Are you considering starting a home-based or small business? Then you’re likely wondering what it takes to make your dream a reality. Starting and running any business is no easy feat — especially when there are so many unknowns, especially if they’ve never been done before..Many people feel running their own business may be easier than having to work for someone, but the truth is that running a successful home-based or small business is not easy.
Many skills will help you to be successful in running your own business as 1) risk-taking, 2) problem-solving, 3) financial and accounting skills, 4) networking, 5) marketing, 6) sales, 7) customer service, 8) organization and planning, 8) self-discipline, 9) hard work, 10) determination and 11) understanding different types of problems that can arise.
Table of Contents
- 11 Skills You Need To Run A Successful Home-based Business And Small Business
- An Entrepreneur Must Be Willing To Take Some Risks
- As A Small Business Owner, You Must Be Able To Solve Problems
- For A Small Business, You Need Some Financial and Accounting Skills
- Business Owners Need The Ability to Network
- A Small Business And Home-based Business Must Market
- A Business Owner Must Be Concerned With Sales And Profit
- Customer Service Is Important For A Sale Business
- Organization and Planning Is Important For a Small Business Or Home-based Business
- Self Discipline Is Important For Any Entrepreneur
- It Takes Hard Work To Run A Successful Business
- You Need the Determination To Have a Successful Business
- Frequently Asked Questions
- Related Questions
11 Skills You Need To Run A Successful Home-based Business And Small Business
Starting a business from the comfort of your home may sound like an exciting and easy task, but in reality, it requires much more than meets the eye. Running a successful home-based or small business requires dedication, hard work, and specific skills you may not have considered before.
To ensure success, it is important to understand those essential skills for running such an enterprise. Read on to discover some skills needed to run a successful home-based and small business.
An Entrepreneur Must Be Willing To Take Some Risks
I put risk-taking as number one since any business is risky. Yes, you can succeed, but you can also fail and fail hard. You have probably heard the statistics that most small businesses fail within the first year or second year and many a few years after that.
If you are averse to any risk-taking, it will be hard for you to start any business. Starting up your own business is a considerable risk. Taking on employees you need to pay monthly is also a huge risk. All kinds of businesses come with some risk.
As A Small Business Owner, You Must Be Able To Solve Problems
Problem-solving is the next area you need, as no matter what business you are in, there will be problems. As a business owner, you will need to look at ways to solve problems.
3 Basic Types of Problems That Usually Need To Be Solved
- Problems that Happen – These are problems that happen. You did not do anything wrong, but it happened. I would put something like COVID-19 in this category. COVID-19 happened, and it affected everyone and caused problems with sales and profit for many companies. This is an example of an unexpected problem that still must be dealt with.
- Mistakes Others Make – There are mistakes that other people in the company make, and some of these can cost you time and money. They are also problems you have to deal with.
- Mistakes You Make – Then there are the mistakes you make that can cause problems. I find these are always the most painful as they are usually mistakes you should not have made.
No matter where or how the problems come from, it is still a problem and something you need to deal with and find a way through. If problems paralyze you, as they do for some people, this will affect your ability to run your own business.
For A Small Business, You Need Some Financial and Accounting Skills
Financial and accounting skills are essential skills for any business owner to have. These skills are not optional for a small business owner, but they are essential.
We have written a blog about why we feel these skills are so essential for any home-based or small business. You can read our blog 8 Accounting Tips for Your Home-based or Road Warrior Business by clicking here.
Business Owners Need The Ability to Network
Networking or the ability to network, is a very important skill to determine your business’s success. You are going to need other people to help you to be successful. This is just the way that things work in this world.
One way you can do this is to join a local business organization or other groups where you can meet people who are running a similar kind of business or can be potential clients. I love the Meetup app and have used it to attend some very informative WordPress Meetup groups. It was great to go to these groups to hear what other people were doing with their WordPress sites.
A Small Business And Home-based Business Must Market
Marketing is essential for any small business owner. Marketing is about showing your potential clients why they need to buy your product or service.
Marketing is about your ability to promote your product or service in a way that will lead to a successful sale. To do that, it means that you must have proper branding, marketing materials, and other things in place so that people will want to buy your product or service.
Marketing is also an area of business that continues to change in how people react to your marketing and what marketing tools work.
Social media continues to be an important way for many companies to reach their audience. To find out more about social media and business, you can read our blog on 6 Top Social Media Platforms for Road Warriors or Home-based Business by clicking here.
A Business Owner Must Be Concerned With Sales And Profit
Sales are about turning your product or service into profit and cash for your company to continue running. Without sales, your company will die and cease to exist.
To use the analogy of a car, your company is the car, but your sales are the gas that allows the car to keep running. Just like a car needs gas to run, a company also needs sales to keep ongoing.
Customer Service Is Important For A Sale Business
Customer service is an essential part of any sale. To continue to get sales, you must have satisfied customers. This is why customer service is a critical skill you must have to run any successful business. It is at the core of how successful your sales will be.
Organization and Planning Is Important For a Small Business Or Home-based Business
To run a successful home-based or small business, you must also have some skills in organization and planning. Organization and planning are essential skills that can make a huge difference between your ultimate success and failure.
If you are working from your home or even if you are working while on the road, you will need to have a plan of when and how you will get your work done. This can be especially challenging if you do not have the skill set to plan or organize yourself to get your work completed.
Self Discipline Is Important For Any Entrepreneur
Working on your own or by yourself takes a lot of self-discipline. You will not be successful if you do not have the self-discipline to get the work done.
Many people believe that if you work for yourself, you do not have to adhere to any schedule. You can set your schedule, which is true, but you also usually need to be able to stick to that schedule if you hope to be successful.
It Takes Hard Work To Run A Successful Business
No matter what business you choose, hard work will be essential. No matter what size your business is, to be successful will take a lot of hard work.’
Many people have this vision that they can lie around all day and have other people do the work if they have their own company. That is a myth. Every successful business owner I have seen is a very hard worker, as they know hard work will drive their success.
You Need the Determination To Have a Successful Business
Determination is a very important quality to have when you are running your own business. There will be trials and heartache along the way that you will need to deal with. But, if you have the determination to really succeed, I have found that you will do all the things you need to do to work to succeed.
Running your own business, even your home-based or road-warrior business is difficult. But if you actively work to sharpen many of these skills you need to succeed, this will help determine your overall success.
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Frequently Asked Questions
What does it mean to be an entrepreneur?
Being an entrepreneur means taking initiative to start and manage your own business venture, assuming financial risks in the hope of making a profit.
What skills are important for running a successful business?
Skills such as risk-taking, problem-solving, financial and accounting knowledge, networking, marketing, sales, customer service, organization, planning, self-discipline, hard work, determination, and understanding different types of problems are crucial for entrepreneurial success.
How can I assess the risks involved in starting a business?
Conduct thorough market research, analyze competitors, evaluate potential financial risks, and create a comprehensive business plan to assess and mitigate the risks associated with starting a business.
How do I identify and solve problems in my business?
Constantly evaluate your business operations, listen to customer feedback, and stay updated with industry trends. Implement problem-solving techniques, such as root cause analysis, brainstorming, and seeking advice from mentors or professionals in your field.
How can I develop my financial and accounting skills as an entrepreneur?
Consider taking accounting courses or workshops, hiring a qualified accountant, using accounting software, and staying organized with financial record-keeping to enhance your financial and accounting skills.
How important is networking for a business owner?
Networking is essential for building connections, finding potential customers or partners, and gaining valuable insights. Attend industry events, join professional organizations, and utilize online platforms to expand your network.
What role does marketing play in the success of a business?
Marketing helps promote your products or services, attract customers, and build brand awareness. Develop a strong marketing strategy, utilize various channels (such as social media, content marketing, and advertising), and track the effectiveness of your marketing efforts.
How can I improve my sales skills as an entrepreneur?
Invest in sales training, understand your target market, develop effective communication skills, and create a compelling value proposition. Regularly review and refine your sales strategies based on customer feedback and market trends.
Should I Brand My Small Business?
Branding is an area that many small businesses struggle with, yet it is a very important part of any business. Branding helps your business look and feel professional. To properly brand your business you need to have a business name, logo, and tagline.
To find out more about why you should brand your business, you can read our blog on Guide To Branding Your Home-Based Business, What You Need To Know by clicking here.
What Is The Difference Between Working From Home and A Home-based Business?
Working from home is when your employer may have you work from home for a time. This is similar but not the same as telecommuting or remote working. On the other hand, a home-based business is where you are an entrepreneur. You own, run, and operate your own small business using your home as your base for your business operations.
You can read more by reading our blog Working From Home and Home-based Businesses, What You Need To Know by clicking here.