8 Key Characteristics of an Entrepreneur

What does it take to become a successful entrepreneur? 
Why do some people succeed in business while others fail? 


1. Discipline
Being disciplined is perhaps the most important characteristic of an entrepreneur. Discipline in character is essential, yet financial discipline is equally important. Business is about money; and cash-flow is like blood to any business. Without cash, a business will fail. History has shown many times that lack of financial discipline or bad financial decisions are the triggering factors for the failure of most businesses. 


2. Risk Taker
Many entrepreneurs are risk takers as well. They take calculated risks in their business dealings. They are not afraid to try new products, new markets, new business relationships and new strategies. However, if one can receive the rewards and at the same time avoid certain risks by learning from others mistakes or their errors in assessing risks, then there’s no reason why the entrepreneur should take every risk even though he’s a risk taker by default. 


3. Spirit To Excel
All entrepreneurs have the spirit to excel. This is because a successful business isn’t built in one day. It is a long road and one needs to persevere until one achieves success. Entrepreneurs will keep working until the business is successful. 


4. Burning Desire
Entrepreneurs have a burning desire within them. This desire usually needs to be met, an itch that demands scratching attention, this is the desire the propels them forward and drives them to pursue their dreams. Setbacks are always unexpected and entrepreneurs need the desire and passion to pull them through these times. Failure in the absence of this burning desire will become a permanent humongous roadblock. Yet, to an entrepreneur, whose desire burns strong, failure is merely  a stepping stone towards success, a learning experience, and a test of entrepreneurial discipline. 


5. Communication Skills
Successful entrepreneurs do not work alone; and being an entrepreneur in a way is also about managing people. Employees need to be managed; costumers confidence must be gained; negotiations with suppliers and lenders are inevitable;  and vision needs to be communicated to investors. Hence, effective communication skills and interpersonal skills are very important to the entrepreneur. 


6. Smart Hard-work
Entrepreneurs are hardworking people. They are usually hands-on and have detailed knowledge of the industry they are in. An entrepreneur should expect to work hard, especially at the initial start-up phases, beyond that the challenge for the entrepreneur is to figure out how this hard work can translate into smart work down along the road.    


7. Creative Problem Solver
Contrary to popular belief, an entrepreneur doesn’t necessarily need to be creative or have an original idea, but creativity and imagination in solving problems are part of what defines an entrepreneur. Yet, There are many entrepreneurs who succeeded by copying other successful entrepreneurs. All they do is do it better and/or smarter than the rest of the entrepreneurs. They provide better customer service, source for better quality product, better pricing and so on. In either case, creative problem solving is an essential entrepreneurial skill.


8. Imagination
Entrepreneurship starts and is sustained through imagination. Imagination helps form the idea, imagination develops idea into a possible concept, imagination explores methods of implementation, imagination improves process when it answers how we can make the product or service better, and imagination fuels entrepreneurial creativity in lowering costs and stretching budgets when funds are next to or non-existent.


In summary the characteristics listed above are the common characteristics found in entrepreneurs. Even when a person lacks one or more of the characteristics listed above, he could still succeed if there are other factors working in his/her favor.


What other characteristics you find to be a core entrepreneurial trait? Please do share your thoughts and post your comments below.

The Most Crowded Marketplace Of All - A guest post by Paul Andrew

Paul Andrew Founder of The Leadership Coach™

I have always pursued the ideal that if something is worth doing, it’s worth doing well.

As I’ve worked with leaders around the world, I have discovered that mindset is not only a more satisfying way to live but it’s also a hallmark of those who rise above their competition.

The most crowded marketplace of all is mediocrity.

Think of your own industry. How many leading companies or organisations are there that have clearly risen above the crowd? And by comparison, how many of the “mediocre masses” are there? The eagles have a different experience of this world than the pigeons.

So here are a few exits on the highway to mediocrity that you might consider if you long to escape the throng-

1. Do less.

Thin out how much you do… in order to do what you do with excellence. Hold three events not ten. Offer two services instead of seven. Creativity is as much about what you leave out as what you leave in. And often doing too many things is the enemy of doing the most important things with excellence. Often, but not always…

2. Do more.

At the risk of contradicting myself, sometimes the answer is to do more. Go beyond what others offer. Market research would have told Ford and Jobs that people just wanted faster horses and smaller phones. Instead they gave them something more, something they didn’t even know they needed until they experienced what “more” looked like in the automobile and the iPhone.

3. Do it differently.

There’s a wine shop in my neighbourhood that I like. They’re not the closest, the largest or the cheapest. But they do something their competitors don’t- they get out from behind the counter and talk about their wines. They make it fun and educational without making customers feel inferior. Remember that whether you’re selling a product or a service, you’re really selling an experience. So do it differently.

So if you’re ready for the air up there, scorn mediocrity and ask yourself, “How could we do less, do more or do it differently?”

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Paul Andrew is Founder of The Leadership Coach™
He is a Keynote Speaker and Management Consultant based in New York

There is no such thing as a silent investor, or a silent partner

First Posted on | Mowgli Foundation http://t.co/Bb3iuZy on July 4th, 2011

by Ghada El Kurd

There is No Such Thing As A Silent Investor, or a silent partner, and that’s why I turned down 110 thousand US Dollars.

Yes, I really did turn down 110 thousand dollars cash-flow injection into my relevantly new company. As tough as things were at the time, with limited to non-existing funds, trying to build up a wider network and client base, having just bought out a partner, and above all, managing a big project that required dedicated and costly resources; when an investor came along offering to inject 110 thousand dollars, as a silent partner. I said No, thank you!

I will explain exactly, how I came to this decision as a result of my firsthand experience, although my knowledge and decision also were supported and came by way of observing the businesses and partnerships of colleagues, friends, relatives, clients and other SMEs, whether up close or from afar.

Now, my experience in my own ventures as well my work history in the family businesses, have taught me many valuable lessons over the years. The one that came crashing back into my mind with a neck breaking speed, was that There is No Such Thing As A Silent Investor, or a silent partner.

My first business, was thrown at me, no, really, it wasn’t really a choice at the time, I was barely 18, and dear old father decided that I will own (legally) and run the family’s new venture. Now that may sound impressive and yes, it was really very satisfying to my 18-years old ego; yet, little did I know that I really owned and controlled nothing.

In the first few months, I realized that I did have partners, the head designer who was the real talent was one, whose salary was 5 times mine and who banked 50% of net annual profits. But it was fair as he was the talent, and the whole business was built around his talent and skills. And naturally father was also a partner, actually the main partner for that matter, as he had the last word on everything. I was just the owner/manager! I accepted that, and tried to learn from both as much as I can.

Father started getting me involved, periodically, in our other businesses, especially when he’d be travelling. Little by little I came to understand the dynamics of the group, and became aware of the existence of investors, to whom we were accountable, and whose involvement gradually progressed to the role of active decision making partners. Conflict arose, and things started getting too chaotic, key personnel were at loss too, as they knew not whose orders to carry out. It was a total mess, especially that those investors-evolved-into-partners, had very little or no idea about the nature of our businesses, management or even a basic understanding of the markets at the time.

Essa El Kurd, my wise father, realized that the probability of losing everything was becoming a very real and high business risk. He boldly decided to buy everyone out, each and every investor and partner, which resulted in a 7-figure debt. We planned and implemented the buy outs over a period of 18 months. With every buy-out we regained more control of our own businesses.

And for the next four years, the business I managed, was our cash cow, it was what kept a roof over our heads and those forty other roofs over our employees’ heads in all of our businesses; Those other businesses were running successfully and making profits, but all profits went to paying out the debt we incurred in the buyouts.

As for my unofficial partner, well, he was the only partner we had by that time, we were investing in him and his talent, and as managing investors we had absolute control.

Know that if you are looking for an investment, whether it’s a kind old Uncle, an angel investor, who simply likes to get small businesses off the ground or a venture capitalist, without being held accountable to your investor or think they will assume the role of silent partners, you are seriously mistaken.

Sooner or later, they will want to know what and how you are doing, and increasingly more often, and gradually you will see them start to get involved at one level or another, regardless of the promises of letting you run your business, they WILL be involved, even if it’s just a phone call once in a while! And with the first mishap or trouble, even if it’s a minor one, you can expect even more communication, physical presence and active involvement. Every investor and every “silent” partner will want to be sure their money is being used and managed properly. And that their investment is in good shape, and it is their right.

I repeat, there is no such thing as a SILENT investor or partner, that is the main reason why I declined the investor’s tempting offer which could have saved me a lot of time and hardship in my business.

I know that raising outside investment is a difficult and time-consuming process. It is not for everyone though. But without some basic understanding, it can not only be extremely frustrating but could end in angry failure. SO if you are looking to keep majority control of your business, seeking outside investment requires proper due diligence and study of: the reasons, purposes, alternatives, investment type, terms and conditions, shares, management, stage where at investment is required, your team, and many other criteria that should be considered, but above all, don’t be blinded by money.

Don’t be blinded by the investment value or dollar amount that you need that the investor is about to make available to you, that you do not see the investors themselves. Know your investor, study and understand, their character, their goals, their interest in your business, and their expectations. Expectations also include how often and how to report back to them, division of shares, roles, and even additional investment if required.

Think before you jump, know what you both want and need, plan it well, put it in writing; and remember it is still a partnership just as it is a human relationship communication is essential to your mutual success. SILENT investors/partners do not exist.