What skills do you need for a Small Business?

[GeNrirgA]

I'm glad I found this site. I searched some past posted and didn't find this question so if you can refer me to a thread go ahead. Well I am an electrician kicking the idea of starting on my own (Part time at first). Here is my question Do you need to have a degree on business to know what your doing? If not what skills will you need to have to be successful?

[onistaxu]

I don't have a degree, at least not in business.... it takes management skills, organization, patience, money, the ability to handle stress, the desire and drive to put in 60 hour weeks ALL the time (if necessary lol), accounting skills are good, so are sales skills, and of course a good product or service to offer to people.

Yep, pretty much sums it up.
Drive .
Determination. (knowledge or the ability to pick up things quickly).
Money, (or at least be resourceful enough to find it)
Management, and Organization.
Drive.

I have a degree in Communications. I spent $60,000 to learn Audio, and Video post production and editing. Most of which I can do on my computer right now for the cost of $2000 start up.

There were no classes in what I do now, nor did this field exist when I was in college. (and I ain't that old)
You have to be able to adjust quickly, and have the luxury of finance to pay the rent or mortgage.

By the way, I didn't do any of this when I started, I just jumped in with out any preparation and learned a lot on the fly because I was hungry, (literally).
I don't recommend starting out like that, it was not fun, but on the flip side, I spent soooo many years talking myself out of it, because I though I wasn't ready of didn't know enough.
I was right, but I wasted too much time thinking about it.

I am still not over the hump, but I have passed the threshold of fear finally, and can move forward.
<edited> Oh yeah, prepare to work all the time, everyday. I am at the computer so much, I am changing out desk chairs once every 2 months. (I just cant get comfortable).
Forget about a social life at first. I didn't have a beer for months, even still I missed all of last football season. Someone had to call me and tell me the Colts had finally made the Superbowl.

My Pistons had a great year....missed it.
My Tigers had a great year.....missed it
Michigan Wolverines had a decent year......missed it.
The Red Wings were the best team in Hockey all season.....missed it.

Your business is your life...for a while. Its going to suck. Nobody will believe in you. Your friends will discourage you. Your family may not even have your back..but you have to carry on.
Just when it seems, its not worth it, the phone will ring, and somebody will give you a compliment, or want to drop a decent contract on you.
You have to find the strength to carry on, when the valley is deep.
You have to carry on when the mountain is high.
You have to carry on when the odds are against you and one day, just one day, you will see the mountain top...can I get an Amen!

[onistaxu]

Originally Posted by eborg9

...can I get an Amen!

Sing it Brotha!

[cavachai]

In addition to desire, initial funding, and a product or service that people will buy, I would suggest the following skills are essential:

1. Basic understanding of Accounting
2. Basic understanding of Business Law
3. Basic understanding of Marketing
4. Basic understanding of Management in general

Many people go into business being good workers, but not understanding the demands and complexities of running a business. Understanding these things will give you a much better chance of developing a successful business. You don't need a business degree, but you do need to understand business.

You can learn most of this from a $200 investment in books. The ones that I recommend to new business owners are:

1. Small Business Management - An Entrepreneur's Guidebook, Megginson / Byrd / Megginson (ISBN: 0-07-249781-5)
2. Financial Management 101: Get a Grip on Your Business Numbers, Mohr (ISBN: 1-55180-448-4)
3. The Successful Business Plan - Secrets & Strategies, Abrams (ISBN: 0-9740801-0-1)
4. MBA in a Day - What You Would Learn at Top-Tier Business Schools If You Only Had the Time, Stralser (ISBN: 0-471-68054-0)

The first book is a decent overview of most of the things that you need to know right away. The second book will help you understand your financial statements (more important than many people think). The third book is one of the better business planning books out there. It is good to have a plan. The last book covers a lot of important concepts at a high level. It is the type of book that helps you "know what you don't know," which gives you a great starting point for learning more about a topic once you realize it is beneficial.

The other thing that you should do is go out and buy QuickBooks and learn to use it, and then find an Accountant and Attorney that you feel comfortable and don't feel they are out to take advantage of you. Spending money now and then on these people can be a wise investment.

Those are the things that I recommend to people contemplating going into business, and so far the feedback has been good. Finding people that you trust who have experience is always beneficial, too.

Once you have things up and running, an interesting book to read is "The E-Myth Revisited - Why Most Small Businesses Don't Work and What to Do About It, Gerber (ISBN: 0887307280). The "E" is for Entrepreneur (not e-commerce). It is an interesting read, talking about the business owner as a worker, a manager, and an entrepreneur.

Hope that helps.

[ntarifi dubai]

I think that as an electrician you have a few options.

Are you thinking of starting on your own as an independent contractor and just doing work yourself? Or are you thinking about taking on employees and becoming a more traditional full fledged business?

I think an electrician working on his or her own should be able to do quite well, although it may take time to build up consistent clientele.

If you are going to start a business with employees though - you need a lot of things. Mostly you just need energy and optimism. You can learn the rest if you have that. Visit with a local SCORE office and get ideas on how to manage a company. Outsource anything you can that does not revolve around your core skills and business - for example, payroll and employee benefits administration.

[ntarifi dubai]

I think that as an electrician you have a few options.

Are you thinking of starting on your own as an independent contractor and just doing work yourself? Or are you thinking about taking on employees and becoming a more traditional full fledged business?

I think an electrician working on his or her own should be able to do quite well, although it may take time to build up consistent clientele.

If you are going to start a business with employees though - you need a lot of things. Mostly you just need energy and optimism. You can learn the rest if you have that. Visit with a local SCORE office and get ideas on how to manage a company. Outsource anything you can that does not revolve around your core skills and business - for example, payroll and employee benefits administration.

[deckeleven]

I think eborg summed it up nicely, you have to have the ability to believe in yourself even when everyone else doesn't believe in you. Everything else can be learned or you can eventually hire people who have the skills you need. What no one else can give you is the ability to persevere when it seems like your business is never going to take off. Almost every business owner experiences a point where it looks like things will never start moving. If you've got the ability to keep moving forward anyway, you've got one quality that will really help you be a success.

Intestinal Fortitude!

and plenty of it.

[GeNrirgA]

Thanks everyone for your input. One of my old employers bought a 4 man electric company and turned it into a 120 man company in 30 years. The owner most likely can't even work at an apprentice electrician level. I read the e-myth and even looked into a franchise "Mr. Electric". I am one of those guys who is a great worker but when it comes to the business end I am in terrible. I differently have the emotional control to handle this. I have 3 rental properties which can put you in a tail spin at times. At times I think it might be best to continue building up rentals for a long term investment. If you can find 10 properties that at least break even and in 15 years you could sell and make $100,000 each. Not bad for a 15 year plan. I guess I need to do some more thinking on were I want to go and what I want to do. I like the book "think and grow rich" I remember that a page saying you don't have to know everything you just need to hire people that do know what they are doing. Thanks everyone for your input.