up a business. Hard skills generally refer to the technical skills required to start a business. These skills can be learned or acquired by hiring professionals from the corporate world. Soft skills are developed through personal growth.
Startup sales are a difficult task to do because building trust is a significant obstacle. An entrepreneur needs to have excellent negotiating skills to get investors and also to increase their sales. You need to understand the market place and analyze the competition in the market.
Cash is the primary thing which can lead to failure or success of a company. We can compare this as if the palace is a business, and cash is the king!!!! Managing cash flow is essential for the smooth working of a company. Financial management skills, such as understanding your accounts, would help in cash management. Accounting services can be obtained with the help of mediators or else they can be outsourced.
Leadership means being able to motivate people to do things that they may not want to do and to do so willingly. You need to have great relationships with all the stakeholders in your business to do so. Patience, motivational skills and communication skills help to inspire people and get your things done.
Human resources are essential and expensive sources of any company. It is vital to use these resources effectively. There should be a balance between control and freedom of employees. High level of stress or a low level of stress are signs of poor management. Assigning of work to the right delegates increases the efficiency of the work.
Advance in technology is demanding entrepreneur to have excellent analytical skills. Time to time analysis of the working of a company will increase the credibility of a business. Along with that, it helps to interpret the health and growth of a business.
Proper planning reduces the amount of risk. Startup involving a tremendous amount of risk need an appropriate plan. Plan of three to five years has to be made ahead to take strategic decisions. Third parties can do the work of planning for setting up a Business.
Things to Do Before Setting Up a Business
Here are a few steps to follow to set up a venture.
1. Do Your Research
2. Make a Plan
3. Plan Your Finances
4. Choose a Business Structure
5. Register Your Business Name
6. Get Licenses and Permits
7. Choose Your Accounting System
8. Set Up Your Business Location
Time is money for a business person!
Small business owners are probably intimately familiar with the feeling of always juggling endless tasks. Therefore time management is one of the essential skills for a small business owner. Keep yourself focused on those daily jobs that add value to your company. Treat your time as a precious metal. Get your time management skills up to speed, and you will maximize your startup’s chances of success. Third parties help in preparing a plan for setting up a business.
Apart from setting up a business, expanding and innovating the business is very important to sustain in the market. Network building is a tool to grow the business.
Communication skills are generally taken for granted, but proper internal, as well as external communication, is essential for the success of a business. Instructions should be clear and concise to the point. Employee understanding should be analysed. The communication to and from your business’s stakeholders also needs to be concise and two-way. Ensure that you illustrate your passion and vision for your business at all times.
Content marketing can help in setting up a business with low investment. Content creation with SEO helps in attracting more number of audience to your website and helps to increase the sales volume. You have to integrate the use of content management tools, website data, and social media algorithms to breakthrough your content’s performance.
Easy of Doing Business
The Ease of Doing Business index is a ranking system established by the World Bank Group. In the EODB index, ‘higher rankings’ (a lower numerical value) indicates a better, usually simpler, regulations for businesses and robust protections of property rights
Ease of doing business vs global ranks of top 20 countries
Above graph depicts ease of doing business of the top 20 countries. New Zealand is ranked 1st, followed by Singapore. Setting up a business becomes effortless if ease of doing business is lower for the country in which you’re starting your business.