The Skills You Need When Running a Small Business at Home
You do need to have certain personal skills to successfully run a small business at home. It is known that over 50% of small businesses fail in the first couple of years. Not only the passion and excitement that you feel by setting up a small business. But practical and people skills, so that your new company can run smoothly.
An understanding of finances
As the owner of a small business at home, you will need to view the company figures at some point. So that you make the right pricing decisions, you will need to analyze documents such as the Balance Sheet and the Profit and Loss Account.
You need to have good communication skills when running a small business at home. Not just to speak to customers, and suppliers. But bank managers, advertising companies, and many others as your business grows.
To get the best prices when dealing with wholesalers, or giving a quote, you will be bartered with. The best approach is to remain calm, speak with a smile, and charm your way to a better deal. Always be polite, and professional. The better the price you pay for your materials, the more cash you can invest back into your small business at home. Then you can see your profits highlighted on your accounts at the end of the year.
It is important to be organized when running a small business at home. Make sure that you set up good practices both with administration, and book-keeping. You don’t want to begin receiving fines and penalties because you didn’t pay your taxes, or utilities on time. Also, you keep all business and personal transactions separate, it will be easier to keep your accounts in order.
Everyone who runs a small business at home has possibly considered expanse at some point. Wondering whether to hire staff to ease the workload for you. This is when you will need leadership skills.
Though you want to have a good working relationship with staff, you don’t want to be over friendly. It is, however a working relationship. And during office hours this is how it should be treated.
Business owners have found that by keeping their staff happy within their working environment that their productivity rose. You can achieve this by holding regular staff meetings. So any ideas or opinions can be brought forward.
Having basic IT skills isn’t always necessary depending on the type of small business at home that you have. However, it is a skill that can make things easier for you. You can use spreadsheets for your accounts, and send emails and newsletters. There are also many tools that you can use to increase your knowledge.
Many people who set up their own business decide to attend a training course to try and hone these skills. The courses are usually held at your local college, but some are available online. Then you can be on your way to running a small business at home.