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Characteristics Entrepreneurs Share
By Arnold Sanow
MBA, CSP
Each year an average of 500,000 new businesses are started, and each year approximately 50 percent of these fail!
Although there are many reasons why this happens, there are certain characteristics that successful entrepreneurs share. The following stand out:
Adequate capital - The most successful entrepreneurs prepare for the worst and have enough capital to weather any storm. In fact, the most prosperous entrepreneurs determine how much money is needed and then make sure they have a least three times that amount. In addition, when they make money, they reinvest the money into the business. Too many business failures are caused when the entrepreneur spends the incoming cash on vacations and fancy cars - and when bills are due, they end up with cash flow problems or worse.
Experience - Too many people get into business without the proper experience. For example, 90 percent of restaurants that start today will be out of business within a year. The problem is, somebody may be a great cook, but they don’t have any idea how to run and market a business. Just being good is not enough. The smart entrepreneurs work for someone else on their time and money, make their mistakes and then start their own business. In one instance, a client of mine wanted to open a coffee shop. To make sure she knew what she was doing, she worked for two different competitors over a period of a year - and now has a successful business.
Ability to make decisions - Successful entrepreneurs tend to make decisions quickly and change their minds slowly. Although you want to do your homework to make certain decisions, it’s important not to get into an analysis-paralysis situation. It’s also important to give something a chance to work. Successful entrepreneurs will try an idea and give it an adequate test before they give up on it.
Proper counsel - Although business is risky at best, much of that risk can be reduced by getting help when first starting a business. There are four people successful entrepreneurs see. The first is an attorney to make sure everything they are doing is legal and to also help them determine what type of form of organization is best. The next person they should see is an accountant. He or she can set up their books, advise on tax matters, and give advice on cash flow strategies. The third person to see is a banker. Get to know your banker. If you ever need a loan, you’ll be way ahead of the game. The fourth person to see is a business consultant or mentor. This person can help you develop a business and marketing plan, determine the right strategy to take, get you the resources you need, and keep you on track.
Effective planning - A business without a plan is like a ship without a rudder; whichever way the wind blows is the way you’ll go. Successful entrepreneurs take the time to develop a written "road map" or a "flight plan" to determine where they are going and how they are going to get there. In fact, in the last 10 years when I’ve dealt with businesses in trouble, not one has ever had a business plan - that tells me something.
Desire - Successful entrepreneurs love what they do. In fact, if you have a burning desire and passion, your chances of success are greatly enhanced. If you are just getting into a business to make money and you don’t like it, you probably won’t spend the time, money and energy necessary to make the money. There was a book that stated it best, "Do what you love and the money will follow".
Physical energy - Running a business allows you the opportunity to work not only from 9 to 5, but from 8 a.m. to 10 p.m. To keep alert, successful entrepreneurs watch what they eat, exercise and get plenty of rest.
Perseverance - This one trait is many times the difference between success and failure. If you knock on enough doors, somebody will eventually say yes.
These are but a few of the characteristics of successful entrepreneurs. If you don’t have them, don’t be discouraged. Now that you know what they are, make a commitment to internalize each one of them and then practice - practice - practice.
Arnold Sanow, MBA, Certified Speaking Professional, is a popular speaker, seminar leader, author and business and marketing strategist. He is the author of four books, including "Marketing Boot Camp." His keynote addresses, seminars, training programs and consulting focus on personal development and on developing business and marketing strategies to help individuals and the companies they work for excel in changing times. Sanow is a frequent guest on radio and television and in the print media. Recently he has appeared on the CBS Evening News with Dan Rather and in the Wall Street Journal, USA Today and others. He is an adjunct professor at Georgetown University.
For more information, visit www.arnold-sanow.com
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