Top 5 Skills Every Business Owner Should Have

Do you have what it takes to start a small business?

While these days, everyone can create a website using an e-commerce platform and market a few products on it, not everyone can take a website or a business idea to the next level.

In fact, over 60% of Australian small businesses fail within three years of inception.

Even though some of these business owners might have faced particularly challenging conditions, some simply did not have what it takes.

So, here are five essential skills every business owner should have to grow a successful business.

Make sure you save this list of articles we have on our website which is packed full of useful information small business owners can follow to grow their businesses.

Financial Literacy

Money is the fuel that will power your small business.

Being financially literate will enable you to make the right financial decisions and ensure your business can flourish.

But what are some of the key financial elements you should know about as a small business owner?

You should have a sound understanding of basic financial and accounting concepts such as managing your cash flow and budget, handling your taxes, implementing a good billing strategy, and analysing your financial statements.

Sales And Negotiation Skills

If you hate sales, starting a business might not be for you. It’s a bit harsh, but it’s reality.

You might be very creative, have an amazing idea for an app and actually be able to develop it yourself, but if you’re reluctant to approach potential prospects and have sales conversations because you don’t like sales, you might have a hard time growing your business.

After all, business is all about sales. And guess what? Everything you do on a daily basis revolves around selling something. For instance, when you’re sharing your business idea with friends and family, you’re selling them on supporting you.  

And the same goes with negotiation. If you approach a prospect and they say no, you can’t just walk away. You have to learn how to overcome objections. Even if they don’t end up buying from you, handling objections will allow you to create strong relationships with prospects and establish yourself as a trustworthy and knowledgeable partner. And this might very well pay off later down the road!

And similarly to sales, you use negotiation every day without knowing it.

For instance, when you’re trying to convince your kids to make their bed or your friends to go on a hike with you, you’re negotiating.

Be sure to check out our article on sale tips to grow your business!

Marketing Skills

‘’ People do not buy goods and services. They buy relations, stories and magic.’’ 

- Seth Godin

You might have the best product in the world, but if you don’t know how to market it properly, you’ll have difficulty succeeding as a business owner. You know how we just mentioned you needed sales skills to turn an idea into a successful business? 

A well-thought-out marketing strategy is the most powerful sales tool in your small business owner's arsenal. By clearly identifying your ideal customers, their pain points and the way they talk and behave, you’ll be able to show them how your offering can solve their problems in a compelling way. Besides, using some of the best marketing techniques will help you promote your product or service in an impactful way that will encourage them to buy from you.

Note that creating impactful and relevant content - both written and visual - is a big part of a successful marketing strategy. This means that you should know how to turn hard, cold facts about yourself, your brand, your products or your services into engaging stories.

Be sure to check out our articles on marketing for more information:

• ‍How to set up your first Facebook Ad
  
• ‍How to set up your first TikTok Ad‍
• How to set up your first Google Ad
• Creative ideas for guerrilla marketing campaigns
• Marketing strategies every Australian small business needs to follow

And this list of marketing articles that is constantly growing!

Leadership Skills

Leadership is a crucial skill you need to master if you want your business to be successful for many reasons.

First of all, effective leadership skills will help you build trust, bolster teamwork and keep everything running smoothly. By providing direction, guidance, feedback and support, you’ll be able to inspire and motivate your team and cultivate a sense of greater good.

Also, strong leadership skills will allow you to make effective and impactful business decisions and take your business to the next level.

While there are many different leadership styles, research has shown that authentic leadership leads to higher job satisfaction, a higher level of trust and greater productivity among employees.

Planning Ahead

Business life is full of surprises. And unfortunately, they’re not always pleasant. Successful business owners plan ahead and cover all their bases to make sure their business continues to grow even if something unexpected happens.

One of the things you should consider as a business owner is business insurance. Business insurance allows you to protect your business and financial assets against unexpected claims and prevent your company from going under due to hefty legal costs and other claim-related expenses.

At upcover, we pride ourselves on helping small business owners like you protect their hard work by providing them with comprehensive insurance coverage tailored to their needs. Hop onto our free instant quote generator, and you’ll get an estimate on market-leading insurance in seconds. 

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