5 Skills Every Entrepreneur Should Have

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What Are 5 Skills Every Entrepreneur Should Have? 

An entrepreneur refers to someone who builds or operates their own business. By having an equity stake in the firm, the entrepreneur can enjoy a great deal of profit if things go well, but they also take on a great deal of risk—far more than a regular employee of the business. This entrepreneurial risk can take several forms, including financial risk, career risk, emotional risk, or overall business risk.

Since there is so much at stake when it comes to starting and growing a successful business, there are very specific skills that an entrepreneur usually needs to be successful. Below, we highlight five such attributes.

What Are Some Common Traits Good Entrepreneurs Have?

• Good and effective communication
• The ability to sell both themselves and their idea or product
• Strong focus
• An eagerness to learn and be flexible
• A solid business plan

Key Takeaways

• Entrepreneurship can be quite rewarding, but also comes with several unique risks.
• To mitigate the risk of financial loss or failure, it serves a business owner to have a certain set of skills.
• A great entrepreneur must be able to effectively communicate, sell, focus, learn, and strategize.
• An ability to continuously learn is not just a key entrepreneurial skill but also a very valuable life skill.
• Growing a business requires a sound strategy based on inherent business sense and skills.

Understanding Entrepreneurial Skills

Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate needs and bringing good new ideas to market. Entrepreneurship that proves to be successful in taking on the risks of creating a startup is rewarded with profits, fame, and continued growth opportunities. Entrepreneurship that fails results in losses and less prevalence in the markets for those involved.

While the prospect of becoming your own boss and raking in a fortune is alluring to entrepreneurial dreamers, the possible downside to hanging out one’s own shingle is vast. Income isn’t guaranteed, employer-sponsored benefits go by the wayside, and when your business loses money, your personal assets, not just a corporation’s bottom line, can take a hit. But adhering to a few tried and true principles can go a long way in diffusing risk. The following are a few characteristics required to be a successful entrepreneur.

1. Communication

Every entrepreneur needs to be an effective communicator. Whether a person is a solo entrepreneur or runs a Fortune 500 company, they need to understand how to communicate effectively to all stakeholders and potential stakeholders that touch the business.

It is imperative for an entrepreneur to be able to communicate with employees, investors, customers, creditors, peers, and mentors. If an entrepreneur cannot communicate the value of their company, it’s unlikely that the company will be successful.

They also need to master all forms of communication, including one-on-one and in-person conversations, group conversations, written communication, and email or online messages.

2. Sales

The soft skill of sales goes hand in hand with the communication necessary to be successful. An entrepreneur needs to be able to sell anything and everything. An entrepreneur needs to sell the business idea to potential investors, the product or service to customers, and themselves to employees.

If an entrepreneur is able to communicate effectively, they are better equipped to sell their ideas and physical products.

In the beginning, it’s natural for entrepreneurs to be the first salespeople at their respective companies. Those sales skills are necessary to demonstrate value for all stakeholders inside and outside the company.

3. Focus

The path to successful entrepreneurship is riddled with ups and downs. There are the highs of successes and the despairs of setbacks. A successful entrepreneur needs to be able to focus so they can stay the course when the going gets tough.

This skill can also be described as thinking with the end in mind. No matter what struggles an entrepreneur goes through, those who are successful have the focus necessary to keep an unwavering eye on the end goal and can push themselves to achieve it.

4. Ability to Learn

The ability to learn is one of the most important skills to have in life, let alone in entrepreneurship. If someone is building a business, however, the ability to learn is required for success.

The ups and downs that an entrepreneur goes through are unavoidable. An entrepreneur needs a high ability to learn—and a desire to learn. If a person is able to learn in any situation, even failure, they have the skills necessary to become a successful entrepreneur. Failure can help expand one’s knowledge and understanding of business.

65%

The approximate percentage of new businesses that fail within their first 10 years, per the U.S. Bureau of Labor Statistics.

5. Business Strategy

While a successful entrepreneur has, by definition, built a successful company, the skill of business strategy is actually the fifth most important skill that an entrepreneur needs. Often, entrepreneurs achieve success in their businesses through their own sheer strength of will.

By employing effective communication skills, sales skills, a deep focus, and a high ability to learn, an entrepreneur can actually learn a business strategy on the fly. When structuring and growing a business, however, it’s important that the structure and growth strategy are based on sound business sense and skills. A successful entrepreneur needs to have a solid strategy to take their business from good to great.

How Can You Build Entrepreneurial Skills?

Some of the skills needed to be a successful entrepreneur are likely to be innate or natural. Others can be honed through training and education in business and management. A master in business administration (MBA) is a common route. MBA coursework involves a broad spectrum of business-related topics, including accounting, statistics, economics, communications, management, and entrepreneurship. MBA programs not only prepare students to work for financial institutions, but also prepare them for management positions or to be founders of startup companies.

If you think you have what it takes to be a successful entrepreneur, keep in mind that even great ideas and solid management teams can fail due to the whims of the market, stiff competition, or just bad luck. According to the U.S. Bureau of Labor Statistics, approximately 23% of startups fail within one year and 65% in their 10th year. But don’t let these statistics discourage you: If at first you don’t succeed, pick yourself up and try again.

What Are the Most Important Skills for a Successful Entrepreneur?

While there is no magic formula for being a successful entrepreneur, those who do succeed tend to have mastered the following set of skills: good and effective communication, being able to sell both themselves and their idea or product, strong focus, eagerness to learn and be flexible, and a solid business plan.

What Are the Personal Qualities of a Good Entrepreneur?

In addition to honing one’s skills, personal qualities (or so-called soft skills) also matter a great deal. Being likable and friendly helps—nobody wants to partner with somebody who is difficult to work with. Being creative, versatile, and resilient in the face of great challenges are also beneficial.

What Are the Most Important Skills in Business?

For an entrepreneur to succeed, there are a number of skills that are important for running and growing a business. These include financial skills such as budgeting and financial statement analysis. By sticking to a budget and properly allocating resources, it could make the difference between success and failure. Through analyzing a company’s balance sheet, income statement, and cash statement, a company can track and project its performance.

Communication is another critical skill in business since it affects how you interact with customers, employees, and investors. Speaking confidently influences how your business is perceived and attracts customers to buy a product or service from you and employees to work with you.

Networking skills are also important in business since they provide an entrepreneur with the opportunity to learn from others’ experiences, gain valuable insights, and build a broader base of customers and prospective investors.

The Bottom Line

Entrepreneurship requires hard work, drive, and dedication. For those aspiring to build a business or grow their current business model, the core skills surrounding communication, sales, focus, the ability to learn, and understanding business strategy are essential for success.

Read the original article on Investopedia.