Skills needed to Start a New Business

A good business idea, the right skills and startup capital is a good start, but not enough to run a successful business.

I have seen many good people leave their jobs to start a business of their own. They think that the skills that they have gained at work and their willingness to work hard and long hours is enough. They think that the money that they saved to start the business is adequate.  Later they realize that they should have made use of a proper business plan to project the financial needs of starting up the business before they took the drastic step of firing their boss.

A business plan is not a guarantee for success.  It does not mean that if you have a business plan that your business will be successful.  Yes, a business plan is also a document that you provide the bank with if you want to borrow money to start the business. Business plans are created to assist the new business owner to track his progress and much more.  A business plan helps the entrepreneur to stay on track, and to measure the progress of the business in reaching its goals.

Many people start out as Sole Proprietors. As a Sole Proprietor the owner of the business is solely responsible for everything that happens in the business.  While this new business owner will have many skills, it does not mean that he or she will be successful.  For this reason many small business owners form business partnerships with others who have the skills that they lack.  This business strategy works well if the other partners are chosen because of the additional skills and knowledge that they bring into the business. 

Not everyone has the personality to become “The Boss”   Not all of us have the talent, the leadership skills, the tenacity, knowledge, life experience and entrepreneurial spirit needed to start and run a new business.  Most people perform best when their job description includes what they know how to do best. 

Yes, you can realize your dreams, have the freedom of your own business, but are you willing to make the sacrifices that you will need to make to start the business?  Does your family realize that you will spend very much less time at home during the start up phase of the business?  Do they realize that they will have to tighten their belt?  It costs money to make money! Do you realize how having a business will change your life?

Those people that are well prepared to start a business have a better chance of becoming a successful business owner. Set reachable and realistic goals for the business.  No honest entrepreneur becomes rich overnight. Budgeting if you have a regular salary coming in each end of the month is easy.  Budgeting when your business makes different amounts of money each month is not as easy.

If you are currently working for a boss, learn as much as possible.  Volunteer to do work other than that which you have been appointed to do.  If you can start your new business in your spare time while you are still employed, do so.  This means that you can set aside money every month to purchase machinery and tools. It means that you will need less capital later when you start the business full time.

There is always risk involved in starting a new business.  On the other hand, using a taxi is also a risk, everything that one does in life have some risk associated. 

One never knows until you take the first step.  Nothing happens on its own.