The Eight Skills You Need to Run Your Own Business

Being your own boss, pursuing your passion and even making a name for yourself can be a hard dream to achieve, but it's one that many share. According to the Australian Bureau of Statistics (ABS), 96 per cent of the 2.1 million businesses operating in Australia are small businesses, run by people just like you.

There are many benefits of owning your own business such as independence, flexibility and financial rewards, and these have tempted many Australians to jump whatever ship they're on to become entrepreneurs.

Successful small business owners have - alongside passion and goals - great products and services, tenacity and several core skills that pave the way to long-lasting success. Here are the secrets to their success:

1. Communication skills

In all businesses, big or small, interacting with other people is key, whether it is with staff, suppliers, partners, customers or prospective clients. Strong communication and interpersonal skills are integral to providing quality customer service and ensuring you have a happy and united team.

You need to be able to listen and understand others and have the tools to express your ideas and needs. Without these skills your business could be floundering in a sea of confusion and unmet expectations. If you feel like your communication skills are leaving your business in the dust then seek out books, blogs and courses for communication strategies. While communicating may come more naturally for some people, it is not impossible to learn the gift of the gab.

2. Marketing and sales skills

Getting people to notice your business requires strong sales and marketing skills. You need to be able to attract the right customers and clients in order to be successful.

Marketing skills will enable you to conduct and understand market research and implement marketing strategies, based on this research, in order to connect with your key markets. Understanding the market as well as your target audience will allow you to apply your resources more specifically and efficiently. And in this digital age, e-marketing expertise is also essential. Online marketing strategies are proving more relevant and commonplace in today's society, and businesses that fail to utilise online channels risk being left behind.

3. Personal management skills

Procrastinators and daydreamers need to be wary of letting their workloads get the better of them. Acting as your own boss means self-discipline is key to keeping your business on track. You alone are accountable and responsible for your own actions and time, so managing these efficiently and keeping to schedule are imperative.

Developing your management and organisational skills can be a challenging task requiring a fair amount of discipline and determination. Acknowledging your bad habits and finding out what works for you are the first step and will help you put in place the necessary practices to stop your brain from straying. Prioritising and planning your workdays, and sticking to a schedule will help you keep your eye on the prize.

4. Financial skills

Understanding how to manage money is crucial to any business. Effectively managing your cash flow means having the right systems and processes in place to protect your business against loss and mismanagement. Business owners must also stay on top of their bookkeeping and accounting requirements.

Taking a MYOB or bookkeeping course is a great way to keep on top of things such as sales recording, reconciliation, inventory management, BAS transactions and payroll.

5. Writing skills

Being able to communicate well through the written form will be a great asset to your business. Website content, social media, marketing material and business proposals all require some writing skill. While some of these activities can be outsourced to professionals, the better you can write, the more professional you and your business will appear.

Basic grammar and spelling will get you by and maintain your credibility with your clients and partners. But if you really want to get noticed, you will need writing that portrays your voice and personality. More importantly, you will need to know how to keep your audience engaged while maintaining the branding and integrity of your business. If you want to learn how to do this, taking a communications course could be helpful.

6. Adaptability

For the small business owner, the ability to accept and deal with uncertainty will make you an excellent business owner. Markets, technology and customer wants and needs are ever-changing, so small business owners need to be adaptable to keep up with changing conditions.

Businesses need to remain relevant and up-to-date, and small businesses have the upper hand in this because of their size and the speed with which they can institute change. In order to adapt, businesses need to keep their finger on the pulse and understand how trends can affect their business model. The rise of social media as a business platform is a great example of how businesses need to keep on their toes with new technologies to change the way they connect with their market.

7. Problem-solving skills

Small businesses can often feel the effect of market changes more strongly than larger companies. This means that small business owners need to be able to think on their feet and find solutions without the resources larger companies can afford. Entrepreneurs need to think outside the box to find the right solution for their business.

Identifying issues and understanding where they originated from, brainstorming with others and conducting swift implementation can help small businesses overcome challenges and manage problems.

8. Networking skills

If you're preaching to an empty room, it can be hard to get your message across. Networking and finding people who can help your business grow and expand is a crucial skill for any business owner to have. Developing industry contacts will help you build up a pool of valuable talent and resources.

Entrepreneurs can network the old-fashioned way through industry conferences and events, or online through social media avenues such as LinkedIn, Facebook and Twitter. But remember, networking is a 'you scratch my back, I scratch your back' type of arrangement, so be sure to give as good as you receive.

Top 5 Reasons Why It Is Good for the Business

Online businesses have become a well-accepted business model these days. Long gone are the days when products and services can only be sold in brick and mortar stores. In other words, people do not buy solely from physical and concrete stores anymore. We already have thousands, if not millions, of enterprises selling both products and services in the Internet.

Despite this development, a business should never do away with having a business office. Offices are a must-have for any business. Having an office brings forth many advantages to the entrepreneur. Here are the top 5 reasons why having a virtual business office is good for the enterprise.

1. It provides a business address for business correspondence purposes. Every business, at some point and it may be often, needs to send business letters to clients, suppliers, government offices, media, and many other entities that the business needs to formally communicate to. Although emails nowadays are highly acceptable, businesses still need to send the usual business letters - in hard copies. That is why a business address is very important.

2. It complies with the legal requirements inherent in doing business. A business address is needed when applying for permits to operate in a locale. It is also required when drawing up memorandum of agreements or contracts with clients.

3. It helps the business build credibility and trust. An entrepreneur always needs to meet with clients, especially those within its proximity to establish credibility and trust. Although the number of pure online businesses has ballooned to an incredibly large number, not being able to provide a business address raises doubts and questions in the minds of our clients. Putting it in another manner, not being able to give business address information will cast a cloud of suspicion upon us. Suppliers and financial institutions will have second thoughts in dealing with us, especially when we are seeking for credit arrangements, because of the lack of this extremely important aspect of a business enterprise. What is worse, customers may hesitate to entrust us their hard-earned money and buy from us because they will think that we are simply a fly-by-night business and they would not have any idea where to find us in case they have concerns.

4. It reinforces the business's brand. Being able to maintain an office that is well - kept and modern will convince prospective clients that the business values quality and therefore can be relied upon when it comes to business commitments. In other words, it reflects the high quality the business promises its customers.

5. It offers flexibility and cost - effectiveness. A virtual business office services is an innovative business idea that exactly satisfies the needs of online businesses. It allows its members to use their office facilities only when they need it. Hence, it can easily be shared with many other entrepreneurs who are looking for the same business office arrangements. This makes the fees very affordable bringing us to the next benefit we can enjoy from these virtual offices - that is, cost-effectiveness. The usual arrangement is through membership where members are only asked of very reasonable fees for the shared use of the facilities.

Assessment of the Real Small Business

I must admit that I proudly proclaim that I don't watch reality shows. However, that's not really true. I am an avid follower of ABC's "Shark Tank" series. The question is why, and what do I learn from that show that can be applied to my business?

While we all strive for the multi-million dollar or even billion dollar business, the truth is that most of us would be happy to have a small business that satisfies our needs - both in terms of income and satisfaction. We will likely not develop a business in which Mark Cuban would want to invest. So let's take a look at our business interests as they might be evaluated by smaller investors in the "Guppy Tank".

A small business, by my definition, is a business that often starts from scratch, employs the owners, perhaps some family members, and a few others. Initially, at least, the business struggles with sales and is faced with at least some periods of negative cash flow. This, of course, differs from the definition of a small business that might include 50 workers and have five million dollars in sales. With this definition in mind, let's follow a hypothetical business into the "Guppy Tank".

Our show opens with the introduction of three possible investors. Each has had some level of small business success of his/her own. They represent hard work, good planning, and the recognition that not all small business owners will get to this point.

Next, in comes the owner of business "X" which designs, manufactures, markets, and sells widgets. The widgets could be a consumer product or service. It really doesn't matter. The owner of business "X" introduces his or her widgets with some fanfare. He or she explains why business "X's" widget is so much better than any other widget out there and why it occupies a unique niche in the developing market. Everyone is properly impressed at this point.

Our guppies, however, know nothing about the widget or business "X" or the person or persons behind it. The questions begin.

Guppy 1 asks how business "X's" founder and owner, whom we'll call Sandy, got into this business. The question, of course, is intended to find out more about Sandy. What is Sandy's background? Does Sandy have prior business experience? Is Sandy committed to this business? Where did the idea for the widget come from?

Guppy 2 asks questions about the widget and its current acceptance in the market. Is the item selling now? What is the market? What do we really know about the market? How did Sandy form her projections?

Guppy 3's inquiry is focused on the financial needs of business "X". What is needed now? What will those dollars accomplish? What will future needs be? And, of course, what's in it for the guppy that invests.

In our show, the guppies get their answers, are impressed with the widget, with Sandy, and with the future prospects. They fight over investing in business "X" and Sandy. Sandy has succeeded. But how?

Sandy demonstrated by her answers to Guppy 1 that she is passionate about her small business. She has always been willing to work long and sometimes stressful hours because she enjoys the enterprise. She sacrifices for her business. Her widget came about from a combination of prior experience and a love for the product or service. The business provides Sandy with more than a job. It is her vocation and hobby rolled into one. Hard work - yes. Time consuming - yes. She says "Bring it on!!"

To Guppy 2 Sandy presents some data about the product and market. The guppies and Sandy know that the data was less than stellar since there was no practical way to do a full-blown analysis. But it was clear that Sandy had thought this through. She had tested the market as best she could. The results were more than encouraging. Sandy is the expert when it comes to her widget and it shows.

And as for Guppy 3's focus, Sandy presented a picture in sufficient detail as to how the funds would be used, how they would increase sales, and how profits would benefit. Sandy had done her homework.

As the show comes to an end, we are very happy for Sandy's success and can't help but wonder "how would I have done" in the Guppy Tank.

The lessons from the tank are simple. In order to achieve success, we have to be passionate about our business. We must understand our market. The ultimate bases for decision making in any business, cash flow and profit, must be no strangers to our thinking. Planning is essential. And we have to understand and keep within our available resources.