For the success of any business, there are certain basic competencies that an entrepreneur must ensure are in place so that they can start and smoothly run their business. These are essentially competencies that will successfully aid the day to day operations of the business.
Here is the list of 4 competencies for a successful business. These are skills that an entrepreneur can choose to learn, or hire someone to provide them.
#1 Financial management competencies
For any business, the ability to manage finances is probably the most critical. You must always be able to budget, do cash flow forecasts and, monitor profit and loss. It’s also important to be familiar with your financial obligations to the government’s revenue authority and ensure all income is declared and relevant taxes paid. It’s only through having competencies in financial management that you will be able to ensure your business is profitable.
#2 Sales, marketing and customer service competencies
The goal of your business producing products or services is so that they can be utilized by your target consumers thereby enabling you to profit from this. In order for your consumers to be aware of the existence of your products or services, and learn about the value proposition of your products or services, you will need competencies in sales and marketing. This is essentially the team that helps you close sales and make profits. In addition to this, having a good customer service in place enables your business to be able to handle customer queries or complaints much more effectively thereby creating a sense of customer loyalty.
#3 Communication and negotiation competencies
For a business to be run successfully, you must have sufficient communication and negotiation competencies as these will come in handy when dealing with your various stakeholders. Being able to establish good relationships as well as make win-win deals with suppliers, customers, potential investors, as well as employees will be very necessary as part of the day to day operations and this requires the right combination of written and verbal communication skills.
#4 Leadership competencies
In your business, the overall leadership should come from you. Leadership competencies come in handy when you are making decisions on how to delegate responsibility, when you are managing a combination of staff, projects your business is engaged in, and other stakeholders crucial to your business as well as when offering general direction for your business. Your staff will rely on you for motivation and inspiration so that you can bring out the best out of them. It’s therefore important for you to hone your leadership skills so that you can be in a position to transfer them to your team.
These are competencies that every business owner should work on developing. Even, if you opt to outsource these competencies, you must make sure that you have an above average mastery of them.
We invite you to share with us your experiences and success stories in your business adventure.