Nine Skills Needed to Run a Small Business
So, you’ve taken the leap. You’re a small business owner! That’s HUGE. You’re building something from the ground up, pouring your heart and soul (and probably a lot of savings/debt) into it.
Running a small business is like juggling three water melons while riding a unicycle—challenging, but doable with the right skills. This is so for people who are naturally talented, and even harder for many others who are necessity entrepreneurs: individuals, especially in developing countries, who start small enterprises out of necessity (like joblessness).
To run a small business, you need a solid toolkit of abilities that go beyond grit and a good idea. The list of skills is endless, but here is a list of ten skills you need to run a small business. To have a chance of succeeding, you need to be a jack of these nine trades and a master of all nine.
- Financial Acumen: Know Your Numbers Like Your Favourite Song Lyrics
It’s not just about ‘knowing the numbers.’ It’s about understanding them. Cash flow hiccups can sink even the brightest ideas, so getting cozy with your finances is non-negotiable. It’s not just about balancing the books—it’s understanding how money moves, planning budgets that don’t leave you sweating at month-end, and making decisions that keep the lights on. You don’t need to be an accountant, but knowing the difference between profit and revenue (and why it matters) will save you from nasty surprises.
- Leadership: Steer the Ship Without Sinking It
At some point, you will need to work with people. This calls for leadership skills. Great leadership isn’t barking orders—it’s about motivating people, smoothing out conflicts, and building a crew that’s as invested in the dream as you are. Leadership here involves inspiring your team and fostering a culture where people want to bring their A-game. It is also about:
- Clear communication: So everyone is on the same page, working towards the same vision.
- Conflict resolution: Turning disagreements into opportunities for growth.
- Empowerment: Giving your team the autonomy to shine, while still providing guidance.
- Marketing and Sales
You’ve got an amazing product or service. But if nobody knows about it, what’s the point?
Marketing and sales are your megaphone—mastering them means crafting messages that stick, engaging customers like they’re old friends, and sealing the deal without breaking a sweat. Whether it’s social media ads, a killer email campaign, or good old-fashioned charm, you’ve got to know how to get eyes on your stuff and turn “maybe” into “yes.” Growth doesn’t happen in silence.
- Problem-Solving and Decision-Making
Challenges are as certain as taxes. Expiring stock, a bad customer experience, or a client ghosts—your ability to think on your feet and make smart calls under pressure will be needed. This isn’t about having all the answers; it’s about sizing up the problem, weighing options, and picking a path forward. You need to be able to:
- Analyze situations quickly and calmly: Don’t panic!
- Think critically and creatively: There’s always more than one solution.
- Make tough calls with confidence: Even when you don’t have all the answers.
- Customer Service
Customers aren’t just transactions; they’re the lifeblood of your business. Nailing customer service means hearing them out, solving their headaches, and leaving them smiling—even when they’re mad. Loyal customers don’t stick around for “meh” experiences; they stay because you’ve built trust. Learn how to do it.
Customer service is about:
- Listening actively: Understanding their needs and pain points.
- Going the extra mile: Exceeding expectations, not just meeting them.
- Building loyalty that lasts: Turning customers into advocates for your brand.
- Time Management: Master the Clock
You’ve got 17 hats to wear and only 24 hours in a day. Juggling tasks, deadlines, and a never-ending to-do list is your norm. That is why you need a secret ingredient.
Time management and organization are your secret weapons to keep the chaos at bay. Prioritize like a pro. Tools like calendars or a simple to-do list should be your allies. You will need to:
- Prioritizing like a boss: Focusing on the tasks that move the needle.
- Creating systems and workflows: So things don’t fall through the cracks.
- Finding your own rhythm: What works for someone else might not work for you.
- Networking
Networks are not going to build themselves, and no business is an island. Building relationships with other entrepreneurs, mentors, or even competitors can spark partnerships, referrals, or that random tip that changes everything. Attend that event, send that follow-up text, and watch doors swing open you didn’t even know were there. You will need to keep:
- Finding your people: Connect with other entrepreneurs, mentors, and potential collaborators.
- Adding value first: Focus on what you can give, not just what you can get.
- Nurturing relationships over time: It’s a marathon, not a sprint.
- Adaptability and Resilience
You must be a person who gets back up when the market (or life) knocks you down. That is why you need to be resilient and adaptable. The ability to embrace change, learn from setbacks, and keep moving forward with grit and determination – that’s what separates the good from the great.
- Industry Knowledge
You must know what you are doing – that should be the first rule. A major part of your life will involve staying sharp on trends, spying on competitors, and knowing what’s next to keep you ahead of the game. You need to know the game you are in, or else you will end up trying to sprint in a marathon.
