Characteristics Of Successful Entrepreneurs

Recently, we have talked a lot about the future of entrepreneurship. Why is this important? Entrepreneurs offer the best way out of the current economic stalemate, as well as the problems likely to be associated with jobs lost to various kinds of automation. Entrepreneurs may well provide a solution to jobs lost to robots and other automated technology. In addition, small business has always supplied the most new jobs in the US economy and around the world. This article is about what makes entrepreneurs succeed.

SOME CHARACTERISTICS OF SUCCESS

This article discusses special qualities attributed to successful entrepreneurs. While timing, luck, and just being at the right place may have a lot to do with the success of an entrepreneur, here are some other ideas about what it takes to succeed in entrepreneurship:

There have been many statements about the fact that success in any business requires unlimited passion. I have written several articles about passion and I do believe extreme passion is required for entrepreneurial success. To prevail among all the stresses and strains of running a small business one must have unwavering focus and single-minded dedication; these qualities will make it possible to conquer all obstacles.

 Extremely successful entrepreneurs realize they can learn much from those around them. They ceaselessly network with others in the business. Successful entrepreneurs never hesitate to ask for advice.

 Entrepreneurs like a challenge, so they all aspire to be an expert in their field. As exciting as the opportunity may be to enter something new, successful entrepreneurs will find immense benefits from being in the same business for a long time. When you are in the same industry for a while, you learn its history and how things are supposed to work. Knowledge of what has worked in the past is a great help in conquering the challenges of the future. Staying in the same field for a while also builds strong relationships that can propel you to success in future endeavors.

 Establishing goals is a characteristic of successful entrepreneurs. This is the result of always thinking ahead. The goals act as a roadmap for their businesses; they may change over time, but they always provide a map to success.

 The most successful entrepreneurs never stop searching for new ideas. Being what they are is a lifestyle, rather than an end destination.

 ENTREPRENEURIAL SUCCESS FACTORS

 There is no single quality that defines a successful entrepreneur, but this article discusses what is required of the best entrepreneurs. Successful entrepreneurs have some common characteristics that have contributed to the achievement of their organizations. Here are some common entrepreneurial success factors:


Something new or different introduced, or the introduction of new things or methods, describe innovation. It is the result of the ability to conceive, envision, and effectively execute new ideas. This is innovation and a necessary component of any successful business owner or entrepreneur. When planning a new idea, every entrepreneur must relate to what he enjoys doing, analyze competition, do market research, and then determine how to make the idea work. All this requires talent, initiative and creativity.


What role does the management of money play for the successful entrepreneur? Consider that money is the sea upon which a business floats. Money makes it possible to hire employees, buy goods that result in sales, provide for marketing, and all the other things a business requires. It is a critical necessity that an entrepreneur know how to manage his money.


There is a temptation among those who operate business to jump into a venture without adequate planning. To make this jump before determining exactly what you are doing almost always leads to disaster. This quick-jump mentality is not a part of the successful entrepreneur. All the way through the daily operation of every business, from market research and a business plan, to hiring and firing, a successful entrepreneur must think ahead and plan for every possibility. Another major aspect of planning is setting and achieving, or changing, goals for the business.


Every successful entrepreneur must be skilled at adaptability. From the early days of the business plan, through the daily operation of a business, conditions are constantly changing; the continuous changes require adaptability in every manager for his business to succeed. A particularly important aspect of adaptability is the requirement to ceaselessly discover and incorporate new technology into the business.
Several additional requirements for a successful business are discussed here. They are:


Create ways to retain a loyal customer base. Without people who regularly use you products or services, no business will survive for very long. Aggressive companies continuously use creative methods to develop ideas attractive to their largest customers in order to keep their loyalty and interest. Without a loyal customer base, any business will have difficulty remaining successful.


Staying ahead of your competition in the marketplace is an ideal goal, but not always achievable. While you cannot always be at the very top of your customers' market, you must strive to at least appear to be leading the product market for your customers. You must make your company recognized as one that stays abreast of changes in the total market.


FACTORS AFFECTING SMALL BUSINESS SUCCESS

 Here, here, and here are three discussions of the things that make entrepreneurs succeed or fail in the small business world. The rule of thumb for success among entrepreneurs is that only one-third will eventually make a profit, one-third may break even, and the rest will lose money. If they last four years, half of new small businesses will fail. The entrepreneur determines the success or failure of his business, and there are some common factors that indicate success. Some of them are:

• Owning a successful small business requires drive in the entrepreneur. A strong sense of drive makes it possible for the owner to weather difficult situations and the continuous stress level that goes along with every small business.
  
  
• Successful entrepreneurs must possess creative thinking and reasoning skills in order to determine a strategy for their company to continue operating profitably.
  
  
• It is necessary for success that the owner have the ability to deal with people. This includes employees, vendors, and, most important, customers.
  
  
• Increasing use of technology in every business means a successful entrepreneur must be comfortable in this technological environment.
  
  
• An unusual requirement for business success was exposed in a 2009 study by the Kaufman Foundation. 73% of the respondents said luck played a significant part in business success.
  
  
• Knowing the product you are selling has a direct effect on the success of your business. This means the more experience, and the more education, you have will be a determinate of your success.
  
  
• Passion for the business you are in will guide you through the most unexpected problems you will face.
  
  
• Your business plan is the roadmap you will use to operate the business. It should include every aspect of the things your business will need. Some of these are personnel needs, budgets, sales and marketing procedures, manufacturing processes, and revenue projections. Ask for, and include, suggestions from others familiar with your business. As time goes on, continuously update your plan to include changes in the business.
  
  
• Every successful entrepreneur will spend time on cost control. The money you manage to save can be applied to enlarging your product line, or increasing your marketing plan.
  
  
• While it is necessary to change your plan with changing business conditions, there should be no tendency to unnecessarily make changes. Rather, the tendency should be to follow your plan and press forward.
  
  
• It is easy to become distracted away from your business plan. This begins to happen when an important customer asks for something special. Then another one asks for something else. Pretty soon the entrepreneur is operating all over the place. This is where focus is necessary to keep the business on track.
  
  
• Successful entrepreneurs will be competent; this means they will possess a high degree of accountability for their actions. When they tell you something, they must be specific about exactly when they will do something; don't use phrases like, "I'll get back to you later." Say, instead, "I'll get back to you by two o'clock today."

IMPORTANT FACTORS TO CONSIDER BEFORE LAUNCHING A NEW VENTURE

 This discussion lists the things an entrepreneur should consider before jumping in to any new business. The article is intended for over 50 baby boomers who are considering beginning a new career; however, most of them apply to anyone considering a new business. Here they are exactly as presented in the discussion:

• Can you clearly describe the problem your business will solve or the need it will satisfy? People and businesses pay for superior solutions—it's that simple. So can you describe the problem you can solve better than others or the need you are tops at satisfying?
  
  
• Are you comfortable with running a low-cost business? Some former corporate types insist on a fancy office suite filled with furniture that rents for hundreds of dollars per month. Some business concepts, such as high-end consulting, demand such an arrangement. The vast majority of boomer entrepreneurs, however, need to save on rent by locating at home; use every discount and deal around; and buy help from outside service providers "as needed."
  
  
• How comfortable are you with a shade of gray? Successful entrepreneurs will tell you that their most important motivating force is their ability to avoid "decision by committee" when they decide to turn an idea into a new source of revenue. But most will also caution that an entrepreneur's life is often ambiguous until well into the business development process—this lack of initial certainty is not for everyone.
  
  
• How good is your network? Before you start the first paragraph of your business plan, you should be able to write down a description of who will be your initial group of prospective customers—either by name or described by whom in your network can introduce you.
  
  
• How does your life vision fit your income needs? Typically over-50 entrepreneurs come into the business planning process a bit burnt out emotionally from their time in the corporate world. Therefore, when asked to describe their ideal business venture, they often talk about how they only want to work part-time during a typical week and intend to not work at all some weeks of the year. This is fine, as long as you are realistic in what level of income you can produce from this time commitment.
  
  
• Are you more of an outside or inside person? Let's face it, many of us have had corporate jobs that did not fit our personalities all that well. Starting a business after 50 is a great opportunity to come as close as you can to "the ideal job." So you need to be honest with yourself about what style of work best suits you—for example, do you thrive on mixing and mingling with people every day or do you prefer to work behind the scenes in satisfying your customers?
  
  
• Are you willing to be taught? When you launch a business a bit later in life, you don't have as much time to learn by doing. You may only want to run your business for five or six years, so you need to be ready to let others teach you what you need to know to fill in the blanks from your corporate career. And this sometimes requires sucking it up and getting instruction from a twenty-something-year-old.
  
  
• Are you prepared to pump up your technology smarts? Chances are good that you know how to use a word processing program, send and receive e-mail and surf the web. For many new businesses, this may be all the technology smarts you need. But some businesses require a more advanced set of skills, such as running an e-commerce business where you need to know search engine optimization, autoresponders and shopping cart software. Make sure that you're ready to get up to speed with the technology demanded by your particular business.
  
  
• Are you ready to run it full-time for a while? It's a very appealing notion that you can earn a $100,000-a-year income only working two days a week. And this is quite possible—just not in the first or possibly second year of your business.
  
  
• How are your customer service skills? Sad to say, but not all corporate sellers go out of their way to nurture their customers. If you've worked for one, you may need to relearn how really good customer service is presented.

CONFIDENCE IN ENTREPRENEURIAL SUCCESS

 This Kaufman/Legal Zoom survey shows a high level of confidence in their businesses during the next 12 months. The survey went to 1,742 entrepreneurs; 87% had four or less employees in their businesses. Here are some of the results, exactly as reported by the survey:

• 85% of polled entrepreneurs are "confident or very confident" that their businesses will be more profitable in the next 12 months.
  
  
• 93% of 18-to-30 year-olds are expecting to see profits climb in the next year.
  
  
• 91% of 31-to-40 year olds think the same, while 76% of owners 60 years or older are confident in better profits for the next year.
  
  
• 74% of entrepreneurs think the economy will improve or stay the same in the next year.
  
  
• 49% of entrepreneurs believe consumer demand will increase "moderately to significantly" in the next year.
  
  
• 37% plan to hire employees in the next year. Nearly 70% say they'll have six or more employees within the next five years.