Starting up and running a business requires special skills such as careful planning, research risk assessment, commitment and patience.
Skill that are important for self employment or for running a business
The following skills are important for the self-employed businessperson to possess:
Developing a business plan
Obtaining technical assistance
Selecting the type of ownership
Planning the marketing strategy
Locating the business
Financing the business
Dealing with legal issues
Managing human resources
Promoting the business
Managing sales efforts
Just like assessing the entrepreneurial skills, taking the time to identify your strengths and weakness when it comes to business skills is equally important.
However someone may possess entrepreneurial characteristics and business skills but his/her business fail. What are the reasons for business failure?
There are many, many reasons for business failure but some of the most frequent ones
Lack of experience
Lack of sufficient capital
Poor inventory management
Excessive purchase of permanent equipment
Poor credit-granting practices
Unwarranted personal expenses
Insufficient cash flow