(Newswire.net — July 10, 2018) — The world of work is changing. Since 2008, a record number of employees have traded in the rat race for life as an entrepreneur. Part of this occurred due to a depressed job market and part of it occurred because it has become easier than ever before to do so.
Thousands of other employees are also wondering whether they are cut out to be entrepreneurs. So what does it take to become an entrepreneur?
A Sense of Practicality
A successful entrepreneur is not someone with a big idea. Anyone can have a big idea, but the statistics show that the majority of these ventures fail.
This has nothing to do with the fact that the ideas are bad or unworkable. The biggest reason for entrepreneurial failure is due to poor execution. Many beginners lack a practical plan to manage money and build a sustainable business. A big idea is not enough.
Managing Money
Whether you want to go into freelancing full-time or whether you want to run a huge business, managing money is one of the most common reasons why businesses fail.
Money management is not something American children are taught in schools. They have to learn it as they grow up, and so many entrepreneurs never learn this skill.
Cash flow kills businesses, so it really isn’t about how much business you can drum up. It’s about generating business that pays regularly enough to cover your expenses and keep your business afloat
Using New Technology
Business news reports constantly talk about the coming of new technology. Some of the big trends mentioned lately include big data, cybersecurity, and virtual office services.
Entrepreneurs need to acknowledge and take advantage of this new technology. It doesn’t matter if you work from home or invest in a physical office because research says customers are actively choosing who to do business with based on how they run their businesses.
This has already been seen in the field of cybersecurity. Following a number of high profile attacks on major corporations, the average person is now actively making purchasing decisions based on whether they believe the business can keep their data safe.
Taking Care of People
Sometimes modernizing your business doesn’t change home truths. Just as before, customers want to be treated like individuals not like numbers. Research shows this time and time again. Plus, with the rise of the online world, competition among businesses has increased.
Customers can and are showing their pleasure or displeasure by where they spend their money. Entrepreneurs today must take care of people both within a real office environment and from the customer’s point of view.
Corporations recently reacted to this trend by unveiling a raft of measures to address customer concerns regarding the level of care they receive.
Amazon helped to pioneer this through their introduction of the personalized shopping experience. Every time a repeat customer returns to the site they receive product recommendations relevant to them.
Not only has Amazon demonstrated that this increases sales but customers appear to be happier with the company because of it.
In the last twelve months, companies of all sizes have also introduced this feature.
The Power of Diversification
It’s no longer enough to get by on a single product or service in the long-term, for the majority of entrepreneurs. The best businesses are diversifying to meet the additional needs of their target market.
For example, the travel blogger Wandering Earl announced that he would begin running personalized tours. This diversification from his online business has enabled him to create an additional income stream alongside his affiliate links and eBooks.
Online freelancers can also do the same through learning new skills. Freelance writers may decide to branch out into SEO or a WordPress designer may decide to branch out into Wix design as well.
Diversification is a strong ally that could support any entrepreneurial venture.
Last Word – Is Entrepreneurship for You?
These are some of the main skills that could determine whether you are capable of becoming an entrepreneur and succeeding.
Entrepreneurs need more than a big idea. They have to be able to meet the needs of their customers while managing a balanced workforce and a positive cash flow.
What other skills do you believe entrepreneurs will require going forward?