Starting and running a business isn’t for everyone. To put it plainly, it’s hard work – it generally involves long and unsociable hours and requires focus and determination. However, it can also be incredibly rewarding if approached with the right attitude and mentality.
That’s why there are several essential soft skills (or personality traits) that every entrepreneur should have to give themselves the best chance of success with their new venture. In this article, a top-rated UK company formation agent, Rapid Formations, defines what those skills are.
Communication skills
Excellent communication is one of the most important soft skills that every entrepreneur needs. This doesn’t simply involve having a conversation with someone, there’s a true talent in getting your message across effectively – be it verbally, visually, or by written means.
Whether you start your business with a partner or on your own, it’ll eventually evolve into a larger team, meaning you’ll have to work well with others to ensure your company strengthens over time. Without good communication skills, that growth will be jeopardised.
But even before you reach the stage where you’re ready to take on employees, there’ll be many other people whom you’ll need to communicate well with; your customers will need to learn more about your brand and your products/services, investors will need to know about your company’s potential, and your family and friends will be interested in your entrepreneurial progress.
Besides articulating important information, sharp communication skills promote many other benefits. For instance, they create a solid foundation for your professional relationships, help manage conflicts, and enhance your decision-making and planning skills.
Optimism
Another crucial soft skill that every entrepreneur needs is optimism. While every new business owner starts with big and bold aspirations for their companies, the reality is that half of new businesses fail within the first three years, according to data by Experian.
It’s common knowledge that starting a business is incredibly risky and a new entrepreneur’s chances of long-term success are slim. However, half of those businesses do make it, and given the right tools, yours could be one of them.
So, staying positive when things get tough is essential – and bear in mind that starting a business is just one of the many challenges that will come your way as an entrepreneur. But a glass-half-full mindset will help you build resilience, improve your ability to navigate uncertain times and come back bigger, better, and stronger.
Self-discipline
Every entrepreneur should be self-disciplined. That doesn’t simply mean attending appointments on time or ticking tasks off your to-do list (although, those are important, too), but rather persevering through hard times, prioritising tasks, and making tough decisions.
As the owner, you are the backbone of the company from day one. As the business matures and the team expands, it will rely on that self-discipline to recover from turbulences and become more resilient. When others lack this key skill, you’ll need the confidence to take charge.
But self-discipline doesn’t just help you overcome those inevitable bumps, it’s also essential for maintaining a series of daily habits that will set you up for long-term success.
For example, taking the time to look after your mental health, doing charitable work, or regularly reading inspiring and educational books. Your business feeds on all these healthy practices and self-discipline is what enables you to maintain them.
Finally, self-discipline is an aspirational personality trait. As a business owner, you’ll be leading by example and setting the basis for your company culture. This soft skill makes an excellent foundation for this, inspiring your colleagues and employees to follow in your footsteps and inject a similar level of passion into their roles.
Ability to deal with discomfort
If you’re one to play it safe, entrepreneurship isn’t for you. A strong entrepreneur needs to be okay with stepping out of their comfort zone and having the courage to push boundaries.
We mentioned that the very act of starting a company is risky as so many new businesses fail, but to disrupt your market and build a memorable brand, those risks will keep presenting themselves and you’ll need to have the confidence to take the right ones (and sometimes the wrong ones).
Not only will you face your fair share of risk as an entrepreneur, but also difficult conversations. Let’s say you spend several days preparing for a big investment pitch and you don’t end up securing it.
There’s a great deal of discomfort to deal with there – and not only is it uncomfortable, it can be incredibly disheartening. So, a vital soft skill that every entrepreneur needs is the ability to manage discomfort when things go wrong.
Furthermore, when you start managing a team, you’re likely to find yourself having difficult conversations with employees. It might be firing someone or rejecting a salary increase request. To handle these sensitive situations appropriately, you need to be able to tackle awkwardness and confrontation with assertiveness and poise.
By being accustomed to stepping out of your comfort zone, you can build up your resilience and confidence to face challenges head-on. You’ll also find more creative and skilled ways to navigate and learn from them.
Competitiveness
There’s constant competition among entrepreneurs. Whether it’s to land an investment, win customers, or attract new employees, there’ll always be someone else fighting for that same end goal with just as much passion for their businesses as you.
To survive the race, every entrepreneur needs to be naturally competitive and good under pressure. But think of it as healthy competition. The purpose is to motivate you to push your business forward, inspire innovation, and prove yourself to others.
If you’re not fuelled by rivalry or crumble under it, you could be putting your new business at risk. You’ll find that other leaders are simply beating you to launching that incredible new product, trademarking that catchy slogan, or snapping up the talented people who could help your business thrive.
That’s why every entrepreneur needs to have an innate competitive instinct. It allows you to always be one step ahead and come up with creative solutions to problems that will bring your business out on top.
Relationship building
All entrepreneurs should have a solid set of people skills that allow them to build and maintain relationships with others. You don’t have to be the life of the party, but you should be somewhat outgoing and comfortable with meeting new people. This is essential for
- Networking, where you’ll have the chance to make important professional contacts
- Meeting with potential investors and clients, who will be looking for ways to connect with your personality
- Running your business with a partner
- Working effectively with colleagues
- Managing employees
- Building a rapport with your customers
Relationship-building skills are also vital for forming your trust circle, comprising people whom you trust and can be transparent and honest with. As a new entrepreneur, you’ll need plenty of support and guidance (despite the urge to be independent and solve problems on your own).
This will continue to be the case as your journey as a business owner evolves. You’ll need these key people in your life to ensure that you keep learning, get important advice, and have a shoulder to cry on when you need it.
However, these connections are by no means a one-way street. To create lasting relationships that empower you and your business, you need to reciprocate; be someone else’s source of wisdom, inspire and educate others with your knowledge and experiences, and support them during difficult times.
Authenticity
Being authentic is a crucial soft skill that all entrepreneurs need. It’s the foundation of a groundbreaking business.
To thrive as a business owner, you need a genuine idea that you can truly claim as yours and borderline obsess over, and that can only be a product of authenticity.
That way, you’ll be filled with unmistakable passion for your company, product, or service, and you’ll truly love what you do. This is what makes taking that leap into entrepreneurship worth it.
Leadership skills
Entrepreneurs are the core of their companies. To ensure they are run effectively and efficiently, you need excellent leadership skills.
One of the main reasons for this is to be able to direct your business in line with your vision. Whether it’s generating a certain amount of profit or bringing a particular investor on board, only you know what success looks like for your business. You’ll need to lead others in the right direction and communicate that vision clearly so that everyone works towards a united goal.
Another reason why leadership skills are so important is because entrepreneurs are influential figures – not only within their organisations but also in society. As we expressed earlier, you set an example for your staff, shape your company values, and make important decisions. These individuals will, therefore, look to you for guidance on these key areas.
The general public will also take an interest in you as an entrepreneur, seeking inspiration with anything from getting out of bed in the morning to starting their own business.
Essentially, as an entrepreneur, you need to possess key leadership qualities, such as proactivity, motivation, and being a positive force to those around you.
Summary
Being an entrepreneur is not just about having an idea and running with it; it’s about having a unique idea to be passionate about and nurturing it into a successful business with the right set of soft skills.
It’s not essential to possess all of these skills from the get-go as some of them are learnt from experience, but aspiring business owners should have the capacity and natural character to attain them.
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