What are the skills needed to run a small business successfully?

What are the compulsory skills needed for someone to run a startup business smoothly?

• Answer:

  The successful start up companies I have witnessed are excellent at 2 major building blocks: 1. Strategic Planning 2. Developing a marketing plan. STRATEGIC PLANNING Consider downloading the free Biz Info Library article entitled, "Are You   Prepared to Succeed in Business" from the  second vertical, "References"   Box Net Cube in the left margin of the  site linked below. Here is an extract: "The long-term success of a business is dependent on its long-term strategies. It has been said that a company can overcome inefficient use of internal resources if its basic strategy is brilliant, but not likely to get by with the wrong strategies even with excellent production and distribution capabilities. Past success formulas might not work in the future. Therefore, a company must periodically reexamine its situation as objectively as possible and determine the best course of action for the future in order to meet its goals and objectives. Many companies get stalled on a flat growth plateau. Strategic planning methods can be used to realistically develop and evaluate growth options. Management needs to address the issues that affect long term growth, and position the company for outstanding performance. In    order to be effective, planning should become an integral part of the    business' culture and needs to be a continuous process." http://www.smalltofeds.com DEVELOPING A MARKETING PLAN TASTE, TRENDS AND TECHNOLOGY What   does your research indicate is the trend in your field? Will it stay   the way you are currently offering supplies and services or will it   change? This item covers the developments you expect for the next few   years. Evan a 'perfect' business can become obsolete overnight due to   future developments. Specify a 5 year forecast of your field in your   area. SALES REVENUE FORECAST Have you developed these  targets?  This section shows your estimates of future sales revenue for  your  business. Your strategic plan, needs to spell out the specific  actions  you will take to achieve your forecast sales revenues. DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION How   does your business differ from the competition's strong and weak   points. Again, remember to carefully look at your business from the   customer's perspective. If you're not sure how your pricing policies   compare to the competition, here are some guidelines. Most people   associate high prices with high quality and extra service, while they   associate low prices with low or average quality and minimum service.   Make sure you provide extra quality and service if your prices are   higher than your competition or make sure that your prices are lower if   your quality is average and your service is minimum. DECIDE HOW TO REACH CUSTOMERS Once   you describe your target customer, it's easier to create a list of   possible ways to reach that person. One of your jobs as a  businessperson  is to decide which of all the possible methods of  communication will  give you the most exposure for the least cost in  money or time. EVALUATE THE RISKS FACING YOUR BUSINESS       COMPETITION: Most businesses have competition. How will your business   differ in significant and positive ways from your competition? If your   competition is strong, don't minimize that fact, but figure out ways  you  will adjust to or use that strength. For example, if you plan to  open a  restaurant next to an extremely popular one, part of your  strategy  might be to cater to the overflow. Another might be to open on  days or  evenings when the other restaurant is closed.       PIONEERING: If you anticipate no direct competition, your business   probably involves selling a new product or service, or one that is new   to your area. How will you avoid going broke trying to develop a market?       CYCLES AND TRENDS: Many businesses have cycles of growth and decline   often based on outside factors such as taste, trends or technology.  What  is your forecast of the cycles and trends in your business? For   example, if your forecast tells you that the new electronic product you   plan to manufacture may decline in three years when the market is   saturated, can you earn enough money in the meantime to make the  venture  worthwhile?     SLOW TIMES: Every  business  experiences ups and downs. Is your business small and simple  enough, or  capitalized adequately enough, to ride out slow times? Or do  you have  some other strategy, such as staying open long hours in the  busy season  and closing during times of the year when business is slow.      OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on? Write   your risk analysis by first thinking of the main dangers your business   faces. This shouldn't be hard, as you have probably been concerned  about  them for some time. Some of these may be on the list set out  above;  others will be unique to your business. Once you have identified  the  principal risks facing your business, write out a plan to counter  each.  But don't bog yourself down worrying about all sorts of unlikely   disasters.