Having an entrepreneurial mind is great. However, when you get down to the nitty gritty involved with actually starting your own business, you need more than a good idea. You need business savvy and a well-rounded skillset to ensure you successfully launch your entity. What’s more, you need to unpack your strengths and faults beforehand too so that you know where you need to upskill.
Entrepreneurs need to consider how their future looks
By having a vision of where your company will end up, you are able to ascertain exactly what you need to do to get there. You also need to account for failure. If you fail in one direction, what’s the next option?
Where will you end up if you don’t meet your goals? You need a plan A but also a plan B and C. And you need to find out what you should to do to make sure you can make each of those plans work. But this means that you need to upskill yourself accordingly and ensure that you have the knowledge needed for excellent end results.
Upskilling is the underlying business of every entrepreneur
Now upskilling could mean that you need to enrol in some courses that offer you technical or business skills which will help you boldly enter the marketplace. You might end up having a great idea but have no clue as to how to get it up and running.
For instance, perhaps you have an excellent idea for an app within an industry that you’re passionate about. Now you may have all the knowledge about your chosen industry and you know that having an app can make you a lot of money but you have no knowledge on how apps work.
You may need to send yourself on something like a basic beginner’s course in app development.
Alternatively, you may want to upskill yourself in some soft skills. If you envisage that your company will end up needing a number of staff members, you will need to make sure you have strong people skills.
For instance, if you’re running an ecommerce website, you’ll eventually need a warehouse which means you’ll need staff to fill it. Overseeing a large group of employees will require you to have good soft skills.
You’ll be expected to communicate clearly, keep them motivated and be able to handle people when they’re having problems at work or even personally.
Don’t jump in the proverbial deep end
You need to plan your entering into the entrepreneurial game. You need to make sure you have prepared enough.
Jumping in with two feet, and possibly your eyes closed, will land you in trouble. In fact, most entrepreneurs move quite slowly into their own business. It’s best to do it this way.
Continue working in your regular job while saving up to create a safety net of money for “just in case”. Also, spend time after hours networking with those who are currently in the startup game or in the industry you wish to enter into.
Making connections ahead of when you’d like to launch is a smart idea. You can find out how others managed to make a success of their ideas and essentially this will be the beginning of your competitor research that you can use for a market analysis later on.
Specific skills to focus on before you start
Before you make any type of bold step into the entrepreneurial game, make sure you look into courses that will benefit you in the long run. As mentioned, focus on upskilling yourself in your specific industry but also run an audit over your skillset as it currently stands. Then go ahead and sign up for necessary courses that will help your business.
Have you ever completed a sales and marketing course? Sales and marketing courses are a must for all entrepreneurs. And if you haven’t completed one, then do so immediately. You need at least the basic knowledge needed to set up marketing strategies and close deals.
How are your customer service skills? What about your ability to lead? And can you easily stand up and deliver a speech? These types of skills you can learn through completing business courses. What’s more, you can walk away with certifications at the end of it. This is beneficial for many reasons but also because, if all else fails, your CV will be peppered with certifications that’ll assist you with finding a new job. This might very well be your plan C.
Build Solid Back-Room Basics For Business Success
What do South African entrepreneurs really know about what goes on behind the scenes building of businesses?
South Africa has a vibrant start-up culture with great ideas starting out with a bang, but closing down with a whimper because entrepreneurs picture the glory at the destination, but not the nitty gritty of the journey to get there.
Be smart about scale
When I started out, I literally did everything myself. I negotiated and signed leases, I arranged the furnishing for our apartments and managed the interior décor process. When guests started using our apartments, I signed them in at reception, and then carried their bags.
At that stage, there was no money in my business to pay for attorneys, interior designers and decorators and there certainly wasn’t enough money for porters.
However, when we got to 70 apartments, it didn’t make sense for me to be a porter any longer, so I hired someone to do that job, explaining clearly what I expected of him. Before I did that, though, I spent time designing incentives for him so that he would be more affordable for me, and so that he could earn as much money as possible.
Related: Training Is A Two-Way Trick
Know your talents – and your limitations
There are certain things I’m really good at, but I know without a doubt that sales isn’t one of them – and without sales, you don’t have a business. I couldn’t afford a top-flight salesperson, but I knew that I could attract the right talent with the right business model. I set some high targets for Pamela Niemand, but offered her one third of the business if she met them. We both won: she earned a share in a successful, trend-setting business, and my trend-setting business became successful!
Use your skills – but know when to hand over
My background in corporate finance meant that I had all the accounting skills I needed when we first started out, but I knew that the time would come when I would need someone focused on that side of the business full time. Doing it all myself first meant that I could brief my first full-time accountant clearly and with a deep understanding of what would be required – and that I could help that person find and fix any challenges based on my experience.
In summary, my simple advice to anyone starting out would be to bootstrap your business yourself without investors or staff for as long as you can, but don’t over-extend yourself. Know when to delegate tasks away so that you can focus on what you’re really good at – but don’t do it before you have a solid understanding of what’s required. Know what you’ll never be able to do, and bring in that resource from the beginning – but do it based on performance-based incentives, so that your fledgling business doesn’t lose out if your early hires don’t perform.
The Myth About The Relationship Between Entrepreneurs And Taking Risks
This is the true relationship between entrepreneurs and the apparent illusion of risk.
“I can’t be an entrepreneur or start a business. I don’t have the appetite for risk.” This line is spoken regularly to brave few that leave the perceived safety of a job, take the plunge and venture into the unknown world of being an entrepreneur. However, there is a gross misunderstanding in the appetite for risk that entrepreneurs are believed to have innately inside of them.
The little-known truth is that the majority of entrepreneurs don’t like taking risks and according to Luca Rigotti and Mathew Ryan in their paper that explores a model for quantifying risk and its translation into enterprising action, the results were very interesting.
Risk is explained by these theorists as taking action where the outcomes are unpredictable as well the factors leading to that outcome are unknown. One of the theorists in this area, Saraswati, who coined the term “tolerance for ambiguity” has a more accurate description of what the outside world deems taking a risk.
In simple terms, entrepreneurs don’t go head-first into the shark infested water because they like the idea of danger and potentially being eaten alive; or the thrill of being able to say that they survived whilst others perished in a pool of maimed flesh. They carefully calculate that the sharks have been fed recently, some of the sharks are ragged tooth sharks that whilst looking like they are set to devour a human being, are actually incapable of opening their jaws wide enough to bite. For those sharks that still have space or who smell blood and can’t resist the urge to kill, the entrepreneur has a cage set up that he can retreat into quickly and a knife with which to protect himself.
Tolerance for ambiguity is the careful evaluation of what is known at the moment where a decision must be made and an open-mindedness for what is not known. This, coupled with the agility to change course when new information is presented, has earned the label of high risk appetite. The appetite is not for the risk, but it is the ability to move down a path, when all the information is not known.
I likened it to a person moving around in the dark holding a candle. The candle casts a light that illuminates a limited parameter around the person holding the candle. What is beyond the light that the candle casts, is unknown and potentially a risk. But as the person moves forward, the light reveals what was unknown and in the shadows. As the light reveals new information and new challenges added to what they have already learnt, the person can make better informed decisions. The tolerance is in not knowing what lies in the shadows yet to be illuminated by the candle and then the confidence in his or her own ability to act on what new information is discovered.
None of this behaviour is risky or irresponsible. There is careful consideration for what is known and a tolerance for what is unknown. And once there is more information available, a calculated next step is taken and more information is assimilated into what is now known. This is the true relationship between entrepreneurs and the apparent illusion of risk.
7 Skills Every Entrepreneur Needs To Adopt Today
Want to know what skills can help you build confidence and your business? Here are seven…
For some people, becoming an entrepreneur is as easy as stepping off a bus. They have a big idea, they bring it to life, they hire employees and the next thing they are in a building smothered in branding and living the business dream. For others, the idea and the passion are there but they are unsure as to how they can make these into a sustainable reality. Entrepreneurial spirit isn’t like instant coffee – you don’t add ideas and suddenly get all the skills you need to thrive.
Want to know what skills can help you build confidence and your business? Here are seven…
1. Believable vision
Make sure that your vision is believable and achievable. It has to live in the realms of possibility, not as a blue-sky idea that looks good on paper but wouldn’t work in reality. You need to be able to live this vision so make it realistic and achievable. This will not only keep you on track, but your employees as well.
2. Be inclusive
You need to ensure that every person who works with you feels as if they are part of your vision and understand it. They need to relate to where the business is going and how it plans to get there. Many leaders don’t understand why employees are not engaged with their business and it’s because many of them don’t actually understand what the business does.
3. Communication is critical
If you don’t have fantastic communication skills, then now is the time to hone them. When it comes to building employee morale, commitment and engagement, nothing works as effectively as constant communication. The same applies to client relationships. You need to repeat the vision and ethos of the company at every opportunity and you need to be part of the team that does this communication.
4. Be visible and transparent
You are communicating, now you need to make that communication genuine by being both open and clear. People respond incredibly well to transparency. They feel as if they are part of something that recognises their value and contribution and it fosters a more inclusive company culture. Often toxic cultures come about thanks to a lack of communication and visibility. People know when things are being kept secret and react negatively to it, regardless of whether they’re an employee, a customer or a manager.
5. Be practical
You aren’t going to build an empire in a fortnight so focus on a realistic and practical business strategy that has clear benchmarks and even clearer goals. Communicate these with the company and keep everybody on the same page. Practical and achievable means long-term success.
6. Build opportunities
As people become immersed in your company and part of its growth they will also need opportunities to grow. You need to tie their careers to the business and create opportunities for them.
7. Be human
It takes people to build a culture, a company and a future. It’s essential that you are human in your interactions and your treatment of others. The impact that a down to earth and authentic attitude can have on a company is extraordinary.
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