In our last posting entitled, “Entrepreneurship by the numbers.  How do you measure up?,” we took a statistical look at entrepreneurship based on Inc. magazine’s “Inc. 500” (the 500 fastest growing private companies in America).  So we talked about how old entrepreneurs tend to be when they start their first business, how long they wait before drawing a first paycheck, how many hold college degrees . . . that sort of thing.  Now we want to look at them more qualitatively, at their behavioral traits, their leadership styles, and at what they do (or don’t do) that makes them successful.  But as it turns out, putting entrepreneurs in a nice, neat box of common behaviors is tougher than I would have thought . . . as you’ll see if you continue reading below.

Do you have the “right stuff” to be a successful entrepreneur?

Below we discuss some of the behaviors that successful entrepreneurs tend to have, but they are not absolutes.  That is, for each of the below behaviors, there are exceptions . . . entrepreneurs who don’t exhibit that behavior at all, or may even exhibit the opposite behavior, yet are still successful.  Nor are the behaviors below intended to be a definitive list.  I’ve included those that I believe are the most impactful, but clearly not all of them.  That said, let’s look at these behaviors and see which of them you can see in yourself.

• They are visionary leaders.  They have a clear vision for where they want to take their company, and they are able to communicate that vision in a compelling way that makes people want to follow.  As we said above, an entrepreneur doesn’t need to have all these traits, but this one would be difficult to do without.  Good people won’t join you and sources of financing won’t lend you money if you don’t know where you’re going.
• They are endlessly curious.  As they approach a market with a new idea, they are interested in insights, not in validation.  That is, they search out candid thoughts, opinions, and concerns, even when they don’t support the entrepreneur’s own thinking.
• They are determined to achieve their goals.  They will go around, underneath, over the top, or just bust straight through obstacles, but they will not be stopped.
• They are clear about their company’s mission (how the company intends to serve its market).  They are committed to it and surround themselves with people who are likewise committed to it.
• They have a higher-than-average tolerance for risk.  Strangely, many entrepreneurs over the years have told me that they are risk averse . . . even though they’ve got their home and everything else they own tied up in their business.
• By definition, they are creative.  They have to be.  After all, they’re trying to create something new in the market . . . at least they better be.  If they’re going to market with a “me too” product or service, they’re going to have a problem right off the bat.
• They have “personal mastery.”  That is, they know their strengths and how to leverage them, but they also know their weaknesses and how to work around them.
• They have a deep understanding of their industry, but are always seeking more.  They want to be the first to spot something that will disrupt the industry and be in a position to take advantage of it.  They’ll be at every relevant trade show and are often active in their industry trade association.
• They are often their company’s best sales person . . . not necessarily because they have the best sales skills, but because they know their company’s value proposition, its market position, and its customer base better than anyone else.
• Entrepreneurs are notorious for playing things very close to the vest, preferring to keep the important activities and decisions to themselves.  But the successful ones know how to delegate important work and how to empower people to do it.

As I have said, there are other behaviors . . . no doubt lots of them . . . that help entrepreneurs become successful.  But if you’ve got those listed above in hand (or are working on ‘em), you should expect your business to have a very good, long, prosperous run.

Next time we’ll talk about when the founding entrepreneur should exit the business and the factors that will drive that decision.

Andy Rockwood

Rock Solid Business Development
Phone: (847) 665-9134
andy@rocksolidbizdevelopment.com

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