Entrepreneurs generally need a fair amount of knowledge and expertise in the field related to their primary product/service. After all, they are going to be involved in the initial team that identifies with a successful startup. In the early stages of a startup, hiring and formations of larger teams is possible when the venture is backed by good capital. But in majority of the cases, resources are limited and hence, the founders are expected to juggle between their primary role and a few others, not in their forte.
Founders are expected to wear a lot of hats, some of which they might not have been prepared for. We have compiled a list of subjects that entrepreneurs might want to familiarise themselves with, to boost their startup’s chances at success.
Though Entrepreneurship itself is a subject that they might need to brush through, there are a few others that might need their attention, given the competitive nature of this genre.
Let us now take a look at the subjects (topics) that could prove to be the differentiating factors between a startup’s triumph and failure.
1. Economics
This is a very broad subject to master, but it would be wise to at least learn the basics of economics, when one decides to start their own company.
There are many sub-topics (like microeconomics, macroeconomics, managerial economics and more) with each holding its importance in the business world.
Many businessmen (new and seasoned, alike) assume economics as a part of finance. NO. It is not. A study of economics will allow one to understand human tendencies. This would further help them to develop methods to incentivise their teams, optimise the allocation of their resources and understand the demand-supply relation in the market they wish to cater to. Economic studies create a better understanding of the policies which favour your business and those that you should be wary of.
Let us take an example of subsidies. Many countries grant subsidies to new businesses, as an attempt to lower their cost of operations, easing their entry into the market. This is a form in which the state expresses its support. While the government’s revenue bears the brunt, it looks towards its citizens to balance this tip in the scales. This is done so with an increase in tax or duty charged on imports, among other tactics. Though the numbers may be infinitesimally small on an individual scale, overall, it decreases a population’s purchasing power. This means lesser disposable income to buy the same product for which the state granted subsidy to the new business. And the cycle continues. As a result, businesses which rely on such aid from the state, are impacted far more than those who can afford to take the risk by themselves.
An understanding of economics will allow a businessman to determine whether the subsidy policies benefit their business model, or they are better off without it.
How to learn Economics:
- Begin with reading undergraduate level economics, watch videos and lectures
- Take a short course on Udemy or Coursera
- Progress to individual sub-topics – micro-, macro- and managerial economics
- Subscribe and read articles, blogs, and high standard content like Wall Street Journal, New York Times, The Economist, etc. These will help you familiarise with the terms and test your understanding on a regular basis
2. Finance
Not all businesses can afford to hire an accountant right away. And even if they do, can you imagine what happens when the expert starts talking to you in accounting terms? To most entrepreneurs, it may sound like an alien language.
And that’s where knowledge of Finance comes in.
To begin with, an ability to read and understand balance sheets, and assess profit and loss statements can be of so much help when making business-related decisions.
The knowledge of finance, guards founders in crucial times, such as interactions with bankers, private equity firms and even individual investors. It also strengthens their negotiation skills and promotes formulation of long-term growth strategies.
Furthermore, it allows businessmen to efficiently form budgets. At the early stages, budgets can be a major question mark on a startup’s future.
Entrepreneurs with financial knowledge tend to perform with higher efficiency, since they can eliminate unnecessary expenses (which are ultimately, liabilities).
Forecasting the needs of the business and recognising masked issues also becomes easier for a Finance-backed entrepreneur.
We can say, that, when financial tools implemented, they grant you a better control over your business.
How to learn Finance:
- Read books and articles
- Take short courses (to get started)
- Subscribe to financial newspapers and newsletters to get you well acquainted with the terminology
- Speak with professionals to sharpen your skills
3. Problem Solving
We apply this skill daily, without realising its importance or benefits. But when the skill of problem solving is applied to a business format, it can prove to be a game changer. Firstly, it changes your mindset as a businessman. You will be able to identify problems that need to be solved in the market. This lays the foundation to your business model.
For example, with the rise in number of startups around the world, the need for startup services too went up. And there, the problem of shortage of startup-centric services was noticed. Solution = our company, WorkDefine was created.
Next, it makes way for change, which shapes the future of your business. It ensures continuous improvement and learning.
Entrepreneurs can keep track of factors affecting the market they operate in once they start applying the knowledge of this skill to their daily business operations. Also, it improves business outcomes, primarily because businessmen will find a way to apply their techniques to as many opportunities as they can.
How to learn Problem Solving:
- Speak with mentors or coaches – they help with brainstorming for ideas
- Practice continuous improvement (Kaizen) techniques and implement them to your business
- Read relevant case studies on how companies or individuals used Problem Solving skills to benefit their customers and grow their business
4. Public Speaking
“The worst speech you’ll ever give, will be far better than the one you never give.” – Fred Miller
It is a known fact that Public Speaking requires confidence. But a lesser-known fact is that it also builds confidence! It has often been noted that those who can speak, tend to exhibit leadership qualities – CEOs, motivational speakers, defence leaders and political leaders.
(Can you imagine a politician who can’t speak before a crowd? That would make for a fun rally!)
When someone speaks in public, it generally draws attention towards them. Applying this to a business setting, it would draw the employees’ attention towards their leader. And if the leader exudes such confidence, it wouldn’t be a stretch to imagine the employees following the same.
Honing this skill promotes your ability to convey your ideas – be it before your team, or a pitch to a panel of investors. Needless to say, it sharpens your negotiation skills too, since words matter everywhere.
Did you know that Public Speaking makes you a better listener too?
Lastly, it paves way for enhancing your network, promoting interactions with like-skilled persons.
How to learn Public Speaking:
- Attend events, seminars, conferences – first listen to how speakers deliver and what their content is about
- Speak at events and conferences
- Practice! Try, improvise, repeat
5. Social Media
In today’s day and age, the power of Social Media is undeniable. So much that it has itself become a course in universities. Not only a marketing tool which has become a must in every company’s arsenal, but it also helps in branding and boosting sales.
Social Media platforms can behave as a one-stop for all activities. Customers can find information on your products/services, select what they desire, purchase it, make payments, and give you feedback on the entire process. Who would have believed this 50 years ago?
Understanding and learning the ways of Social Media has become crucial to the success of businesses, because it allows businessmen with information they need to strategize (on the whole, and for individual products). It gives you a peek into what your competition is doing and gives your competitive analysis a healthy edge.
Lastly, it is important to note that this is a leading way of networking with your potential customers (conducting surveys and getting their feedbacks) through targeted content and advertisements.
How to learn about Social Media:
- Short Courses (or certificates)
- Watch videos on current best practices by market leaders like Google and Facebook
- Speak with mentors and coaches to form strategies
- Find areas in your current business model where you can apply Social Media tools and try them
All businessmen would like to conduct their operations with minimal errors and be an active part of all aspects of their business, promoting transparency in actions and optimising results.
In conclusion, though there is a lot that entrepreneurs need to focus on anyways, a basic understanding of the above subjects will grant them a better control over their business and increase the chances of their success in the long run.