why are problem solving and decision making skills essential to an entrepreneur

Why is decision-making important to an entrepreneur?

Making informed decisions is the bedrock of successful entrepreneurship. As an entrepreneur with years of experience, I understand the pivotal role that decision-making plays in shaping the trajectory of a business. It’s not just about making choices; it’s about making the right choices at the right time. In this dynamic and often unpredictable landscape, decision-making isn’t a luxury; it’s a necessity. Let’s explore why decision-making is the cornerstone of entrepreneurial achievement and how it can make or break your business aspirations.

Decision-making is the lifeblood of entrepreneurship. Every choice an entrepreneur makes, from identifying market opportunities to resource allocation and risk management, directly impacts the success of their venture. In the highly competitive and dynamic business landscape, adept decision-making is the compass that guides entrepreneurs towards their goals and helps them thrive in the face of challenges.

As we journey deeper into the realm of decision-making in entrepreneurship, you’ll discover not only the significance but also the strategies to enhance your decision-making prowess. Whether you’re just starting your entrepreneurial voyage or seeking to refine your decision-making skills, the insights ahead will provide valuable guidance. So, stay with us to unlock the secrets of effective decision-making in the entrepreneurial world.

The Essence of Decision-Making

Effective decision-making is the ability to select the best alternative among several options, considering various factors and potential outcomes. For entrepreneurs, these decisions can range from product development and market entry to financial investments and staffing. Each choice, whether big or small, shapes the trajectory of the business.

• Strategic Direction : Decisions set the strategic direction of a business. Entrepreneurs must constantly assess market trends, customer preferences, and competitive landscapes to make informed choices that keep the company on the right path. A well-timed pivot or expansion into a new market can be a game-changer.
• Resource Allocation : Resources such as time, money, and manpower are finite. Effective decision-making ensures these resources are allocated optimally, maximizing efficiency and profitability. Entrepreneurs must strike a balance between risk and reward, ensuring resources are invested wisely.
• Problem-Solving : Challenges and obstacles are inevitable in business. Decision-making equips entrepreneurs with problem-solving skills. Whether it’s resolving a production issue, managing a crisis, or addressing customer concerns, sound decision-making is essential for overcoming hurdles.
• Adaptation to Change : The business landscape is constantly evolving. Entrepreneurs must make decisions that enable them to adapt to changing market conditions. This could involve embracing new technologies, adjusting pricing strategies, or responding to shifts in consumer behavior.
• Risk Management : Entrepreneurship inherently involves risk. Decision-making involves assessing risks and taking calculated chances when necessary. Entrepreneurs must weigh potential rewards against risks, ensuring they are prepared to mitigate adverse outcomes.
• Innovation and Growth : Many groundbreaking innovations and business expansions are the result of bold decisions. Entrepreneurs who can identify opportunities and make innovative choices often experience significant growth.
• Building Trust : Consistent, well-thought-out decisions build trust among stakeholders, including employees, investors, and customers. Trust is a valuable asset that can enhance a company’s reputation and relationships.

Understanding Decision-Making

Before diving into strategies for improvement, it’s essential to understand the components of decision-making:

• Information Gathering : Effective decision-making begins with gathering relevant information. Entrepreneurs must research, analyze data, and consult experts when necessary to have a clear understanding of the choices before them.
• Risk Assessment : Decision-making involves assessing potential risks and rewards. Entrepreneurs should weigh the potential consequences of each choice and determine their risk tolerance.
• Critical Thinking : Critical thinking skills are crucial. Entrepreneurs should evaluate alternatives, consider long-term implications, and think logically.
• Emotional Intelligence : Decision-making is not purely analytical; it often involves understanding emotions. Entrepreneurs should be aware of their emotions and those of others, as emotions can influence choices.

Now, let’s explore strategies for developing these decision-making abilities:

• Continuous Learning : Stay curious and commit to lifelong learning. This includes staying updated on industry trends, understanding new technologies, and expanding your knowledge base.
• Seek Diverse Perspectives : Don’t make decisions in isolation. Seek input from mentors, advisors, and team members. Diverse perspectives can provide valuable insights and uncover blind spots.
• Practice Critical Thinking : Engage in activities that promote critical thinking, such as solving puzzles, debating, or participating in brainstorming sessions. These exercises can enhance your ability to analyze situations objectively.
• Simulate Decision-Making : Consider using decision-making simulations or case studies. These exercises allow you to practice making choices in a risk-free environment and learn from both successes and failures.
• Meditation and Mindfulness : These practices can help entrepreneurs manage stress and improve their ability to think clearly under pressure, leading to better decision-making.
• Decision Journaling : Keep a journal of your decisions and their outcomes. Reflect on what worked and what didn’t, and identify areas for improvement.
• Embrace Failure : Don’t fear failure; see it as an opportunity to learn. Analyze decisions that didn’t yield the desired results and use this knowledge to make better choices in the future.
• Set Decision-Making Criteria : Establish clear criteria for decision-making. Determine what factors are most important for your business and use these as a framework for evaluating choices.
• Feedback Loop : Create a feedback loop within your organization. Encourage open communication and feedback from your team, and be willing to adjust your decisions when new information becomes available.
• Decision Delegation : Recognize that you can’t make every decision. Delegate decisions that don’t require your direct involvement to trusted team members, empowering them and freeing up your time for more critical choices.

In the entrepreneurial world, decision-making isn’t just a skill; it’s a lifeline. The ability to make informed, strategic choices is what sets successful entrepreneurs apart. From charting the course of their businesses to navigating challenges and seizing opportunities, decision-making is the compass that guides them. Aspiring and seasoned entrepreneurs alike must recognize the importance of this skill and continually hone it to thrive in the ever-changing business landscape. In this context, decision-making becomes a skill that can be honed and refined through an understanding of its components and the implementation of improvement strategies. By embracing learning, seeking diverse perspectives, and practicing critical thinking, entrepreneurs can confidently navigate the complex entrepreneurial terrain, making it an indispensable trait for entrepreneurial success.

Matthew McFarlane

"I'm an enthusiastic blog writer who loves exploring the world of entrepreneurship. I enjoy breaking down complex business ideas into easy-to-understand articles, helping aspiring and experienced entrepreneurs find their way. My goal is to inspire creativity, share practical advice, and connect with fellow business enthusiasts."

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Why Problem-Solving Skills Are Essential for Leaders in Any Industry

• 17 Jan 2023

Any organization offering a product or service is in the business of solving problems.

Whether providing medical care to address health issues or quick convenience to those hungry for dinner, a business’s purpose is to satisfy customer needs .

In addition to solving customers’ problems, you’ll undoubtedly encounter challenges within your organization as it evolves to meet customer needs. You’re likely to experience growing pains in the form of missed targets, unattained goals, and team disagreements.

Yet, the ubiquity of problems doesn’t have to be discouraging; with the right frameworks and tools, you can build the skills to solve consumers' and your organization’s most challenging issues.

Here’s a primer on problem-solving in business, why it’s important, the skills you need, and how to build them.

Access your free e-book today.

What Is Problem-Solving in Business?

Problem-solving is the process of systematically removing barriers that prevent you or others from reaching goals.

Your business removes obstacles in customers’ lives through its products or services, just as you can remove obstacles that keep your team from achieving business goals.

Design Thinking

Design thinking , as described by Harvard Business School Dean Srikant Datar in the online course Design Thinking and Innovation , is a human-centered , solutions-based approach to problem-solving and innovation. Originally created for product design, design thinking’s use case has evolved . It’s now used to solve internal business problems, too.

The design thinking process has four stages :

• Clarify: Clarify a problem through research and feedback from those impacted.
• Ideate: Armed with new insights, generate as many solutions as possible.
• Develop: Combine and cull your ideas into a short list of viable, feasible, and desirable options before building prototypes (if making physical products) and creating a plan of action (if solving an intangible problem).
• Implement: Execute the strongest idea, ensuring clear communication with all stakeholders about its potential value and deliberate reasoning.

Using this framework, you can generate innovative ideas that wouldn’t have surfaced otherwise.

Creative Problem-Solving

Another, less structured approach to challenges is creative problem-solving , which employs a series of exercises to explore open-ended solutions and develop new perspectives. This is especially useful when a problem’s root cause has yet to be defined.

You can use creative problem-solving tools in design thinking’s “ideate” stage, which include:

• Brainstorming: Instruct everyone to develop as many ideas as possible in an allotted time frame without passing judgment.
• Divergent thinking exercises: Rather than arriving at the same conclusion (convergent thinking), instruct everyone to come up with a unique idea for a given prompt (divergent thinking). This type of exercise helps avoid the tendency to agree with others’ ideas without considering alternatives.
• Alternate worlds: Ask your team to consider how various personas would manage the problem. For instance, how would a pilot approach it? What about a young child? What about a seasoned engineer?

It can be tempting to fall back on how problems have been solved before, especially if they worked well. However, if you’re striving for innovation, relying on existing systems can stunt your company’s growth.

Related: How to Be a More Creative Problem-Solver at Work: 8 Tips

Why Is Problem-Solving Important for Leaders?

While obstacles’ specifics vary between industries, strong problem-solving skills are crucial for leaders in any field.

Whether building a new product or dealing with internal issues, you’re bound to come up against challenges. Having frameworks and tools at your disposal when they arise can turn issues into opportunities.

As a leader, it’s rarely your responsibility to solve a problem single-handedly, so it’s crucial to know how to empower employees to work together to find the best solution.

Your job is to guide them through each step of the framework and set the parameters and prompts within which they can be creative. Then, you can develop a list of ideas together, test the best ones, and implement the chosen solution.

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you’re trying to solve.

“Before you begin to generate solutions for your problem, you must always think hard about how you’re going to frame that problem,” Datar says in the course.

For instance, imagine you work for a company that sells children’s sneakers, and sales have plummeted. When framing the problem, consider:

• What is the children’s sneaker market like right now?
• Should we improve the quality of our sneakers?
• Should we assess all children’s footwear?
• Is this a marketing issue for children’s sneakers specifically?
• Is this a bigger issue that impacts how we should market or produce all footwear?

While there’s no one right way to frame a problem, how you do can impact the solutions you generate. It’s imperative to accurately frame problems to align with organizational priorities and ensure your team generates useful ideas for your firm.

To solve a problem, you need to empathize with those impacted by it. Empathy is the ability to understand others’ emotions and experiences. While many believe empathy is a fixed trait, it’s a skill you can strengthen through practice.

When confronted with a problem, consider whom it impacts. Returning to the children’s sneaker example, think of who’s affected:

• Your organization’s employees, because sales are down
• The customers who typically buy your sneakers
• The children who typically wear your sneakers

Empathy is required to get to the problem’s root and consider each group’s perspective. Assuming someone’s perspective often isn’t accurate, so the best way to get that information is by collecting user feedback.

For instance, if you asked customers who typically buy your children’s sneakers why they’ve stopped, they could say, “A new brand of children’s sneakers came onto the market that have soles with more traction. I want my child to be as safe as possible, so I bought those instead.”

When someone shares their feelings and experiences, you have an opportunity to empathize with them. This can yield solutions to their problem that directly address its root and shows you care. In this case, you may design a new line of children’s sneakers with extremely grippy soles for added safety, knowing that’s what your customers care most about.

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

Cognitive fixedness is a state of mind in which you examine situations through the lens of past experiences. This locks you into one mindset rather than allowing you to consider alternative possibilities.

For instance, your cognitive fixedness may make you think rubber is the only material for sneaker treads. What else could you use? Is there a grippier alternative you haven’t considered?

Problem-solving is all about overcoming cognitive fixedness. You not only need to foster this skill in yourself but among your team.

4. Creating a Psychologically Safe Environment

As a leader, it’s your job to create an environment conducive to problem-solving. In a psychologically safe environment, all team members feel comfortable bringing ideas to the table, which are likely influenced by their personal opinions and experiences.

If employees are penalized for “bad” ideas or chastised for questioning long-held procedures and systems, innovation has no place to take root.

By employing the design thinking framework and creative problem-solving exercises, you can foster a setting in which your team feels comfortable sharing ideas and new, innovative solutions can grow.

How to Build Problem-Solving Skills

The most obvious answer to how to build your problem-solving skills is perhaps the most intimidating: You must practice.

Again and again, you’ll encounter challenges, use creative problem-solving tools and design thinking frameworks, and assess results to learn what to do differently next time.

While most of your practice will occur within your organization, you can learn in a lower-stakes setting by taking an online course, such as Design Thinking and Innovation . Datar guides you through each tool and framework, presenting real-world business examples to help you envision how you would approach the same types of problems in your organization.

Are you interested in uncovering innovative solutions for your organization’s business problems? Explore Design Thinking and Innovation —one of our online entrepreneurship and innovation courses —to learn how to leverage proven frameworks and tools to solve challenges. Not sure which course is right for you? Download our free flowchart .

About the Author

6.1 Problem Solving to Find Entrepreneurial Solutions

Portions of the material in this section are based on original work by Geoffrey Graybeal and produced with support from the Rebus Community. The original is freely available under the terms of the CC BY 4.0 license at https://press.rebus.community/media-innovation-and-entrepreneurship/.

Learning Objectives

By the end of this section, you will be able to:

• Define problem solving in the context of entrepreneurship
• Describe and compare the adaptive model and the innovative model of problem solving
• Identify the skills entrepreneurs need for effective problem solving
• Identify types of problem solvers

As you’ve learned, entrepreneurs often visualize an opportunity gap, a gap between what exists and what could exist, as Hirabayashi and Lidey did with Shine. Entrepreneurial problem solving is the process of using innovation and creative solutions to close that gap by resolving societal, business, or technological problems. Sometimes, personal problems can lead to entrepreneurial opportunities if validated in the market. The entrepreneur visualizes the prospect of filling the gap with an innovative solution that might entail the revision of a product or the creation of an entirely new product. In any case, the entrepreneur approaches the problem-solving process in various ways. This chapter is more about problem solving as it pertains to the entrepreneur’s thought process and approach rather than on problem solving in the sense of opportunity recognition and filling those gaps with new products.

For example, as we read in Identifying Entrepreneurial Opportunity , Sara Blakely (as shown in Figure 6.2 ) saw a need for body contouring and smoothing undergarments one day in the late 1990s when she was getting dressed for a party and couldn’t find what she needed to give her a silhouette she’d be pleased with in a pair of slacks. She saw a problem: a market need. But her problem-solving efforts are what drove her to turn her solution (Spanx undergarments) into a viable product. Those efforts came from her self-admitted can-do attitude: “It’s really important to be resourceful and scrappy—a glass half-full mindset.” 1 Her efforts at creating a new undergarment met resistance with hosiery executives, most of whom were male and out of touch with their female consumers. The hosiery owner who decided to help Blakely initially passed on the idea until running it by his daughters and realizing she was on to something. That something became Spanx , and today, Blakely is a successful entrepreneur. 2

Before getting into the heart of this chapter, we need to make a distinction: Decision making is different from problem solving . A decision is needed to continue or smooth a process affecting the operation of a firm. It can be intuitive or might require research and a long period of consideration. Problem solving , however, is more direct. It entails the solution of some problem where a gap exists between a current state and a desired state. Entrepreneurs are problem solvers who offer solutions using creativity or innovative ventures that exploit opportunities. This chapter focuses on different approaches to problem solving and need recognition that help potential entrepreneurs come up with ideas and refine those ideas.

Two Problem Solving Models: Adaptive and Innovative

There are two prominent established problem-solving models: adaptive and innovative . A renowned British psychologist, Michael Kirton , developed the Kirton Adaption-Innovation (KAI) Inventory to measure an individual’s style of problem solving. 3 Problem-solving preferences are dependent on the personality characteristics of originality, conformity, and efficiency, according to Kirton. The KAI inventory identifies an individual’s problem-solving approach by measuring agreement with statements that align with characteristics, such as the ability to produce many novel ideas, to follow rules and get along in groups, and to systematically orient daily behavior. The results categorize an individual as an innovator or an adaptor. Innovators are highly original, do not like to conform, and value efficiency less than adaptors.

The first and more conservative approach an entrepreneur may use to solve problems is the adaptive model. The adaptive model seeks solutions for problems in ways that are tested and known to be effective. An adaptive model accepts the problem definition and is concerned with resolving problems rather than finding them. This approach seeks greater efficiency while aiming at continuity and stability. The second and more creative approach is the innovative model of entrepreneurial problem solving, which uses techniques that are unknown to the market and that bring advantage to an organization. An innovative problem-solving style challenges the problem definition, discovers problems and avenues for their solutions, and questions existing assumptions—in a nutshell, it does things differently. It uses outside-the-box thinking and searches for novel solutions. Novelty is a shared trait of creative entrepreneurship, and it’s why entrepreneurs gravitate toward this method of problem solving. According to Dr. Shaun M. Powell , a senior lecturer at the University of Wollongong, Australia: “Creative entrepreneurs are notable for a distinctive management style that is based on intuition, informality and rapid decision making, whereas the more conventional thinking styles are not in accord with the unique attributes of creative entrepreneurs.” 4 This way of problem solving doesn’t alter an existing product. It is the creation of something entirely new.

For example, healthcare facilities have long been known as a source of methicillin-resistant Staphylococcus aureus (MRSA), a deadly infection that can have long-term effects on patients. Vital Vio , led by Colleen Costello , has developed white light technology that effectively disinfects healthcare facilities by targeting a molecule specific to bacteria. The light, safe to humans, can burn constantly to kill regenerative bacteria. An adaptive problem-solving model would seek to minimize harm of MRSA within a hospital—to respond to it—whereas the Vital Vio is an entirely new technique that seeks to eliminate it. Adaptive solutions to MRSA include established processes and protocols for prevention, such as having doctors, nurses, and other healthcare providers clean their hands with soap and water, or an alcohol-based hand rub before and after patient care, testing patients to see if they have MRSA on their skin, cleaning hospital rooms and medical equipment, and washing and drying clothes and bed linens in the warmest recommended temperatures. 5

Link to Learning

Visit Inc. Magazine for support and advice for up-and-coming startups to learn more. Examples of how “Dorm Room” entrepreneurs spot and pursue opportunities are shared along with tips and advice for making your startup a success.

Problem-Solving Skills

While identifying problems is a necessary part of the origin of the entrepreneurial process, managing problems is an entirely different aspect once a venture is off the ground and running. An entrepreneur does not have the luxury of avoiding problems and is often responsible for all problem solving in a startup or other form of business. There are certain skills that entrepreneurs possess that make them particularly good problem solvers. Let’s examine each skill (shown in Figure 6.3 ) .

Critical Thinking

Critical thinking is the complex analysis of a problem or issue with the goal of solving the problem or making a decision. The entrepreneur analyzes and peels away the layers of a problem to find the core of an issue facing a business. The entrepreneur focuses on the heart of the problem and responds reasonably and openly to suggestions for solving it. Critical thinking is not only important for developing entrepreneurial ideas: it is a sought-after asset in education and employment. Entrepreneur Rebecca Kantar dropped out of Harvard in 2015 to found the tech startup Imbellus , which aims to replace standardized college admissions tests like the SAT with interactive scenarios that test critical-thinking skills. Many standardized tests may include multiple choice questions asking for the answer to a straightforward knowledge question or math problem. Kantar seeks to create tests that are more concerned with the analytic ability and reasoning that goes into the process of solving the problem. Imbellus says it aims to test “how people think,” not just what they know. The platform, which has not yet launched, will use simulations for its user assessments. 6

Read more about problem solving and EnterpriseWorks/Vita’s story at Harvard Business Review .

Communication

Communication skills , the ability to communicate messages effectively to an intended recipient, are the skills entrepreneurs use to pool resources for the purposes of investigating solutions leading to innovative problem solving and competitive advantage. Good communication allows for the free association of ideas between entrepreneurs and businesses. It can illustrate a problem area or a shared vision, and seeks stakeholder buy-in from various constituencies. Networking and communication within an industry allow the entrepreneur to recognize the position of an enterprise in the market and work toward verbalizing solutions that move an organization beyond its current state. By “verbalizing,” we mean communication from and with the company/entity. Internal communications include company emails, newsletters, presentations, and reports that can set strategic goals and objectives, and report on what has been accomplished and what goals and objectives remain, so that employees within an organization are knowledgeable and can work on solving problems that remain within the organization. External communications could include press releases, blogs and websites, social media, public speeches, and presentations that explain the company’s solutions to problems. They could also be investor pitches complete with business plans and financial projections.

Ideation exercises, such as brainstorming sessions (discussed in Creativity, Innovation, and Invention , are good communication tools that entrepreneurs can use to generate solutions to problems. Another such tool is a hackathon —an event, usually hosted by a tech company or organization, which brings together programmers and workers with other degrees of specialization within the company, community, or organization to collaborate on a project over a short period of time. These can last from twenty-four hours to a few days over a weekend. A hackathon can be an internal company-wide initiative or an external event that brings community participants together. A business model canvas , which is covered in Business Model and Plan and other activities outlined in other chapters can be used internally or externally to identify problems and work toward creating a viable solution.

Networking is an important manifestation of useful communication. What better method is there of presenting one’s concept, gaining funding and buy-in, and marketing for the startup than through building a network of individuals willing to support your venture? A network may consist of potential employees, customers, board members, outside advisors, investors, or champions (people who just love your product) with no direct vested interest. Social networks consist of weak ties and strong ties. Sociologist Mark Granovetter studied such networks back in the 1970s, and his findings still apply today, even if we include social media networks in the definition too. Weak ties facilitate flow of information and community organization, he said, whereas strong ties represent strong connections among close friends, family members, and supportive coworkers. 7 Strong ties require more work to maintain than weak ties (as illustrated by the strong lines and weak dotted lines in Figure 6.4 ) and in a business context, they don’t lead to many new opportunities. Weak ties, in contrast, do open doors in that they act as bridges to other weak ties within functional areas or departments that you might not have had access to directly or through strong ties. 8

In fact, many young entrepreneurs, including tech entrepreneur Oliver Isaacs , realize college is a great place to begin building teams. Isaacs is the founder of viral opinion network Amirite.com , which is widely credited as the place where Internet memes started and online slang got a foothold. 9 Amirite.com consists of a large network of pages and partnerships on Facebook and Instagram that reach 15 million users each month. Isaacs recommends using your alumni network to build a team and customer base for your own venture because you never know if you’re talking to a future employee or partner.

Sharing of ideas and resources is highly valued in the entrepreneurial process. Communication is a vital skill in problem solving because the ability to identify and articulate the problem (define the problem space) is necessary to adequately address a problem. A problem can be too vague or broad or narrow. Thus, communicating the problem is important, as is conveying the solution.

Decisiveness

Decisiveness is as it sounds: the ability to make a quick, effective decision, not letting too much time go by in the process. Entrepreneurs must be productive, even in the face of risk. They often rely on intuition as well as on hard facts in making a choice. They ask what problem needs to be solved, think about solutions, and then consider the means necessary to implement an idea. And the decisions must be informed with research.

For example, as explained in Adam Grant’s book The Originals , the co-founders of Warby Parker, a venture-backed startup focused on the eyewear industry, started their company while they were graduate students. At the time they knew little about the industry, but after conducting some detailed research, they learned that the industry was dominated by one major player—Luxottica. They used this information and other data to refine their strategy and business model (focusing mainly on value, quality, and convenience via an online channel). By the time they decided to launch the business, they had thought through the key details, and they attained rapid early success. Today Warby Parker has over 100 retail stores in the US, is profitable, and is valued at almost $2 billion.

Decisiveness is the catapult to progress. Amazon founder Jeff Bezos preaches the importance of decisiveness throughout his organization. Bezos believes that decisiveness can even lead to innovation. Bezos advocates for making decisions after obtaining 70 percent of the information you need to do so: “Being wrong may be less costly than you think, whereas being slow is going to be expensive for sure,” Bezos wrote in a 2017 annual letter to stockholders. 10

Read this LinkedIn blog post on decisiveness to learn more.

Ability to Analyze Data

Data analysis is the process of analyzing data and modeling it into a structure that leads to innovative conclusions. Identifying Entrepreneurial Opportunity covered much of the sources of data that entrepreneurs might seek. But it is one thing to amass information and statistics. It is another to make sense of that data, to use it to fill a market need or forecast a trend to come. Successful founders know how to pose questions about and make meaning out of information. And if they can’t do that themselves, they know how to bring in experts who can.

In addition to public sources of broad data, a business can collect data on customers when they interact with the company on social media or when they visit the company website, especially if they complete a credit card transaction. They can collect their own specific data on their own customers, including location, name, activity, and how they got to the website. Analyzing these data will give the entrepreneur a better idea about the interested audience’s demographic.

In entrepreneurship, analyzing data can help with opportunity recognition, creation, and assessment by analyzing data in a variety of ways. Entrepreneurs can explore and leverage different data sources to identify and compare “attractive” opportunities, since such analyses can describe what has happened, why it happened, and how likely it is to happen again in the future. In business in general, analytics is used to help managers/entrepreneurs gain improved insight about their business operations/emerging ventures and make better, fact-based decisions.

Analytics can be descriptive, predictive, or prescriptive. Descriptive analytics involves understanding what has happened and what is happening; predictive analytics uses data from past performance to estimate future performance; and prescriptive analytics uses the results of descriptive and predictive analytics to make decisions. Data analysis can be applied to manage customer relations, inform financial and marketing activities, make pricing decisions, manage the supply chain, and plan for human resource needs, among other functions of a venture. In addition to statistical analysis, quantitative methods, and computer models to aid decision-making, companies are also increasingly using artificial intelligence algorithms to analyze data and make quick decisions.

Understanding of Business and Industry

Entrepreneurs need sound understanding of markets and industries. Often times, they are already working in a large organization when they see growth opportunities or inefficiencies in a market. The employee gains a deep understanding of the industry at hand. If the employee considers a possible solution for a problem, this solution might become the basis for a new business.

For example, consider a marketing agency that used traditional marketing for thirty years. This agency had an established clientele. An executive in the organization began studying social media analytics and social media. The executive approached the owner of the business to change processes and begin serving clients through social media, but the owner refused. Clients within the agency began to clamor for exposure on social media. The marketing executive investigated the possibility of building an agency in her locale servicing clients who wish to utilize social media. The marketing executive left the organization and started her own agency (providing, of course, that this is in compliance with any noncompete clauses in her contract). Her competitive advantage was familiarity with both traditional and social media venues. Later, the original agency started floundering because it did not offer social media advertising. Our intrepid executive purchased the agency to gain the clientele and serve those wishing to move away from traditional marketing.

A similar experience occurred for entrepreneur Katie Witkin . After working in traditional marketing roles, the University of Wisconsin-Madison graduate, pictured in Figure 6.5 , left agency life behind four years out of college to cofound her own company, AGW Group . In 2009, Witkin had been interning at a music marketing agency that didn’t have a social media department. She knew, both from her time at college and from observing industry trends, that social media was changing the way companies connected with customers. For her own venture, she expanded the focus to all supporting brands to manage all things digital. Today, the cultural and marketing communications agency has fifteen employees and big-name clients ranging from HBO to Red Bull. 11

Resourcefulness

Resourcefulness is the ability to discover clever solutions to obstacles. Sherrie Campbell , a psychologist, author, and frequent contributor to Entrepreneur magazine on business topics, put it this way:

“There is not a more useful or important trait to possess than resourcefulness in the pursuit of success. Resourcefulness is a mindset, and is especially relevant when the goals you have set are difficult to achieve or you cannot envision a clear path to get to where you desire to go. With a resourcefulness mindset you are driven to find a way. An attitude of resourcefulness inspires out-of-the-box thinking, the generation of new ideas, and the ability to visualize all the possible ways to achieve what you desire. Resourcefulness turns you into a scrappy, inventive and enterprising entrepreneur. It places you a cut above the rest.” 12

Entrepreneurs start thinking about a business venture or startup by talking to people and procuring experts to help create, fund, and begin a business. Entrepreneurs are risk takers, passionate about new endeavors. If they don’t have a college degree or a great deal of business experience, they understand there are many resources available to support them in the endeavor, such as the Service Corps of Retired Executives (SCORE) and the Small Business Administration (SBA) . There are many sources available to fund the business with little or no debt and options, as you will see in the chapter on Entrepreneurial Finance and Accounting . The entrepreneur follows a vision and researches opportunities to move toward a dream.

For example, in the late 1990s, Bill McBean and his business partner Billy Sterett had an opportunity to buy an underperforming auto dealership that would make their company the dominant one in the market. Neither wanting to take cash from other ventures nor wanting to borrow more money and tie themselves to more debt, the entrepreneurs were resourceful by finding another path forward to obtaining the money necessary for the acquisition they both coveted. They changed banks and renegotiated their banking payback requirements, lowering their interest payments, reducing fees, and lowering their monthly payments, ultimately freeing up a significant amount of cash that allowed them to buy the new company. 13

Types of Problem Solvers

Entrepreneurs have an insatiable appetite for problem solving. This drive motivates them to find a resolution when a gap in a product or service occurs. They recognize opportunities and take advantage of them. There are several types of entrepreneurial problem solvers, including self-regulators, theorists, and petitioners.

Self-Regulating Problem Solvers

Self-regulating problem solvers are autonomous and work on their own without external influence. They have the ability to see a problem, visualize a possible solution to the problem, and seek to devise a solution, as Figure 6.6 illustrates. The solution may be a risk, but a self-regulating problem solver will recognize, evaluate, and mitigate the risk. For example, an entrepreneur has programmed a computerized process for a client, but in testing it, finds the program continually falls into a loop, meaning it gets stuck in a cycle and doesn’t progress. Rather than wait for the client to find the problem, the entrepreneur searches the code for the error causing the loop, immediately edits it, and delivers the corrected program to the customer. There is immediate analysis, immediate correction, and immediate implementation. The self-regulating problem solvers’ biggest competitive advantage is the speed with which they recognize and provide solutions to problems.

Theorist Problem Solvers

Theorist problem solvers see a problem and begin to consider a path toward solving the problem using a theory. Theorist problem solvers are process oriented and systematic. While managers may start with a problem and focus on an outcome with little consideration of a means to an end, entrepreneurs may see a problem and begin to build a path with what is known, a theory, toward an outcome. That is, the entrepreneur proceeds through the steps to solve the problem and then builds on the successes, rejects the failures, and works toward the outcome by experimenting and building on known results. At this point, the problem solver may not know the outcome, but a solution will arise as experiments toward a solution occur. Figure 6.7 shows this process.

For example, if we consider Marie Curie as an entrepreneur, Curie worked toward the isolation of an element. As different approaches to isolating the element failed, Curie recorded the failures and attempted other possible solutions. Curie’s failed theories eventually revealed the outcome for the isolation of radium. Like Curie, theorists use considered analysis, considered corrective action, and a considered implementation process. When time is of the essence, entrepreneurs should understand continual experimentation slows the problem-solving process.

Petitioner Problem Solvers

Petitioner problem solvers ( Figure 6.8 ) see a problem and ask others for solution ideas. This entrepreneur likes to consult a person who has “been there and done that.” The petitioner might also prefer to solve the problem in a team environment. Petitioning the entrepreneurial team for input ensures that the entrepreneur is on a consensus-driven path. This type of problem solving takes the longest to complete because the entrepreneur must engage in a democratic process that allows all members on the team to have input. The process involves exploration of alternatives for the ultimate solution. In organizational decision-making, for example, comprehensiveness is a measure of the extent a firm attempts to be inclusive or exhaustive in its decision-making. Comprehensiveness can be gauged by the number of scheduled meetings, the process by which information is sought, the process by which input is obtained from external sources, the number of employees involved, the use of specialized consultants and the functional expertise of the people involved, the years of historical data review, and the assignment of primary responsibility, among other factors. Comprehensive decision-making would be an example of a petitioner problem-solving style, as it seeks input from a vast number of team members.

A charette —a meeting to resolve conflicts and identify solutions—is another example that employs a petitioner problem-solving approach. Often times, a developer of a new project might hold a community charette to aid in the design of a project, hoping to gain approval from elected officials. In the building example, this could consist of the developer and his team of architects, project designers, and people with expertise in the project working alongside community members, business executives, elected officials, or representatives like staff members or citizen-appointed boards like a planning board. Such an activity is representative of a petitioner problem-solving approach, as opposed to a developer representative designing the project with no input from anyone else.

In summary, there is no right or wrong style of problem solving; each problem solver must rely on the instincts that best drive innovation. Further, they must remember that not all problem-solving methods work in every situation. They must be willing to adapt their own preference to the situation to maximize efficiency and ensure they find an effective solution. Attempting to force a problem-solving style may prevent an organization from finding the best solution. While general entrepreneurial problem-solving skills such as critical thinking, decisiveness, communication, and the ability to analyze data will likely be used on a regular basis in your life and entrepreneurial journey, other problem-solving skills and the approach you take will depend on the problem as it arises.

There are a number of resources online that can help analyze your problem-solving abilities. Mindtools.com is one such resource. These are useful to learn your general problem-solving tendencies before being called upon to apply them in a real-world setting. One of the problem-solving techniques available from mindtools.com offers that problems can be addressed from six different perspectives. Called CATWOE , the approach is an acronym for Customers, Actors (people within the organization), Transformative, Worldwide, Owner, and Environment (organizational).

Learn more about the CATWOE technique for problem solving.

• 1 Helen Lock. “‘I Put My Butt on the Line’: How Spanx Took Over the World.” The Guardian. July 11, 2016. https://www.theguardian.com/small-business-network/2016/jul/11/put-butt-on-the-line-how-spanx-world
• 2 Gary Keller. “Business Success Series, Part 1: Sara Blakely-Spanx.” The One Thing. n.d. https://www.the1thing.com/blog/the-one-thing/business-success-series-part-1-sara-blakely-spanx/
• 3 “Characteristics of Adaptors and Innovators.” Kirton KAI Inventory Tool . n.d. http://pubs.acs.org/subscribe/archive/ci/31/i11/html/11hipple_box3.ci.html
• 4 Shaun Powell. “The Management and Consumption of Organisational Creativity.” Journal of Consumer Marketing 25, no. 3 (2008): 158–166.
• 5 N.C Healthcare-Associated Infections Prevention Program. Healthcare-Associated Infections in North Carolina: 2014 Annual Report, Healthcare Consumer Version. April 2015. https://epi.dph.ncdhhs.gov/cd/hai/figures/hai_apr2015_consumers_annual.pdf
• 6 Romesh Ratnesar. “What If Instead of Taking the SAT You Got to Play a Video Game?” Bloomberg BusinessWeek. March 19, 2019. https://www.bloomberg.com/news/features/2019-03-19/a-harvard-dropout-s-plan-to-fix-college-admissions-with-video-games
• 7 Mark Granovetter. “The Strength of Weak Ties.” American Journal of Sociology 5 (1973): 1360–1380.
• 8 Jacob Morgan. “Why Every Employee Should Be Building Weak Ties at Work.” Forbes. March 11, 2014. https://www.forbes.com/sites/jacobmorgan/2014/03/11/every-employee-weak-ties-work/#277851063168
• 9 John White. “Top UK Influencer Oliver Isaacs Reveals What It Takes to Go Viral.” Inc . August 6, 2017. https://www.inc.com/john-white/top-uk-influencer-oliver-isaacs-reveals-what-it-ta.html
• 10 Erik Larson. “How Jeff Bezos Uses Faster Better Decisions to Keep Amazon Innovating.” Forbes . September 24, 2018. https://www.forbes.com/sites/eriklarson/2018/09/24/how-jeff-bezos-uses-faster-better-decisions-to-keep-amazon-innovating/#492c351b7a65
• 11 Stephanie Schomer. “How Getting Laid Off Empowered This Entrepreneur to Start Her Own Award-Winning Marketing Agency.” Entrepreneur. January 15, 2019. https://www.entrepreneur.com/article/326212
• 12 Sherrie Campbell. “6 Characteristics of Resourceful People That Bring Them Success.” Entrepreneur. March 10, 2016. https://www.entrepreneur.com/article/272171
• 13 “Resourcefulness Is More Important Than Resources.” The Ecommerce Mindset: How Successful Store Owners Think. n.d. https://www.oberlo.com/ebooks/mindset/resourceful-entrepreneur

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• July 19, 2023

Entrepreneur Skills – Problem Solving Skills

Boost your entrepreneurial journey with top-tier problem solving skills. explore key insights and strategies for effective problem-solving in business..

If there is one universal truth that all entrepreneurs share, it’s the reality that problem-solving is a critical part of their daily routine. From handling unforeseen obstacles, improving inefficient processes, to developing innovative solutions that meet the market’s evolving demands—problem-solving is the lifeblood of any successful venture. This blog post will delve into the depths of problem-solving, exploring the science behind it, and shedding light on how entrepreneurs can hone this skill to conquer the business world.

The entrepreneurial journey is rarely a smooth ride. It’s filled with ups and downs, turns and twists that often lead to unchartered territory. These challenges demand an entrepreneur’s ability to effectively solve problems. Recent research suggests that problem-solving skills are directly linked to business success, as these skills foster resilience, strategic thinking, and the ability to adapt in an ever-changing business landscape.

What is interesting to note is that problem-solving is more than just fixing what’s broken. It involves creativity, critical thinking, empathy, and at times, even an appetite for risk. It’s about understanding a problem in its entirety—its root causes, potential impacts, and effective, long-lasting solutions. In essence, problem-solving is a holistic approach to turning hurdles into opportunities for growth.

Furthermore, the ability to solve problems efficiently provides entrepreneurs with a competitive edge. In today’s dynamic business environment where industries can be disrupted overnight, having the skill to identify and solve problems rapidly can make the difference between survival and extinction. The importance of these skills is reflected in a report by the World Economic Forum, which forecasts that problem-solving capabilities will be among the most sought-after skills in the next decade.

In this post, we’ll explore 18 key themes surrounding the art of problem-solving for entrepreneurs. We will delve into various facets of this essential skill, offering actionable insights backed by extensive research, real-world examples, and proven strategies. Whether you’re a budding entrepreneur or a seasoned business leader looking to up your game, this comprehensive guide promises a wealth of knowledge that will help shape your entrepreneurial journey.

Key Insights on Problem Solving

1. Understanding the Problem:

The foundation of any problem-solving process is a deep understanding of the problem. This requires you to go beyond the superficial symptoms and uncover the root causes. Often, problems are complex and multi-faceted, making them challenging to understand fully. Techniques such as the “5 Whys” or Cause and Effect Diagrams can be beneficial in digging deeper and identifying the true source of the problem.

2. Identifying Opportunities:

Problems often come masked as opportunities. Entrepreneurs who have mastered the art of problem-solving can flip the script and turn a challenge into an avenue for innovation or business growth. It’s all about perspective. Look at problems as questions that need answers and obstacles as potential paths towards new business opportunities.

3. Creativity:

Problem-solving and creativity go hand in hand. Sometimes, traditional solutions may not be adequate or effective, necessitating a creative approach. Techniques such as brainstorming, mind mapping, or lateral thinking can inspire unconventional solutions that break the mold and deliver results.

4. Analytical Thinking:

Analytical thinking plays a crucial role in problem-solving. It allows entrepreneurs to examine a problem objectively, breaking it down into smaller, manageable parts. This approach is essential when dealing with complex issues, as it helps to simplify them, making the solution-finding process more efficient.

5. Decision Making:

Making decisions is an integral part of solving problems. Entrepreneurs often have to make quick decisions under pressure. Having a systematic decision-making process helps increase the likelihood of choosing the most effective solution.

6. Resourcefulness:

Entrepreneurs often operate with limited resources, making resourcefulness a valuable skill. It’s about making the most out of what’s available and finding clever ways to overcome limitations. The ability to be resourceful not only aids in problem-solving but also sparks innovation.

7. Flexibility:

The business landscape is continually changing. As such, a solution that worked yesterday may not be applicable today. Flexibility allows entrepreneurs to adapt their approach to problem-solving, accounting for changes in circumstances, market conditions, or technology.

8. Risk Analysis:

Risk is inherent in every business decision. Entrepreneurs who are skilled at risk analysis can anticipate potential problems and mitigate them before they become significant issues. It’s about striking a balance between risk and reward, ensuring that the solutions implemented do not endanger the business.

9. Collaboration:

Problem-solving is not a solo endeavor. Collaboration enables entrepreneurs to leverage diverse perspectives and skills, fostering creative and effective solutions. Building a culture of collaboration in a team also promotes ownership and morale, enhancing the problem-solving process.

10. Communication:

Effective communication is pivotal to successful problem-solving. Clear and concise communication ensures that everyone involved understands the problem and their role in solving it. It also prevents misunderstandings that could derail the solution implementation process.

11. Embracing Failure:

Embracing failure is a crucial part of problem-solving. Mistakes and failures offer valuable lessons that can provide insights into more effective solutions. The ability to learn from failure fosters resilience and encourages a growth mindset, essential for entrepreneurial success.

12. Continuous Learning:

The more knowledge an entrepreneur has, the better equipped they are to solve problems. Cultivating a culture of continuous learning promotes curiosity and openness to new ideas, enriching the problem-solving process.

13. Customer-Centricity:

Problem-solving should always be customer-centric. Understanding your customer’s needs and concerns can guide your problem-solving efforts, ensuring that the solutions you implement enhance customer value and satisfaction.

14. Emotional Intelligence:

Emotional intelligence aids in problem-solving by promoting empathy and understanding. It allows entrepreneurs to consider the emotional and human aspects of a problem, leading to more comprehensive and effective solutions.

15. Time Management:

Efficient problem-solving requires effective time management. Knowing how to prioritize problems based on their urgency and impact can streamline the problem-solving process and ensure that critical issues are addressed promptly.

16. Strategic Thinking:

Strategic thinking involves looking at problems from a broader perspective. It allows entrepreneurs to consider the long-term implications of their solutions, ensuring that they align with their business goals and vision.

17. Technology Literacy:

In today’s digital age, technology literacy is crucial for problem-solving. Whether it’s leveraging data analytics for informed decision-making or utilizing digital tools to enhance collaboration, technology plays a significant role in modern problem-solving.

18. Self-Motivation:

Last but not least, self-motivation is essential. Problem-solving can be challenging and draining. The ability to stay motivated and maintain a positive attitude can make the process more manageable and productive, driving entrepreneurial success.

Problem-solving is a critical entrepreneurial skill that serves as the backbone of any successful venture. The ability to accurately identify and creatively overcome challenges is a testament to an entrepreneur’s resilience and adaptability. In this rapidly evolving business environment, a problem-solving mindset empowers entrepreneurs to navigate through uncertainty, fostering innovation and growth.

This comprehensive guide has provided an in-depth look at 18 crucial themes surrounding problem-solving for entrepreneurs. By understanding and implementing these insights, entrepreneurs can enhance their problem-solving skills, contributing to their personal growth and their business’s success.

Ultimately, the true value of problem-solving lies in its capacity to transform obstacles into opportunities. It’s not just about ‘fixing’ what’s broken, but about continuously evolving, adapting, and driving forward in the face of adversity. In the world of entrepreneurship, problems are merely stepping stones on the path to success.

So, embrace the challenges that come your way, arm yourself with these problem-solving strategies, and continue on your entrepreneurial journey. Remember, every problem you solve takes you one step closer to your ultimate business goal.

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The 12 best entrepreneurial skills

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The importance of entrepreneurial skills

12 essential entrepreneurial skills

More entrepreneurial hard skills to brush up on

How to improve your entrepreneurial skills, lead a successful business (and life).

Successful entrepreneurs are often jacks of all trades — and never experts at none. 

Running your own business means you have to pull from a deep toolbox of hard and soft skills to push your business off the ground and keep it growing. But because entrepreneurs are constantly on call and keep never-ending to-do lists, it can be difficult to prioritize learning the entrepreneurship skills that will help you and your business stay healthy. 

Whether you’re getting ready to transform your side hustle into a new business or want to audit your current skill set to improve your ability to lead , working on your transferable skills is a great way to bolster a growth mindset . And though you can’t master everything, building well-rounded know-how will empower you and your teams to support the business. 

As an entrepreneur , your responsibilities may feel never-ending and all-encompassing. After all, turning your dreams into a successful business doesn’t happen overnight — and once your business begins to gain traction, the work required to keep the lights on never ceases.

Business leaders with an entrepreneurial spirit must accept this challenge and continuously make calculated and informed decisions to keep their business plans moving forward.

It’s up to you to identify opportunities, make smart decisions , and chart the course when challenges arise. And as your startup grows, you must learn to effectively allocate your resources and create value propositions for your employees and clients. 

But don’t worry — this hard work pays off. According to the U.S. Business Administration Office of Advocacy, small businesses employ 46.4% of private sector U.S. employees , meaning business owners stimulate local economies and create important lifelines for local communities. Here are a few other ways your entrepreneurial skills leave a positive impact:

• Entrepreneurs can drive social change and create products and services that improve lives
• Disruptive innovation stimulates economic growth and opens new markets for other entrepreneurs
• Great entrepreneurs grow together with their employees, providing valuable personal and professional development opportunities
• Working on your skills builds adaptability and dynamism , allowing you to work efficiently alone and as part of a team
• Building your entrepreneurial ability helps you set realistic goals and hit objectives, which can fill you with purpose and boost your satisfaction with life

While you don’t have to excel at everything, developing a breadth of know-how helps you delegate tasks realistically and empathize with your employees

12 essential entrepreneurial skills 

Getting a business off the ground and moving is no small task. In a world of ever-changing market trends and economic challenges, you have to think on your feet without losing sight of your company mission . Be ing able to switch from one competency to another is crucial to maintaining a solid business foundation. 

The following skills aren’t exclusive to entrepreneurs — they’re indispensable to any industry and job role. If you’re getting ready to make the transition to entrepreneurship, you may be surprised by how many transferable skills you already have under your belt.

Of course, others may need a little cultivation or refining. But fine-tuning them will ensure you’re qualified to roll with the punches and keep your business moving forward. 

Here are 12 key skills every entrepreneur should strive for:

Budgeting: All business ideas are limited by budgets. Successful entrepreneurship requires a firm grip on your business’s financial reality, which means learning to manage budgets , analyze financial data, and understand cash flow patterns. 

This knowled ge is invaluable to your business’ security, as it facilitates sound decision-making and allows you to build realistic action plans for investments, expansions, and cuts.

Problem-solving : Entrepreneurship has no finish line, no matter the industry. Your business journey will be chock-full of new challenges and obstacles requiring problem-solving and critical-thinking skills . Strategic thinking is what allows you to step back from today’s problems and see the bigger picture, aligning short-term goals with long-term objectives . 

Communication skills: Business owners are the voice of their companies. Whether you’r e emailing a client , delivering an elevator pitch to a potential investor , or delegating tasks on Slack, practicing adaptability in tone and delivery is essential to effective communication , no matter the scenario. 

Time management: With so many responsibilities and decisions to make each day, you might feel like several tasks are competing for your time and attention. Learning to manage your time and leave r oom for flexibility provides you with the necessary structure to move through your day without wasted resources or missed deadlines. 

Creative thinking: The business landscape i s ever-changing, and adaptability is essential to staying competitive. An entrepreneurial mindset means inserting creative thinking into every aspect of your business strategy, from differentiating your products from the competition to creating incentives that retain the best talent . 

Practice keeping an open mind by challenging traditional ideas, embracing new perspectives, and encouraging experimentation. It’ll keep your teams inspired and your business forward-thinking. 

Leadership skills: As the head of the company, your team looks to you to set the tone. Whether you demonstrate a strong work ethic or cut corners, your behavior tells your employees what is and isn’t acceptable behavior.

Leadership is a 24/7 responsibility, but fostering a positive and productive work environment will pay off in strong collaboration and continuous improvement from your teams. 

Management skills: While you may be tempted to juggle a dozen roles, you (and your mental health ) can’t do it all. When small-scale day-to-day tasks constantly occupy your time, b ecoming a future-minded leader is difficult.

As your business grows, building structures that allow your employees to thrive and take on more responsibilities is vital. That way, you can delegate to your growing team and dedicate more time to overseeing long-term planning.

Decision-making: As the head of the business, your days are fraught with important decisions. Successful entrepreneurs mix analytical thinking and intuition, as they may face situations with limited information or uncertain results. Learning to weigh pros and cons, consider risks, and surround yourself with diverse perspectives empowers you to navigate complexities confidently. 

Networking: Hard work is just one part of the equation to keep your business healthy. The relationships you cultivate are the other. After all, your familiarity with industry peers, potential partners, and clients keeps your business on people’s minds.

Regular networking helps you gain insights into your target market, stay up-to-date on emerging trends, and open doors to new opportunities.

Collaboration: You depend on your teams to keep business moving forward, so you need to arm yourself with tools to give them support and guidance. Demonstrating gratitude , open-mindedness, and reliability are interpersonal skills that build the trust that keeps your workforce productive. 

Active listening:  Team members want to feel heard a nd respected. After all, we all dedicate a lot of time and energy to our jobs. Workers who feel understood are more productive , so aim to practice emotional intelligence and value your team’s work-life balance . You’ll see hap pier and more effective teams. 

Public speaking: Management is the face of the company. Throughout your career, you’ll have plenty of opportunities to speak in front of a crowd. Whether delivering a TED Talk or l eading a team meeting, you can motivate and inspire people to rally around your vision. 

Hard skills are explicit knowledge that helps you perform specific tasks. Most people learn technical skills through formal education and refine them through supplemental training and on-the-job experiences. 

Here are 15 of the most important skills that’ll come in handy while building your business: 

• Social media 
• Accounting and bookkeeping
• Inbox management
• Basic financial knowledge
• Sales and negotiation
• Digital marketing
• Market research and analysis
• Project management
• Customer service and management
• Data analysis
• Legal and regulatory compliance
• Supply chain management
• Basic computer skills
• Presentation development

Entrepreneurship is a commitment that requires continuous learning and skill refinement. When you’re ready, choose from the entrepreneurship examples above and get to work on your skills. 

Here are a few tips to help you constantly improve your ability to lead a business: 

Take online courses: There’s a class for every aspect of business management. Quick courses in social media advertising, financial forecasting, and supply chain optimization can help you develop your skill set. 

Even if you don’t directly oversee a specific task, developing a working knowledge can improve your collaboration with other departments and your ability to make informed decisions with your team.

• Seek out mentors: You’re not alone in the business world. Plenty of entrepreneurs have already navigated decisions that are brand new to you. Mentors can provide you with a sense of connection and bolster your confidence. Tapping into an experienced professional network can give you the clarity to help you move forward, no matter your business situation. 
• Create a practice plan: You don’t have to learn everything at once. Identify the most pertinent skills to your success, and create a plan to refine them. This could mean being more conscientious of writing clear communications, regularly showing gratitude, or attending a seminar every month. Regardless of your goals, practice and consistency make perfect. 
• Join a local business organization: Running a business is difficult, but having the support of colleagues navigating similar professional spheres can help you maintain your sense of purpose. Local business associations are also great places to network, stay up-to-date on trends, and find new opportunities. 
• Work with a coach: Entrepreneurs provide constant guidance to their teams, and they benefit from the same support. Coaches are incredible allies to entrepreneurs, and they can assist you in setting clear goals and staying on track to reach your wellness and professional objectives. 

If you have the characteristics of an entrepreneur , you already possess valuable soft skills, including passion, drive, and self-confidence. Now it’s time to level up your entrepreneurial skills and equip yourself with the tools to transform your dreams into reality.

Practicing time management, learning to lead a team, and developing know-how about various business management topics can all help push your business forward. And as your company grows and earns successes, so will you.

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Elizabeth Perry, ACC

Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships. With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

10 essential business skills that make an impact on your career

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Effective Problem-Solving Techniques in Business

Problem solving is an increasingly important soft skill for those in business. The Future of Jobs Survey by the World Economic Forum drives this point home. According to this report, complex problem solving is identified as one of the top 15 skills that will be sought by employers in 2025, along with other soft skills such as analytical thinking, creativity and leadership.

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

• Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
• Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
• Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
• Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
• Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
• SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

• Identify and define the problem
• Consider possible solutions
• Evaluate options
• Choose the best solution
• Implement the solution
• Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

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