Upskilling: The Importance for Your Business

Upskilling is the process of learning new skills or building on your existing ones and it is particularly important in today’s fast-paced business world. As an independent contractor, it can feel overwhelming to pivot your services every time new changes, technology, or requirements pop up within your industry.  

Upskilling gives you an edge over your competitors and can make you attractive to new clients. Plus, there are a lot of personal benefits in it for you as a small business owner. Upskilling can boost your productivity, inspire innovation, and encourage creativity.  

Staying static is simply not an option in today’s market. Below, we explore the areas where upskilling matters most, the hidden costs of not upskilling, and how to approach upskilling as an independent contractor.  

Five Key Areas Where Upskilling Matters Most 

The following five areas are important categories where you can strategically develop your skills. While you shouldn’t expect to master all these areas at once, setting goals within each one or working on one at a time can significantly impact the success of your business. 

• Digital literacy and adoption of technology: Digital literacy and technology adoption form the foundation of much of modern upskilling, giving you the ability to leverage tools to streamline business operations and boost efficiency. 

• Financial management and data analysis: Being financially savvy as an independent contractor will help you maintain a healthy cash flow. Feeling comfortable with data and knowing how to interpret it can help you make more informed decisions and spot trends, allowing you to direct your business to appropriate clients and projects. 

• Marketing and social media expertise: No matter what sector or industry you work in, marketing and social media expertise are the primary ways to reach your audience and engage clients.  

• Client service: Modern client service should go above and beyond basic interaction. Look for ways to become proficient in multiple communication platforms, gather online reviews and use them to your advantage, and become adept at asking for and responding to feedback. 

• Industry-specific technical skills: Stay up to date on technical skills within your industry to remain competitive and deliver the quality and innovation your clients expect. 

The Hidden Costs of Not Upskilling 

When you’re deep in the daily grind of running your business, putting off your upskilling efforts might feel like a luxury. But the cost of not developing new skills or honing your existing ones can be far more expensive in the long run. For example, if a competitor embraces a new technology or method, they might capture a new lucrative contract that could’ve been yours or expand into a new market segment before you get the chance. 

Plus, if you don’t update your skills, routine tasks can take longer and that is valuable time you could be using to grow your business. While outsourcing some tasks may be beneficial, it might cost you in the long run to outsource work you could handle internally with the right training, such as basic website updates or social media management.    

The most concerning risk is becoming obsolete. If your business doesn’t adapt, you may find your services becoming increasingly irrelevant to your target market. Think back to the beginning of the pandemic. How many local businesses struggled because they failed to adapt to a digital environment? Don’t lose out on opportunities or put yourself at a competitive disadvantage—consider small ways you can make upskilling part of your annual goals. 

Smart Ways to Approach Upskilling as an Independent Contractor 

When approaching upskilling as an independent contractor, start by setting realistic learning goals that align with your business objectives. Prioritize the skills you want to brush up on or add to your repertoire based on both market demand and gaps within your business. Take a close look at where you are spending the most money on outsourcing or where you might be losing clients due to capability gaps. Focus on those areas first. But remember, while addressing immediate client needs is essential, you should also reserve some learning time for emerging trends in your industry that could create future opportunities.  

Upskilling can feel like a lot to take on, but don’t worry about mastering everything at once. Instead, start with the one skill that could immediately impact your bottom line. Consider time-efficient learning methods like microlearning during breaks, listening to an industry podcast on your morning walk, participating in an online workshop, or watching YouTube videos on the topic. Make learning a habit by blocking out specific times in your schedule, even if it is just 20 minutes a day. Approach these learning blocks with the same commitment you’d give a client meeting.  

Remember, small consistent steps in upskilling can lead to significant results. Enjoy the process knowing that it will help you attract better clients and land future opportunities.