​The 3 Core Competencies Entrepreneurs Must Master to Succeed

“My idea is so great, I’m guaranteed success!”

We see too many entrepreneurs falling in love with their products and kidding themselves into believing that their idea itself is all they need to make them a screaming success.

Warehouses are filled with great commercial products that never got to store shelves. Founders of promising start-ups wind up working for their investors, or worse, close their doors. All hopes are dashed and they are back living with mom. Why? Because they failed to master the three core competencies of any successful business.

1. Cash flow management

You’ve got to pay your bills. And when you can’t? You have two obvious choices. Go out of business, or raise more capital.

But that comes with a price; diluted stock or loss of control. So many companies try to get financing to pay for staff without sales. They may be financed and even refinanced before they make enough sales to support their overhead. In other words, they are top-heavy and reliant on multiple rounds of new investment to stay afloat.

One different solution is to make sales a priority, sell in a small territory, service the heck out of it, and use the proceeds to finance growth. Another solution is to identify and forge strategic alliances with your vendors and your buyers. Vendors who trust you will extend your credit and terms to help you make ends meet, especially when they believe their business will grow if you succeed. Buyers will pay in cash for volume discounts, which also help you pay the bills.

To read the complete article, please visit The Business Journals