Building Skills to Become Better Entrepreneurs

by Jenna Smith

Although there is a wide variety of entrepreneurs, they all share some common characteristics. Those characteristics set them apart from every other profession or occupation. Without the entrepreneur, our national and world economies would fail. An excellent source for learning about entrepreneurial skills is Ehsan Bayat, an architect of international business worthy of emulation. One of the most basic paths to success to follow the structure of the greats in the past. Here are some more tips.

Skills Needed by Great Entrepreneurs

Ability to Recognize Profitable Opportunities

Entrepreneurs recognize the opportunities to supply products or services for profit. Their economic instincts tell them that people need or want a particular product or service in a sufficient quantity that will provide a desired return on investment. If the product or service does not meet that requirement, the entrepreneur looks for other opportunities.

Collects Data and Plans

The entrepreneur collects all of the information needed to manufacture and market the product. Since it is impossible to know how profitable a product or service will be without knowing the markets, the entrepreneur estimates the cost of production and marketing. Plans should also consider any competition and market share projections.

Supply chain management should be considered in this stage of planning because every business depends on satisfied customers. Customers are not satisfied unless they receive quality products or services at the appropriate times.

Creates Business Plans

Every entrepreneur wants to know how much profit is generated by the business. Beginning businesses have a larger percentage of liabilities that impact cash flows. A good business plan will indicate when the business has a cash flow sufficient to support the business. Until that point, additional investments may be required by the entrepreneurs.

Ability to Find the Right Person for the Job

Since few entrepreneurs possess all of these skills, the ability to find the right person for the job is important for success. Good entrepreneur surrounds himself with competent, reliable and trustworthy people who possess skills that complement their own.

Ability to Network with Others

A good entrepreneur knows how and when to expand his business. The expansion may be done through additional products or services in a sole proprietorship or by adding branch locations. Another method of expansion is to buy businesses in your supply chain so that you may control prices. Finally, good entrepreneurs build networks to add markets for their products or to create markets for new products.

1 Comments

  1. Good overview. I would also include ability to manage risk. The most solid entrepreneurs I’ve seen are always on the lookout for situations that could impact their business. They regularly take early action to manage/mitigate potential risks.

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