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I am often asked, “What does it take to be a successful entrepreneur?”
It’s a question that is difficult to answer because there are so many personality qualities an entrepreneur must have to be successful. With some of these qualities, you either have them, or you don’t. However, that doesn’t mean you can’t develop them over time.
Here are some of the more essential qualities you need for entrepreneurial success.
Related: 10 Traits All Successful Entrepreneurs Share
1. Be a risk-taker
If you already know me, then my approach to taking risks will not surprise you. After all, I have always subscribed to the mantra: Ready, Fire, Aim. I have no aversion to risk, which has been critical to my path as a successful serial entrepreneur. Small business owners must be willing to take risks if they want to achieve their goals.
At the same time, entrepreneurs need to make sure there is a very real potential for profit on the other side of that risk. Too often, small business owners will embrace a risk without carefully weighing the potential reward. They will focus all that energy on the front end. Then, they successfully navigate that risk, only to break even. I have always believed that only through profitability comes business sustainability.
The other caveat I would add is that you can’t be reckless, taking unnecessary risks, because you derive some sort of adrenaline rush. That is a recipe for disaster. This can be a challenge for me. Because taking risks has been such an effective strategy for me, I have a tendency to take risks when I could achieve the same result with a more conservative approach. This is where having a good network of advisors can come into play, which I write about next.
2. Be a connector, build a network
To be a successful entrepreneur, you have to be able to assemble a team. That means being open to individuals, their abilities and how they can assist you on your path. They say it takes a village, and that’s very true. It takes a village to launch and successfully maintain a business.
I encourage young entrepreneurs to make connections, whether at in-person events or on social networks. You never know when that one connection you make will be instrumental in the success of your business for decades to come.
Over time, you will build an invaluable network of trusted advisors. I have such a network — a handful of people with differing personalities. They are typically more risk-averse, which is a good thing (see “Be a risk-taker”), which tempers my sometimes brazen approach to taking risks.
Related: Want to Succeed as an Entrepreneur? Discover the Key to Building Long-Lasting Connections
3. Be confident
While this seems similar to the idea of embracing risks, it is not the same.
If you take risks, you will occasionally fail. It’s the nature of the beast. But can you bounce back from a failure? Being confident is being resilient in the face of failure. Confidence must be woven into your psyche as an entrepreneur.
It is also not just confidence in making initial decisions about your business but also having confidence in your ability to pivot if you hit a roadblock. That’s another form of confidence. You have to be confident not just about the normal path that you’ve selected, where you’ve done all your research, but the fact that you can change if you have to and flow in a direction that does work.
4. Embrace growth capital
Too often, entrepreneurs run their businesses on a shoestring budget, fearful about the cost of raising capital and/or servicing that debt. I get it. Owing people money can be an emotional weight. But it doesn’t have to be, not if you consider these two ways in which growth capital can transform your business.
First, the funds can fuel an initiative designed to generate more revenue. I am reminded of a friend of mine who sells newsletters to the legal community. For years, he merely attended a major conference that was frequented by his readers and sponsors. He recently made the decision to take on a little debt and become a sponsor at the conference, which ended up producing three times the investment in revenue.
Second, obtaining capital will free you up for more important entrepreneurial tasks. If you are constantly making adjustments to your bank account to ensure you have enough funds or making presentations to individuals who might invest in your company, you are not addressing the operational needs of your business.
Thus, it is important to understand your options. Increasingly, alternative funding companies are offering ways to determine how much capital you are eligible for without experiencing a dreaded inquiry on your credit report. Frequently, entrepreneurs are stunned at the amount of money they are eligible for. And then, when they weigh the cost of servicing that debt versus the time spent trying to keep their business above water with limited resources, they become more open-minded about the prospect.
Related: How to Make Debt Work For You
5. Delegate, delegate, delegate
Being willing to delegate is absolutely essential for entrepreneurial success. You have to be the leader of your venture. That means you have to find people with skillsets that complement what you do. You might be able to do it, but they can do it better.
I’ve delegated my entire life. There’s no way I could have taken the necessary risks to grow the business without someone to handle the details, whether it is accounting, the nuts and bolts of marketing or writing, to name a few.
This is even more true when it comes to technology. Surround yourself with those who can handle the operational side of technology so you don’t have to. When your website goes down, you have help on speed dial.
In sum, being aware of the ingredients in a recipe for entrepreneurial success is a foundational block for that success. Whether you were born with some of these qualities or not, you can shape your future decisions with these concepts and approaches in mind.
