I’ve spent decades working alongside small- and midsize-business owners and have seen firsthand what distinguishes those who thrive from those who merely survive. While every entrepreneur’s journey is unique, and industries vary, there’s are four essential skills that, in my experience, every business owner should master to navigate today’s highly competitive, and ever-evolving landscape that will propel their businesses forward.
1. Strategic vision
Having a strategic vision isn’t just about setting long-term goals; it’s about understanding where you want to go and the roadmap to get there. Successful business owners have a clear idea of where they want their business to go and make deliberate decisions that align with that direction.
There are three key components they are clear about: what they want to sell, who their ideal customers are, and how they can most effectively deliver their solutions. They anticipate market trends, adapt their strategies accordingly, and keep their team aligned with their mission.
How to master it: Regularly review and adjust your business plan. Set aside time each quarter to assess your business strategy and make necessary adjustments based on what’s working. Keep up with industry news, emerging technologies, and your competitors. Engage your team. Communicate your vision clearly to your employees and involve them in strategic discussions.
2. Financial acumen
As a certified public accountant, I’ve witnessed how a solid grasp of financial management can make or break a business. Successful business owners don’t just glance at their financial statements. They dive deep into them. They understand cash flow, profit margins, and the financial implications of their decisions.
Here’s how: Educate yourself. Sit with your CPA and gain an understanding of the basic financial statement makeup. Don’t be afraid or embarrassed to ask questions. There are no dumb questions when it comes to the success of your business. Financial statements aren’t as complicated as SMB owners might think. You don’t need a complete accounting course to master the basics. Learn how your accounting software works. Meet with an expert who knows accounting software like QuickBooks and ask questions.
If that sounds like too much, or you want to double and triple check the work, consult a trusted accountant or financial advisor who can provide guidance tailored to your business.
3. Adaptability
The business world is in constant change, and adapting is crucial. Whether it’s shifting consumer behaviors who now expect a more holistic buying experience, the need for 24/7 access to support, or technological advancements, successful business owners must be flexible and agile. They evolve and enhance strategies when necessary and are open to exploring new markets or modifying service or product offerings.
Embrace challenges as opportunities to learn rather than viewing them as obstacles. Get a subscription to an audiobook/podcast service like Audible and listen to books that talk about great businesses. Foster an environment where team members feel comfortable suggesting new ideas. Be willing to make swift decisions when the situation demands it, even if it means stepping out of your comfort zone.
4. Leadership and people management
At the heart of every thriving business is a strong leader who knows how to motivate and manage people effectively. Successful business owners inspire their teams, leading by example and fostering a positive workplace culture. They recognize that their employees are their greatest asset and invest in their development.
I’ve worked with so many entrepreneurs over the years. The good ones practice active listening and clear, empathetic communication. Offer training and career advancement paths for your employees. Though not all small businesses have upward mobility simply due to their size, growth opportunities can be just providing your employees with the opportunity to take ownership of various areas of the business. This doesn’t mean financial ownership. Finally, celebrate successes, both big and small, to boost morale and loyalty.
In my years working with business owners, the ones who truly excel are those who invest in themselves as much as their businesses. By mastering strategic vision, financial acumen, adaptability, and leadership, you’re not just steering your company toward success. You’re building a foundation that can withstand whatever the future holds and creating opportunities for those who invest their time and energy into your business.
Remember, entrepreneurship is a journey filled with both challenges and rewards. Equip yourself with these essential skills, and you’ll be better prepared to navigate the path ahead with confidence and purpose.
