3 Reasons Why People Become Entrepreneurs
By MotherThumper
So, your boss is a slave-driving, insensitive jack-wagon who is only interested in themselves and squeezing more work out of you. Maybe the company you work for has their sights set on eliminating you from the payroll for some reason? Maybe you are just tired of making other people rich? You have always dreamed about becoming an entrepreneur and making it on your own, under your own power of success or failure. There are three reasons why people strive to become entrepreneurs and start up their own businesses.
The first reason “ I want to be my own boss ” is the most common answer given when asked why people want to start their own business. Wanting to be your own boss doesn’t mean you were a bad employee or difficult to work with or have trouble accepting authority. It is more likely you had a life-long desire to start your own company or you are simply frustrated working with people who just seem to not have a clue or just don’t care.
The second reason why people consider becoming an entrepreneur is to pursue their own ideas. Perhaps you notice things that others in your workplace don’t see. You have the vision to see opportunities for new products or services that are not currently being offered by your company and you want to see those ideas realized. It is not unusual for companies to resist innovation. On the other side of the plate, maybe you see a problem in everyday life that needs fixing or a way something could be done better and you have a desire to bring your solution to the marketplace.
Finally, the third reason people become entrepreneurs is to pursue financial rewards. Don’t be fooled though, typically this reason is secondary to the first two reasons and often fails to live up to the hype. The average entrepreneur does not make more money than a similar person with a similar amount of responsibility working in a traditional job. Now, don’t get me wrong, there is certainly money to be made by being an entrepreneur. Take a look at Steve Jobs (Apple co-founder) or Richard Branson (Virgin Records, Virgin Airways, Virgin Mobile, etc..), they are two very wealthy entrepreneurs who defied all the odds to become mega-rich. I read a piece on Richard Branson, talking about when he sold Virgin Records for something like a billion dollars. He walked down the street after the sale was completed and he was crying. Not because he had a huge check in his pocket, but for Branson, being an entrepreneur was about the building of a company and the thrill of seeing the business succeed from his initial idea.
That is the true heart of an entrepreneur. An entrepreneur is someone who is not looking for the get-rich-quick scheme, but someone who is looking for a challenge. An entrepreneur is somebody who is looking to build something that they can be proud of and bring new employees into the mix and be a job creator and be an upstanding citizen in their community. An entrepreneur is a person who can stand on their own two feet at the end of the day and say to the world, “ I did it my way, thanks for coming along for the ride.”
Saturday, March 10, 2012
10 Reasons You Should be an Entrepreneur
10 Reasons You Should be an Entrepreneur
by Bamidele
Being an entrepreneur can be one of the best decisions you will ever take in life but you don’t just jump into things without knowing why, this post will be listing 10 reasons why you should be an entrepreneur.
1. Be Your Own Boss.
Nothing can be more frustrating than taking orders from the same person all the time. Even if taking orders is okay, what happens if your life depends on taking orders? Failure to obey your boss can kick you out of your job.
Being an entrepreneur puts and end to this and you don’t have to answer or take orders from any boss anymore, you live your life as it pleases you, you do things as you want.
We all have various ways of doing things and what works for me might not work for you, if you are working under a boss your boss can make you do things against your will if he believe that is what works best but as an entrepreneur you don’t have to face all this, you do as it pleases you.
2. Work at Your Own Schedule.
Having a 9-5 job can be very stressful, you have to leave for work 9am every morning and you have no choice until 5pm in the evening, being an entrepreneur helps you overcome this and you can decide if you want to be working from 2pm in the noon till 6pm in the evening, it depends on you.
Depending on how and where your business operates, you can even work at night and sleep at day as an entrepreneur, you can decide to live a different way of life – and this is what a 9-5 job will never provide.
3. No Limit to Your Progress.
As far as working under someone is concerned, there is a limit to what you can be. You can never exceed your boss. Being an entrepreneur helps you overcome this limitation and whether you want to be a CEO or a sales representative, it is yours to decide.
Another thing about working a 9-5 job is that it doesn’t matter how great your idea is and how it can help improve the company you are working for it is up to your CEO to decide, if you offer the advice and it is rejected there is nothing you can do and the company will remain in a low state which will also affect you but being an entrepreneur helps you overcome this. Since you are in charge of your business you will be the one executing ideas and you can determine if you want your company to only have a branch in the streets or be a fortune 100 company.
4. Determine Your Location.
Have you ever thought about working where you want? This might still be strange to you if you work a 9-5 job but one great advantage of being an entrepreneur is that you are able to determine your location. As an entrepreneur you can determine if you want to work in Africa or America but when working 9-5 you have no choice than to work in the constraint of your office.
As an entrepreneur you can also decide if you want to be changing your location every month but a 9-5 job won’t afford you that, the final location can only be determined by your boss.
5. Vacate When You Want.
Being an entrepreneur also affords you the ability to vacate when you want which a 9-5 job can’t afford. You can easily decide if you want to be at home every thursday and friday of the week but a 9-5 job will never afford you that.
Trying to take 3 days leave from your work in one month can even be a problem, let alone doing that every month – as an entrepreneur, that is no problem and you can even decide to take a 10 days off from your business, it all depends on you.
6. Determine Whom You Work With.
As an entrepreneur your business is yours and you can determine if you want to work with friends and relatives or any other person, this a 9-5 job can never afford. If you are working a 9-5 job, it doesn’t matter if your greatest enemy is your colleague, you just have to work together.
Choosing whom we work with is sometimes very important for the growth of a business because you can decide to work with other like-minded people who also have an entrepreneurial spirit and are ready to help you grow, there is just no restriction to whom you can work with.
7. Unlimited Earnings Potential.
There is a limit to what you can earn while working your 9-5 job, it doesn’t matter if your company doubled its income that month you will still be paid the same amount you are supposed to be paid but as an entrepreneur, since you own your business there is no limit to what you can earn, all you need to do is be very creative and look for various ways to improve your income.
8. Freedom of Speech.
If I ask you if you have freedom of speech I am sure you will come up with a resounding YES! If you are working a 9-5 job I can assure you this is not true, you have no freedom of speech!
When working a 9-5 job you can’t just talk to your boss anyhow because talking to your boss anyhow can lead to you being fired (Go call your boss a jerk if you don’t believe this!) but as an entrepreneur it doesn’t matter if you are talking to the CEO of one big company or a 12-year-old boy you still have right to the same words, you are simply not afraid of anybody.
9. Automate Your Income.
Another great advantage of being an entrepreneur is the ability to automate your income. You can easily employ people to help you manage your business while you tour the world but this isn’t possible in your usual 9-5 job, trying to do is you signing your sack letter.
Also, as an entrepreneur your income is not affected by how you work, you can determine if you want to be paid whether you work or not, you can also determine of you want to create your automatic income machine but this is not possible in your regular day job, you have to follow the working guidelines put together by your boss, failure to do this might result in something else.
10. Passive Income and knowledge Stream.
You can decide to spread yourself into as many businesses as you want when working as an entrepreneur but your 9-5 job won’t allow this, you have to be in the office every time, and not only in the office but also doing the things of the office.
One great advantage entrepreneurs have is that they can create passive income streams and also improve their knowledge in so many ways. You can decide to have a big company under your belt while at the same time doing some other business, you are not restricted by anything.
Another disadvantage of working a 9-5 job is that you don’t know much about subjects other than the area you work but entrepreneurs deal with as many businesses as they can and gaining more business knowledge isn’t a problem.
The Reality
Being an entrepreneur beats working the 9-5, you don’t have to sit in one office trying to please another man and you are not restricted to one location, you can work where you want. You also have your freedom of speech and you can say whatever comes to your mouth. In fact, as an entrepreneur you can go on doing crazy things.
by Bamidele
Being an entrepreneur can be one of the best decisions you will ever take in life but you don’t just jump into things without knowing why, this post will be listing 10 reasons why you should be an entrepreneur.
1. Be Your Own Boss.
Nothing can be more frustrating than taking orders from the same person all the time. Even if taking orders is okay, what happens if your life depends on taking orders? Failure to obey your boss can kick you out of your job.
Being an entrepreneur puts and end to this and you don’t have to answer or take orders from any boss anymore, you live your life as it pleases you, you do things as you want.
We all have various ways of doing things and what works for me might not work for you, if you are working under a boss your boss can make you do things against your will if he believe that is what works best but as an entrepreneur you don’t have to face all this, you do as it pleases you.
2. Work at Your Own Schedule.
Having a 9-5 job can be very stressful, you have to leave for work 9am every morning and you have no choice until 5pm in the evening, being an entrepreneur helps you overcome this and you can decide if you want to be working from 2pm in the noon till 6pm in the evening, it depends on you.
Depending on how and where your business operates, you can even work at night and sleep at day as an entrepreneur, you can decide to live a different way of life – and this is what a 9-5 job will never provide.
3. No Limit to Your Progress.
As far as working under someone is concerned, there is a limit to what you can be. You can never exceed your boss. Being an entrepreneur helps you overcome this limitation and whether you want to be a CEO or a sales representative, it is yours to decide.
Another thing about working a 9-5 job is that it doesn’t matter how great your idea is and how it can help improve the company you are working for it is up to your CEO to decide, if you offer the advice and it is rejected there is nothing you can do and the company will remain in a low state which will also affect you but being an entrepreneur helps you overcome this. Since you are in charge of your business you will be the one executing ideas and you can determine if you want your company to only have a branch in the streets or be a fortune 100 company.
4. Determine Your Location.
Have you ever thought about working where you want? This might still be strange to you if you work a 9-5 job but one great advantage of being an entrepreneur is that you are able to determine your location. As an entrepreneur you can determine if you want to work in Africa or America but when working 9-5 you have no choice than to work in the constraint of your office.
As an entrepreneur you can also decide if you want to be changing your location every month but a 9-5 job won’t afford you that, the final location can only be determined by your boss.
5. Vacate When You Want.
Being an entrepreneur also affords you the ability to vacate when you want which a 9-5 job can’t afford. You can easily decide if you want to be at home every thursday and friday of the week but a 9-5 job will never afford you that.
Trying to take 3 days leave from your work in one month can even be a problem, let alone doing that every month – as an entrepreneur, that is no problem and you can even decide to take a 10 days off from your business, it all depends on you.
6. Determine Whom You Work With.
As an entrepreneur your business is yours and you can determine if you want to work with friends and relatives or any other person, this a 9-5 job can never afford. If you are working a 9-5 job, it doesn’t matter if your greatest enemy is your colleague, you just have to work together.
Choosing whom we work with is sometimes very important for the growth of a business because you can decide to work with other like-minded people who also have an entrepreneurial spirit and are ready to help you grow, there is just no restriction to whom you can work with.
7. Unlimited Earnings Potential.
There is a limit to what you can earn while working your 9-5 job, it doesn’t matter if your company doubled its income that month you will still be paid the same amount you are supposed to be paid but as an entrepreneur, since you own your business there is no limit to what you can earn, all you need to do is be very creative and look for various ways to improve your income.
8. Freedom of Speech.
If I ask you if you have freedom of speech I am sure you will come up with a resounding YES! If you are working a 9-5 job I can assure you this is not true, you have no freedom of speech!
When working a 9-5 job you can’t just talk to your boss anyhow because talking to your boss anyhow can lead to you being fired (Go call your boss a jerk if you don’t believe this!) but as an entrepreneur it doesn’t matter if you are talking to the CEO of one big company or a 12-year-old boy you still have right to the same words, you are simply not afraid of anybody.
9. Automate Your Income.
Another great advantage of being an entrepreneur is the ability to automate your income. You can easily employ people to help you manage your business while you tour the world but this isn’t possible in your usual 9-5 job, trying to do is you signing your sack letter.
Also, as an entrepreneur your income is not affected by how you work, you can determine if you want to be paid whether you work or not, you can also determine of you want to create your automatic income machine but this is not possible in your regular day job, you have to follow the working guidelines put together by your boss, failure to do this might result in something else.
10. Passive Income and knowledge Stream.
You can decide to spread yourself into as many businesses as you want when working as an entrepreneur but your 9-5 job won’t allow this, you have to be in the office every time, and not only in the office but also doing the things of the office.
One great advantage entrepreneurs have is that they can create passive income streams and also improve their knowledge in so many ways. You can decide to have a big company under your belt while at the same time doing some other business, you are not restricted by anything.
Another disadvantage of working a 9-5 job is that you don’t know much about subjects other than the area you work but entrepreneurs deal with as many businesses as they can and gaining more business knowledge isn’t a problem.
The Reality
Being an entrepreneur beats working the 9-5, you don’t have to sit in one office trying to please another man and you are not restricted to one location, you can work where you want. You also have your freedom of speech and you can say whatever comes to your mouth. In fact, as an entrepreneur you can go on doing crazy things.
15 Reasons Not To Be An Entrepreneur
15 Reasons Not To Be An Entrepreneur
While successful entrepreneurs may tell you that starting your own business is hugely rewarding, and that everyone should pursue entrepreneurship as an ultimate goal, there are a substantial number of reasons for why entrepreneurship may not be the ideal choice for a large number of people. So before you ditch the salary, consider what it takes to be a successful and effective entrepreneur. Here are fifteen reasons why you should not be an entrepreneur.
15. Long Working Hours – Working under someone else, you can expect to work a set number of hours and very rarely any more. When you become an entrepreneur, you have to work an endless number of hours. The days stretch on and you may have trouble getting home often if at all. Work will also come home with you, becoming a focus of attention in your home life.
14. Sacrificing Quality Time – As a new entrepreneur, you will find yourself sacrificing time with your family, your friends, your favorite hobbies and past times, and many other aspects of your life. Your new business will consume you for long periods of time, likely to the point where you go from the red to the black, which could actually take a number of years.
13. Hard Work – As an entrepreneur, you will find that the work load never ceases, no matter how many hours are in the day, or how many employees you bring on for assistance. Growth always leaves room for “more” – so don’t think that success will allow you to kick back. Furthermore, the more people you bring on board to take over you own responsibilities, the more people management you have to do, thus reducing your own productivity. You’ll want to find good, passionate workers who can manage themselves.
12. Difficulty Finding Investment – In order to become an entrepreneur and open your very own business, a substantial investment will be required, and many new entrepreneurs have difficulty obtaining financing on their own. Now that we’re in the middle of an economic downturn, investment deemed high risk may be even more difficult to find.
11. Uncertainty – Simply put, entrepreneurship is an uncertain endeavor. Even if you go into the process with planning, anything can happen and you cannot be prepared for it all no matter how you try. The entire entrepreneurial process is about hoping for success, but never really knowing where things will turn. While there is some level of certainty in business, there is also a large amount of discomfort for hopeful entrepreneurs who do not know where things will lead.
10. Dealing With The Problem Of Inconsistent Income – Startups typically are backed by cash, but there isn’t a never-ending pot of gold on tap just for you and your company. The fact of the matter is that you and your bank manager will probably become quite well acquainted. If you have poor skills in dealing with the intricacies of business finance then setting up your own company is probably not such a good idea (unless your father happens to be rich and altruistic).
9. Risk Of Failure – The problem with investing capital into a new business is that if the business tanks, you will lose all that money. If you had to take out a bank loan, or a second mortgage, in order to come by the money that you required, then you will have to find a way to pay that money back without having a job or a business to assist you. But what can be even more damaging is the sense that you failed, you weren’t good enough, you’re idea was poorly received by peers. Before you set off on your journey as an entrepreneur you should seriously consider whether you are mentally resilient enough to cope with the possibility of failure.
8. Lack Of Reward Begats Lower Motivation – When running your own business, there really is no telling when you will be rewarded or even how you will be rewarded. You may hope for a bigger bank balance or aspire to develop an industry leading product, but that can’t happen without motivation and drive. Becoming an entrepreneur essentially means taking risks in hope of receiving reward, but without ever really knowing when the reward will come. If that’s something you can’t deal with, then starting your own business is not the ideal choice.
7. Personality Problems – So much of being a successful entrepreneur relies solely on your ability to generate buzz, to garner a following, to create something out of nothing. If you are a quiet and introverted person, you’ll probably find yourself at a disadvantage compared to a seasoned and confident businessman.
6. Finding Good Staff Is A Challenge – Any budding startup is not much more than an idea backed by people. You could outsource the development of your service or product to 10 average offshore programmers, but they still won’t be as good as one excellent (and more expensive) programmer who believes in the product and can come into the office each day. The trouble is, brilliant programmers are hard to find and even more difficult to keep.
5. Dealing With The Possibility Of Failure – If your business fails, you will be losing much more than a way to pass the time. You may lose your home or other vital assets if you cannot meet repayments. Any unsecured debt that you have accrued on cards or loans will still need paying, which means your credit rating will take a beating. There’s also the potential damage to your self confidence, which will make it more difficult to start another business in the future.
4. Working With A Tight Budget – Raising the financing that you need as an entrepreneur is not simple. If you are a first time business owner, you will have difficulty convincing a lender to work with you, which can make entrepreneurship quite difficult. So when it comes to kitting out your office you’ll need to think of every possible way to save and get the most out of every single cent.
3. Managing Cashflow Is Tricky – Without knowing when your next paycheck will come, and with bills, loan repayment and other expenses looming, becoming an entrepreneur can be financially demanding.
2. The Lack of Benefits – By becoming an entrepreneur you will lose out on the 401k, health benefits, life insurance and other benefits that working for a normal company would grant you. You can acquire them your own self, but usually for a much greater cost.
1. Dealing With Negative Feedback – Who will you turn to in times of stress? Who can you trust? As an entrepreneur, you have no real support system to turn to, which can spell disaster for many budding businesses. You need to create a culture where negative feedback is a good thing, in fact, it should be encouraged and fostered into acceptance. If you want your product to be taken seriously then it has to be great, so there’s absolutely no point burying your head in the sand any time someone points out a flaw.
While successful entrepreneurs may tell you that starting your own business is hugely rewarding, and that everyone should pursue entrepreneurship as an ultimate goal, there are a substantial number of reasons for why entrepreneurship may not be the ideal choice for a large number of people. So before you ditch the salary, consider what it takes to be a successful and effective entrepreneur. Here are fifteen reasons why you should not be an entrepreneur.
15. Long Working Hours – Working under someone else, you can expect to work a set number of hours and very rarely any more. When you become an entrepreneur, you have to work an endless number of hours. The days stretch on and you may have trouble getting home often if at all. Work will also come home with you, becoming a focus of attention in your home life.
14. Sacrificing Quality Time – As a new entrepreneur, you will find yourself sacrificing time with your family, your friends, your favorite hobbies and past times, and many other aspects of your life. Your new business will consume you for long periods of time, likely to the point where you go from the red to the black, which could actually take a number of years.
13. Hard Work – As an entrepreneur, you will find that the work load never ceases, no matter how many hours are in the day, or how many employees you bring on for assistance. Growth always leaves room for “more” – so don’t think that success will allow you to kick back. Furthermore, the more people you bring on board to take over you own responsibilities, the more people management you have to do, thus reducing your own productivity. You’ll want to find good, passionate workers who can manage themselves.
12. Difficulty Finding Investment – In order to become an entrepreneur and open your very own business, a substantial investment will be required, and many new entrepreneurs have difficulty obtaining financing on their own. Now that we’re in the middle of an economic downturn, investment deemed high risk may be even more difficult to find.
11. Uncertainty – Simply put, entrepreneurship is an uncertain endeavor. Even if you go into the process with planning, anything can happen and you cannot be prepared for it all no matter how you try. The entire entrepreneurial process is about hoping for success, but never really knowing where things will turn. While there is some level of certainty in business, there is also a large amount of discomfort for hopeful entrepreneurs who do not know where things will lead.
10. Dealing With The Problem Of Inconsistent Income – Startups typically are backed by cash, but there isn’t a never-ending pot of gold on tap just for you and your company. The fact of the matter is that you and your bank manager will probably become quite well acquainted. If you have poor skills in dealing with the intricacies of business finance then setting up your own company is probably not such a good idea (unless your father happens to be rich and altruistic).
9. Risk Of Failure – The problem with investing capital into a new business is that if the business tanks, you will lose all that money. If you had to take out a bank loan, or a second mortgage, in order to come by the money that you required, then you will have to find a way to pay that money back without having a job or a business to assist you. But what can be even more damaging is the sense that you failed, you weren’t good enough, you’re idea was poorly received by peers. Before you set off on your journey as an entrepreneur you should seriously consider whether you are mentally resilient enough to cope with the possibility of failure.
8. Lack Of Reward Begats Lower Motivation – When running your own business, there really is no telling when you will be rewarded or even how you will be rewarded. You may hope for a bigger bank balance or aspire to develop an industry leading product, but that can’t happen without motivation and drive. Becoming an entrepreneur essentially means taking risks in hope of receiving reward, but without ever really knowing when the reward will come. If that’s something you can’t deal with, then starting your own business is not the ideal choice.
7. Personality Problems – So much of being a successful entrepreneur relies solely on your ability to generate buzz, to garner a following, to create something out of nothing. If you are a quiet and introverted person, you’ll probably find yourself at a disadvantage compared to a seasoned and confident businessman.
6. Finding Good Staff Is A Challenge – Any budding startup is not much more than an idea backed by people. You could outsource the development of your service or product to 10 average offshore programmers, but they still won’t be as good as one excellent (and more expensive) programmer who believes in the product and can come into the office each day. The trouble is, brilliant programmers are hard to find and even more difficult to keep.
5. Dealing With The Possibility Of Failure – If your business fails, you will be losing much more than a way to pass the time. You may lose your home or other vital assets if you cannot meet repayments. Any unsecured debt that you have accrued on cards or loans will still need paying, which means your credit rating will take a beating. There’s also the potential damage to your self confidence, which will make it more difficult to start another business in the future.
4. Working With A Tight Budget – Raising the financing that you need as an entrepreneur is not simple. If you are a first time business owner, you will have difficulty convincing a lender to work with you, which can make entrepreneurship quite difficult. So when it comes to kitting out your office you’ll need to think of every possible way to save and get the most out of every single cent.
3. Managing Cashflow Is Tricky – Without knowing when your next paycheck will come, and with bills, loan repayment and other expenses looming, becoming an entrepreneur can be financially demanding.
2. The Lack of Benefits – By becoming an entrepreneur you will lose out on the 401k, health benefits, life insurance and other benefits that working for a normal company would grant you. You can acquire them your own self, but usually for a much greater cost.
1. Dealing With Negative Feedback – Who will you turn to in times of stress? Who can you trust? As an entrepreneur, you have no real support system to turn to, which can spell disaster for many budding businesses. You need to create a culture where negative feedback is a good thing, in fact, it should be encouraged and fostered into acceptance. If you want your product to be taken seriously then it has to be great, so there’s absolutely no point burying your head in the sand any time someone points out a flaw.
Top 4 Reasons Why People Don’t Want To Become an Entrepreneur
Top 4 Reasons Why People Don’t Want To Become an Entrepreneur
By Samuel
Many people love to be an entrepreneur but due to one reason or the other they find it difficult to become an entrepreneur. Little did they know that if they want to have a real life, they should be an entrepreneur.
I’m sure most of you might be saying that, if everybody should become an entrepreneur who else will remain in the world? The fact is, not everybody will be an entrepreneur, it’s not today the word”Entrepreneurship” has been in existence.
Entrepreneurship had been in existence before I was born. I’m sure many people who were born by that time must have heard about the world entrepreneurship? And they must have known the cons and pros of entrepreneurship? So if I may ask you, why didn’t they become an entrepreneur?
Only few who want to have a real life will become an entrepreneur. If I should keep preaching from today till tomorrow only few will listen and little will take action.
When Jesus was sent to preach to the masses in order to change their ways and believe in God, is it all those he preached to that listen to him? Or is it all those he preached to that believe in GOD? No! Not all of them follow his path.
In this post I will be talking about the reasons why people don’t want to become an entrepreneur; below are the reasons:
Scared Of What People Will Say
Most of the people who want to become an entrepreneur are scared to do so because they are scared of what people will say about their new mission.
These kinds of people get influenced easily by external forces. By the way, why should you pay your mind to people who will never for once give you the right mindset or the confidence to try out new things in your life? If you are the kind of person who is always scared of what people will say when trying to explore new things in life, then you can’t go far.
I see this entrepreneurship game as an adventure, so when I fail I will rise up and learn from my mistakes. Also, I will always try to stay faithful to the process.
When I made up my mind to become an entrepreneur, many people laughed at me and saying all sort of rubbish about the route I’m taking. But one thing I noticed in them is that, they also feel like transitioning but the fear in them is pulling them backward so they try to cover up their fears and pretend as if they know nothing.
If you really want to become an entrepreneur and you are sure that you really want to become an entrepreneur, pay no mind to what people will say and follow your gut. You came into this world alone so I see no reason why you should follow the crowd by default.
I’m urging you to follow your gut and don’t be scared of what people will say. See, in this life, people are meant to talk and you can’t stop them, you just have to do your thing in your own way and switch on the “pay no mind mode” to what people will say.
They See It As A Waste Of Time
Many people do think that starting a business is a waste of time. Even if you continue to tell them the fact, they will never listen.
People who are fond of saying that “starting a business is a waste of time” are people who are scared of what the outcome will be. The people in this category are mostly old people. Most of them have families to take care of and they can’t endure when the business is not booming.
Well the advise I can give to this kind of people is to start a part-time business, and as times goes on, I mean when the business start getting traction they can become a full-time entrepreneur.
So if you think that starting a business is a waste of time, I guess seeking for a job won’t be a waste of time for you. Keep searching and may God help you through!
They Believe In High Paying Job With Benefits
These kinds of people believe in high paying job with good benefits. I’m not saying that seeking for a high paying job with good benefits is not good. But what if things change and you are no more getting the huge pay check you used to get at the end of the month?
The company you are working for today might have a huge problem tomorrow, and there’s no guarantee that you will still be getting the huge paycheck! The world of jobs is very competitive, a young post-graduate might challenge your position in the company you’re working for and instead of your boss to give you a promotion letter, he will not do that until you go to school and earn more degree before he can have mercy on you. But for the young post-graduate, he will automatically give the young employee the promotion and you will get doomed.
Those people who believe in high paying jobs with good benefits are the kind of people who cherish luxuries so much. Though everybody cherish luxuries but the rate at which these kinds of people cherish it is beyond normal (or am I exaggerating?). They love living large and they believe that the huge paycheck will keep coming in every month.
When the huge paycheck stops coming in or they get laid off from their jobs, that’s when they will consider starting their own business. And when they get into the business world they end up liquidating, thinking that God has not favored them.
These are the kind of people who end up seeking for any kind of job and after some time, they end up like Poor Dad!
So if you are thinking that seeking for a job with high benefits will make you have a real life, then go ahead. Wish you good luck!
Not Ready To Take On A Short Term Pain For A Long Term Gain
People are damn too lazy; most of the people who say that business is a waste of time are people who are not ready to take on a short term pain for a long term gain.
I can’t lie to you, building a successful business empire requires hard work and persistence. If you can’t give it what it takes to build a successful business then you are not fit to be an entrepreneur.
Before making up my mind to become an entrepreneur, I know I will come across different obstacles but that doesn’t stop me from moving on. I know that I will only be taking on a short term pain for a long term gain. So any obstacles I’m facing today will definitely pass away. The more you think about it, the more fear you impose in yourself.
So if you are ready to take on a short term pain for a long term gain, then you are welcome on board! I owe you a handshake
Conclusion:
I’m not saying that you should become an entrepreneur by all means, besides entrepreneurship is not meant for everyone. But if you think you want to become an entrepreneur and you want to have a real life, then you are welcome on board. Life is damn too short to bother ourselves about it. Follow your gut and be yourself.
By Samuel
Many people love to be an entrepreneur but due to one reason or the other they find it difficult to become an entrepreneur. Little did they know that if they want to have a real life, they should be an entrepreneur.
I’m sure most of you might be saying that, if everybody should become an entrepreneur who else will remain in the world? The fact is, not everybody will be an entrepreneur, it’s not today the word”Entrepreneurship” has been in existence.
Entrepreneurship had been in existence before I was born. I’m sure many people who were born by that time must have heard about the world entrepreneurship? And they must have known the cons and pros of entrepreneurship? So if I may ask you, why didn’t they become an entrepreneur?
Only few who want to have a real life will become an entrepreneur. If I should keep preaching from today till tomorrow only few will listen and little will take action.
When Jesus was sent to preach to the masses in order to change their ways and believe in God, is it all those he preached to that listen to him? Or is it all those he preached to that believe in GOD? No! Not all of them follow his path.
In this post I will be talking about the reasons why people don’t want to become an entrepreneur; below are the reasons:
Scared Of What People Will Say
Most of the people who want to become an entrepreneur are scared to do so because they are scared of what people will say about their new mission.
These kinds of people get influenced easily by external forces. By the way, why should you pay your mind to people who will never for once give you the right mindset or the confidence to try out new things in your life? If you are the kind of person who is always scared of what people will say when trying to explore new things in life, then you can’t go far.
I see this entrepreneurship game as an adventure, so when I fail I will rise up and learn from my mistakes. Also, I will always try to stay faithful to the process.
When I made up my mind to become an entrepreneur, many people laughed at me and saying all sort of rubbish about the route I’m taking. But one thing I noticed in them is that, they also feel like transitioning but the fear in them is pulling them backward so they try to cover up their fears and pretend as if they know nothing.
If you really want to become an entrepreneur and you are sure that you really want to become an entrepreneur, pay no mind to what people will say and follow your gut. You came into this world alone so I see no reason why you should follow the crowd by default.
I’m urging you to follow your gut and don’t be scared of what people will say. See, in this life, people are meant to talk and you can’t stop them, you just have to do your thing in your own way and switch on the “pay no mind mode” to what people will say.
They See It As A Waste Of Time
Many people do think that starting a business is a waste of time. Even if you continue to tell them the fact, they will never listen.
People who are fond of saying that “starting a business is a waste of time” are people who are scared of what the outcome will be. The people in this category are mostly old people. Most of them have families to take care of and they can’t endure when the business is not booming.
Well the advise I can give to this kind of people is to start a part-time business, and as times goes on, I mean when the business start getting traction they can become a full-time entrepreneur.
So if you think that starting a business is a waste of time, I guess seeking for a job won’t be a waste of time for you. Keep searching and may God help you through!
They Believe In High Paying Job With Benefits
These kinds of people believe in high paying job with good benefits. I’m not saying that seeking for a high paying job with good benefits is not good. But what if things change and you are no more getting the huge pay check you used to get at the end of the month?
The company you are working for today might have a huge problem tomorrow, and there’s no guarantee that you will still be getting the huge paycheck! The world of jobs is very competitive, a young post-graduate might challenge your position in the company you’re working for and instead of your boss to give you a promotion letter, he will not do that until you go to school and earn more degree before he can have mercy on you. But for the young post-graduate, he will automatically give the young employee the promotion and you will get doomed.
Those people who believe in high paying jobs with good benefits are the kind of people who cherish luxuries so much. Though everybody cherish luxuries but the rate at which these kinds of people cherish it is beyond normal (or am I exaggerating?). They love living large and they believe that the huge paycheck will keep coming in every month.
When the huge paycheck stops coming in or they get laid off from their jobs, that’s when they will consider starting their own business. And when they get into the business world they end up liquidating, thinking that God has not favored them.
These are the kind of people who end up seeking for any kind of job and after some time, they end up like Poor Dad!
So if you are thinking that seeking for a job with high benefits will make you have a real life, then go ahead. Wish you good luck!
Not Ready To Take On A Short Term Pain For A Long Term Gain
People are damn too lazy; most of the people who say that business is a waste of time are people who are not ready to take on a short term pain for a long term gain.
I can’t lie to you, building a successful business empire requires hard work and persistence. If you can’t give it what it takes to build a successful business then you are not fit to be an entrepreneur.
Before making up my mind to become an entrepreneur, I know I will come across different obstacles but that doesn’t stop me from moving on. I know that I will only be taking on a short term pain for a long term gain. So any obstacles I’m facing today will definitely pass away. The more you think about it, the more fear you impose in yourself.
So if you are ready to take on a short term pain for a long term gain, then you are welcome on board! I owe you a handshake
Conclusion:
I’m not saying that you should become an entrepreneur by all means, besides entrepreneurship is not meant for everyone. But if you think you want to become an entrepreneur and you want to have a real life, then you are welcome on board. Life is damn too short to bother ourselves about it. Follow your gut and be yourself.
5 Non-Cliché Reasons to Be an Entrepreneur
5 Non-Cliché Reasons to Be an Entrepreneur
BY NICHOLAS TART ON AUGUST 8, 2011 • 13 COMMENTS
When asked, “why do you want to be an entrepreneur?”, most people give one of three answers:
I want to by my own boss.
I want to make a lot of money.
I want to do things my way.
These are terrible, thoughtless answers that make you seem like you have no idea what you’re talking about. Instead, here are five meaningful, non-cliché reasons to be an entrepreneur.
1. Freedom
As I mentioned in this heartfelt article, freedom is the number one reason to be an entrepreneur. This is what people actually mean when they say, “I want to be my own boss.”
When you’re an employee, you have to ask permission to do things and you’re at the mercy of a boss.
As an entrepreneur, you can take action the moment an idea pops into your head and you can go play laser tag in the park whenever you want.
2. Continuous Learning
One of my favorite entrepreneurship quotes by Napoleon Hill is, “If you’re not learning while you’re earning, you’re cheating yourself out of the better portion of your compensation.”
When you have a job, you get really good at one thing. Maybe it’s flipping burgers, inputting data, or answering phone calls; that’s all you do every day, and you get good at it. Employers pay you to focus all of your time on systemizing one small portion of their business.
But when you’re an entrepreneur, you have to wear different hats and you’re constantly learning how to deal with every portion of running a business.
For instance, the other day I learned that the root word, “bookkeep” is the only word in the English language with back to back to back double letters.
3. Fulfilling Work
A friend of mine and co-founder of Sweets Cosmetics, Katie Barstow summed it up best:
“I am an entrepreneur because working for other companies is completely unfulfilling. It is hard to be proud of stuff that other people told you to do. At least when you are an entrepreneur, you can say “I did that.” Even if it’s a failure, it’s your failure (and a true entrepreneur wouldn’t stop because of a failure).”
A business is like a baby. You start it, you manage it, you help it grow, and eventually you sell it.
4. To Build an Asset
Setting aside the mushy-touchy-feely reasons, starting a business is a smart thing to do.
As an employee, you give your time in exchange for money.
As an entrepreneur, you give your time to build an asset that pays you and increases your net worth.
Now, just because you start a business doesn’t mean it’ll become an asset. But if you stick with it, learn, and implement what you learn, it’ll grow into something that you can eventually sell.
5. To Create Something Permanent
One of my biggest fears is not making a difference. I don’t want to be someone who comes and goes without leaving a mark.
Art, inventions, and businesses are the only three things you can create that can also outlast you.
By starting a company, you not only increase your self-worth, but you provide a product, a service, and a job to people who need it. And if you do it right, the business will carry on when you’re gone.
No Matter Your Reason…
If you choose entrepreneurship, DON’T tell people it’s because, “you want to be your own boss, make lots of money, or do things your way.” Not because those are cliché , but because they’re not genuine.
It’s like saying, “Good.” when someone asks you how you’re doing.
Your real reason is a lot more interesting.
BY NICHOLAS TART ON AUGUST 8, 2011 • 13 COMMENTS
When asked, “why do you want to be an entrepreneur?”, most people give one of three answers:
I want to by my own boss.
I want to make a lot of money.
I want to do things my way.
These are terrible, thoughtless answers that make you seem like you have no idea what you’re talking about. Instead, here are five meaningful, non-cliché reasons to be an entrepreneur.
1. Freedom
As I mentioned in this heartfelt article, freedom is the number one reason to be an entrepreneur. This is what people actually mean when they say, “I want to be my own boss.”
When you’re an employee, you have to ask permission to do things and you’re at the mercy of a boss.
As an entrepreneur, you can take action the moment an idea pops into your head and you can go play laser tag in the park whenever you want.
2. Continuous Learning
One of my favorite entrepreneurship quotes by Napoleon Hill is, “If you’re not learning while you’re earning, you’re cheating yourself out of the better portion of your compensation.”
When you have a job, you get really good at one thing. Maybe it’s flipping burgers, inputting data, or answering phone calls; that’s all you do every day, and you get good at it. Employers pay you to focus all of your time on systemizing one small portion of their business.
But when you’re an entrepreneur, you have to wear different hats and you’re constantly learning how to deal with every portion of running a business.
For instance, the other day I learned that the root word, “bookkeep” is the only word in the English language with back to back to back double letters.
3. Fulfilling Work
A friend of mine and co-founder of Sweets Cosmetics, Katie Barstow summed it up best:
“I am an entrepreneur because working for other companies is completely unfulfilling. It is hard to be proud of stuff that other people told you to do. At least when you are an entrepreneur, you can say “I did that.” Even if it’s a failure, it’s your failure (and a true entrepreneur wouldn’t stop because of a failure).”
A business is like a baby. You start it, you manage it, you help it grow, and eventually you sell it.
4. To Build an Asset
Setting aside the mushy-touchy-feely reasons, starting a business is a smart thing to do.
As an employee, you give your time in exchange for money.
As an entrepreneur, you give your time to build an asset that pays you and increases your net worth.
Now, just because you start a business doesn’t mean it’ll become an asset. But if you stick with it, learn, and implement what you learn, it’ll grow into something that you can eventually sell.
5. To Create Something Permanent
One of my biggest fears is not making a difference. I don’t want to be someone who comes and goes without leaving a mark.
Art, inventions, and businesses are the only three things you can create that can also outlast you.
By starting a company, you not only increase your self-worth, but you provide a product, a service, and a job to people who need it. And if you do it right, the business will carry on when you’re gone.
No Matter Your Reason…
If you choose entrepreneurship, DON’T tell people it’s because, “you want to be your own boss, make lots of money, or do things your way.” Not because those are cliché , but because they’re not genuine.
It’s like saying, “Good.” when someone asks you how you’re doing.
Your real reason is a lot more interesting.
So, You Want to Be an Entrepreneur
So, You Want to Be an Entrepreneur
By KELLY K. SPORS
Thinking about starting a business? Make sure you're cut out for it first.
In this bleak economy, lots of people are contemplating striking out on their own -- whether they're frustrated job seekers or people who are already employed but getting antsy about their company's prospects.
For some people, entrepreneurship is the best option around, a way to build wealth and do something you love without answering to somebody else. But it's also a huge financial gamble -- and some people, unfortunately, will discover too late that it's not the right fit for them.
Building a successful business can take years filled with setbacks, long hours and little reward. Certain personalities thrive on the challenge and embrace the sacrifices. But it can be a hard switch for someone who has spent years sitting in a cubicle with a steady paycheck.
So, how can you figure out whether you're suited for self-employment? We spoke with entrepreneurship researchers, academics and psychologists to come up with a list of questions you should ask yourself before making a big leap. Entrepreneurs, of course, come from all sorts of backgrounds, with all sorts of personalities. But our experts agreed that certain attributes improve the odds people will be successful and happy about their decision.
Keep in mind that any self-analysis is only as useful as the truthfulness of the answers -- and most people aren't exactly the best judges of their own character. So, you might enlist a friend's help.
Here, then, are 10 questions to ask to see whether you're up for the challenge of entrepreneurship.
1. Are you willing and able to bear great financial risk?
Roughly half of all start-ups close within five years, so you must be realistic about the financial risks that come with owning a business -- and realize that you could very well lose a sizable chunk of your net worth.
Consider how much you'll have to ante up and how losing it would affect your other financial goals, such as having a sound retirement or paying your kids' college tuition. Weigh the importance of starting a business against the sacrifices you might face.
Entrepreneurs should be sure that "if they lose this capital, it either won't destroy their financial situation, or they can accept the concept of bankruptcy," says Scott Shane, an entrepreneurship professor at Case Western Reserve University in Cleveland. "Some people thrive on the financial risk; others are devastated by the thought of losing even $10,000."
And don't assume you'll be able to lower your risk substantially by finding investors. Less than 10% of start-up financing comes from venture capitalists, angel investors and loans from friends and family combined, Prof. Shane says. And that's true even in good economic times. Banks, meanwhile, often won't lend to start-up founders without a proven track record. When they do, they generally require the founders to guarantee the loan or credit line with their personal savings or home -- an incredibly risky proposition. (To learn how to mitigate risk by keeping your old job while starting a new venture, see "A Toe in the Water".)
2. Are you willing to sacrifice your lifestyle for potentially many years?
If you're used to steady paychecks, four weeks' paid vacation and employer-sponsored health benefits, you might be in for an unpleasant surprise.
Creating a successful start-up often entails putting in workweeks of 60 hours or more and funneling any revenue you can spare back into the business. Entrepreneurs frequently won't pay themselves a livable salary in the early years and will forgo real vacations until their business is financially sound. That can often take eight years or longer, says William Bygrave, a professor emeritus of entrepreneurship at Babson College in Wellesley, Mass.
Even if you can steal away, it's hard to find somebody who can fill in for you. Many entrepreneurs must tow along their cellphone and laptop, so they can be available to answer questions from clients or employees.
Jennifer Walzer learned those lessons the hard way. In 2002, after being laid off from a $100,000 consulting job when the company closed, she started Backup My Info! Inc., which sells online data-backup services to businesses.
For the first year, the New York-based company brought in just $29,000 in gross revenue. Ms. Walzer didn't pay herself a salary until the third year, and even then it was a slim $30,000. She could have taken more out, but she wanted to shovel as much money into the business as possible to keep it financially sound.
Having no income for two years meant that Ms. Walzer had to be extremely frugal; she virtually never ate out or went on vacations or clothes-shopping trips. Twenty-nine years old at the time, she says, "I got very jealous of my girlfriends who got home at 5 o'clock every night and could go out gallivanting and pretty much do whatever they pleased." She'd occasionally meet friends for coffee instead of drinks, since coffee was less expensive.
Now that her business generates about $2 million in annual revenue, the tables have turned. Ms. Walzer says she earns more from the business than she did as a consultant, and "I have friends who are struggling to keep their jobs because they have bosses."
3. Is your significant other on board?
Don't ignore the toll running a business will take on your loved ones. Failed ventures frequently break up marriages, and even successful ones can cause lots of stress, because entrepreneurs devote so much time and money to the business.
Stephen Webster
"I'm always surprised at the number of husbands who start a business and don't tell their wives," says Bo Fishback, vice president of entrepreneurship at the Ewing Marion Kauffman Foundation.
You can avoid the heartache by talking at length with your spouse and family about how the business will affect home life, including the time commitment, changes in daily schedules and chores, financial risks and sacrifices. They must also understand the huge financial gamble they're making with you.
4. Do you like all aspects of running a business?
You better. In the early stages of a business, founders are often expected to handle everything from billing customers to hiring employees to writing marketing materials. Some new entrepreneurs become annoyed that they're spending the majority of their time on administration when they'd rather be focused on the part of the job they enjoy, says Donna Ettenson, vice president of the Association of Small Business Development Centers in Burke, Va.
"All of a sudden, they have to think about all these things they never had to think about before," she says.
Jeromy Stallings, the 33-year-old founder of Ninthlink Inc., a San Diego interactive-marketing firm with 15 employees, always felt he had plenty of passion for entrepreneurship and self-motivation. But when starting his agency in 2003 and hiring his first couple of employees, he realized he wasn't prepared for the day-to-day challenges of managing other people.
Mr. Stallings had assumed his passion would rub off on employees and they would do their jobs as enthusiastically as he did. But some clients started calling him directly, complaining that his employees weren't returning phone calls or that projects were behind schedule.
"My clients were saying, 'We love your passion, we love your skill, we're just having a really hard time with your management style,' " he says.
So, Mr. Stallings turned to peers, mentors and guidebooks for help. He realized he needed to work more closely with employees and create a more structured project-management system. "I didn't really have a plan in place for how they spend their time," he says.
5. Are you comfortable making decisions on the fly with no playbook?
With a new business, you're calling all the shots -- and there are a lot of decisions to be made without any guidance. You might not be used to that if you've spent years working in corporate America, says Bill Wagner, author of "The Entrepreneur Next Door," a book that lays out the characteristics of successful entrepreneurs.
"For most entrepreneurial ventures, there's no structure," he says. "You're going into a business, and nobody has told you how to be successful."
Mr. Wagner has surveyed more than 10,000 entrepreneurs to find out what traits distinguish successful start-up founders from less-successful ones. Among other things, most entrepreneurs he interviewed said they liked making decisions. He doesn't rule out the idea that less-decisive people could become better at the leadership role. It's just that they will have to work a lot harder at it.
6. What's your track record of executing your ideas?
One of the biggest differences between successful entrepreneurs and everyone else is their ability to implement their ideas, says Prof. Bygrave of Babson College. You might have a wonderful concept, but that doesn't mean you possess that special mix of drive, persuasiveness, leadership skills and keen intuition to actually turn the idea into a lucrative business.
So, examine your past objectively to see whether you have assumed leadership roles or initiated solo projects -- anything that might suggest you're good at executing ideas. "Were you senior class president? Did you play varsity sports?" Prof. Bygrave suggests asking.
Stephen Webster
You might even find clues back in your childhood, he adds: "A lot of successful entrepreneurs were starting businesses when they were still kids."
7. How persuasive and well-spoken are you?
Nearly every step of the way, entrepreneurship relies on selling. You'll have to sell your idea to lenders or investors. You must sell your mission and vision to your employees. And you'll ultimately have to sell your product or service to your customers. You'll need strong communication and interpersonal skills so you can get people to believe in your vision as much as you do.
If you don't think you're very convincing or have difficulty communicating your ideas, you might want to reconsider starting your own company -- or think about getting some help.
In 2007, Brad Price left a $135,000-a-year job as an associate at a Baltimore law firm to purchase a PuroClean Emergency Restoration Services franchise, which cleans up property damage such as mold and flooded basements. A former Naval officer, Mr. Price felt he was very self-motivated and a good leader. But he was less comfortable cold-calling and striking deals -- something he'd never had to do in previous jobs.
"There's a big difference in waiting for the phone to ring and getting an assignment and having to make the phone ring," says the 33-year-old Mr. Price.
Mr. Price says he now has his wife handle the marketing and networking. "My wife is very good at that, 'Hey, next time a call comes in, how about you give it to us?' " he says.
8. Do you have a concept you're passionate about?
Every morning you want to jump out of bed eager to get to work. If you're not that exuberant about how you'll be spending your time -- or the business concept itself -- running a business is going to be a rough ride.
Ms. Ettenson of the Association of Small Business Development Centers has coached many prospective entrepreneurs about their chosen business. She always asks why they're doing it. If they suggest it's mostly for the prospect of making a lot of money or because they're tired of working for someone else, she steers them toward something more in line with their interests or avoiding self-employment altogether.
"If you hate doing paperwork, the last thing you want to do is become a bookkeeper," Ms. Ettenson says. "If you'd rather be outside taking people into the wilderness, then that's the type of business you should be in."
But it's also usually wise to find a business in an industry you are very familiar with; it will be much harder to succeed if you know little about the field. Mr. Fishback at Kauffman says he has steered a doctor and other professionals away from starting restaurants because they often don't grasp how difficult and risky restaurant ownership is. And they'd be competing against restaurateurs with years of experience.
9. Are you a self-starter?
Entrepreneurs face lots of discouragement. Potential buyers don't return calls, business sours or you face repeated rejection. It takes willpower and an almost unwavering optimism to overcome these constant obstacles.
John Gartner, an assistant clinical-psychiatry professor at Johns Hopkins University and author of the book "The Hypomaniac Edge," theorizes that many well-known entrepreneurs have a temperament called hypomania. They're highly creative, energetic, impatient and very persistent -- traits that help them persevere even when others lose faith.
"One of the things about having this kind of confidence is they're kind of risk-blind because they don't think they could fail," Prof. Gartner says. And, he adds, "if they fail, they're not down for that long, and after a while they're energized by a whole new idea."
You don't have to be as driven as, say, Steve Jobs to succeed. But somebody who gets deterred easily, or too upset when things go wrong, won't last.
10. Do you have a business partner?
If you don't have all the traits you need to run the show, it's not necessarily a hopeless endeavor. Finding a business partner who compensates for your shortcomings -- and has equal enthusiasm for the business concept -- can help mitigate the risks and even boost the odds of success.
David Gage, co-founder of BMC Associates, an Arlington, Va., business-mediation practice, points to a Marquette University study of 2,000 businesses. The researchers found that partner-run businesses are far more likely to become high-growth ventures than those started by solo entrepreneurs.
The key, Mr. Gage says, is finding a partner who prefers handling different aspects of the business, so you're complementing each other -- and not constantly at each other's throats.
Someone who likes to take risks and be in the spotlight, for instance, might choose a cautious partner who prefers to work in the back room. "If they're willing to work with that person, and not just look at them as a wet blanket, then it can be great," Mr. Gage says.
But taking on a partner isn't a light decision. Many partnerships split due to conflicts over everything from attitudes about money to miscommunication and contrasting work ethics. Mr. Gage recommends that potential partners spend several days hashing out the specifics of the business and how the arrangement will work to see if they're compatible.
By KELLY K. SPORS
Thinking about starting a business? Make sure you're cut out for it first.
In this bleak economy, lots of people are contemplating striking out on their own -- whether they're frustrated job seekers or people who are already employed but getting antsy about their company's prospects.
For some people, entrepreneurship is the best option around, a way to build wealth and do something you love without answering to somebody else. But it's also a huge financial gamble -- and some people, unfortunately, will discover too late that it's not the right fit for them.
Building a successful business can take years filled with setbacks, long hours and little reward. Certain personalities thrive on the challenge and embrace the sacrifices. But it can be a hard switch for someone who has spent years sitting in a cubicle with a steady paycheck.
So, how can you figure out whether you're suited for self-employment? We spoke with entrepreneurship researchers, academics and psychologists to come up with a list of questions you should ask yourself before making a big leap. Entrepreneurs, of course, come from all sorts of backgrounds, with all sorts of personalities. But our experts agreed that certain attributes improve the odds people will be successful and happy about their decision.
Keep in mind that any self-analysis is only as useful as the truthfulness of the answers -- and most people aren't exactly the best judges of their own character. So, you might enlist a friend's help.
Here, then, are 10 questions to ask to see whether you're up for the challenge of entrepreneurship.
1. Are you willing and able to bear great financial risk?
Roughly half of all start-ups close within five years, so you must be realistic about the financial risks that come with owning a business -- and realize that you could very well lose a sizable chunk of your net worth.
Consider how much you'll have to ante up and how losing it would affect your other financial goals, such as having a sound retirement or paying your kids' college tuition. Weigh the importance of starting a business against the sacrifices you might face.
Entrepreneurs should be sure that "if they lose this capital, it either won't destroy their financial situation, or they can accept the concept of bankruptcy," says Scott Shane, an entrepreneurship professor at Case Western Reserve University in Cleveland. "Some people thrive on the financial risk; others are devastated by the thought of losing even $10,000."
And don't assume you'll be able to lower your risk substantially by finding investors. Less than 10% of start-up financing comes from venture capitalists, angel investors and loans from friends and family combined, Prof. Shane says. And that's true even in good economic times. Banks, meanwhile, often won't lend to start-up founders without a proven track record. When they do, they generally require the founders to guarantee the loan or credit line with their personal savings or home -- an incredibly risky proposition. (To learn how to mitigate risk by keeping your old job while starting a new venture, see "A Toe in the Water".)
2. Are you willing to sacrifice your lifestyle for potentially many years?
If you're used to steady paychecks, four weeks' paid vacation and employer-sponsored health benefits, you might be in for an unpleasant surprise.
Creating a successful start-up often entails putting in workweeks of 60 hours or more and funneling any revenue you can spare back into the business. Entrepreneurs frequently won't pay themselves a livable salary in the early years and will forgo real vacations until their business is financially sound. That can often take eight years or longer, says William Bygrave, a professor emeritus of entrepreneurship at Babson College in Wellesley, Mass.
Even if you can steal away, it's hard to find somebody who can fill in for you. Many entrepreneurs must tow along their cellphone and laptop, so they can be available to answer questions from clients or employees.
Jennifer Walzer learned those lessons the hard way. In 2002, after being laid off from a $100,000 consulting job when the company closed, she started Backup My Info! Inc., which sells online data-backup services to businesses.
For the first year, the New York-based company brought in just $29,000 in gross revenue. Ms. Walzer didn't pay herself a salary until the third year, and even then it was a slim $30,000. She could have taken more out, but she wanted to shovel as much money into the business as possible to keep it financially sound.
Having no income for two years meant that Ms. Walzer had to be extremely frugal; she virtually never ate out or went on vacations or clothes-shopping trips. Twenty-nine years old at the time, she says, "I got very jealous of my girlfriends who got home at 5 o'clock every night and could go out gallivanting and pretty much do whatever they pleased." She'd occasionally meet friends for coffee instead of drinks, since coffee was less expensive.
Now that her business generates about $2 million in annual revenue, the tables have turned. Ms. Walzer says she earns more from the business than she did as a consultant, and "I have friends who are struggling to keep their jobs because they have bosses."
3. Is your significant other on board?
Don't ignore the toll running a business will take on your loved ones. Failed ventures frequently break up marriages, and even successful ones can cause lots of stress, because entrepreneurs devote so much time and money to the business.
Stephen Webster
"I'm always surprised at the number of husbands who start a business and don't tell their wives," says Bo Fishback, vice president of entrepreneurship at the Ewing Marion Kauffman Foundation.
You can avoid the heartache by talking at length with your spouse and family about how the business will affect home life, including the time commitment, changes in daily schedules and chores, financial risks and sacrifices. They must also understand the huge financial gamble they're making with you.
4. Do you like all aspects of running a business?
You better. In the early stages of a business, founders are often expected to handle everything from billing customers to hiring employees to writing marketing materials. Some new entrepreneurs become annoyed that they're spending the majority of their time on administration when they'd rather be focused on the part of the job they enjoy, says Donna Ettenson, vice president of the Association of Small Business Development Centers in Burke, Va.
"All of a sudden, they have to think about all these things they never had to think about before," she says.
Jeromy Stallings, the 33-year-old founder of Ninthlink Inc., a San Diego interactive-marketing firm with 15 employees, always felt he had plenty of passion for entrepreneurship and self-motivation. But when starting his agency in 2003 and hiring his first couple of employees, he realized he wasn't prepared for the day-to-day challenges of managing other people.
Mr. Stallings had assumed his passion would rub off on employees and they would do their jobs as enthusiastically as he did. But some clients started calling him directly, complaining that his employees weren't returning phone calls or that projects were behind schedule.
"My clients were saying, 'We love your passion, we love your skill, we're just having a really hard time with your management style,' " he says.
So, Mr. Stallings turned to peers, mentors and guidebooks for help. He realized he needed to work more closely with employees and create a more structured project-management system. "I didn't really have a plan in place for how they spend their time," he says.
5. Are you comfortable making decisions on the fly with no playbook?
With a new business, you're calling all the shots -- and there are a lot of decisions to be made without any guidance. You might not be used to that if you've spent years working in corporate America, says Bill Wagner, author of "The Entrepreneur Next Door," a book that lays out the characteristics of successful entrepreneurs.
"For most entrepreneurial ventures, there's no structure," he says. "You're going into a business, and nobody has told you how to be successful."
Mr. Wagner has surveyed more than 10,000 entrepreneurs to find out what traits distinguish successful start-up founders from less-successful ones. Among other things, most entrepreneurs he interviewed said they liked making decisions. He doesn't rule out the idea that less-decisive people could become better at the leadership role. It's just that they will have to work a lot harder at it.
6. What's your track record of executing your ideas?
One of the biggest differences between successful entrepreneurs and everyone else is their ability to implement their ideas, says Prof. Bygrave of Babson College. You might have a wonderful concept, but that doesn't mean you possess that special mix of drive, persuasiveness, leadership skills and keen intuition to actually turn the idea into a lucrative business.
So, examine your past objectively to see whether you have assumed leadership roles or initiated solo projects -- anything that might suggest you're good at executing ideas. "Were you senior class president? Did you play varsity sports?" Prof. Bygrave suggests asking.
Stephen Webster
You might even find clues back in your childhood, he adds: "A lot of successful entrepreneurs were starting businesses when they were still kids."
7. How persuasive and well-spoken are you?
Nearly every step of the way, entrepreneurship relies on selling. You'll have to sell your idea to lenders or investors. You must sell your mission and vision to your employees. And you'll ultimately have to sell your product or service to your customers. You'll need strong communication and interpersonal skills so you can get people to believe in your vision as much as you do.
If you don't think you're very convincing or have difficulty communicating your ideas, you might want to reconsider starting your own company -- or think about getting some help.
In 2007, Brad Price left a $135,000-a-year job as an associate at a Baltimore law firm to purchase a PuroClean Emergency Restoration Services franchise, which cleans up property damage such as mold and flooded basements. A former Naval officer, Mr. Price felt he was very self-motivated and a good leader. But he was less comfortable cold-calling and striking deals -- something he'd never had to do in previous jobs.
"There's a big difference in waiting for the phone to ring and getting an assignment and having to make the phone ring," says the 33-year-old Mr. Price.
Mr. Price says he now has his wife handle the marketing and networking. "My wife is very good at that, 'Hey, next time a call comes in, how about you give it to us?' " he says.
8. Do you have a concept you're passionate about?
Every morning you want to jump out of bed eager to get to work. If you're not that exuberant about how you'll be spending your time -- or the business concept itself -- running a business is going to be a rough ride.
Ms. Ettenson of the Association of Small Business Development Centers has coached many prospective entrepreneurs about their chosen business. She always asks why they're doing it. If they suggest it's mostly for the prospect of making a lot of money or because they're tired of working for someone else, she steers them toward something more in line with their interests or avoiding self-employment altogether.
"If you hate doing paperwork, the last thing you want to do is become a bookkeeper," Ms. Ettenson says. "If you'd rather be outside taking people into the wilderness, then that's the type of business you should be in."
But it's also usually wise to find a business in an industry you are very familiar with; it will be much harder to succeed if you know little about the field. Mr. Fishback at Kauffman says he has steered a doctor and other professionals away from starting restaurants because they often don't grasp how difficult and risky restaurant ownership is. And they'd be competing against restaurateurs with years of experience.
9. Are you a self-starter?
Entrepreneurs face lots of discouragement. Potential buyers don't return calls, business sours or you face repeated rejection. It takes willpower and an almost unwavering optimism to overcome these constant obstacles.
John Gartner, an assistant clinical-psychiatry professor at Johns Hopkins University and author of the book "The Hypomaniac Edge," theorizes that many well-known entrepreneurs have a temperament called hypomania. They're highly creative, energetic, impatient and very persistent -- traits that help them persevere even when others lose faith.
"One of the things about having this kind of confidence is they're kind of risk-blind because they don't think they could fail," Prof. Gartner says. And, he adds, "if they fail, they're not down for that long, and after a while they're energized by a whole new idea."
You don't have to be as driven as, say, Steve Jobs to succeed. But somebody who gets deterred easily, or too upset when things go wrong, won't last.
10. Do you have a business partner?
If you don't have all the traits you need to run the show, it's not necessarily a hopeless endeavor. Finding a business partner who compensates for your shortcomings -- and has equal enthusiasm for the business concept -- can help mitigate the risks and even boost the odds of success.
David Gage, co-founder of BMC Associates, an Arlington, Va., business-mediation practice, points to a Marquette University study of 2,000 businesses. The researchers found that partner-run businesses are far more likely to become high-growth ventures than those started by solo entrepreneurs.
The key, Mr. Gage says, is finding a partner who prefers handling different aspects of the business, so you're complementing each other -- and not constantly at each other's throats.
Someone who likes to take risks and be in the spotlight, for instance, might choose a cautious partner who prefers to work in the back room. "If they're willing to work with that person, and not just look at them as a wet blanket, then it can be great," Mr. Gage says.
But taking on a partner isn't a light decision. Many partnerships split due to conflicts over everything from attitudes about money to miscommunication and contrasting work ethics. Mr. Gage recommends that potential partners spend several days hashing out the specifics of the business and how the arrangement will work to see if they're compatible.
Reasons Not to Become An Entrepreneur
Reasons Not to Become An Entrepreneur
By LRobbins
As attractive as this money looks, it is not a reason to become an entrepreneur. Photo courtesy of: flickr.com/photos/dborman2/3290560161/
Ads by Google
530,000 new businesses are created each month in the U.S. Why not yours? There are many good reasons to become an entrepreneur – you get to choose your own hours, can work a flexible schedule and have your own independence, but there are also some very good reasons not to become an entrepreneur and would be entrepreneurs should equally consider the pros and cons of entrepreneurship before investing their life savings into being an entrepreneur. I’ve interviewed several entrepreneurs, previously supervised an entrepreneurial training program and conducted some research to compile this list of reasons not to become an entrepreneur.
Do Not Become an Entrepreneur if: You want to get Rich Quick
Most businesses lose money in the first couple of years and coupled with the hours you will be putting in; it’s quite likely you will be making less than minimum wage for the first few years at least. Furthermore, on average, entrepreneurs make between $30,000 to $40,000 (Source: Are Entrepreneurs Happier than Wage Slaves?) which isn’t exactly enough to make you rich. From my own experience, I’ve been writing part time for the past seven months and am just starting to see small returns, which means that to date; I’ve averaged a few cents per hour, which is a long cry from minimum wage. Still want to become an entrepreneur?
Do Not Become an Entrepreneur if: You Want to Work Less Hours
In the beginning you’ll likely be working more hours than ever before since you’re now in charge of sales, business development, new product development, marketing, advertising, accounting, administrative duties and of course everyone’s favourite, janitorial duties, just some of the joys of being an entrepreneur. Only 21% of new businesses hire someone else initially (Source: What's Behind Small-Biz Failure Rates?), so as CEO/Owner, you get to wear all these hats which I’m assured by all the entrepreneurs I interviewed results in more hours than they’ve ever worked as a salaried employee.
Do Not Become an Entrepreneur if: You Want to Work Flexible Hours
If you’re working 80+ hours a week, which seems the average of the entrepreneurs that I interviewed, that doesn’t give you a lot of opportunity for flexible hours since you’re pretty much working every waking minute. I have a friend who has had his own property management company for several years and was called by the police regarding a tenant complaint while his wife was in labor. As soon as the baby was born, he had to resolve it since it was a serious issue. Why? Because there was no one else to do it but him. The property manager had quit the previous week which really wasn’t convenient when you’re about to have a baby, but employees are not always concerned with what’s convenient for you and the work falls to you if you are a small company. I know another entrepreneur that eventually gave up her landscaping business because she was working such long hours in the summer that she had no time to do gardening in her own yard, which was something she was passionate about. Once your business is successful, which will hopefully be several years after you've started it, being an entrepreneur can offer flexibility in hours worked, but there's not much flexibility for the first few years.
Do Not Become an Entrepreneur if: You’re Not Disciplined
Being an entrepreneur requires discipline since there is no one but you to set your work schedule or deadlines. This is one of the benefits of being an entrepreneur; you can do things when you feel like it, but is also one of the downsides. Think how many times you don’t feel like going to work but do anyway or you would lose your job. Now there’s no one to stop you from watching soap operas in the afternoon and before you know it a whole day has passed with very little work, so this a critical factor to consider.
Do Not Become an Entrepreneur if: You Give Up Easy
We’ve all heard the disheartening statistics of small business failure rates, 55% failure rate after 5 years, 70% after 10 years (Source: Small Business Trends.) which may make you wonder why anyone would want to be an entrepreneur in the first place when the rate of failure is very high. When I interviewed entrepreneurs I asked them what was most difficult about being an entrepreneur and one of the things that came up repeatedly is to not give up and just keep going. One entrepreneur reflected that giving up too early likely contributed to the high failure rates, that entrepreneurs gave up before something great happened because it can be incredibly frustrating sometimes. I can relate, as I count the pennies (literally) that I made in the first few months of writing, then in the past month, just when I was ready to give up, I earned more than I’ve made the past six months combined. We’re still not talking about a lot of money here, but at least its progress. If you are the type to give up easily, it is almost guaranteed that your business will fail since you will give up when it gets tough, and it definitely will get tough, so be honest with yourself as this is a critical key to being an entrepreneur.
This article is not meant to discourage anyone from being an entrepreneur, I know some entrepreneurs that absolutely love what they do and wouldn’t have it any other way, and it’s something that I see myself entering one day, but it is meant to give you a realistic view on what being an entrepreneur means so that you can enter the exciting world of entrepreneurship with both eyes open and increase your chances of becoming a successful entrepreneur. I wish you much success if you choose to become an entrepreneur.
By LRobbins
As attractive as this money looks, it is not a reason to become an entrepreneur. Photo courtesy of: flickr.com/photos/dborman2/3290560161/
Ads by Google
530,000 new businesses are created each month in the U.S. Why not yours? There are many good reasons to become an entrepreneur – you get to choose your own hours, can work a flexible schedule and have your own independence, but there are also some very good reasons not to become an entrepreneur and would be entrepreneurs should equally consider the pros and cons of entrepreneurship before investing their life savings into being an entrepreneur. I’ve interviewed several entrepreneurs, previously supervised an entrepreneurial training program and conducted some research to compile this list of reasons not to become an entrepreneur.
Do Not Become an Entrepreneur if: You want to get Rich Quick
Most businesses lose money in the first couple of years and coupled with the hours you will be putting in; it’s quite likely you will be making less than minimum wage for the first few years at least. Furthermore, on average, entrepreneurs make between $30,000 to $40,000 (Source: Are Entrepreneurs Happier than Wage Slaves?) which isn’t exactly enough to make you rich. From my own experience, I’ve been writing part time for the past seven months and am just starting to see small returns, which means that to date; I’ve averaged a few cents per hour, which is a long cry from minimum wage. Still want to become an entrepreneur?
Do Not Become an Entrepreneur if: You Want to Work Less Hours
In the beginning you’ll likely be working more hours than ever before since you’re now in charge of sales, business development, new product development, marketing, advertising, accounting, administrative duties and of course everyone’s favourite, janitorial duties, just some of the joys of being an entrepreneur. Only 21% of new businesses hire someone else initially (Source: What's Behind Small-Biz Failure Rates?), so as CEO/Owner, you get to wear all these hats which I’m assured by all the entrepreneurs I interviewed results in more hours than they’ve ever worked as a salaried employee.
Do Not Become an Entrepreneur if: You Want to Work Flexible Hours
If you’re working 80+ hours a week, which seems the average of the entrepreneurs that I interviewed, that doesn’t give you a lot of opportunity for flexible hours since you’re pretty much working every waking minute. I have a friend who has had his own property management company for several years and was called by the police regarding a tenant complaint while his wife was in labor. As soon as the baby was born, he had to resolve it since it was a serious issue. Why? Because there was no one else to do it but him. The property manager had quit the previous week which really wasn’t convenient when you’re about to have a baby, but employees are not always concerned with what’s convenient for you and the work falls to you if you are a small company. I know another entrepreneur that eventually gave up her landscaping business because she was working such long hours in the summer that she had no time to do gardening in her own yard, which was something she was passionate about. Once your business is successful, which will hopefully be several years after you've started it, being an entrepreneur can offer flexibility in hours worked, but there's not much flexibility for the first few years.
Do Not Become an Entrepreneur if: You’re Not Disciplined
Being an entrepreneur requires discipline since there is no one but you to set your work schedule or deadlines. This is one of the benefits of being an entrepreneur; you can do things when you feel like it, but is also one of the downsides. Think how many times you don’t feel like going to work but do anyway or you would lose your job. Now there’s no one to stop you from watching soap operas in the afternoon and before you know it a whole day has passed with very little work, so this a critical factor to consider.
Do Not Become an Entrepreneur if: You Give Up Easy
We’ve all heard the disheartening statistics of small business failure rates, 55% failure rate after 5 years, 70% after 10 years (Source: Small Business Trends.) which may make you wonder why anyone would want to be an entrepreneur in the first place when the rate of failure is very high. When I interviewed entrepreneurs I asked them what was most difficult about being an entrepreneur and one of the things that came up repeatedly is to not give up and just keep going. One entrepreneur reflected that giving up too early likely contributed to the high failure rates, that entrepreneurs gave up before something great happened because it can be incredibly frustrating sometimes. I can relate, as I count the pennies (literally) that I made in the first few months of writing, then in the past month, just when I was ready to give up, I earned more than I’ve made the past six months combined. We’re still not talking about a lot of money here, but at least its progress. If you are the type to give up easily, it is almost guaranteed that your business will fail since you will give up when it gets tough, and it definitely will get tough, so be honest with yourself as this is a critical key to being an entrepreneur.
This article is not meant to discourage anyone from being an entrepreneur, I know some entrepreneurs that absolutely love what they do and wouldn’t have it any other way, and it’s something that I see myself entering one day, but it is meant to give you a realistic view on what being an entrepreneur means so that you can enter the exciting world of entrepreneurship with both eyes open and increase your chances of becoming a successful entrepreneur. I wish you much success if you choose to become an entrepreneur.
Seven reasons why Singaporeans are not entrepreneurial enough
Seven reasons why Singaporeans are not entrepreneurial enough
Education minister Mr Heng Swee Keat pointed out yesterday that our Singaporean workers lack drive and the confidence to venture out of their comfort zone.
These are the very qualities that chief executives and entrepreneurs singled out to him as being essential to succeed in the competitive global playing field (ST 1 Feb).
I am not surprised that Singaporeans will not venture out very far away from being a worker due to our single-tracked path of using education as the only way to achieving success in life.
Not many are confident or driven enough to go through the mill of being an entrepreneur – someone who has a dream and want to fulfill it at all cost.
Its not about the money even but more of a passionate drive to want to do something different and fulfilling.
Personally, I feel that you can’t really teach a person to be entreprenurial by simply attending some workshops or seminars. The overall business environment, natural push factors and more importantly the person’s personality are all crucial elements that determine whether the person will succeed as a entrepreneur or not.
I was heartened to meet a 26-year-old lady recently who has set up a event business with two other employees. She was confident, articulate and positive and I thought that she will go far as she believes in delayed gratification.
“I don’t have a salary now,” she confided in me over dinner at Hougang Mall foodcourt. “All I got is just an allowance to help me tide over the next few months.”
With all sorts of incentive to help budding entrepreneurs such as tax-free holidays for 2 years and a up-beat business environment, it is still a puzzle why Singaporeans do not take to the entrepreneurial route as readily as our foreign businessmen here. The pot of gold is there but yet our people want to walk away.
Someone told me the other day how one China young lady set up a clothing shop at Bugis Village paying almost $5000/month rental. In less than 3 years, she has set up three more shops and is earning a healthy $20, 000-a-month profit after minusing all her cost.
She will buy cheap fanciful clothings from Shenzhen paying $3 a piece as she bought them cheap in bulk and retail them at $40 a pece at her shops. Once bargained down to $30, she will let the customer has it.
Are foreigners hungrier than Singaporeans? Apparently so…
While working in China, I saw many one-man entrepreneurs setting up shops in dirty back lanes dealing with all kinds of businesses that can earn money. Some deal with photostating stuff whereas others simply sell IPhone covers.
They do not really have huge ambitions to be the next Apple or Facebook inventor but they all manage to survive and outperform those who found work in the government or private sector. More importantly, they are happy and free to manage their business and life the way they want it to be.
I have listed seven reasons why Singaporeans will not easily succeed as an entrepreneur:-
1. Over focusing on educational achievement
We have all along over focus on our educational chievement so much so that we end up feeling like a failure if we don’t go to universities or simply not academically inclined. Moreover, having a degree normally means that the person will go on to look for a well-paying job or else the money spends on the tiertiary programme will be deemed as gone to waste.
That is probably why many non-graduate Singaporeans end up taking expensive evening classes or study overseas to stay on par with the average graduate Singaporeans.
More importantly, non-graduates will feel that they have under perform and even belittled their other natural skills – rendering them to be negative in their outlook of life. Their confidence level is at its lowest ebb and even if he has the aptitude for risk taking, his negative tone and slack body langauge will give him away.
We all knew how great entrepreneuers like Bill Gates and Steve Jobs do not possess any college degrees but yet their lack of formal education does not deny them to become one of the world’s best inventors in the 21st century.
In fact, some friends mentioned that if Bill Gates or Steve Jobs managed to attain their degrees the conventional way, they may lose their hunger for invention and aptitude for risk. It was fortunate that they followed after their dream and pursued after them doggedly – despite some initial personal setbacks.
Moreover, studying hard ususally uses more of the left brain which emphasizes analytical thinking and rules whereas the rarely-used right brain taxes more of the intuition and free association – traits of the entrepreneur.
After studying 15 years non-stop, the left brain of the Singaporean is being heavily over-used thus rendering the person to be compliant and very organised – traits that are anti-entrepreneurial.
Though having a degree is beneficial for one’s career path, the over-emphasis on getting a degree just to enhance one’s employability does not encourage the person to be adventurous and driven.
He merely becomes an educated component of the overall workforce and became a slave of his limited abilities.
2. Low-risk safe environment
When I went to the playground with my daughter many years ago and she was still little, I was amazed at how mums and maids would follow their tiny toddlers around to ensure that they won’t fall.
Little kids already learn how, from young, to avoid taking risks and lost the sense of adventure when mums told them not to do this or go there. They learn from young that taking risks or failing is bad for the health.
The current pampering risk-averse parental skills used on our children will not help us to raise confident bright kids.
They may be book smart but not necessarily streetmark and driven in life. They may even study hard just to please their parents and not doing it because they wanted to do it for themselves.
Successful entrepreneurs tend to day dream alot and have vast amount of space to explore their natural interests. We may not have provided that kind of care-free environment early in life for our kids.
The risk-averse conditioning here continues when we enter national service as stepping out of line means the guardroom or severe punishment.
I am not advocating that our soldiers go against the order of their officers here but frankly the two-year national service stint does not help our guys to be more adventurous and risk-taking.
In fact, it has further pushed us to toe the line more and forced us to follow the crowd – as doing so otherwise will bring forth adverse consequences.
We are being raised in a low-risk safe environment that habitually prevents people from experimenting with ideas for fear that it will jeopardise our comfort zone.
It is for this reason that many PMETs are willing to take on low-waged comfortable jobs such as $1800/month than go on to risk at an entrepreneurial idea.
We rather have on hand three square meals a day holding on to an ordinary job than having a meal a day while out experimenting with a business idea.
3. Lack of acceptance for failure
Our meritocratic philiosophy here also discourages failure.
Many young people I know feel ike a sore loser when they failed at their exams or do not score enough As.
Most businesses unfortunately do not succeed at the first instance.
I have friends who dared to take the first plunge into starting their own businesses but too often chickened back to working when their businesses failed after testing it out for a few months. The appetite for risk taking is really pathetically low.
We all know how businesses normally require a few tries before they become successful. Each failure by itself is a lesson learnt and after a few failures, the entrepreneur who persisted doggedly will have his taste of success.
The fear of failure plus a lack of dogged persistence are the major reasons why Singaporeans do not have alot of successful entrepreneurs.
Moreover, too often a nagging wife – who is very risk-adverse – will be the first one to mock at the failure of their loved one – effectively rubbing salt on to the painful wound of a crushed ego.
Monthly mortgage repayment plus many other bills that need a steady stream of income are further deterrances.
That is probably why married mid-aged PMETs are the worse kind of entrepreneurs as they are beseiged with all kinds of financial repayment schemes that requires a regular steady stream of income.
Perhaps, more can be done to encourage our young graduates – who have yet to marry or purchase a tied-down house, to be entrepreneurial.
Spring Singapore has a scheme that provides a startup fund of $50, 000 to budding entrepreneurs age below 26 years old. Interested eligible Singaporeans can check out the website for more details.
4. Peer pressure
There is also simply too much peer pressure on our young graduates to look for a job after graduation.
The relatively high income – especially those hailing from the banking sector, deters many from venturing out into the unknown world of entreprenuers whereby only the best top 10% succeeds.
Many new startups are also initially tight in cash flow and entrepreneurs take home only a small allowance every month as it will requires at least a year or two for the businesses to be profitable.
In instant-result Singapore, waiting for a few years for ventures to pay off is simply not in our psychological psyche anymore – at least not for the young impatient graduates.
We want fast cash and instant rewards -a trend that is increasingly seen in a fast-packed society that does not thrive on delayed gratification.
When we invest in a business venture, its more like the stock market mentality – one that allows the investor to lock in profits at the end of the day than holding it for the long term.
With such an intense instant-result business environment, many budding entrepreneurs rather take on a $5000-a-month salaried job in the banks than sweat it out as a risky entrepreneur with no guarantee of any successful return.
Moreover, it is tough to see all your friends driving and earning a fat income and you as an entrepreneur drawing a pittance because you want to explore a dream.
5. Government-linked companies and government involvement
Local small and medium enterprises have all along lamented that our country has interfered too much in the business environment here by setting up like-minded companies to compete with small local companies.
For example, NTUC Learning Hub was set up a few years ago when WDA was dispensing millions of dollars in training aids to prepare the retrenched PMETs for skills upgrading during the recent global financial crisis.
Together with two other private training agencies, they dominated the training arena snatching a large slice of the upgrading pie worth hundreds of millions – leaving the scrimps for the two smaller training centres.
NTUC Childcare centre has also entered the childcare business and has since emerged as the major player for childcaring business.
NTUC Fairprice has also dominated the supermarket food retail business here for the past two decades - leaving out other private supermarkets in the cold.
With the government actively getting involved in the money-making business environment, small and medium enterprises have no choice but to compete on providing better services or at cheaper prices to the consumers.
It is no wonder that many Singaporeans think twice when they enter the small business environment here as they have to compete with the big boys plus the government for a slice of the pie.
It is hope that the government will rethink it’s policy of snatching away whatever profitable business available by being a competitor.
If we want Singaporeans to be entrepreneurial, we must ensure that there is sufficient business for profit-making or else people will simply go back to being a worker. The sacrifices and return must be worth it.
6. Lack of successful entrepreneur model
When people think of successful entrepreneurs here, they can only think of one person – Mr Sim of Creative Technology.
Of late, the company is also very quiet and has yet to come up with any world-grabbing technological gadget.
There isn’t any solid local business that has managed to impress and motivate others to follow their footpath.
Some have mentioned the Adamn Khoo’s enrichment group or the BreadTalk bakery food chain but these local businesses have yet to really take the world by storm even though locally they are very successful business models.
In Japan, car manufacturers such as Honda, Toyota and Suzuki have chalked up impressive credentials abroad and can be counted as international brand names.
In Korea, Kia and Samsung are two of the largest household names that have managed to penetrate to almost all of the countries worldwide.
In Taiwan, Acer computer has managed to make its presence known by conquering the PC retail market worldwide.
Of course, the Americans – well known for being leaders in the area of entrepreneurship, have global brand names such as Facebook, Apple and Microsoft as their international flagships.
The Americans have a solid culture of adventurous risk-taking and it starts from the day they entered school to when they have graduated. Children are taught to ask questions and debate on theories in schools when they grow older.
Though they may lag behind in exam scores for Maths and Science during international competitions, they surge well ahead in thinking skills and verbal communication.
Most of them have to stay away from their families due to the long distance from their campuses and this personal element cultivates strong individualism and most importantly self confidence in surviving alone.
The entrepreneur very often has to tackle multi-faceted work issues alone and if he is not steady and self confident enough, he may throw in the towel readily.
Most Americans of above average intelligence also tend to head large corporations because they could lead and communicate their ideas effectively compared to Asians with better exam results. Their self confidence and ability to think on their feet tend to qualify them for key positions in companies.
Asians are not as good when it comes to articulating their thoughts – perhaps due to our classroom conditioning of accepting whatever our teachers tell us in schools. It is also seen as impolite to always question your teachers openly.
I did that quite often when I was studying and was told by my teachers to only ask questions when classes ended. The same thing happened when I questioned my bosses frequently at work and was branded as a trouble maker and very negative.
I became very Singaporeans later on as I realised that speaking out – especially in meetings, tend to embarass your bosses and they disliked it immensely.
7. Lack of adaptability
When I was working in China for a private school few years ago, I was shocked to hear that the school has tried out many different lecturers every year as most local lecturers could not withstand the harsh winter cold and warm summer conditions there.
A lecturer who travelled with me to Hubei left the position after two months as he too could not adapt to the harsh winter environment over there. We had three weeks of non-stop snowing and I didn’t blame him for quitting after the long lunar new year break.
Strong adaptability and the ability to withstand hardships are two of the most crucial elements for an entrepreneur to be successful.
The teaching experience has allowed me to build on my regional exposure and opened up a few other opportunities later on in China. More importantly, it showed me that if I could survive sub zero wintry conditions and lived all alone by myself in a dark freezy apartment - I could have survive anywhere in the world.
My self confidence level shot up a few notches after that teaching assignment and my adaptability curve also improved alot as I could boast that I survived in a foreign environment of a harsh culture.
A year after that trip, I set up transitioning.org as a registered society specialising in providing emotional coaching support to those who needed it. I also volunteered full time for the society without any viable income and this is my fourth year doing it.
I really doubted I would set up the voluntary organisation if I have not first took that plunge into the unknown by leaving my comfort zone here for work abroad.
For budding entrepreneurs, it may be wise to first work for a stint abroad to cement the emotional resilience before plunging head-on into a business venture. if you can’t survive properly working abroad, it is really tough having to rough it out as an entrepreneur.
As Singaporeans battle for jobs with our foreign talents here, it may be really wise for them to start thinking of doing something that they like on their own.
Too many mid-aged PMETs have became cabbies and property agents during the past few years and it is prudent for our Generation X to start experimenting on a few ideas during their free time in case they become victims of the forthcoming global financial crisis.
Written by: Gilbert Goh
Education minister Mr Heng Swee Keat pointed out yesterday that our Singaporean workers lack drive and the confidence to venture out of their comfort zone.
These are the very qualities that chief executives and entrepreneurs singled out to him as being essential to succeed in the competitive global playing field (ST 1 Feb).
I am not surprised that Singaporeans will not venture out very far away from being a worker due to our single-tracked path of using education as the only way to achieving success in life.
Not many are confident or driven enough to go through the mill of being an entrepreneur – someone who has a dream and want to fulfill it at all cost.
Its not about the money even but more of a passionate drive to want to do something different and fulfilling.
Personally, I feel that you can’t really teach a person to be entreprenurial by simply attending some workshops or seminars. The overall business environment, natural push factors and more importantly the person’s personality are all crucial elements that determine whether the person will succeed as a entrepreneur or not.
I was heartened to meet a 26-year-old lady recently who has set up a event business with two other employees. She was confident, articulate and positive and I thought that she will go far as she believes in delayed gratification.
“I don’t have a salary now,” she confided in me over dinner at Hougang Mall foodcourt. “All I got is just an allowance to help me tide over the next few months.”
With all sorts of incentive to help budding entrepreneurs such as tax-free holidays for 2 years and a up-beat business environment, it is still a puzzle why Singaporeans do not take to the entrepreneurial route as readily as our foreign businessmen here. The pot of gold is there but yet our people want to walk away.
Someone told me the other day how one China young lady set up a clothing shop at Bugis Village paying almost $5000/month rental. In less than 3 years, she has set up three more shops and is earning a healthy $20, 000-a-month profit after minusing all her cost.
She will buy cheap fanciful clothings from Shenzhen paying $3 a piece as she bought them cheap in bulk and retail them at $40 a pece at her shops. Once bargained down to $30, she will let the customer has it.
Are foreigners hungrier than Singaporeans? Apparently so…
While working in China, I saw many one-man entrepreneurs setting up shops in dirty back lanes dealing with all kinds of businesses that can earn money. Some deal with photostating stuff whereas others simply sell IPhone covers.
They do not really have huge ambitions to be the next Apple or Facebook inventor but they all manage to survive and outperform those who found work in the government or private sector. More importantly, they are happy and free to manage their business and life the way they want it to be.
I have listed seven reasons why Singaporeans will not easily succeed as an entrepreneur:-
1. Over focusing on educational achievement
We have all along over focus on our educational chievement so much so that we end up feeling like a failure if we don’t go to universities or simply not academically inclined. Moreover, having a degree normally means that the person will go on to look for a well-paying job or else the money spends on the tiertiary programme will be deemed as gone to waste.
That is probably why many non-graduate Singaporeans end up taking expensive evening classes or study overseas to stay on par with the average graduate Singaporeans.
More importantly, non-graduates will feel that they have under perform and even belittled their other natural skills – rendering them to be negative in their outlook of life. Their confidence level is at its lowest ebb and even if he has the aptitude for risk taking, his negative tone and slack body langauge will give him away.
We all knew how great entrepreneuers like Bill Gates and Steve Jobs do not possess any college degrees but yet their lack of formal education does not deny them to become one of the world’s best inventors in the 21st century.
In fact, some friends mentioned that if Bill Gates or Steve Jobs managed to attain their degrees the conventional way, they may lose their hunger for invention and aptitude for risk. It was fortunate that they followed after their dream and pursued after them doggedly – despite some initial personal setbacks.
Moreover, studying hard ususally uses more of the left brain which emphasizes analytical thinking and rules whereas the rarely-used right brain taxes more of the intuition and free association – traits of the entrepreneur.
After studying 15 years non-stop, the left brain of the Singaporean is being heavily over-used thus rendering the person to be compliant and very organised – traits that are anti-entrepreneurial.
Though having a degree is beneficial for one’s career path, the over-emphasis on getting a degree just to enhance one’s employability does not encourage the person to be adventurous and driven.
He merely becomes an educated component of the overall workforce and became a slave of his limited abilities.
2. Low-risk safe environment
When I went to the playground with my daughter many years ago and she was still little, I was amazed at how mums and maids would follow their tiny toddlers around to ensure that they won’t fall.
Little kids already learn how, from young, to avoid taking risks and lost the sense of adventure when mums told them not to do this or go there. They learn from young that taking risks or failing is bad for the health.
The current pampering risk-averse parental skills used on our children will not help us to raise confident bright kids.
They may be book smart but not necessarily streetmark and driven in life. They may even study hard just to please their parents and not doing it because they wanted to do it for themselves.
Successful entrepreneurs tend to day dream alot and have vast amount of space to explore their natural interests. We may not have provided that kind of care-free environment early in life for our kids.
The risk-averse conditioning here continues when we enter national service as stepping out of line means the guardroom or severe punishment.
I am not advocating that our soldiers go against the order of their officers here but frankly the two-year national service stint does not help our guys to be more adventurous and risk-taking.
In fact, it has further pushed us to toe the line more and forced us to follow the crowd – as doing so otherwise will bring forth adverse consequences.
We are being raised in a low-risk safe environment that habitually prevents people from experimenting with ideas for fear that it will jeopardise our comfort zone.
It is for this reason that many PMETs are willing to take on low-waged comfortable jobs such as $1800/month than go on to risk at an entrepreneurial idea.
We rather have on hand three square meals a day holding on to an ordinary job than having a meal a day while out experimenting with a business idea.
3. Lack of acceptance for failure
Our meritocratic philiosophy here also discourages failure.
Many young people I know feel ike a sore loser when they failed at their exams or do not score enough As.
Most businesses unfortunately do not succeed at the first instance.
I have friends who dared to take the first plunge into starting their own businesses but too often chickened back to working when their businesses failed after testing it out for a few months. The appetite for risk taking is really pathetically low.
We all know how businesses normally require a few tries before they become successful. Each failure by itself is a lesson learnt and after a few failures, the entrepreneur who persisted doggedly will have his taste of success.
The fear of failure plus a lack of dogged persistence are the major reasons why Singaporeans do not have alot of successful entrepreneurs.
Moreover, too often a nagging wife – who is very risk-adverse – will be the first one to mock at the failure of their loved one – effectively rubbing salt on to the painful wound of a crushed ego.
Monthly mortgage repayment plus many other bills that need a steady stream of income are further deterrances.
That is probably why married mid-aged PMETs are the worse kind of entrepreneurs as they are beseiged with all kinds of financial repayment schemes that requires a regular steady stream of income.
Perhaps, more can be done to encourage our young graduates – who have yet to marry or purchase a tied-down house, to be entrepreneurial.
Spring Singapore has a scheme that provides a startup fund of $50, 000 to budding entrepreneurs age below 26 years old. Interested eligible Singaporeans can check out the website for more details.
4. Peer pressure
There is also simply too much peer pressure on our young graduates to look for a job after graduation.
The relatively high income – especially those hailing from the banking sector, deters many from venturing out into the unknown world of entreprenuers whereby only the best top 10% succeeds.
Many new startups are also initially tight in cash flow and entrepreneurs take home only a small allowance every month as it will requires at least a year or two for the businesses to be profitable.
In instant-result Singapore, waiting for a few years for ventures to pay off is simply not in our psychological psyche anymore – at least not for the young impatient graduates.
We want fast cash and instant rewards -a trend that is increasingly seen in a fast-packed society that does not thrive on delayed gratification.
When we invest in a business venture, its more like the stock market mentality – one that allows the investor to lock in profits at the end of the day than holding it for the long term.
With such an intense instant-result business environment, many budding entrepreneurs rather take on a $5000-a-month salaried job in the banks than sweat it out as a risky entrepreneur with no guarantee of any successful return.
Moreover, it is tough to see all your friends driving and earning a fat income and you as an entrepreneur drawing a pittance because you want to explore a dream.
5. Government-linked companies and government involvement
Local small and medium enterprises have all along lamented that our country has interfered too much in the business environment here by setting up like-minded companies to compete with small local companies.
For example, NTUC Learning Hub was set up a few years ago when WDA was dispensing millions of dollars in training aids to prepare the retrenched PMETs for skills upgrading during the recent global financial crisis.
Together with two other private training agencies, they dominated the training arena snatching a large slice of the upgrading pie worth hundreds of millions – leaving the scrimps for the two smaller training centres.
NTUC Childcare centre has also entered the childcare business and has since emerged as the major player for childcaring business.
NTUC Fairprice has also dominated the supermarket food retail business here for the past two decades - leaving out other private supermarkets in the cold.
With the government actively getting involved in the money-making business environment, small and medium enterprises have no choice but to compete on providing better services or at cheaper prices to the consumers.
It is no wonder that many Singaporeans think twice when they enter the small business environment here as they have to compete with the big boys plus the government for a slice of the pie.
It is hope that the government will rethink it’s policy of snatching away whatever profitable business available by being a competitor.
If we want Singaporeans to be entrepreneurial, we must ensure that there is sufficient business for profit-making or else people will simply go back to being a worker. The sacrifices and return must be worth it.
6. Lack of successful entrepreneur model
When people think of successful entrepreneurs here, they can only think of one person – Mr Sim of Creative Technology.
Of late, the company is also very quiet and has yet to come up with any world-grabbing technological gadget.
There isn’t any solid local business that has managed to impress and motivate others to follow their footpath.
Some have mentioned the Adamn Khoo’s enrichment group or the BreadTalk bakery food chain but these local businesses have yet to really take the world by storm even though locally they are very successful business models.
In Japan, car manufacturers such as Honda, Toyota and Suzuki have chalked up impressive credentials abroad and can be counted as international brand names.
In Korea, Kia and Samsung are two of the largest household names that have managed to penetrate to almost all of the countries worldwide.
In Taiwan, Acer computer has managed to make its presence known by conquering the PC retail market worldwide.
Of course, the Americans – well known for being leaders in the area of entrepreneurship, have global brand names such as Facebook, Apple and Microsoft as their international flagships.
The Americans have a solid culture of adventurous risk-taking and it starts from the day they entered school to when they have graduated. Children are taught to ask questions and debate on theories in schools when they grow older.
Though they may lag behind in exam scores for Maths and Science during international competitions, they surge well ahead in thinking skills and verbal communication.
Most of them have to stay away from their families due to the long distance from their campuses and this personal element cultivates strong individualism and most importantly self confidence in surviving alone.
The entrepreneur very often has to tackle multi-faceted work issues alone and if he is not steady and self confident enough, he may throw in the towel readily.
Most Americans of above average intelligence also tend to head large corporations because they could lead and communicate their ideas effectively compared to Asians with better exam results. Their self confidence and ability to think on their feet tend to qualify them for key positions in companies.
Asians are not as good when it comes to articulating their thoughts – perhaps due to our classroom conditioning of accepting whatever our teachers tell us in schools. It is also seen as impolite to always question your teachers openly.
I did that quite often when I was studying and was told by my teachers to only ask questions when classes ended. The same thing happened when I questioned my bosses frequently at work and was branded as a trouble maker and very negative.
I became very Singaporeans later on as I realised that speaking out – especially in meetings, tend to embarass your bosses and they disliked it immensely.
7. Lack of adaptability
When I was working in China for a private school few years ago, I was shocked to hear that the school has tried out many different lecturers every year as most local lecturers could not withstand the harsh winter cold and warm summer conditions there.
A lecturer who travelled with me to Hubei left the position after two months as he too could not adapt to the harsh winter environment over there. We had three weeks of non-stop snowing and I didn’t blame him for quitting after the long lunar new year break.
Strong adaptability and the ability to withstand hardships are two of the most crucial elements for an entrepreneur to be successful.
The teaching experience has allowed me to build on my regional exposure and opened up a few other opportunities later on in China. More importantly, it showed me that if I could survive sub zero wintry conditions and lived all alone by myself in a dark freezy apartment - I could have survive anywhere in the world.
My self confidence level shot up a few notches after that teaching assignment and my adaptability curve also improved alot as I could boast that I survived in a foreign environment of a harsh culture.
A year after that trip, I set up transitioning.org as a registered society specialising in providing emotional coaching support to those who needed it. I also volunteered full time for the society without any viable income and this is my fourth year doing it.
I really doubted I would set up the voluntary organisation if I have not first took that plunge into the unknown by leaving my comfort zone here for work abroad.
For budding entrepreneurs, it may be wise to first work for a stint abroad to cement the emotional resilience before plunging head-on into a business venture. if you can’t survive properly working abroad, it is really tough having to rough it out as an entrepreneur.
As Singaporeans battle for jobs with our foreign talents here, it may be really wise for them to start thinking of doing something that they like on their own.
Too many mid-aged PMETs have became cabbies and property agents during the past few years and it is prudent for our Generation X to start experimenting on a few ideas during their free time in case they become victims of the forthcoming global financial crisis.
Written by: Gilbert Goh
Characteristics of an Entrepreneur
Characteristics of an Entrepreneur
The A to Z of the characteristics of an entrepreneur
Much academic research has been conducted to define the characteristics of an entrepreneur. Like an animal in the zoo they have been studied at length by economists, anthropologists, management academics, psychologists, sociologists, historians, finance experts and organisational scholars.
Who are these creatures? Why do these persistent people never know when to give up? What drives them to take risks that ordinary folk find overwhelming? Where do they get that energy? How do they create value from nothing and most importantly … what are the characteristics that define them as an entrepreneur.
As practicing entrepreneurs, lecturers and authors of entrepreneurial books and material, Dr. Neil Flanagan and myself have developed our own view on the A to Z characteristics of an entrepreneur .
Introduction – Characteristics of an Entrepreneur (the A to Z)
Even though entrepreneurial skills can be identified, analysed and taught, we believe that the position of the entrepreneur in society is more aligned to a calling than that of a skill-set. What others may see as ‘a black sheep’ curse, the entrepreneur sees as a gift which is quite possibility, simply an accident of birth. For example, according to the Myers-Briggs personality classifications, entrepreneurs come from fields like the ISTP 'Craftsman', ESTP 'Doer', ENTJ 'Field Marshal', ENTP 'Inventor' or the ENFP ‘Champion’ type temperament, which will all gravitate naturally to the entrepreneurial style of endeavor.
The characteristics of an entrepreneur are identified in high energy creative people, who are self-confident, have high levels of self-esteem and are futuristic in their outlook as they seek to incessantly solve problems, take risks and learn from failures (theirs and others). They thrive on change and have a natural predisposition to showing initiative and willingly accept personal responsibility for projects. They harness all available resources within their scope in order to achieve success on their own terms.
Characteristics of an Entrepreneur
Successful entrepreneurs learn to control and discipline their gift and by combining this with a business education (both formal and from the ‘school of hard knocks’) together with a perseverance and an enjoyment of hard work driven by a righteous passion, they eventually craft their success in spite of the many preceding disappointments and set backs.
Many people have tried unsuccessfully to categorise the entrepreneur, with the Webster's dictionary describing them as ‘one who organizes, manages, and assumes the risks of a business or enterprise’. This is a typical researchers description, written without the privileged insight into the mind and spirit of what makes an entrepreneur tick. As entrepreneurs, educators and authors, we have made an attempt in this Knol to identify the A to Z of what sets entrepreneurs apart from their other commercially engaged contemporaries.
Now the entrepreneurial skill-set would afford success in many fields of human endeavor, however, the entrepreneur is drawn to the world of business and commerce. We believe that this is because their great desire for independence, their love of a competitive environment, the business world’s reward for objectivity over subjectivity and the fact that excelling at this core societal realm makes the greatest use of their talent.
www.wordle.net Characteristics of an Entrepreneur
However, sharing this ‘money accumulating' space in society are other players, with some like the scammers and value takers, whose view of success is so focused on just the money that they are quite prepared, if necessary, to sell both their integrity and their grandmother in order to have it. As you will see, whilst both this particular acumen and the entrepreneur’s methodology share the same ‘money accumulating' outcome, each achieves it with an entirely different mind set and approach. Entrepreneurs 'make money' - meaning they create value that did not previously exist rather than just accumulating money via schemes and exploiting weaknessess that take from another’s hard earned assets. Following is the ‘A to Z’ of what we believe are the unique and distinguishing aspects, skills and mind-sets of the entrepreneur - the characteristics of an entrepreneur.
Ambiguity and an Entrepreneur
A is for Ambiguity
Albert Einstein
1921 By F.Schumpter
Ambiguity is the “doubt about meaning: a situation in which something can be understood in more than one way and it is not clear which meaning is intended”. [1] Ambiguity usually occurs at times of significant societal, environmental, economic, political, technological or organisational change. Now, whilst periods of change are quite stressful for the vast majority of people, it marks a time when entrepreneurs becomes quite invigorated. Entrepreneurs are people that have a great tolerance for ambiguity [2]. This is because entrepreneurs know that change always brings with it new opportunities and as Albert Einstein observed “In the middle of every difficulty lies opportunity” .
Furthermore, the entrepreneur has no fear of change because they bring to every new period of ambiguity, their past experience with its already highly developed coping strategies. Entrepreneurs position themselves via alliance building, work activities, engaged learning and market intelligence gathering, at the very epicentre of the change and look out through the rolling mist for an emerging opportunity and need for which they are uniquely resourced to bring a solution. Entrepreneurs do not work from the turbulent outside-in but rather from the focused inside-out, seeking to find their own unique place in an evolving and changing environment.
Entrepreneurs have both the conceptual skill to quickly sum up the changing big picture by identifing relationships and patterns in complex situations, as well as the ability to identify, take advantage of and action specific solutions to the emerging problem and need.
“I am not sure where I’m going but I still prepare myself diligently for the journey every day” PB.
B is for Beachhead strategies
Entrepreneur and the beachhead strategy
#1 Image Source: by soldiersmediacenter - flickr.com Entrepreneurs have a natural understanding and appreciation of Beachhead Strategies. Beachhead strategies are the strategies that an entrepreneur uses to gain market penetration and customer acceptance for their products. Like the war metaphor they mirror, beachhead strategies aim to secure a foothold as a prerequisite to the main game. Entrepreneurs and generals alike know that the main game is too heavily guarded and fortified for a full frontal attack so they each secure a space in some easily acquired ground and then use that position to eventually strike out for the intended target.
Entrepreneurs may launch with ‘me-too’ products just to establish market acceptance and then leverage their new found position to release the high-margin innovative upgrade or add-on. They may partner with established networks, alliances and trusted brands to establish a market acceptance before striking out on their own, they may gives lots away for free, just to build momentium and demand for their product. They may spend time working in an industry or firm to gain the necessary contacts and market intellegence before the launch of their own venture.
Principles of War The book “Harvard Business Essentials: Strategy – Create and implement the best strategy for your business” talks about ‘beachhead strategies’ [3] in the light of Carl von Clausewitz’s nineteenth century book on military strategy titled ‘Principels of War’. The authors purport that the lessons learned from Clausewitz’s timeless advice is to ‘aim at the sharp end of the spear where rivals are weak or uninterested in what you are doing." The book sites many examples of this strategy including Sam Walton’s (Wal-Mart) strategy of opening in small towns that were not served by the formidable rivals like the retail giants, Sears and J.C.Penny.
Once launched, other beachhead strategies that could be adopted by the new venture include: (1) Build momentum not profit (2) Be the topic of conversation (3) Work with your champions (4) Create memorable experiences (5) Create addictions (6) Break habits and break through (7) Remove barriers (8) Linkup with the locals (9) Focus on what matters and (10) Exploit the unforeseen opportunities.
“Every project can be broken into two halves – making a start and all the other stuff” PB
C is for Commitment
Entrepreneurial endeavour will never happen without it. Commitment is the founding drive of the entrepreneur. Not just the commitment to do - but the commitment to do and then see it through - not just the commitment to see it through but to see it through with everything on-the-line. It is a commitment to the long term, the commitment to never giving up on the dream, the commitment to getting up and starting all over again if fate so decrees.
The commitment tap root for the entrepreneur is the deep desire to live a life of significance. So, commitment for the entrepreneur stems from their belief that they are doing something worthwhile, not just for themselves and their associates but for the 'greater good'. It is this commitment that sees them continue in the face of disappointment and set backs, when others declare it as 'all too hard'. According to Michael Simmons, author of the book “The Student Success Manifesto” – “The difference between an interest and a commitment, is the difference between if and when. When we truly commit ourselves to success, it becomes inevitable.”
If commitment is the ‘ying’, then the whole is complete with the ‘yang’ of courage. For one can not exist without the other. That is, courageous people are committed just as committed people are courageous. Now courage is not acting without fear but is rather the ability to look beyond the things that scare you to death and see the things that inspire you to live. For more, see the knol by Sandra Walston on courage.
"More important than all the talent, all the resources and all the opportunities – is a solitary act of commitment" PB
Destiny and the Entrepreneur
D is for Destiny
The entrepreneurial spirit is interlocked with a sence of destiny. For the entrepreneur, life is not just a process of accumulating physical assets nor just the indulgence of physical pleasure nor even the cyclical life of comfort and leisure – NO! It is making a difference, it is living a life of significance, it is embarking on a never ending journey to be the best that they can be and being the greatest influence for 'good' that they can.
Winston Churchill
Public Domain
They are driven to take control of their future, to craft their destiny and if needs be, to make sacrifices in the short term for a greater long term gain. Many entrepreneurs hold to the same view as was expressed by Winston Churchill [4], the wartime Prime Minister of Great Britain, who said "I felt as if I were walking with destiny, and that all my past life had been but a preparation for this hour and this trial." It is not their business that makes entrepreneurs a champion, they chose the champion’s life from an early age and so developed their character until it eventually becomes self evident.
"Our destiny is the last thing we discover after having prepared for it all our lives" PB
E is for Effectual reasoning
Business schools and corporate enterprises the world over teach the process of managerial or strategic decision making as the basis for all business development. This process starts with clearly defined goals, that translate into specifically defined objectives that inform the strategies and then determine the tactics.
This basis for decision making is actually at the antithesis of the entrepreneurial one, that takes stock of the strategic resources, capabilities and unfair advantage within the entrepreneur's control and then selects an emerging opportunities that these capabilities make them uniquely placed to exploit. This peculiarly ‘effectual’ entrepreneurial thinking has been researched by Saras D. Sarasvath an associate professor of the University of Virginia and is explained in her article “What makes entrepreneurs entrepreneurial”.
"To build anything, we need to progress down the hierarchical pyramid from purpose to values to goals to objectives to actions – trouble is, our own life is built the other way up." PB
F is for Focus
Focus & entrepreneur - #2 Image source by spacepleb - flickr.com Entrepreneurs know better than most, the power generated by focus. They define the mantra for their venture and in spite of the many morphs, changes and set-backs they manage to keep everyone focused on the main game. They know how to focus their own lives as well as the lives of others onto the targeted outcome and so penetrate barriers by the concentrated attack on a single point.
Their concentration at times can boarder on obsession as they stick with their passion, in spite of the many distractions, and get the job done. They narrow their living to a few core commitments protecting those at all costs but forgo the fringe and peripheral engagements that can clutter the lives of those less focused and obsessed. These successful entrepreneurs are single minded with a eye-constantly-on-the-prize. They are not easily distracted, they rarely quit and with blinkers on they stay focused on the task at hand until it is done.
"Unfocused energy dissipates whilst focused energy, like the sun’s rays through a magnifying glass, BURNS!" PB
G is for Global
True entrepreneurs today are identified by their global vision. Sure, they primarily offer solutions for their immediate surrounding market but they have an eye for how that could translate into the global sphere. They recognize the power of the internet to deliver a global outcome for their enterprise and so shape their model to include it in their thinking and ‘blue sky’ possibilities. No longer happy to be tagged the SME (Small to Medium Enterprise) these start ups are better tagged GOS (Global Opportunity Startup). Yes, they start small but their ambition is to change the world – literally. Kevin Hall talks about this further in his knol Why is it important for an Entrepreneur to go Global?
"Life is a vast open plain in which your courage stakes out the boundaries" PB
Health and the Entrepreneur
H is for Health
#3 Image source: by caseywest - flickr.com
Entrepreneur and good health Good health is a remarkable aspect of entrepreneurial life. For many entrepreneurs this is simply because they refuse to be sick, mostly because they can’t afford to be. The entrepreneur finds no benefit in this concept as their sick-leave entitled corporate counterpart may find. We believe that good health for the entrepreneur is derived from their positive and creative mind set, their problem solving obsession and living the life of ‘doing what they love + loving what they do’ that keeps them so. They give no mind to the carcinogens of envy, anger and jealousy because they are too obsessed with pursuing their own fun, fortune and fulfilment. Not only is good health a benefit of the entrepreneurial life, but it is also a necessity, because successful entrepreneurs are often called upon to work long hours for extended periods of time. Research [5] carried out in 2006 inidcates that entrepreneurs are objectively more healthy than others.
The founder of the website Baby Boomer Entrepreneurs in the article [6] “Characteristics of Entrepreneurs”,believes that being in business for yourself is good for health. They believe that good health is a common trait of entrepreneurs primarily because their stress can be self-managed whilst the work-for-the-man stress is imposed and many times irresolvable. It is this unresolved stress that the author believes leads to poor health. The author contends that “being an entrepreneur is one of the healthiest occupations on the planet.” – We agree!
"My good health comes from a balanced diet of accepted truth whilst exercising much kindness, integrity and cheer and avoiding those deadly carcinogens of envy, anger, jealousy, revenge, pretence and double-mindedness" PB
I is for Innovation
Innovation sets the entrepreneur apart from all of their other commercially engaged contemporaries. Entrepreneurs know how to add value by making a product better and getting a target market to demonstrate their appreciation of it by parting with their money. The management theoretician Peter F. Drucker in his book "Innovation and Entrepreneurship: Practice and Principles" describes innovation as what entrepreneurs do. For him, innovation represents "the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or different service ... innovation involves, changing the value and satisfaction obtained from resources by the customer" (p. 19-33).
An entrepreneur’s core competency is to find new ways to solve problems and to come up with clever, workable solutions. They are naturally curious, inquisitive, bright and highly flexible in their thinking. They constantly scan their environment for new trends and are keen to spot a potential new venture opportunity. A very interesting aspect of the entrepreneurial mind-set is that having no money is not perceived by them as a barrier to 'making it happen'. They possess an almost naïve belief that funds are the resources that naturally follow an opportunity whose time has come and where a balanced and experienced team has been gathered to exploit it. A surprising fact for many, but that’s how it works.
"Creativity is born of a passion to do it right and to do it better" PB
J is for Just do it
Entrepreneur
Richard Branson
The Nike mantra could so easily be the entrepreneur’s. Entrepreneurs do. Just like Richard Branson says in his book 'Screw it, Let's do it'. Entrepreneurs also think, plan, judge, arrange, source, allocate, choose etc ... just like everyone else but doing is the priority and often times the first thing done. For the entrepreneur it is more a case of ‘ready-fire-aim’ than it is the more conventionally accepted sequence. Entrepreneurs are action takers and should not be confused with creative day dreamers and idea makers. Entrepreneurs are decision makers and are unafraid of making wrong decisions knowing that these are often necessary in finding the path to the right one.
For the entrepreneur, the decision to just do it is often to do it alone. This is what separates an entrepreneur from a highly competent corporate executive, for the latter on getting knocked back on a proposal will simply shelve the project. This is not the entrepreneurial one. They immediately look for an alternative even if that means putting 100% of their own resources behind the project to make it happen. They believe in the opportunity to the point of going it alone if needs be. 'Making it happen' is what the entrepreneur does.
"The suffering born of a tragic event is fate’s doing – the regretful anguish of a missed opportunity, is ours" PB
K is for Keep it real
Entrepreneurs are separated from creative dreamers on this point. Entrepreneurs know how to ‘make it real’. Whilst possessing the perceptive vision that can foresee future societal paradigm shifts they can equally explain the ‘what comes next’ in making it so. Whilst this is not always part of the ‘idealist’ gift of entrepreneurship, the’ keeping it real’ soon becomes a cornerstone skill of successful entrepreneurial engagements.
Entrepreneurs have an objective approach which while empathising with people’s needs are more concerned with the performance and accomplishment. Entrepreneurs are obsessed with the ‘truth’. The what’s real. They are honest and straightforward in their dealings and expect others to do likewise. This is often an area that they lose out to other commercially engaged players whose truth is subjectively determined by the greatest personal monetary gain. Still, entrepreneurs learn the best aspects of business acumen from their commercial counterparts but apply it to their ventures without the need to sell their soul to the ‘money over all’ mantra. Get-rich-quick is not in the entrepreneur’s vocabulary.
Herb Kelleher, the entrepreneur who started Southwest Airlines, identifies this keep it real approach in entrepreneurs with what he calls [7] “a pleasant sense of scepticism”. This mind set can challenge on points of reality without turning negative or destroying motivation. He says that he plays the passionate advocate who applies “sound judgement to focus on the truly important issues, and delivering the type of positive yet challenging scepticism needed to fully explore ideas”
"Reality is in the ‘what is’ not in the ‘what should be’" PB
Leadership Characteristics of an Entrepreneur
L is for Leadership
Entrepreneur and leadership
#4 Image source: pedrosimoes7 - www.flickr.com We think it is truer to say that entrepreneurs do not chose to be leaders but that leadership chooses them. They lead because they are prepared to take responsibility in an effort to get the job done. They lead because, from their objective standpoint, they don’t trust another’s decisions too heavily skewed by political or subjective bias. They lead because others follow, and other follow because they see their own needs being fulfilled in the entrepreneurial direction and outcomes. They lead because in times of great change they are the ones still moving forward, still possessing the energy to work tirelessly to solve the confronting problems. They live in a future that others wish to be guided to.
Leadership for the entrepreneur is not about status but about function. Imbibing a healthy self esteem, they have little need for status. They are not motivated by external acknowledgement but by achieving their own internal measures of success and achievement. Armed with a generalist approach, futuristic mindset, excellent people skills, a penchant for action over words and operating often in high variance industries, the entrepreneur makes for a natural-born leader [8] .
At the very core of entrepreneurial leadership is problem solving and decision making. If there is a problem – they solve it. If there is a decision to be made – they make it.
Anita Roddick, founder of the global retail chain The Body Shop, says [9] "I want to define success by redefining it. For me it isn't that solely mythical definition - glamour, allure, power of wealth, and the privilege from care. Any definition of success should be personal because it's so transitory. It's about shaping my own destiny. … Entrepreneurs have this real belief that their lives are about services and leadership."
"Groups are lead to achievement by good leaders, supported all the way by great leaders but achieve their own success with the very best of leaders" PB
M is for Meaning
Entrepreneurs start enterprises because they want to make meaning. They have an inherent desire to change the world and to make the world a better place. So, for the entrepreneur, making money becomes a means to that end and not an end in itself. Richard Branson says “Above all, you want to create something you are proud of…. I can honestly say that I have never gone into any business purely to make money … I’ve had to create companies that I believe in 100%. These are companies I feel will make a genuine difference.”
Guy Kawasaki in his book ‘The Art of the Start’ [10] goes further to explain that entrepreneurs can create the meaning, which will become the driving motivational force behind their ventures, in one of three ways
To increase the quality of life and to change people’s lives for the better
To right a terrible wrong which is most prominent in the area of social entrepreneurship
To prevent the end of something good where but for a new innovative approach something beautiful can be made to be sustainable again
"Purpose to Life? How about, never giving up, committing yourself to the continuous development of your allotted talent and being the best possible influence for good in every corner of the world in which you live" PB
N is for Never Giving Up
If the term ‘faith’ was not already an icon of religion, it would be the mantra of the entrepreneur, because most entrepreneurs would declare, “if faith is an act of believing in spite of the past or present circumstances, a hope unseen, an aspiration unrealised, a destiny unclear – then faith is my mountain”
For understanding the concept of faith is no more complex than planting sunflower seeds and with proper husbandry fully expecting that sunflowers will grow. For the entrepreneur, the seed is their life long learning, husbandry is the development of their character and the sunflowers are their enterprise, that will grow to sustainability when a fertile environment meets the appropriately timed season.
It is this faith or belief that underpins the entrepreneurial trait to never give up. For what others see as failure the entrepreneur see as either a learning, as a chance for character development or as simply a barren environment or an improper timing. So, they continue doggedly on their quest with great persistence working for the moment when their time will come. Most of all, they never give up and never quit striving for their success.
"Never give up on the hope that ‘Your time will come’." PB
O is for Opportunistic
Entrepreneurs are opportunistic. In fact the synonym for the word ”opportunist” [11] is actually entrepreneur. But an important fact to make clear is that they are not opportunistic about any or every opportunity – just theirs. Sure, their natural comprehensive awareness affords them a view of the total situation and the possibilities wrapped up in every option but it does not mean they action every opportunity they see. In fact, entrepreneurs say no to hundreds of great opportunities because they only have eyes for theirs.
As Tom Caprel [12] points out in his article “The Gold, The Opportunist and The Entrepreneur”, those sad creative dreamers that do chase “every pot at the end of the rainbow, will find it devoid of gold but full of broken hearts, dreams and bank accounts … they fail as entrepreneurs because they are enticed by bright shiny objects and seduced by the next new dot bomb and become too distracted by UFOs (Unidentified Flying Opportunities)”
Having said that, entrepreneurs do develop an options portfolio and keep a constant vigilance for significant changes in the environment and/or a chanced resource discovery that may trigger a promotion from option to opportunity. Either way, they are not searching for AN opportunity (like a lottery ticket) but THEIR opportunity (the one that they are uniquely resourced to provide a solution to a need).
"If you are not centre stage in your own opportunity then you are just a bit player in someone else’s." PB
People and the Entrepreneur
P is for People
The Entrepreneur and People
#5 Image source: by thatrileygirl - flickr.com Although it is a common trait amongst entrepreneurs is that they like to be the boss, it does not mean that they are elitist. They need to be in charge for practical reasons and is not a status trip. In fact when in charge, entrepreneurs typically employ an egalitarian style of management. Entrepreneurs are honourable people who would do business on a handshake or promise (if they could) and tend to form strong associations with others who share the same ethos.
Their temperament package radiates a certain charm that makes for binding relationships, which inspires cooperation, confidence and loyalty. It is this genuine relationship that entrepreneurs form with their financiers, partners, vendors, sub-contractors, professionals and employees that supercharges their organisations and though small in numbers is big in stature and capable of taking on the giants in any industry. Being mostly generalists, entrepreneurs have no problems employing people smarter than themselves. In fact, it is almost a prerequisite to their success that they do.
Richard Branson - People
Richard Branson talks about the importance of getting good people.
Of all the rare, immutable and un-substitutable resources an entrepreneur can secure to build their enterprise, it is the people resources that is the most valuable. This is why every person an entrepreneur meets is seen as a potential resource or teacher. Entrepreneurs want you to teach them what they don’t know and if they perceive you know too much, then they want to employ you. Right then!
"If you want to achieve something individually great, then don’t attempt it on your own" PB
Q is for Quirky
Entrepreneur - Seth Godin's Purple Cow
Entrepreneurs revel in the quirky. They add it to their products, you will find it in the unusual parts of their assortment, your will see it in their marketing and it is the endearing part of their service. It is a form of creative, almost cheeky humor, that can only be produced by a person with boundless self-esteem, who is confident in their offer and who understands that it is this very quirkiness that creates the fond and lasting memory in the mind of their customers.
Seth Godin in his book “Purple Cow: Transform Your Business by Being Remarkable” states that in business, being the same is as good as being invisible. The world is full of brown cows and to survive you need to stand out from the herd – you need to create the Purple Cow. Entrepreneurs know this fact all too well.
You may be interested to know that the term ‘quirky entrepreneur’ has been used extensively by media when describing entrepreneurs. It was used by the Los Angeles Times when describing the founder of the candy empire Forrest Mars Sr., by Newsweek to describe Mike Bloomberg, it was used by Howard Kurtz, Roger L. Simon the in their book Straight Man: Inside Wall Street's Game of Money, Media, and Manipulation to describe the founder of Amazon.com Jeff Bezos, by the Mail on Sunday to describe the Body Shop founder Anita Roddick, by the International Herald Tribune to describe Richard Branson, and by Jeff Cohen in his book Cable News Confidential to describe the founder of CNN, Ted Turner. So it seems, if you’re an entrepreneur … its OK to be quirky.
"The same’ is never recorded - ‘the quirky’ never forgotten" PB
R is for Risk
Most people think that the choices in life are to take risks or to not take risk. This is not how entrepreneurs weight up the risks of living. What entrepreneurs see is that risk is unavoidable, but you do get a choice in life at to which risk you wish to take – to risk a failure that leads to the loss of replaceable assets or to risk a failure that leads to the loss of one’s life. The entrepreneur chooses the former because they perceive that a life is lost if it is lived without significance, lived without meaning and lived without seeking to be the best they can be. Entrepreneurs are fearful of a so called ‘risk-free’ life that ends in the anguished regret of what might have been, of what could have been, of what should have been. Compared to this life failure, an entrepreneur perceives their risk to be actually quite small. For the entrepreneur, life is not just to survive, for everyone untimately fails at that, NO! It is to live with purpose. This thought, truly eats at the entrepreneur’s soul: "if I don’t take a chance I will never know what I could have become".
Entrepreneur and Risk
#6 Image Source: by ninawoeltgen - flickr.com There are hundreds of jobs, sporting feats and activities that we witness every week that we believe are ‘too-risky’ for us, yet ask the expert performing them and they will hardly even acknowledge any risk at all. Their natural gift, training and experience all make it so. So too with entrepreneurs. To the untrained eye entrepreneurs take risks, to the entrepreneur they are simply taking the next challenge after carefully evaluating the risk and deciding to do it based on their ability to accommodate it. Anyway, the entrepreneur places little faith in assets for security, preferring by far their coping ability regardless of the threat.
Just as the concept of risk and reward is fundamental to the finance and investment industry so it is with entrepreneurial living. The entrepreneur is not satisfied with the mediocre life returns of pleasure and comfort preferring instead to strike out for a life of fulfilment, joy, meaning and destiny. These rewards are so highly valued by the entrepreneur that they will risk everything they own to have them. Entrepreneurs then simply invest their lives to attain the highest return and willingly accept the risks that this involves.
"Many a soul is lost to the risk–free life of irrelevance" PB
S is for Subjective Margins
The art of the entrepreneurial offer is to not fight with competitors on the battlefield of price, but rather to shift the focus to the satisfaction of customer needs. They do this by leveraging subjective or emotive margins. Subjective margins are the margins that entrepreneurs achieve because they know how to perfectly position their offer in an emotive arena where price for the customer is not the issue.
The real issue for the customer is the satisfaction of their emotive need and they will willingly pay a price that has little relationship to the accounting costs of production or the market price of another similar but poorly positioned good or service. The following represent areas in which customers will willingly pay a premium to have their subjective/emotive needs satisfied. (Urgency, Self Esteem, Pain Relief, Fear Mitigation, Scarcity, Unique name, High Emotional Experience, Vital Small Cog, High Sentimental Value or Indulgence)
"The problem with a life ruled by money is that it only sees the price – never the value" PB
Timing Characteristics of an Entrepreneur
T is for Timing
Entrepreneur and Timing - #7 Image sourced by wtlphotoshttp - flickr.com For entrepreneurs, timing is everything. Experienced entrepreneurs know that many a successful venture happened because they launched it in the right place at the right time. There often appears to be a large element of luck in these ventures but what is unseen is the preparation time that took place prior to the launch. The gathering of market intelligence, their positioning in the emerging field, the securing of the people resource, the look-out for the environmental trigger, their trial & error a few times to get it right, the organising of their personal life and the thinking through of the business model which all laid the ground work prior to the successful launch. Or as the 1st century Roman philosopher Seneca said “Luck is what happens when preparation meets opportunity.”
"Success is all about timing – being there at the moment when it mattered as well as the 99 times when it didn't" PB
U is for Under the radar
Scratch the surface of any true entrepreneurs and you will find a revolutionary on a mission to change the world. However, entrepreneurs soon learn that they achieve this best by flying ‘under the radar’. That is, securing their entry into markets with minimal notice or perceived threat ensuring the least negative reaction from competitors, suppliers, partners or customers. They often are the wolf in sheep’s clothing appearing to be like everyone else until the timing and strength is there to reveal all. Entrepreneurs know that the status-quo in any field is a powerful force and it is programmed to quickly and ruthlessly crush any sign of difference or deviation from the mean.
So, the entrepreneur, instead of full frontal attack will appease, cajole and avoid ruffling feathers until it is too late for others to counter respond i.e. by the time the entrepreneurs full hand is revealed it is too late for others to mount a challenge. Entrepreneurs will arrive at a sustainable position almost un-noticed by flying ‘under the radar’ and will conquer more by stealth than by force. Arnold Kling in his book “Under the Radar: Starting Your Internet Business without Venture Capital” outlines the benefits that this strategy delivers when starting a new internet business.
Knol page snap shot on the 12 December 2008.
To a large extent even this Google Knol project is being launched 'under the radar'. There is very little self promotion being done by Google and very little responce from them when they are attacked. Google's knol project is quietly adding features to improve the product and gaining traction in the market almost unnoticed by rivals that have too quickly placed it in the non-relevant and non-threat box. Whilst not privy to the Google mind, it seems that there is much more in store for the Knol project that when fully released and promoted it will be too late for competitors to respond.
"Entrepreneur – Revolutionary inside"
V is for Value-add
Unlike their other commercially engaged counterparts, the entrepreneur’s primary goal in their commercial endeavour is to add value. As President Ángel Cabrera, Ph.D [13] declared to an audience of entrepreneurs in Phoenix in October 2008 concerning the ‘other’ approach “Their focus is on extracting value, not creating value,” Cabrera said. “If they can pay their employees less or treat them worse to improve the bottom line, then that’s what they do.” He went on to then say “You (entrepreneurs) are obsessed with creating value.”
As discussed in the introduction, both approaches outlined by Cabrera make money, but each approach is adopted with a quite different mind-set. The entrepreneur makes their money by taking a slice of the added value that they create for their customers via their innovative products and services. To take Cabrera’s words further – “You (entrepreneurs) are not looking at your business venture as a way of extracting value away from others”. Unlike other operators in the field of commerce, entrepreneurs are not in the business of ripping people off.
"There is a vast difference between exploiting an opportunity and exploiting a weakness. The former adds the latter takes" PB
W is for Work & Play
The global entrepreneur Richard Branson said in a 2003 interview with Fortune “I don’t think of work as work and play as play. It’s all living.” This is typical of the entrepreneurial mind-set and quite possibility contributes to their remarkable good health. It is the entrepreneurial promise ‘to do what you love and to love what you do’ so it is near impossible for the entrepreneur to tell when they are working and when they are having fun. For them, this sort of hair splitting definition, the entrepreneur leaves for others to identify.
This enjoyment of what they do leads to another typical response from entrepreneurs – retire from what? Entrepreneurs have no plans to retire in fact have great trouble understanding how you retire from living. Sure, they sell their enterprises from time to time but it is not long before they are back into the thick of things with a new project or idea. The sales pitch of the ‘get-rich-schemers’ to retire early, is definitely not directed at the entrepreneur. Research [5] inidcates that entrepreneurs are three times more likely to indicate that they never intend to retire.
Perhaps the closest entrepreneurs could get to anything resembling this would be the entrepreneurial concept of returnment. That is, to return all those favours and benefits that have been bestowed on the entrepreneur throughout their life, back to a new generation of start-ups by way of angel investing, mentoring and coaching.
"What a fulfilled life it is where work and play mesh so indistinguishably. Where both are pursued with a spirit of excellence, displaying at all times an unconquerable passion and imbibing an endless duty to love. Where every act is an expression of a deep sacred belief, the totality of which is acknowledged by others as the ‘mastery of life’."[14]
X Factor of an Entrepreneur
X is for X Factor
When Herb Kelleher of Southwest Airlines was asked [15] about the characteristics of the successful entrepreneur that could not be learned he detailed “1. a reasonable intelligence, 2. good health, 3. optimistic disposition, 4. lengthy attention span, 5. perseverance, and 6. a love of people.” One could summarise these into three basic points of intelligence, health and attitude of which Herb declared attitude of paramount importance or the X factor that must be an inborn characteristic of the entrepreneur. He carries this simple maxim all the way through to the hiring process: "You hire attitude, everything else can be trained"
Entrepreneur - Anita Roddick's Book
For Anita Roddick [16] the X factor was obsession and she explains it in this way "Dysfunction is the essence of entrepreneurship. I've had dozens of requests from places like Harvard and Yale to talk about the subject. It makes me laugh that ivy leaguers are so keen to "learn" how to be entrepreneurs, because I'm not convinced it's a subject you can teach. I mean, how do you teach obsession? Because it is obsession that drives the entrepreneur's commitment to a vision of something new." She goes on to say that “Potential entrepreneurs are outsiders. They are people who imagine things as they might be, not as they are, and have the drive to change the world around them. Those are skills that business schools do not teach.” She believes that the X factor is passion and imagination.
Whatever the X factor might be (attitude, passion, obsession, self confidence, enthusiasm) most entrepreneurs believe there is one. Just like any field of human endeavour some people have it – some don’t. For us, entrepreneurship is a destiny. A calling. A sense that this is what we were meant to do. It is the one role that that both creates the greatest good for others whilst still fulfilling the aspirations of the soul.
"The smugly talented know they can do better than those less gifted achievers – but they never will." PB
Y is for You
You the entrepreneur
Entrepreneurs are people so totally engaged with the outside world that they can tend to pay too little attention to their one greatest asset – themselves. It is paramount for the entrepreneur to understand and accept what makes them tick. They need to accept that to all others they will be ‘the black sheep’. This is normal. They need to understand that whilst others climbed high up the pole of their specialised careers, theirs will be a career of the generalist building more a mound of skills that allowed for easy movement across many fields and skills. They need to accept that whilst not always completing higher education studies they will become masters of their craft, honed in the world of the practical hands-on.
Entrepreneurs need to know their place. They need to understand when they should lead and when they should step back to allow other skill sets to manage the growing venture.
Now whilst not part of their natural gift, entrepreneurs need to educate themselves on the other half of business success – business acumen. The cheapest way to learn these skills is through formal education, however most entrepreneurs choose the far more expensive option from the ‘University of Hard Knocks’. Which ever way the learning takes place, these are lessons that must be learned if the entrepreneur is ever going to create a successful and sustainable enterprise.
Another unusual characteristic of the entrepreneur is the concept of self-branding. They share this attribute with the show ponies and the egotists but again for different reasons. Entrepreneurs know that they will be at the epicentre of any new venture and so it is vital that they have a reputation that inspires trust, that demonstrates courage to act alone if needs be, that copes effectively with the unforseen and that can create the future. So, they have no hesitation in placing themselves at the forefront of any option to volunteer, any option for publicity or any option that allows them to demonstrate or build their reputation. It is the ‘hit they take for the team’ even though the team has not yet been formed.
Anita Roddick again "We entrepreneurs are loners, vagabonds, troublemakers. Success is simply a matter of finding and surrounding ourselves with those open-minded and clever souls who can take our insanity and put it to good use."
"It is a condition of living that we are compelled to withdraw 24hours of time each day from our account at the Bank of Existence. What will you do with that time? Squander it on the fleeting gratification of your senses? Will your use it to acquire those decaying and life-absorbing assets? Will you flitter it on the winds of nothing to do or will you invest it in the incorruptible legacy for a fellow traveler’s betterment.” PB
Z is for Zest
The Final Word
The final word goes to the Small Business Coach Joy Duling
Zest or passion is in the life-blood of the entrepreneur. As Anita Roddick explains "An entrepreneur is very enthusiastic and dances to a different drum beat, but never considers success as something which equates to personally wealth. That never enters our consciousness. We have incredible enthusiasm, and I think part of the success of any entrepreneur is energy. If one has that energy one can create a wonderful enthusiasm.” This enthusiasm is infectious and plays a key part in the creation of the founding team and the maintenance of its mantra. It is a characteristic of the entrepreneur that their locus of control is within them and is least affected by the changing pressures of the external environment. The entrepreneur’s zest comes from their belief that they can create and control their future and not simply live a life at the mercy of either either fate or providence.
"The zest of life actually comes from having to make a choice, in a state of frailty and in a world of uncertainty whilst being fully conscious of the painful consequences of getting it all so wrong." PB
The A to Z of the characteristics of an entrepreneur
Much academic research has been conducted to define the characteristics of an entrepreneur. Like an animal in the zoo they have been studied at length by economists, anthropologists, management academics, psychologists, sociologists, historians, finance experts and organisational scholars.
Who are these creatures? Why do these persistent people never know when to give up? What drives them to take risks that ordinary folk find overwhelming? Where do they get that energy? How do they create value from nothing and most importantly … what are the characteristics that define them as an entrepreneur.
As practicing entrepreneurs, lecturers and authors of entrepreneurial books and material, Dr. Neil Flanagan and myself have developed our own view on the A to Z characteristics of an entrepreneur .
Introduction – Characteristics of an Entrepreneur (the A to Z)
Even though entrepreneurial skills can be identified, analysed and taught, we believe that the position of the entrepreneur in society is more aligned to a calling than that of a skill-set. What others may see as ‘a black sheep’ curse, the entrepreneur sees as a gift which is quite possibility, simply an accident of birth. For example, according to the Myers-Briggs personality classifications, entrepreneurs come from fields like the ISTP 'Craftsman', ESTP 'Doer', ENTJ 'Field Marshal', ENTP 'Inventor' or the ENFP ‘Champion’ type temperament, which will all gravitate naturally to the entrepreneurial style of endeavor.
The characteristics of an entrepreneur are identified in high energy creative people, who are self-confident, have high levels of self-esteem and are futuristic in their outlook as they seek to incessantly solve problems, take risks and learn from failures (theirs and others). They thrive on change and have a natural predisposition to showing initiative and willingly accept personal responsibility for projects. They harness all available resources within their scope in order to achieve success on their own terms.
Characteristics of an Entrepreneur
Successful entrepreneurs learn to control and discipline their gift and by combining this with a business education (both formal and from the ‘school of hard knocks’) together with a perseverance and an enjoyment of hard work driven by a righteous passion, they eventually craft their success in spite of the many preceding disappointments and set backs.
Many people have tried unsuccessfully to categorise the entrepreneur, with the Webster's dictionary describing them as ‘one who organizes, manages, and assumes the risks of a business or enterprise’. This is a typical researchers description, written without the privileged insight into the mind and spirit of what makes an entrepreneur tick. As entrepreneurs, educators and authors, we have made an attempt in this Knol to identify the A to Z of what sets entrepreneurs apart from their other commercially engaged contemporaries.
Now the entrepreneurial skill-set would afford success in many fields of human endeavor, however, the entrepreneur is drawn to the world of business and commerce. We believe that this is because their great desire for independence, their love of a competitive environment, the business world’s reward for objectivity over subjectivity and the fact that excelling at this core societal realm makes the greatest use of their talent.
www.wordle.net Characteristics of an Entrepreneur
However, sharing this ‘money accumulating' space in society are other players, with some like the scammers and value takers, whose view of success is so focused on just the money that they are quite prepared, if necessary, to sell both their integrity and their grandmother in order to have it. As you will see, whilst both this particular acumen and the entrepreneur’s methodology share the same ‘money accumulating' outcome, each achieves it with an entirely different mind set and approach. Entrepreneurs 'make money' - meaning they create value that did not previously exist rather than just accumulating money via schemes and exploiting weaknessess that take from another’s hard earned assets. Following is the ‘A to Z’ of what we believe are the unique and distinguishing aspects, skills and mind-sets of the entrepreneur - the characteristics of an entrepreneur.
Ambiguity and an Entrepreneur
A is for Ambiguity
Albert Einstein
1921 By F.Schumpter
Ambiguity is the “doubt about meaning: a situation in which something can be understood in more than one way and it is not clear which meaning is intended”. [1] Ambiguity usually occurs at times of significant societal, environmental, economic, political, technological or organisational change. Now, whilst periods of change are quite stressful for the vast majority of people, it marks a time when entrepreneurs becomes quite invigorated. Entrepreneurs are people that have a great tolerance for ambiguity [2]. This is because entrepreneurs know that change always brings with it new opportunities and as Albert Einstein observed “In the middle of every difficulty lies opportunity” .
Furthermore, the entrepreneur has no fear of change because they bring to every new period of ambiguity, their past experience with its already highly developed coping strategies. Entrepreneurs position themselves via alliance building, work activities, engaged learning and market intelligence gathering, at the very epicentre of the change and look out through the rolling mist for an emerging opportunity and need for which they are uniquely resourced to bring a solution. Entrepreneurs do not work from the turbulent outside-in but rather from the focused inside-out, seeking to find their own unique place in an evolving and changing environment.
Entrepreneurs have both the conceptual skill to quickly sum up the changing big picture by identifing relationships and patterns in complex situations, as well as the ability to identify, take advantage of and action specific solutions to the emerging problem and need.
“I am not sure where I’m going but I still prepare myself diligently for the journey every day” PB.
B is for Beachhead strategies
Entrepreneur and the beachhead strategy
#1 Image Source: by soldiersmediacenter - flickr.com Entrepreneurs have a natural understanding and appreciation of Beachhead Strategies. Beachhead strategies are the strategies that an entrepreneur uses to gain market penetration and customer acceptance for their products. Like the war metaphor they mirror, beachhead strategies aim to secure a foothold as a prerequisite to the main game. Entrepreneurs and generals alike know that the main game is too heavily guarded and fortified for a full frontal attack so they each secure a space in some easily acquired ground and then use that position to eventually strike out for the intended target.
Entrepreneurs may launch with ‘me-too’ products just to establish market acceptance and then leverage their new found position to release the high-margin innovative upgrade or add-on. They may partner with established networks, alliances and trusted brands to establish a market acceptance before striking out on their own, they may gives lots away for free, just to build momentium and demand for their product. They may spend time working in an industry or firm to gain the necessary contacts and market intellegence before the launch of their own venture.
Principles of War The book “Harvard Business Essentials: Strategy – Create and implement the best strategy for your business” talks about ‘beachhead strategies’ [3] in the light of Carl von Clausewitz’s nineteenth century book on military strategy titled ‘Principels of War’. The authors purport that the lessons learned from Clausewitz’s timeless advice is to ‘aim at the sharp end of the spear where rivals are weak or uninterested in what you are doing." The book sites many examples of this strategy including Sam Walton’s (Wal-Mart) strategy of opening in small towns that were not served by the formidable rivals like the retail giants, Sears and J.C.Penny.
Once launched, other beachhead strategies that could be adopted by the new venture include: (1) Build momentum not profit (2) Be the topic of conversation (3) Work with your champions (4) Create memorable experiences (5) Create addictions (6) Break habits and break through (7) Remove barriers (8) Linkup with the locals (9) Focus on what matters and (10) Exploit the unforeseen opportunities.
“Every project can be broken into two halves – making a start and all the other stuff” PB
C is for Commitment
Entrepreneurial endeavour will never happen without it. Commitment is the founding drive of the entrepreneur. Not just the commitment to do - but the commitment to do and then see it through - not just the commitment to see it through but to see it through with everything on-the-line. It is a commitment to the long term, the commitment to never giving up on the dream, the commitment to getting up and starting all over again if fate so decrees.
The commitment tap root for the entrepreneur is the deep desire to live a life of significance. So, commitment for the entrepreneur stems from their belief that they are doing something worthwhile, not just for themselves and their associates but for the 'greater good'. It is this commitment that sees them continue in the face of disappointment and set backs, when others declare it as 'all too hard'. According to Michael Simmons, author of the book “The Student Success Manifesto” – “The difference between an interest and a commitment, is the difference between if and when. When we truly commit ourselves to success, it becomes inevitable.”
If commitment is the ‘ying’, then the whole is complete with the ‘yang’ of courage. For one can not exist without the other. That is, courageous people are committed just as committed people are courageous. Now courage is not acting without fear but is rather the ability to look beyond the things that scare you to death and see the things that inspire you to live. For more, see the knol by Sandra Walston on courage.
"More important than all the talent, all the resources and all the opportunities – is a solitary act of commitment" PB
Destiny and the Entrepreneur
D is for Destiny
The entrepreneurial spirit is interlocked with a sence of destiny. For the entrepreneur, life is not just a process of accumulating physical assets nor just the indulgence of physical pleasure nor even the cyclical life of comfort and leisure – NO! It is making a difference, it is living a life of significance, it is embarking on a never ending journey to be the best that they can be and being the greatest influence for 'good' that they can.
Winston Churchill
Public Domain
They are driven to take control of their future, to craft their destiny and if needs be, to make sacrifices in the short term for a greater long term gain. Many entrepreneurs hold to the same view as was expressed by Winston Churchill [4], the wartime Prime Minister of Great Britain, who said "I felt as if I were walking with destiny, and that all my past life had been but a preparation for this hour and this trial." It is not their business that makes entrepreneurs a champion, they chose the champion’s life from an early age and so developed their character until it eventually becomes self evident.
"Our destiny is the last thing we discover after having prepared for it all our lives" PB
E is for Effectual reasoning
Business schools and corporate enterprises the world over teach the process of managerial or strategic decision making as the basis for all business development. This process starts with clearly defined goals, that translate into specifically defined objectives that inform the strategies and then determine the tactics.
This basis for decision making is actually at the antithesis of the entrepreneurial one, that takes stock of the strategic resources, capabilities and unfair advantage within the entrepreneur's control and then selects an emerging opportunities that these capabilities make them uniquely placed to exploit. This peculiarly ‘effectual’ entrepreneurial thinking has been researched by Saras D. Sarasvath an associate professor of the University of Virginia and is explained in her article “What makes entrepreneurs entrepreneurial”.
"To build anything, we need to progress down the hierarchical pyramid from purpose to values to goals to objectives to actions – trouble is, our own life is built the other way up." PB
F is for Focus
Focus & entrepreneur - #2 Image source by spacepleb - flickr.com Entrepreneurs know better than most, the power generated by focus. They define the mantra for their venture and in spite of the many morphs, changes and set-backs they manage to keep everyone focused on the main game. They know how to focus their own lives as well as the lives of others onto the targeted outcome and so penetrate barriers by the concentrated attack on a single point.
Their concentration at times can boarder on obsession as they stick with their passion, in spite of the many distractions, and get the job done. They narrow their living to a few core commitments protecting those at all costs but forgo the fringe and peripheral engagements that can clutter the lives of those less focused and obsessed. These successful entrepreneurs are single minded with a eye-constantly-on-the-prize. They are not easily distracted, they rarely quit and with blinkers on they stay focused on the task at hand until it is done.
"Unfocused energy dissipates whilst focused energy, like the sun’s rays through a magnifying glass, BURNS!" PB
G is for Global
True entrepreneurs today are identified by their global vision. Sure, they primarily offer solutions for their immediate surrounding market but they have an eye for how that could translate into the global sphere. They recognize the power of the internet to deliver a global outcome for their enterprise and so shape their model to include it in their thinking and ‘blue sky’ possibilities. No longer happy to be tagged the SME (Small to Medium Enterprise) these start ups are better tagged GOS (Global Opportunity Startup). Yes, they start small but their ambition is to change the world – literally. Kevin Hall talks about this further in his knol Why is it important for an Entrepreneur to go Global?
"Life is a vast open plain in which your courage stakes out the boundaries" PB
Health and the Entrepreneur
H is for Health
#3 Image source: by caseywest - flickr.com
Entrepreneur and good health Good health is a remarkable aspect of entrepreneurial life. For many entrepreneurs this is simply because they refuse to be sick, mostly because they can’t afford to be. The entrepreneur finds no benefit in this concept as their sick-leave entitled corporate counterpart may find. We believe that good health for the entrepreneur is derived from their positive and creative mind set, their problem solving obsession and living the life of ‘doing what they love + loving what they do’ that keeps them so. They give no mind to the carcinogens of envy, anger and jealousy because they are too obsessed with pursuing their own fun, fortune and fulfilment. Not only is good health a benefit of the entrepreneurial life, but it is also a necessity, because successful entrepreneurs are often called upon to work long hours for extended periods of time. Research [5] carried out in 2006 inidcates that entrepreneurs are objectively more healthy than others.
The founder of the website Baby Boomer Entrepreneurs in the article [6] “Characteristics of Entrepreneurs”,believes that being in business for yourself is good for health. They believe that good health is a common trait of entrepreneurs primarily because their stress can be self-managed whilst the work-for-the-man stress is imposed and many times irresolvable. It is this unresolved stress that the author believes leads to poor health. The author contends that “being an entrepreneur is one of the healthiest occupations on the planet.” – We agree!
"My good health comes from a balanced diet of accepted truth whilst exercising much kindness, integrity and cheer and avoiding those deadly carcinogens of envy, anger, jealousy, revenge, pretence and double-mindedness" PB
I is for Innovation
Innovation sets the entrepreneur apart from all of their other commercially engaged contemporaries. Entrepreneurs know how to add value by making a product better and getting a target market to demonstrate their appreciation of it by parting with their money. The management theoretician Peter F. Drucker in his book "Innovation and Entrepreneurship: Practice and Principles" describes innovation as what entrepreneurs do. For him, innovation represents "the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or different service ... innovation involves, changing the value and satisfaction obtained from resources by the customer" (p. 19-33).
An entrepreneur’s core competency is to find new ways to solve problems and to come up with clever, workable solutions. They are naturally curious, inquisitive, bright and highly flexible in their thinking. They constantly scan their environment for new trends and are keen to spot a potential new venture opportunity. A very interesting aspect of the entrepreneurial mind-set is that having no money is not perceived by them as a barrier to 'making it happen'. They possess an almost naïve belief that funds are the resources that naturally follow an opportunity whose time has come and where a balanced and experienced team has been gathered to exploit it. A surprising fact for many, but that’s how it works.
"Creativity is born of a passion to do it right and to do it better" PB
J is for Just do it
Entrepreneur
Richard Branson
The Nike mantra could so easily be the entrepreneur’s. Entrepreneurs do. Just like Richard Branson says in his book 'Screw it, Let's do it'. Entrepreneurs also think, plan, judge, arrange, source, allocate, choose etc ... just like everyone else but doing is the priority and often times the first thing done. For the entrepreneur it is more a case of ‘ready-fire-aim’ than it is the more conventionally accepted sequence. Entrepreneurs are action takers and should not be confused with creative day dreamers and idea makers. Entrepreneurs are decision makers and are unafraid of making wrong decisions knowing that these are often necessary in finding the path to the right one.
For the entrepreneur, the decision to just do it is often to do it alone. This is what separates an entrepreneur from a highly competent corporate executive, for the latter on getting knocked back on a proposal will simply shelve the project. This is not the entrepreneurial one. They immediately look for an alternative even if that means putting 100% of their own resources behind the project to make it happen. They believe in the opportunity to the point of going it alone if needs be. 'Making it happen' is what the entrepreneur does.
"The suffering born of a tragic event is fate’s doing – the regretful anguish of a missed opportunity, is ours" PB
K is for Keep it real
Entrepreneurs are separated from creative dreamers on this point. Entrepreneurs know how to ‘make it real’. Whilst possessing the perceptive vision that can foresee future societal paradigm shifts they can equally explain the ‘what comes next’ in making it so. Whilst this is not always part of the ‘idealist’ gift of entrepreneurship, the’ keeping it real’ soon becomes a cornerstone skill of successful entrepreneurial engagements.
Entrepreneurs have an objective approach which while empathising with people’s needs are more concerned with the performance and accomplishment. Entrepreneurs are obsessed with the ‘truth’. The what’s real. They are honest and straightforward in their dealings and expect others to do likewise. This is often an area that they lose out to other commercially engaged players whose truth is subjectively determined by the greatest personal monetary gain. Still, entrepreneurs learn the best aspects of business acumen from their commercial counterparts but apply it to their ventures without the need to sell their soul to the ‘money over all’ mantra. Get-rich-quick is not in the entrepreneur’s vocabulary.
Herb Kelleher, the entrepreneur who started Southwest Airlines, identifies this keep it real approach in entrepreneurs with what he calls [7] “a pleasant sense of scepticism”. This mind set can challenge on points of reality without turning negative or destroying motivation. He says that he plays the passionate advocate who applies “sound judgement to focus on the truly important issues, and delivering the type of positive yet challenging scepticism needed to fully explore ideas”
"Reality is in the ‘what is’ not in the ‘what should be’" PB
Leadership Characteristics of an Entrepreneur
L is for Leadership
Entrepreneur and leadership
#4 Image source: pedrosimoes7 - www.flickr.com We think it is truer to say that entrepreneurs do not chose to be leaders but that leadership chooses them. They lead because they are prepared to take responsibility in an effort to get the job done. They lead because, from their objective standpoint, they don’t trust another’s decisions too heavily skewed by political or subjective bias. They lead because others follow, and other follow because they see their own needs being fulfilled in the entrepreneurial direction and outcomes. They lead because in times of great change they are the ones still moving forward, still possessing the energy to work tirelessly to solve the confronting problems. They live in a future that others wish to be guided to.
Leadership for the entrepreneur is not about status but about function. Imbibing a healthy self esteem, they have little need for status. They are not motivated by external acknowledgement but by achieving their own internal measures of success and achievement. Armed with a generalist approach, futuristic mindset, excellent people skills, a penchant for action over words and operating often in high variance industries, the entrepreneur makes for a natural-born leader [8] .
At the very core of entrepreneurial leadership is problem solving and decision making. If there is a problem – they solve it. If there is a decision to be made – they make it.
Anita Roddick, founder of the global retail chain The Body Shop, says [9] "I want to define success by redefining it. For me it isn't that solely mythical definition - glamour, allure, power of wealth, and the privilege from care. Any definition of success should be personal because it's so transitory. It's about shaping my own destiny. … Entrepreneurs have this real belief that their lives are about services and leadership."
"Groups are lead to achievement by good leaders, supported all the way by great leaders but achieve their own success with the very best of leaders" PB
M is for Meaning
Entrepreneurs start enterprises because they want to make meaning. They have an inherent desire to change the world and to make the world a better place. So, for the entrepreneur, making money becomes a means to that end and not an end in itself. Richard Branson says “Above all, you want to create something you are proud of…. I can honestly say that I have never gone into any business purely to make money … I’ve had to create companies that I believe in 100%. These are companies I feel will make a genuine difference.”
Guy Kawasaki in his book ‘The Art of the Start’ [10] goes further to explain that entrepreneurs can create the meaning, which will become the driving motivational force behind their ventures, in one of three ways
To increase the quality of life and to change people’s lives for the better
To right a terrible wrong which is most prominent in the area of social entrepreneurship
To prevent the end of something good where but for a new innovative approach something beautiful can be made to be sustainable again
"Purpose to Life? How about, never giving up, committing yourself to the continuous development of your allotted talent and being the best possible influence for good in every corner of the world in which you live" PB
N is for Never Giving Up
If the term ‘faith’ was not already an icon of religion, it would be the mantra of the entrepreneur, because most entrepreneurs would declare, “if faith is an act of believing in spite of the past or present circumstances, a hope unseen, an aspiration unrealised, a destiny unclear – then faith is my mountain”
For understanding the concept of faith is no more complex than planting sunflower seeds and with proper husbandry fully expecting that sunflowers will grow. For the entrepreneur, the seed is their life long learning, husbandry is the development of their character and the sunflowers are their enterprise, that will grow to sustainability when a fertile environment meets the appropriately timed season.
It is this faith or belief that underpins the entrepreneurial trait to never give up. For what others see as failure the entrepreneur see as either a learning, as a chance for character development or as simply a barren environment or an improper timing. So, they continue doggedly on their quest with great persistence working for the moment when their time will come. Most of all, they never give up and never quit striving for their success.
"Never give up on the hope that ‘Your time will come’." PB
O is for Opportunistic
Entrepreneurs are opportunistic. In fact the synonym for the word ”opportunist” [11] is actually entrepreneur. But an important fact to make clear is that they are not opportunistic about any or every opportunity – just theirs. Sure, their natural comprehensive awareness affords them a view of the total situation and the possibilities wrapped up in every option but it does not mean they action every opportunity they see. In fact, entrepreneurs say no to hundreds of great opportunities because they only have eyes for theirs.
As Tom Caprel [12] points out in his article “The Gold, The Opportunist and The Entrepreneur”, those sad creative dreamers that do chase “every pot at the end of the rainbow, will find it devoid of gold but full of broken hearts, dreams and bank accounts … they fail as entrepreneurs because they are enticed by bright shiny objects and seduced by the next new dot bomb and become too distracted by UFOs (Unidentified Flying Opportunities)”
Having said that, entrepreneurs do develop an options portfolio and keep a constant vigilance for significant changes in the environment and/or a chanced resource discovery that may trigger a promotion from option to opportunity. Either way, they are not searching for AN opportunity (like a lottery ticket) but THEIR opportunity (the one that they are uniquely resourced to provide a solution to a need).
"If you are not centre stage in your own opportunity then you are just a bit player in someone else’s." PB
People and the Entrepreneur
P is for People
The Entrepreneur and People
#5 Image source: by thatrileygirl - flickr.com Although it is a common trait amongst entrepreneurs is that they like to be the boss, it does not mean that they are elitist. They need to be in charge for practical reasons and is not a status trip. In fact when in charge, entrepreneurs typically employ an egalitarian style of management. Entrepreneurs are honourable people who would do business on a handshake or promise (if they could) and tend to form strong associations with others who share the same ethos.
Their temperament package radiates a certain charm that makes for binding relationships, which inspires cooperation, confidence and loyalty. It is this genuine relationship that entrepreneurs form with their financiers, partners, vendors, sub-contractors, professionals and employees that supercharges their organisations and though small in numbers is big in stature and capable of taking on the giants in any industry. Being mostly generalists, entrepreneurs have no problems employing people smarter than themselves. In fact, it is almost a prerequisite to their success that they do.
Richard Branson - People
Richard Branson talks about the importance of getting good people.
Of all the rare, immutable and un-substitutable resources an entrepreneur can secure to build their enterprise, it is the people resources that is the most valuable. This is why every person an entrepreneur meets is seen as a potential resource or teacher. Entrepreneurs want you to teach them what they don’t know and if they perceive you know too much, then they want to employ you. Right then!
"If you want to achieve something individually great, then don’t attempt it on your own" PB
Q is for Quirky
Entrepreneur - Seth Godin's Purple Cow
Entrepreneurs revel in the quirky. They add it to their products, you will find it in the unusual parts of their assortment, your will see it in their marketing and it is the endearing part of their service. It is a form of creative, almost cheeky humor, that can only be produced by a person with boundless self-esteem, who is confident in their offer and who understands that it is this very quirkiness that creates the fond and lasting memory in the mind of their customers.
Seth Godin in his book “Purple Cow: Transform Your Business by Being Remarkable” states that in business, being the same is as good as being invisible. The world is full of brown cows and to survive you need to stand out from the herd – you need to create the Purple Cow. Entrepreneurs know this fact all too well.
You may be interested to know that the term ‘quirky entrepreneur’ has been used extensively by media when describing entrepreneurs. It was used by the Los Angeles Times when describing the founder of the candy empire Forrest Mars Sr., by Newsweek to describe Mike Bloomberg, it was used by Howard Kurtz, Roger L. Simon the in their book Straight Man: Inside Wall Street's Game of Money, Media, and Manipulation to describe the founder of Amazon.com Jeff Bezos, by the Mail on Sunday to describe the Body Shop founder Anita Roddick, by the International Herald Tribune to describe Richard Branson, and by Jeff Cohen in his book Cable News Confidential to describe the founder of CNN, Ted Turner. So it seems, if you’re an entrepreneur … its OK to be quirky.
"The same’ is never recorded - ‘the quirky’ never forgotten" PB
R is for Risk
Most people think that the choices in life are to take risks or to not take risk. This is not how entrepreneurs weight up the risks of living. What entrepreneurs see is that risk is unavoidable, but you do get a choice in life at to which risk you wish to take – to risk a failure that leads to the loss of replaceable assets or to risk a failure that leads to the loss of one’s life. The entrepreneur chooses the former because they perceive that a life is lost if it is lived without significance, lived without meaning and lived without seeking to be the best they can be. Entrepreneurs are fearful of a so called ‘risk-free’ life that ends in the anguished regret of what might have been, of what could have been, of what should have been. Compared to this life failure, an entrepreneur perceives their risk to be actually quite small. For the entrepreneur, life is not just to survive, for everyone untimately fails at that, NO! It is to live with purpose. This thought, truly eats at the entrepreneur’s soul: "if I don’t take a chance I will never know what I could have become".
Entrepreneur and Risk
#6 Image Source: by ninawoeltgen - flickr.com There are hundreds of jobs, sporting feats and activities that we witness every week that we believe are ‘too-risky’ for us, yet ask the expert performing them and they will hardly even acknowledge any risk at all. Their natural gift, training and experience all make it so. So too with entrepreneurs. To the untrained eye entrepreneurs take risks, to the entrepreneur they are simply taking the next challenge after carefully evaluating the risk and deciding to do it based on their ability to accommodate it. Anyway, the entrepreneur places little faith in assets for security, preferring by far their coping ability regardless of the threat.
Just as the concept of risk and reward is fundamental to the finance and investment industry so it is with entrepreneurial living. The entrepreneur is not satisfied with the mediocre life returns of pleasure and comfort preferring instead to strike out for a life of fulfilment, joy, meaning and destiny. These rewards are so highly valued by the entrepreneur that they will risk everything they own to have them. Entrepreneurs then simply invest their lives to attain the highest return and willingly accept the risks that this involves.
"Many a soul is lost to the risk–free life of irrelevance" PB
S is for Subjective Margins
The art of the entrepreneurial offer is to not fight with competitors on the battlefield of price, but rather to shift the focus to the satisfaction of customer needs. They do this by leveraging subjective or emotive margins. Subjective margins are the margins that entrepreneurs achieve because they know how to perfectly position their offer in an emotive arena where price for the customer is not the issue.
The real issue for the customer is the satisfaction of their emotive need and they will willingly pay a price that has little relationship to the accounting costs of production or the market price of another similar but poorly positioned good or service. The following represent areas in which customers will willingly pay a premium to have their subjective/emotive needs satisfied. (Urgency, Self Esteem, Pain Relief, Fear Mitigation, Scarcity, Unique name, High Emotional Experience, Vital Small Cog, High Sentimental Value or Indulgence)
"The problem with a life ruled by money is that it only sees the price – never the value" PB
Timing Characteristics of an Entrepreneur
T is for Timing
Entrepreneur and Timing - #7 Image sourced by wtlphotoshttp - flickr.com For entrepreneurs, timing is everything. Experienced entrepreneurs know that many a successful venture happened because they launched it in the right place at the right time. There often appears to be a large element of luck in these ventures but what is unseen is the preparation time that took place prior to the launch. The gathering of market intelligence, their positioning in the emerging field, the securing of the people resource, the look-out for the environmental trigger, their trial & error a few times to get it right, the organising of their personal life and the thinking through of the business model which all laid the ground work prior to the successful launch. Or as the 1st century Roman philosopher Seneca said “Luck is what happens when preparation meets opportunity.”
"Success is all about timing – being there at the moment when it mattered as well as the 99 times when it didn't" PB
U is for Under the radar
Scratch the surface of any true entrepreneurs and you will find a revolutionary on a mission to change the world. However, entrepreneurs soon learn that they achieve this best by flying ‘under the radar’. That is, securing their entry into markets with minimal notice or perceived threat ensuring the least negative reaction from competitors, suppliers, partners or customers. They often are the wolf in sheep’s clothing appearing to be like everyone else until the timing and strength is there to reveal all. Entrepreneurs know that the status-quo in any field is a powerful force and it is programmed to quickly and ruthlessly crush any sign of difference or deviation from the mean.
So, the entrepreneur, instead of full frontal attack will appease, cajole and avoid ruffling feathers until it is too late for others to counter respond i.e. by the time the entrepreneurs full hand is revealed it is too late for others to mount a challenge. Entrepreneurs will arrive at a sustainable position almost un-noticed by flying ‘under the radar’ and will conquer more by stealth than by force. Arnold Kling in his book “Under the Radar: Starting Your Internet Business without Venture Capital” outlines the benefits that this strategy delivers when starting a new internet business.
Knol page snap shot on the 12 December 2008.
To a large extent even this Google Knol project is being launched 'under the radar'. There is very little self promotion being done by Google and very little responce from them when they are attacked. Google's knol project is quietly adding features to improve the product and gaining traction in the market almost unnoticed by rivals that have too quickly placed it in the non-relevant and non-threat box. Whilst not privy to the Google mind, it seems that there is much more in store for the Knol project that when fully released and promoted it will be too late for competitors to respond.
"Entrepreneur – Revolutionary inside"
V is for Value-add
Unlike their other commercially engaged counterparts, the entrepreneur’s primary goal in their commercial endeavour is to add value. As President Ángel Cabrera, Ph.D [13] declared to an audience of entrepreneurs in Phoenix in October 2008 concerning the ‘other’ approach “Their focus is on extracting value, not creating value,” Cabrera said. “If they can pay their employees less or treat them worse to improve the bottom line, then that’s what they do.” He went on to then say “You (entrepreneurs) are obsessed with creating value.”
As discussed in the introduction, both approaches outlined by Cabrera make money, but each approach is adopted with a quite different mind-set. The entrepreneur makes their money by taking a slice of the added value that they create for their customers via their innovative products and services. To take Cabrera’s words further – “You (entrepreneurs) are not looking at your business venture as a way of extracting value away from others”. Unlike other operators in the field of commerce, entrepreneurs are not in the business of ripping people off.
"There is a vast difference between exploiting an opportunity and exploiting a weakness. The former adds the latter takes" PB
W is for Work & Play
The global entrepreneur Richard Branson said in a 2003 interview with Fortune “I don’t think of work as work and play as play. It’s all living.” This is typical of the entrepreneurial mind-set and quite possibility contributes to their remarkable good health. It is the entrepreneurial promise ‘to do what you love and to love what you do’ so it is near impossible for the entrepreneur to tell when they are working and when they are having fun. For them, this sort of hair splitting definition, the entrepreneur leaves for others to identify.
This enjoyment of what they do leads to another typical response from entrepreneurs – retire from what? Entrepreneurs have no plans to retire in fact have great trouble understanding how you retire from living. Sure, they sell their enterprises from time to time but it is not long before they are back into the thick of things with a new project or idea. The sales pitch of the ‘get-rich-schemers’ to retire early, is definitely not directed at the entrepreneur. Research [5] inidcates that entrepreneurs are three times more likely to indicate that they never intend to retire.
Perhaps the closest entrepreneurs could get to anything resembling this would be the entrepreneurial concept of returnment. That is, to return all those favours and benefits that have been bestowed on the entrepreneur throughout their life, back to a new generation of start-ups by way of angel investing, mentoring and coaching.
"What a fulfilled life it is where work and play mesh so indistinguishably. Where both are pursued with a spirit of excellence, displaying at all times an unconquerable passion and imbibing an endless duty to love. Where every act is an expression of a deep sacred belief, the totality of which is acknowledged by others as the ‘mastery of life’."[14]
X Factor of an Entrepreneur
X is for X Factor
When Herb Kelleher of Southwest Airlines was asked [15] about the characteristics of the successful entrepreneur that could not be learned he detailed “1. a reasonable intelligence, 2. good health, 3. optimistic disposition, 4. lengthy attention span, 5. perseverance, and 6. a love of people.” One could summarise these into three basic points of intelligence, health and attitude of which Herb declared attitude of paramount importance or the X factor that must be an inborn characteristic of the entrepreneur. He carries this simple maxim all the way through to the hiring process: "You hire attitude, everything else can be trained"
Entrepreneur - Anita Roddick's Book
For Anita Roddick [16] the X factor was obsession and she explains it in this way "Dysfunction is the essence of entrepreneurship. I've had dozens of requests from places like Harvard and Yale to talk about the subject. It makes me laugh that ivy leaguers are so keen to "learn" how to be entrepreneurs, because I'm not convinced it's a subject you can teach. I mean, how do you teach obsession? Because it is obsession that drives the entrepreneur's commitment to a vision of something new." She goes on to say that “Potential entrepreneurs are outsiders. They are people who imagine things as they might be, not as they are, and have the drive to change the world around them. Those are skills that business schools do not teach.” She believes that the X factor is passion and imagination.
Whatever the X factor might be (attitude, passion, obsession, self confidence, enthusiasm) most entrepreneurs believe there is one. Just like any field of human endeavour some people have it – some don’t. For us, entrepreneurship is a destiny. A calling. A sense that this is what we were meant to do. It is the one role that that both creates the greatest good for others whilst still fulfilling the aspirations of the soul.
"The smugly talented know they can do better than those less gifted achievers – but they never will." PB
Y is for You
You the entrepreneur
Entrepreneurs are people so totally engaged with the outside world that they can tend to pay too little attention to their one greatest asset – themselves. It is paramount for the entrepreneur to understand and accept what makes them tick. They need to accept that to all others they will be ‘the black sheep’. This is normal. They need to understand that whilst others climbed high up the pole of their specialised careers, theirs will be a career of the generalist building more a mound of skills that allowed for easy movement across many fields and skills. They need to accept that whilst not always completing higher education studies they will become masters of their craft, honed in the world of the practical hands-on.
Entrepreneurs need to know their place. They need to understand when they should lead and when they should step back to allow other skill sets to manage the growing venture.
Now whilst not part of their natural gift, entrepreneurs need to educate themselves on the other half of business success – business acumen. The cheapest way to learn these skills is through formal education, however most entrepreneurs choose the far more expensive option from the ‘University of Hard Knocks’. Which ever way the learning takes place, these are lessons that must be learned if the entrepreneur is ever going to create a successful and sustainable enterprise.
Another unusual characteristic of the entrepreneur is the concept of self-branding. They share this attribute with the show ponies and the egotists but again for different reasons. Entrepreneurs know that they will be at the epicentre of any new venture and so it is vital that they have a reputation that inspires trust, that demonstrates courage to act alone if needs be, that copes effectively with the unforseen and that can create the future. So, they have no hesitation in placing themselves at the forefront of any option to volunteer, any option for publicity or any option that allows them to demonstrate or build their reputation. It is the ‘hit they take for the team’ even though the team has not yet been formed.
Anita Roddick again "We entrepreneurs are loners, vagabonds, troublemakers. Success is simply a matter of finding and surrounding ourselves with those open-minded and clever souls who can take our insanity and put it to good use."
"It is a condition of living that we are compelled to withdraw 24hours of time each day from our account at the Bank of Existence. What will you do with that time? Squander it on the fleeting gratification of your senses? Will your use it to acquire those decaying and life-absorbing assets? Will you flitter it on the winds of nothing to do or will you invest it in the incorruptible legacy for a fellow traveler’s betterment.” PB
Z is for Zest
The Final Word
The final word goes to the Small Business Coach Joy Duling
Zest or passion is in the life-blood of the entrepreneur. As Anita Roddick explains "An entrepreneur is very enthusiastic and dances to a different drum beat, but never considers success as something which equates to personally wealth. That never enters our consciousness. We have incredible enthusiasm, and I think part of the success of any entrepreneur is energy. If one has that energy one can create a wonderful enthusiasm.” This enthusiasm is infectious and plays a key part in the creation of the founding team and the maintenance of its mantra. It is a characteristic of the entrepreneur that their locus of control is within them and is least affected by the changing pressures of the external environment. The entrepreneur’s zest comes from their belief that they can create and control their future and not simply live a life at the mercy of either either fate or providence.
"The zest of life actually comes from having to make a choice, in a state of frailty and in a world of uncertainty whilst being fully conscious of the painful consequences of getting it all so wrong." PB
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