Developing a small business into a successful enterprise demands more than passion. Unfortunately, over half of new businesses fail; mainly because the entrepreneur is unable to translate their passion into practical business skills. Here are five essential skills all entrepreneurs need to build success.

Studies show that 30 percent of new businesses fail during their first two years of being open, 50 percent during the first five years and 66 percent during the first 10 years.

However, as an entrepreneur having the tag name, chief executive officer, you have to wear all different types of hats. I like to think of these hats as masks. Whether it is your sales mask, marketing mask or being able to manage your financial status; for effective growth and brand exposure of your company you have to be able to pivot quickly to each role in a decisive manner.

As we all know that success demands more than hard work, resilience, and expertise in your field. To succeed, you need to understand and to become proficient in a set of fundamental business skills.

Here are 5 essential skills all entrepreneurs need to build a successful business career.

1. Cultivate Better Financial Management Abilities

The first step in a successful business career is the ability to maintain and multiply your business’s financial status. The basic reason for going into business is to have effective management of money to accomplish your company goals. Studies have shown that over 29% of startups failed because they ran out of money.

The following are tips to build your financial management skills.

  •  Understand your income: Where is your income coming from? And how often is your income coming in? Is it daily, weekly or monthly? If you understand how your income comes in, it will help you in planning the most important aspect of your business.
  • Skip unnecessary budget: Avoid spending money on less important things and cultivate the habit to spend on something that will propel your business. spend less and save more.
  • Invest your income: Invest your income into what will bring good returns for your business. A lot of people make the mistake of investing in items that will not appreciate, which will affect their business growth.

2. Focus on Effective Communication

As an Entrepreneur aspiring to build perfect business skills, your ability to communicate has a large impact on how successful you will be. know that ineffective communication with your client will let you miss opportunities from time to time.

You should have a flow of interaction with customers and business partners. Even when things go wrong, you must be able to communicate effectively in hard situations.

Effective communication increases strong negotiation ability, allows companies to be productive and operate effectively, build a good working relationship between you and your workers. All these skills are essential to increase the growth of your business.

Effective communication increases the ability to pass information clearly about your services. 80 percent of customers are looking for assurance and confidence in your product and they’ll need someone who can convince them by giving out detailed information about your product. All these skills are essential to increase the growth of your business.

3. Improve your Marketing skills

Marketing tactics are one of the important skills you need to sell your product and to let people know about what you offer.

This area is more crucial because the way you market your product will reflect on how people will buy and react to it. Gone are the days where online marketing is ineffective you need to improve your marketing skills by building a strong online presence especially in the area of.

  • Content Marketing
  • Search Engine Optimization
  • Social Media Management

Most importantly, you must develop your product with an attractive design which will create a serious desire in the heart of your customers.

Have the mind to find the perfect location for your product, an area where most people want what you produce, which should be accompanied by a promotional program of your products.

4. Be Time conscious 

Just as how important is time management in business skills? Without proper time management, it will be difficult to build a strong successful business. More reason why time management is one of the most important skills to have a successful business career.

The priority you give to how you manage time will reflect on how fast you get things done, and how fast you get things done will reflect on fast your business will grow.

Effective time management will help exercise control over how you spent time on each activity — especially when it comes to increasing business productivity and effectiveness.

Not putting much consideration in how you manage your time will surely bring about financial loss. And this can be dangerous for the health of your business.

5. Ability to solve Problems 

Aside from the fact that every business has its ups and downs, the ability to solve the problem and go through hard times is essential in every business career.

Solving a problem is easy if you know the proper steps to take and the necessary approach to take in each situation.

  • Before solving any problem, understand the source of the problem, and the reason for the problem exists. That will help you to know the necessary steps to take in solving it.
  • Plan step by step action you will need to solve the problem
  • Have backup plans.

Having good problem-solving skills can help you overcome a lot of challenges in your business career.

In conclusion

The skills that are important for entrepreneurs or others who might be starting new businesses evolve with time and are different from what might have been the most important 10 or 20 years ago, just make sure to develop your business skills to have a good business career.

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Tobi Ogundele

Online Marketing Consultant

Tech Enthusiast, Business Strategist. Council Member At Perfect Motivations, Inc.