A skill is a folder with a file called SKILL.md in it. That file tells Claude when to use the skill and which steps to follow, and the folder can hold reference files like a price sheet or a vendor list.

How does Claude know when to use a skill?

Claude reads each skill's name and one-line description. When your request matches, it loads the full instructions. My AI bookkeeper kicks in just because I say I'm ready to do the month's credit card transactions. You can also type / in the message box and pick one.

Which Claude plans include Skills?

Skills are on the Pro, Max, Team and Enterprise plans, and they need code execution and file creation turned on in Settings. You'll find yours under Customize > Skills.

What's the difference between a skill and a Claude Project?

A skill holds how to do one task. A Claude Project holds what Claude knows about your business. Run the skill inside the project and you get the job done your way, with your context.

How do I make one?

Write down how you do the task, step by step, then ask Claude to turn it into a skill. I walk through seven of mine in Claude Skills examples for business owners.