10 Reasons Why Entrepreneurial Skills Are Important

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There are 10 reasons why entrepreneurial skills are important.

Some people think that people are born with entrepreneurial skills.

Others think that entrepreneurial skills can be learned and developed.

However, which ever side of the divide you belong to, the truth is that you need entrepreneurial skills to succeed in your business.

Below, are some basic important entrepreneurial skills that can help you.

Ability to manage money

Ability to manage money is one of the most important entrepreneurial skills you need to succeed in your business.

This is because business is all about making and managing money.

For example, you must always think of how to increase revenue and reduce expenses.

Additionally, you must always try to think about legitimate things that can be done to bring in more money to your business.

On the other hand, you must be able to avoid wasteful expenses.

Wasteful expenses are expenses that do not add value to your business.

Therefore, they are expenses that can be significantly pruned down or avoided altogether.

More importantly, you can invest Idle cash to generate side income for your business.

Most importantly, you can be able to do costs and benefits analysis before you part with your money.

Entrepreneurial Skills: Managing men

Another important entrepreneurial skill you need is the ability to manage men.

Managing people is a very difficult and complex task.

This is because as our faces are different so will characters and attitudes be different.

You must have great interpersonal skills to be able to monitor and coordinate the activities of your employees to ensure that company goals are achieved.

Moving forward, you must also be able to formulate policies, rules and regulations that can guide the internal running of your business.

Moreover, you must have skills to motivate your customers so that they can give their best.

Furthermore, you should realize that your employees are your first customers. They are also your assets.

Managing men 

It is your responsibility to make sure that you:

  • Provide your employees with  the tools they need to do their jobs .
  • Communicate your policies to your employees so that they will know the aims and objectives of your business
  • Recognize and reward hard working employees
  • Encourage and empower your employees to grow with your business
  • Promote employees and give pay raises to deserving employees
  • Give them training to meet the needs of your business
  • Allow them to take their annual vacation so they can refresh
  • Pay your employees what they are worth; i.e. according to the work they do for you.

Most importantly, do not forget that the quality of services you receive from your employees is a function of what you put into their training and development.

Entrepreneurial skills: managing materials

Managing materials can be quite challenging, especially in an environment that is not computerized.You

You need to manage your stocks effectively to safeguard the money you invested in them.

Entrepreneurial skills can help you to ensure that you are not carrying excessive stocks.

You do not have to carry excess stocks or tie down your business capital on stocks nobody wants to put his money

Most importantly, you must have the entrepreneurial  skill required to:

  • Source for regular and steady supplies of stocks
  • Negotiate favorable deals with suppliers.
  • Put in place effective and efficient internal controls over your stocks
  • Avoid stock outs; customers do not like stocks out.
  • Avoid stocks that are nearing expiry dates
  • Prevent carrying of obsolete stocks
  • Shun stocks that are experiencing low demands

Organizational skills

As a business owner, entrepreneurial skills to achieve the organizational goals of your business.

Moreover, it is your responsibility to make sure that you

read  up management books and magazines to continually update your organizational skills.

Ability to plan

According to Benjamin Franklin, “if you fail to plan, you are planning to fail”.

Planning is one of the important entrepreneurial skills you will always need.

Having said that, it is your responsibility to plan for all aspects of your business, including:

  • Marketing
  • Finance
  • Personnel
  • Administration
  • Purchases
  • Sales
  • Customer service

Furthermore, you must be able to continually plan, implement, review performance of your plans and update your plans on a regular basis.

Most importantly, you can involve senior employees in the planning process so that they will know the vision and mission of your business.

When they are involved in planning process, they will not have any excuse for not performing. 

Entrepreneurial skills: Foresight

As a business owner, you need foresight to enable you to remain on top of your game.

Changes take place fairly rapidly.

Consequently, you must have entrepreneurial skills see changes coming so that you can prepare your mind to make the necessary changes.

For example, suppose you locate a branch of your business in a new place.

And that after a short while, government constructed a road that affected the place where you located your business branch.

And you suffered  huge financial losses without compensation from the government.

That will be a clear case of lack of foresight.

Therefore, before you make an important decision, you can feel free to consult those who know better than you. This can help you to prevent costly mistakes.

Entrepreneurial skills: Consistency

You have to be consistent in whatever you do. This is very important so that your customers, suppliers and employees can flow with you.

For example, if you set up operational standards, benchmarks or road map, you must be able to make sure that you:

  • Constantly monitor the standards
  • Should ensure compliance
  • Observe deviations
  • Avoid errors and mistakes
  • Make amendments when the needs arise.

In other words, you must be able to stay with predetermined standards and make changes only when you have good reasons to do so.

However, you should avoid the temptation to make changes here and there, every now and then. Otherwise, some of your customers will leave you.

Furthermore, inconsistency affects customers because your customers also have their plans and schedules.

Most importantly, if you are consistent in the way you do your business, it will be easy for customers to do business with you.

Persistence

Persistence is a great great entrepreneurial skills you need to master.

In business anything can happen at any time.

For example, some unexpected events can occur. Some of them can even threaten the existence of your business.

Sometimes, the events might be of a temporary nature.

If the event is of a temporary nature, you should not give up.

Instead, you should continue to do your best to navigate your business out of the storm.

Additionally, you can stick to your vision and vision for the business, unless you have good reason to make changes.

In other words, you strongly believe that you are in the right business, you should not give up. Be persistent. Continue to do what you reasonably believe is best for your business.

Most importantly, remember that in business quitters don’t win and winners don’t quit. It is said that when the going gets tough, the tough gets going. 

Entrepreneurial skills: Integrity

Integrity is an important entrepreneurial skill you must learn to acquire.

Remember that business is built on trust and connection.

For example, you should not make a promise you do not intend to keep.

Furthermore, you should do what you say you are going to do.

Most importantly, you should be able to let customers, suppliers and other business partners see you as a person they can always trust and do business with.

Passion for what you do

Another important entrepreneurial skill is that you must be passionate about what you do.

Do not forget that you can only be passionate about something if you are sufficiently interested in it.

In other words, interest drives passion. Passion drives determination and determination is the key to success.

For example, unless you have good reason to do so, you should not be in bed at 9.00 am when you are supposed to be working in your business already.

Creativity

Creativity is a very valuable entrepreneurial skill you can learn.

Some entrepreneurs have suggested that business is like war and that the common enemy is competition.

When faced with cut throat competition, you can use entrepreneurial skill to navigate your business to safety.

For example, you can manufacture a new unique product.

Alternatively, you an modify an existing product to make it different from similar products in the market.

This can enable you to fight competition.

Moreover, you should not belong to the class of people would always say “that is how we have been doing it”.

Extra ordinary people do extraordinary things to achieve extra ordinary results.

Furthermore, you should always try your hands on new things.

Always continue to look for cheaper and better ways of getting things done.

Most importantly, you should buy into the idea of continuous improvement so that you will not be left behind.

 

Related:  10 Effective Ways To Prevent Your Business From Failing

 

By Samuel Ijenhi,

B.Sc. Accounting, University of Benin,

Benin City, Nigeria.

Email: info@samuelijenhi.com.ng

 

 

About Samuel Ijenhi

A graduate in Accounting, University of Benin, Benin City, Edo State, Nigeria.
View all posts by Samuel Ijenhi →