I am thinking of starting a business. What makes a successful
entrepreneur?
July 2002, Vol. 3 #7, © July 2002 LeaP Coaching
Number one: Are you cut out to be a successful entrepreneur?
Successful entrepreneurs share certain character traits...
The entrepreneur always has a new idea/opportunity
The successful entrepreneur is ready to limit how many ideas/opportunities
they are going to focus on - act on - at once! This doesn't mean
you have to give up your ideas and opportunities, just the notion
that you have to act on them as they come up. Instead, create a
file of ideas, or notebooks of ideas for action later; shelve opportunities
if they compete with your present project. Rule of thumb: only
three balls in the air at once, and make them congruent. Congruent
ideas all work together as a team. For instance, your ideas to
have a lemonade stand and create a homemade cookie franchise could
be complimentary, but think twice about taking up your friend on
the great offer to learn how to make home movies at the same time.
The entrepreneur is a risk taker
Feeling comfortable with taking risks is a hallmark of the entrepreneurial
mindset; knowing how to evaluate risks is a sign of a successful
entrepreneur who has learned some basic business skills and is
committed to treating their business like a business, not a hobby.
The successful enrepreneur can decide what risks are worth taking
and can answer these questions:
- "What would constitue a win in this situation?"
- "How is the win measurable?"
- "How much can I afford to lose?"
The entrepreneur likes to be in control
Most people like to feel like they are in control. The entrepreneur
finds this so important it is often difficult, if not impossible,
for them to work for another employer. There's a difference,
however, between liking the feeling of being in control of your
destiny and imagining that because you own a business you have
the power to be all-knowing all the time. In today's fast paced
environments where change is the only thing you can count on,
are you ready to reinvent yourself, your company, your product
or service in the face of uncontrollable forces...and will you
do it with joy?? The successful entrepreneur is flexible, is
a lifelong learner and can support cycles.
Number Two: Get clear about what you do and be able to articulate it.
One of the best marketing tools for your business will be your
ability to say what it is you do for your customer. Be careful
here, because what you do for your customer isn't always what
it seems. For instance, at first glance you might say that what
Nike does is make shoes. However, a lot of Nike's competitors
make shoes too. What is it that Nike does that separates it
from its competition? The Nike 'swoosh' says to the customer
that Nike puts them 'ahead of the curve'. What Nike, or any
company does has a very important emotional element. When you're
starting a business it's crucial to know what you are supplying
emotionally for your customer.
In traditional marketing terms, make sure you can understand
and can articulate the difference between 'features' (the does
part) and 'benefits' (the emotional part).
There's another important benefit to being clear about what
you do...it keeps you on track. Here's where crafting a vision and mission come into play. Start
with your vision for your business. Envision what your life
will be like on a daily basis. What will your environments be
like? How do you see your business
in action? After you've taken the time to think about and write
down your full vision, you can begin crafting your
mission statement. Your mission statement is a short
(one or two sentences) description of what your business does.
When you get clear about this you can easily know when you are
veering off of your mission and losing focus.
Number Three: Start with the end in mind
What do you want your business to look like? How you organize your
business will have a great affect on if you feel successful in
your business and also how the systems and financial decisions
are handled. Here are some starter questions for you to consider...
- Do you want to be a solopreneur/sole proprietorship or do you
want/need employees?
- Do you want to be in a partnership? If so, how you craft your
partnership agreement is very important and you'll want to get
a lawyer skilled in this to help set it up.
- Do you want to have a corporation? There are several types
of corporations and different reasons for organizing one way
vs. another. Again, get the advice of a lawyer versed in these
matters.
- Do you want to retire still owning your business, pass it down
to other members of your family, sell it, franchise it?
Number Four: Act from a space of reserve.
Financial Reserve
Many people I have coached are so enthusiastic about starting their
new business they are immediately ready to quit their day job.
I suggest before you do that, have six months to a year's worth
of expenses in the bank plus what
it will cost to start your business before you even think about
quitting your day job. If you're not in a postion of financial
reserve, you might want to go part-time in a job with a paycheck
before you cash in all your chips. Acting from a place of financial
reserve will help you to make better business decisions for the
long-term.
Emotional Reserve
Starting a business is a big emotional jump and it's vital that
you have support along the way. Are your family members behind
this decision? If not, are you willing to go through the consequences?
Do you have friends that will support you? Do you have a team of
experts or a virtual source that you can turn to for advice? Do
you have a coach's support as a member of your team who does not
have a personal stake in the outcome? Acting from a place of emotional
reserve will help you to weather the emotional peaks and valleys
on your journey.
Environmental Reserve
Is your business going to be set up physically in a way that will
allow you to do your best? Will you create systems that will give
you accurate reports? How is your health; do you make taking care
of yourself a priority? Taking care of business means investing
in your environment. Acting from a place of environmental reserve
means you will be well organized and have ample time and energy.
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