With the new year in full swing, you’re ready to make a major professional move—but this move doesn’t involve searching for yet another W-2 role. This time, you’re ready to finally become your own boss by starting and running your own business.
There’s one caveat, though: You feel underqualified to build a business from scratch or purchase a franchise business. The good news? If you possess some core skills for business management, it is indeed possible for you to successfully take on this huge undertaking.
Here’s a rundown on the top skills for business owners that you need to launch and operate a lucrative business in 2022 and beyond.
Key Skills for Business Management Include Strong Financial Know-How
One of the most critical skills for business management is financial acumen. Your skill level may not necessarily match that of a leading financial planner, but you should have a foundational knowledge of financial management, including budgeting effectively and reporting your business’s financial performance. Likewise, you should be aware of all of your options for financing your business.
For instance, you can pursue a conventional bank loan if you have collateral, a great credit score, and a strong business plan. No bank will offer you a business loan without taking these factors into consideration. You may also want to consider going the home equity loan route if your home currently has a significant amount of value or equity. In this situation, you would use your house as collateral, so you need to be comfortable with taking this risk.
Funding is also available through the Small Business Administration, or SBA. Because lenders are guaranteed to receive portions of the SBA loans they issue back, they are usually willing to decrease the loan interest rates and provide lengthier loan terms. Strong financial standing and good credit scores are requirements for SBA loan approval.
If you’re planning to buy a franchise, note that some franchises can refer you to financing companies with which they have agreements. This may drastically streamline the process of getting a loan and therefore make it easier for you to receive approval for one.
Maintaining an upbeat ability is also one of the most important skills for business management, as the business ownership process may not always go your way. For instance, you may endure revenue swings from one season to the next, particularly if you operate a seasonal business, like a company that rents out vacation cottages. Likewise, you might have to make difficult business decisions, such as raising prices or letting employees go. The ability to think positively about your company and its future is one of the top skills for business owners because it will help you to remain persistent in the face of various entrepreneurial pressures.
Strong Marketing Skills
Whether you wish to launch a bakery or an in-home care franchise, one of the top skills for business management that you must master is marketing. Being a stronger marketer will allow you to draw the customers or clients you need to keep your enterprise growing. Convincing another person that he or she needs your services or products, and influencing other people to work for you are two of the most special skills for business success.
Fortunately, if you do not possess these critical skills for business owners, you can develop and hone them by working with a franchise that offers support to its independent business owners. With proper training and guidance, you can learn how to capitalize on digital marketing, such as social media advertising, and word-of-mouth marketing to grow your business in ways you may not be able to on your own.
Employee Delegation Skills
Being able to delegate tasks to employees also ranks high among the most crucial skills for business management, as you cannot run a company alone. You might start out doing virtually every task yourself. However, you will have to hire employees if you’re serious about scaling your business.
A great entrepreneur is able to resist the temptation to micromanage every part of their business. Giving up the reins on certain aspects of the business, like administrative or financial management duties, and recognizing the capabilities of various employees are important skills for business success.
In 2022, being tech-savvy is also one of the key skills for successful business management. For instance, you may find yourself relying on Microsoft Word or Excel frequently, so if you’re not familiar with these programs, consider completing training on them.
Likewise, study the ins and outs of today’s most popular social media platforms, such as Facebook and Instagram, to market your company effectively. And practice using financial software, such as QuickBooks, for tracking revenue and doing payroll before you launch so that you are well versed in it when it’s time.
Solid Communication and Negotiation Skills
The abilities to communicate and negotiate well are also crucial skills for business management. As an entrepreneur, you’ll need to communicate effectively with customers, clients, and employees. In addition, you will need to negotiate well with vendors to obtain the best pricing on your materials or to get ample time to work on a project, for example. Your communication and negotiation skills should be equally strong in person, on the phone, in email, and video chats.
The better these critical skills are, the easier it will be for you to form strong key business relationships as an entrepreneur, and the more likely you are to avoid miscommunication that ultimately spells losses.
Master the Essential Skills for Business Management with the Help of 1Heart Franchise
If you’re eager to start your own company but need to develop some of the most essential skills for successful business management, we, at 1Heart Franchise, can help. We’re passionate about helping independent business owners to invest in and run their own in-home care businesses under the 1Heart brand. We do this by teaching you core skills for business owners and providing you with the support you need to effectively operate all aspects of your company.
Start living out your dream of owning a business, bettering the community, and improving your family’s quality of life by partnering with 1Heart Franchise today.