Starting a business is a lot of work. Anyone who tells you it's not is either lying or has never actually started one themselves. The hours are long, sacrifices are great and you are assaulted with new problems and challenges every day with seemingly no end. If you don't have the constitution to weather these things, your business could implode on you faster than it started.
Clearly, entrepreneurship is not for everyone. But how do you know whether it’s for you? You should start by asking yourself what it takes to be a leader because, for the most part, you'll be doing a lot of the work up front by yourself. If you can't lead yourself through startup, chances are you won't likely be able to lead your business and future employees through growth and on to success.
If you enjoy only a few actual hours of real work per day, the rest of the time spent either looking busy or hanging out at the water cooler to catch up on TV talk, a modest but steady paycheck and benefits and are okay with routine day-in and day-out, stop reading here and go back to your cushy desk job.
If you seek a challenge wrought with risk but with tremendous potential reward both financially and morally, read on friend, for you have something of what it takes to be a successful entrepreneur.
Want to start a business? 20 questions to ask yourself first.
Successful entrepreneurs, from Henry Ford to Steve Jobs, share similar qualities with one another. To see how you rank against these distinguished entrepreneurs, do you share at least half of these qualities?
1. Strong leadership qualities
Leaders are born, not made. Do you find yourself being the go-to person most of the time? Do you find people asking your opinion or to help guide or make decisions for them? Have you been in management roles throughout your career? A leader is someone who values the goal over any unpleasantness the work it takes to get there may bring. But a leader is more than just tenacious. A leader has strong communication skills and the ability to amass a team of people toward a common goal in a way that the entire team is motivated and works effectively to get there as a team. A leader earns the trust and respect of his team by demonstrating positive work qualities and confidence, then fostering an environment that proliferates these values through the team. A leader who nobody will follow is not a leader of anything at all.
2. Highly self-motivated
You probably know from knowing even a little bit about some of the most famous business entrepreneurs in history that leaders are typically pretty intense personalities. Nobody makes progress by sitting back and waiting for it to find them. Successful people go out into the world and invoke change through their actions. Typically, leaders enjoy challenges and will work tirelessly to solve problems that confront them. They adapt well to changing situations without unraveling and are typically expert of helping their teams change with them by motivating them toward new goals and opportunities. Often you will learn that successful entrepreneurs are driven by a more complete vision or goal than simply the task at hand and able to think on a more universal level in that regard. They are also often very passionate about their ideas that drive toward these ultimate goals and are notoriously difficult to steer off the course.
3. Strong sense of basic ethics and integrity
Business is sustainable because there is a common, understood code of ethics universally that underpins the very fabric upon which commerce is conducted. While cheaters and thieves may win in the short term, they invariably lose out in the long run. You will find that successful, sustainable business people maintain the highest standards of integrity because, at the end of the day, if you cannot prove yourself a credible business person and nobody will do business with you, you are out of business. With importance in working with clients or leading a team, effective leaders admit to any error made and offer solutions to correct rather than lie about, blame others for, or dwell on the problem itself.
4. Willingness to fail
Successful entrepreneurs are risk takers who have all gotten over one very significant hurdle: they are not afraid of failure. That's not to say that they rush in with reckless abandon. In fact, entrepreneurs are often successful because they are calculating and able to make the best decisions in even the worst of cases. However, they also accept that, even if they make the best decision possible, things don't always go according to plan and may fail anyhow. If you've heard the old adage, "nothing ventured, nothing gained," that's exactly what it's saying: do not be afraid to fail, put it out there and give it your best shot. Again, there's not one successful entrepreneur out there sitting on his couch asking, "what if?"
5. Serial innovators
Entrepreneurs are almost defined by their drive to constantly develop new ideas and improve on existing processes. In fact, that's how most of them got into business in the first place. Successful people welcome change and often depend on it to improve their effectiveness as leaders and ultimately the success of their businesses as many business concepts rely on improving products, services and processes in order to win business.
6. Know what you don't know
While successful entrepreneurs are typically strong personalities overall, the best have learned that there's always a lesson to be learned. They are rarely afraid to ask questions when it means the answers will provide them insight they can then leverage to effect. Successful entrepreneurs are confident, but not egotistical to the point that their bull-headedness is a weakness that continually prohibits them from seeing a bigger picture and ultimately making the best decisions for the business.
7. Competitive spirit
Entrepreneurs enjoy a challenge and they like to win. They would have to since starting a business is pretty much one of the biggest challenges a person can take on in their lifetime. In business it's a constant war with competition to win business and grow market share. It's also a personal challenge to use all of this to focus inward and grow a business from nothing into a powerhouse that either makes a lot of money or is so effective that it is sold or acquired for a profit as well.
8. Understand the value of a strong peer network
In almost every case, entrepreneurs never get to success alone. The best understand it takes a network of contacts, business partners, financial partners, peers and resources to succeed. Effective people nurture these relationships and surround themselves with people who can help make them more effective. Any good leader is only as good as those who support him.
What skills do you need as an entrepreneur?
What makes someone a successful entrepreneur? It certainly helps to have strong technology skills or expertise in a key area, but these are not defining characteristics of entrepreneurship.
Instead, the key qualities are traits such as creativity, the ability to keep going in the face of hardship, and the social skills needed to build great teams.
If you want to start a business, it's essential to learn the specific skills that underpin these qualities. It's also important to develop entrepreneurial skills if you're in a job role where you're expected to develop a business, or "take things forward" more generally.
In this article, we'll look at the skills you need to be a successful entrepreneur, and we'll explore resources that you can use to develop the traits needed for success.
Some experts think of entrepreneurs as people who are willing to take risks that other people are not. Others define them as people who start and build successful businesses.
Thinking about the first of these definitions, entrepreneurship doesn't necessarily involve starting your own business. Many people who don't work for themselves are recognized as entrepreneurs within their organizations.
Regardless of how you define an "entrepreneur," one thing is certain: becoming a successful entrepreneur isn't easy.
So, how does one person successfully take advantage of an opportunity, while another, equally knowledgeable person does not? Do entrepreneurs have a different genetic makeup? Or do they operate from a different vantage point, that somehow directs their decisions for them?
Though many researchers have studied the subject, there are no definitive answers. What we do know is that successful entrepreneurs seem to have certain traits in common.
We've gathered these traits into four categories:
- Personal characteristics.
- Interpersonal skills.
- Critical and creative thinking skills.
- Practical skills.
We'll now examine each category in more detail, and look at some of the questions you will need to ask yourself if you want to become a successful entrepreneur.
First, examine your personal characteristics, values, and beliefs. Do you have the mindset that's typical of successful entrepreneurs?
- Optimism: Are you an optimistic thinker? Optimism is truly an asset, and it will help get you through the tough times that many entrepreneurs experience as they find a business model that works for them.
- Vision: Can you easily see where things can be improved? Can you quickly grasp the "big picture," and explain this to others? And can you create a compelling vision of the future, and then inspire other people to engage with that vision?
- Initiative: Do you have initiative, and instinctively start problem-solving or business improvement projects?
- Desire for Control: Do you enjoy being in charge and making decisions? Are you motivated to lead others?
- Drive and Persistence: Are you self-motivated and energetic? And are you prepared to work hard, for a very long time, to realize your goals?
- Risk Tolerance: Are you able to take risks, and make decisions when facts are uncertain?
- Resilience: Are you resilient, so that you can pick yourself up when things don't go as planned? And do you learn and grow from your mistakes and failures? (If you avoid taking action because you're afraid of failing, our article on Overcoming Fear of Failure can help you face your fears and move forward.)
As a successful entrepreneur, you'll have to work closely with people – this is where it is critical to be able to build great relationships with your team, customers, suppliers, shareholders, investors, and more.
Some people are more gifted in this area than others, but, fortunately, you can learn and improve these skills. The types of interpersonal skills you'll need include:
- Leadership and Motivation: Can you lead and motivate others to follow you and deliver your vision? And are you able to delegate work to others? As a successful entrepreneur, you'll have to depend on others to get beyond a very early stage in your business – there's just too much to do all on your own!
- Communication Skills: Are you competent with all types of communication? You need to be able to communicate well to sell your vision of the future to investors, potential clients, team members, and more.
- Listening: Do you hear what others are telling you? Your ability to listen can make or break you as an entrepreneur. Make sure that you're skilled at active listening and empathetic listening.
- Personal Relations: Are you emotionally intelligent? The higher your EI, the easier it will be for you to work with others. The good news is that you can improve your emotional intelligence!
- Negotiation: Are you a good negotiator? Not only do you need to negotiate keen prices, you also need to be able to resolve differences between people in a positive, mutually beneficial way.
- Ethics: Do you deal with people based on respect, integrity, fairness, and truthfulness? Can you lead ethically? You'll find it hard to build a happy, committed team if you deal with people – staff, customers or suppliers – in a shabby way.
Critical and Creative Thinking Skills
As an entrepreneur, you also need to come up with fresh ideas, and make good decisions about opportunities and potential projects.
Many people think that you're either born creative or you're not. However, creativity is a skill that you can develop if you invest the time and effort.
- Creative Thinking: Are you able to see situations from a variety of perspectives and come up with original ideas? (There are many creativity tools that will help you do this.)
- Problem Solving: How good are you at coming up with sound solutions to the problems you're facing? Tools such as Cause & Effect Analysis, the 5 Whys Technique, and CATWOE are just some of the problem-solving tools that you'll need to be familiar with.
- Recognizing Opportunities: Do you recognize opportunities when they present themselves? Can you spot a trend? And are you able to create a plan to take advantage of the opportunities you identify?
You also need the practical skills and knowledge needed to produce goods or services effectively, and run a company.
- Goal Setting: Do you regularly set goals, create a plan to achieve them, and then carry out that plan?
- Planning and Organizing: Do you have the talents, skills, and abilities necessary to achieve your goals? Can you coordinate people to achieve these efficiently and effectively? (Here, effective project management skills are important, as are basic organization skills.) And do you know how to develop a coherent, well thought-through business plan, including developing and learning from appropriate financial forecasts?
- Decision Making:How good are you at making decisions? Do you make them based on relevant information and by weighing the potential consequences? And are you confident in the decisions that you make?
- Core decision-making tools include Decision Tree Analysis, Grid
Analysis, and Six Thinking Hats.
- You need knowledge in several areas when starting or running a business. For instance:
- Business Knowledge: Do you have a good general knowledge of the main functional areas of a business (sales, marketing, finance, and operations), and are you able to operate or manage others in these areas with a reasonable degree of competence?
- Entrepreneurial Knowledge: Do you understand how entrepreneurs raise capital? And do you understand the sheer amount of experimentation and hard work that may be needed to find a business model that works for you?
- Opportunity-Specific Knowledge: Do you understand the market you're attempting to enter, and do you know what you need to do to bring your product or service to market?
- Venture-Specific Knowledge: Do you know what you need to do to make this type of business successful? And do you understand the specifics of the business that you want to start? (This is where it's often useful to work for a short time in a similar business.)
You can also learn from others who have worked on projects similar to the ones that you're contemplating, or find a mentor – someone else who's been there before and is willing to coach you.
As an entrepreneur, you also need to be able to navigate the rules and regulations that apply in the country you're working in. These websites will give you a good start with this:
If you choose to learn more about a particular venture by working for another organization, be aware of non-compete clauses in your employment contract. In some jurisdictions, these clauses can be very restrictive. You don't want to risk your future projects by violating the rights of another entrepreneur or organization.
Is Running a Business for You?
Armed with this information, assess your skills in each of these areas. The harder you work to build your skills, the more successful you're likely to be.
Having said that, many successful business-owners are impulsive, uncomfortable with risk, or belligerent with colleagues and customers. Still others have little business knowledge, and have simply hired the talent they need to succeed.
You can succeed without some of these skills, however, the more you're missing, the more likely you are to fail.
As you work through your analysis, you may feel that you're ready to take the plunge into your own venture. Alternatively, you may decide to wait and further develop your skills. You may even decide that entrepreneurship isn't for you.
Whatever your choice, make sure that it feels right. Running a business isn't for everyone.
While there is no one "right" set of characteristics for being a successful entrepreneur, certain general traits and practical skills will help you succeed.
By examining your own personal strengths and weaknesses and comparing these with those of the typical entrepreneur, you can get a sense of how well this career will fit with your personality.
Remember, becoming an entrepreneur is a career decision like any other. Do your homework, look at your needs and desires, and then decide whether this path is for you.
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