May 28, 2023

In the U.S. alone, there are approximately 31 million entrepreneurs, that come from a wide range of backgrounds.

Clearly being an entrepreneur has great appeal. The idea of founding your own business and being your own boss means you’re in charge of your own success.

Practically everyone has considered it at some point or another – and likely you have too.

But before you make the jump to being an entrepreneur, there are 3 essential business skills you need to know. Without these skills, your business is bound to fail – if it even gets off of the ground.

Here are the business acumen skills you need to have.

1. Financial Knowledge

Entrepreneurs need some knowledge of finances. This includes an umbrella of different financial skills. An entrepreneur needs to understand:

  • How to budget
  • How credit works
  • How to find investors and get capital
  • How to borrow responsibly

When combined, understanding all of these financial skills will help you succeed.

As an example, let’s look at credit. For small businesses, poor credit history is one of the main reasons why loan applications are denied.

But poor credit can also impact insurance rates, as well as your business’ attractiveness to potential investors. Being an entrepreneur is about more than managing capital, it’s also about finding capital.

2. Communication

Communication skills are in higher demand more than ever. In the age of remote and hybrid work, entrepreneurs need to understand how to communicate via video calls, phone calls, email, messenger apps, and more.

Good communication skills consist of good business writing skills, as well as the skill of listening. Good listening is active listening. Active listening involves using verbal and non-verbal techniques to show attention.

Active listening involves:

  • Asking open-ended questions
  • Asking specific questions
  • Using verbal affirmations
  • Displaying empathy
  • Recalling previously shared information
  • Avoiding distracting movements
  • Smiling or nodding

If you can perfect your communication, you open yourself up to new ideas from your employees and valuable feedback from your clients.

3. Project Management

Every entrepreneur needs to understand project management. Understanding how to delegate tasks and pass them off to others in their organization is essential. Successful delegation allows entrepreneurs to avoid decision fatigue, which can hinder a person’s ability to make wise decisions.

That’s where project management comes in. Project management is the process of planning, executing, and completing projects. If you want to become an expert in project management, you can get a PMP certification.

PMP or Project Management Professional certification is the leading certification for project managers. To apply for the PMP you need to create a account and pay a credential fee, along with meeting certain prerequisites.

Master These Business Skills

Mastering these business skills is essential for entrepreneurs of any size organization. But part of being an entrepreneur is ongoing personal development. If you’re looking to learn more business management skills be sure to check out the rest of our site.

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