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Creating a Business from Life Skills

Many life skills are exhibited in the creation of a business: communication, keeping financial records, budgeting, creative thinking, setting priorities, and self-initiative. Of course, there are others, but these six are the ones that are very important and can be applied to and useful in any business. It may take some time to develop and master some of these skills, but knowing you have these skills will serve you well in business and also in life.

Review these life-enhancing skills and discover ways to grow in these areas as a parent and to instill in your children. Starting and growing a business can be achieved by adults and children (usually those in their teens), and it’s these foundational skills that will keep an entrepreneur focused on the right things.

Communication

Communication is a skill that is used in daily life. It is used in many forms (verbal, non-verbal, e-mail, phone, text) and with a variety of people (family, friends, neighbors, colleagues, customers). Developing excellent communication skills can lead to creating a business by first talking through - communicating about - a business idea with family and other trusted individuals. There are also different types of communication within a business.

Marketing - sharing why potential customers should buy from you and you business
Business - creating a business plan to communicate your vision and projections for your business
Financial - communicating the profits and losses, and other important numbers about your business to banks, potential investors, and accountants
Thank you - communicating appreciation to customers and thankfulness to staff for a job well done or other thoughtful actions is an essential aspect in creating and managing a business
Instruction - being able to explain how to do a task or action and the required steps to complete it correctly and successfully is an integral key of running a successful business
Goals - communicating to others where and how you want to lead and grow your business can help others to understand and support you in achieving the vision and goals you set for your business

Financial Record Keeping

Keeping financial records is an essential life skill you will need when creating and running a business. Recording expenses, keeping track of receipts and important documents, and preparing taxes or hiring an accountant are all part of financial record keeping. Part of financial record keeping skills includes knowing how long the Canada Revenue Agency (CRA) requires you to keep financial records such as tax returns or receipts to support or prove payments or expenses.

Budgeting

In addition to keeping financial records, another life skill that leads to creating a business is budgeting. Budgeting means knowing how much money goes to a given category, such as taxes, business insurance, marketing/advertising, office supplies (paper, pens, highlighters, etc.), equipment (computer/laptop), each week or month. When you know this information, it is then easier for you to adjust your spending to make up for both planned and unforeseen expenses that may come up. Budgeting puts you in the driver’s seat when it comes to being a good steward of the financial resources God has given you and blessed you with as well as provides you with knowing how much you are putting to savings and giving back (tithing).

Another benefit of budgeting is that you will know your break even point. This is the point in your business where the income you make covers your expenses. Anything above that amount is considered a profit.

Creative Thinking

Of all the life skills presented in this article, the skill of creative thinking may be the one that will serve you best in business and life. At times in life, you may not have much in the way of financial resources, space, or time, but you will always have your ability to think creatively. Developing this skill while a homeschooling student and continuing to use it as an adult is strongly encouraged and recommended. Through applying and using creative thinking skills, you may be able to

think of a better business idea.
think of a new or better service or product to offer.
think of ways to market or advertise your business on a shoestring budget.
think of a time-saving process that helps to run your business more efficiently, smoothly, with better organization, or more streamlined.
think of where you want your business to be in five years and begin to make adjustments as needed toward that goal.

By developing and using creative thinking, you will have a life skill that will help to see you through any challenges you may encounter and face.

Setting Priorities

A fifth life skill in creating a business is that of setting priorities. Being able to discern which tasks to do first and prioritize your time accordingly will help you to remain focused, stay on track, and accomplish what is truly important.

Some priorities can be done quickly, perhaps in as little as a few minutes or up to a day or two long. Other priorities, on the other hand, will require more planning or time or both. Knowing how to work on short- and long-term priorities at the same time to keep moving forward is a useful skill to practice and master.

Self-Initiative

Having self-initiative is a life skill you will want to develop and use in creating a business. It will be up to you to take the initiative to start taking action on a business idea and put in the time and effort to turn it into a success. Being a self-starter may not come easy at first or you may not know where to begin, but with practice and a plan of action, you will gain more confidence in this life skill.

Acquiring these life skills - communication, financial record keeping, budgeting, creative thinking, setting priorities, and having self-initiative - will give you an excellent foundation to create and grow your business. With practice and time, your confidence and ability in these skills will improve.

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This article has been written by homeschooling staff writers of The Canadian Schoolhouse (TCS). Enjoy more of our content from TCS contributors and staff writers by visiting our Front Door page that has content on our monthly theme and links to all our content sections.