business owner

Top 7 Skills Any Small Business Owner Must Know

As a small business owner, you might have a couple of employees around you to help, or in such cases, your entire team is just you. 

Even if you run your business alone or if you have a small team, most of the time, you take much of the responsibilities yourself. Thus, you need to become a jack-of-all-trades and have the skills to effectively handle every part of your business.

But what are the skills you need to hone and master to be successful in managing your small business? There are 7 essential skills that you must keep in mind and practice.

Leadership

As a leader, you should have the ability to guide and motivate your team to get the best out of them and to act towards achieving your common goal.

You are depending on your team to make your business a success. For your employees to be invigorated and perform their tasks outstandingly, it is your responsibility as a leader to ensure that your team members are well rewarded, whether it is monetary or by showing them genuinely that you appreciate their efforts in your business. 

Communication and negotiation

An effective verbal and written communication skill is one of the most important keys in running a business. You need to have communication skills to build a good relationship with your clients, suppliers, or employees. You should have the ability to convey your thoughts effectively and reflect the image you are trying to project. 

Communication is vital when you are negotiating with your potential investors and suppliers. If you know how to listen and ask the right questions at the right time, the more likely you will have a successful negotiation and you might be able to influence and convince them to take the action that you want to attain. 

business owner skills

Delegation

As much as you want to be a hands-on business owner, you have to willingly give up control in managing certain aspects of your business, and delegate responsibilities to your team members. This will help you manage your time and deal with important tasks that will help you generate revenue. 

Your team members would also feel that they have a sense of purpose since they need to be responsible for the task you have assigned and that they need to perform at their best because of the trust you have given them.  

Marketing

As a small business owner, you need to be seriously involved with your marketing.  You should be able to effectively promote products or services by using marketing strategies to generate sales. In marketing, you have to understand the process of how your products and services get to your consumers. This is either you create a strategy for your target consumer to find your brand, or you are the one who is going to find your target consumers and sell your product and services to them.

Financial Management

For you to protect your financial investments and run a profitable business, you should have extensive knowledge in financial management.

Financial management is more than just managing your money. You need to record the cash flow and sales of your business to monitor your profit or loss so that you would know your financial state. You should also understand what are in your financial reports and how you got those figures in your business to know what would be your next action in your business.

Separating your personal finances fromyour business finances such as bank accounts and credit cards will help you avoid future problems. Opening a savings account for your business is a good idea to avoid mixing your personal finances into the business finances.  

entrepreneur skills

Customer Service

Having a good customer service is what all businesses need for them to retain customers and create loyal followers. The most important key here is building a good relationship with your customers. When your customers are happy with your customer service, they will likely come back to you and spend more. 

Always go the extra mile when you are serving a customer. Get to know your customers a little bit more by knowing their wants and needs. Make them feel that you care by remembering their names and previous conversation so when they come back, you can refer to it. Respond to their messages and deliver their requests or order as quickly as possible. Speed is one of the biggest factors in good customer service.  

Project Management and Planning

Probably all of the small business owners have hopes of becoming a big corporation someday. The only way to get there is by having a strong project management and planning in your business. Project management is said to be effective when the goal is reached on time to an agreed budget. Without proper project management, you might work all over the place and don’t complete your project. You should know how to manage your time, budget, resources and staff that will help you reach your goal.

Ready to move up in your career? Advance your skills with 30 days FREE of All Access Pass and learn from over 1,000 online video courses. Click here to get started.

About The Author

Esther B.

Esther B.

Esther is a writer whose work focuses on career and personal development. She has also been YourTango’s Expert Partner where she wrote articles mostly for women to encourage them to have a meaningful life and healthier relationships. Her articles were constantly in YourTango’s weekly top ten for highest number of page views and her works have been featured in MSN and POPSUGAR. She also has almost 8 years of experience working for top publishing companies (Wiley and Cengage Learning) helping authors publish their books and research papers. When she is not on the computer, you’ll likely find her in the kitchen busy looking for snacks to eat.