8. Do you think anyone can start their own business?

To my mind, not every person can become a businessman. If you want to get on to business field you should have a better indication of some of the skills necessary for entrepreneurial success. You should also have some idea of your strengths and weaknesses and know where you need to focus your efforts to improve.

You and your team need certain skills to run your business successfully. You should be able to communicate effectively, manage people and understand what is best for your business in challenging situations.

It's a good idea to identify the skills you and your staff already have, so you can understand the strengths or weaknesses of your team. If you discover a skills shortage, you can either upskill your existing staff (including yourself), or seek those skills externally, by recruiting new staff or contractors, or by outsourcing specific tasks.

The following skills are essential:

Manage your business

Effectively manage your finances

You need to be able to manage your cash flow, prepare accurate financial documents and keep concise financial records. Learn more about how to manage your finances.

Manage your staff

Improve productivity and job satisfaction among your employees and make sure they are safe in the workplace.

Lead your team

Make the most of your organizational, problem-solving and decision-making abilities. Allocate time in your schedule to mentor your staff and coach your team. Find out more about how you can develop your leadership skills.

Organize and plan

Schedule and prioritize your projects so you can stay on top of important tasks and deliver services to your customers on time.

Build relationships

Communicate

Effective written and verbal communication skills will help you to build good working relationships with your employees, suppliers and customers.

Network

Identify potential customers, mentors and other opportunities for your business. Find out which networking strategies work for you.

Sell your products

Provide excellent customer service

Satisfied customers can lead to profits and referrals to other potential customers. Read more about improving customer service.

Market and sell your products

Appropriately price your goods and services, sell effectively to your customers, and target new customers with a dedicated marketing plan.

Comply with legal requirements

As well as the skills described above, you need to be aware of your business rights and responsibilities. Make sure you understand your obligations and legal requirements.

Each of these set of skills has many different components and it will be impossible to master them all. You may need to outsource some tasks or recruit new staff to fill skills gaps in your business. Maintaining and improving the skills of everyone in your business should be an ongoing process.

8. What are the dangers of having your own business?

In fact most new entrepreneurial ventures fail within the first few years. Only a small percentage really makes good money. There are various risks in starting your own business that cannot be ignored. These risks can, however, be drastically reduced with detailed market research, proper business planning and effective management. The potential rewards, for the successful entrepreneur, make the effort more than worthwhile.

Some of the more important risks are:

Financial Risk. The personal financial investment of having your own business is generally quite high. Business failure can mean a substantial financial loss for the entrepreneur (and for other stakeholders) and it can even cause bankruptcy.

Social Risk. A business requires much input from the entrepreneur. This implies less time for family life, friendship, sport, entertainment and holidays. The potential of losing a friend and even a marriage partner is very real.

Career Risk. When an entrepreneur starts his or her own business they normally resign from their present job. If things go wrong it can be difficult or even impossible to resume a career.

Psychological Risk. People handle stress different. Good stress gives a person enough adrenaline to handle difficult situations in a positive way. Distress, on the other hand, can be destructive to the entrepreneur and the business. It can lead to serious burnout and depression. Distress can be caused by working too hard over extended times, too much worries about the various aspects of the business (especially if everything is not going to plan), no proper support system (e.g. from a spouse) and even the feeling that the business was a mistake and that the entrepreneur is climbing the wrong ladder.

Having your own business definitely carry substantial risks. If you, however, have the right personality profile, the necessary expertise, and the will to prepare diligently and work hard the chances of entrepreneurial success improve drastically. The potential rewards then outweigh the risks by far.