There is no single theory of entrepreneurship: some entrepreneurs succeed and others don’t. Times have changed, but the truth is that business is still about the same things.
Whether your business sells socks, steel structures or web services, these nine traits are arguably universal to succeeding in business. They were in the past and they still are today.
1. Adaptability and flexibility
It’s good to be passionate about what you do. But being inflexible about customers’ or the market’s needs will lead you to failure. You have to know how to adapt to change. Remember that a business venture isn’t simply about doing what you think is good for your business, but also about making a successful business out of it.
Market needs are dynamic: change is a recurring phenomenon. Successful entrepreneurs welcome every suggestion for optimisation or customisation that improves their offer and helps them meet the needs of customers and the market. A product can’t just be a hobby for you; it has to be a product that meets a market need.
2. Understanding your offer and your market
Entrepreneurs know their product offer inside out. They also know the market and its dynamics inside out. Keeping on top of changing market needs, competitors’ moves and other external factors can prevent major failures. There are good products that have no market, and big markets with too much competition, where you have to adapt your product at every level or decide to stay out.
3. Passion and motivation
The one word that describes the basic requirement for a business venture is “passion”. As Donald Trump said, “Nothing great in the world has been accomplished without passion.”
The passion and motivation you show will determine your success in any business project. From building and implementing a prototype to pitching your idea to venture capitalists, success is a function of passion and determination.
4. Taking risks
As Michael Bloomberg says, life is too short to spend your time avoiding failure.
Entrepreneurs are risk-takers, ready to dive deep into an uncertain future. But not every risk-taker is a successful entrepreneur. What sets successful entrepreneurs apart from the rest when it comes to risk? Successful entrepreneurs will risk time and money on unknown projects, but they also keep resources and plans in reserve to take those unknown projects on. When assessing a risk, a successful entrepreneur asks: is this risk worth the time, money and effort it will cost me? And what will I do if this venture doesn’t pay off?
See also: How to fail in business without losing your dignity
5. Confidence, hard work, dedication and discipline
“You don’t have to be a genius, a visionary or even a college graduate to succeed. All you need is a dream and to get to work on achieving it.”
Entrepreneurs enjoy what they do. They believe in themselves and bring confidence and dedication to their project. At times they can come across as stubborn in their intense focus and in the faith they have in their idea. But the flip side is their proven discipline and dedication.
6. Managing money well
See also: The worst business advice an entrepreneur can get
It takes time for any business project to become profitable. Until then, capital is limited and has to be used wisely. Successful entrepreneurs recognise that money management is a must, and they plan for their current and future financial obligations. Even after raising funds or getting fully up and running, a successful entrepreneur keeps full control over cash flow, because it’s the most important aspect of any business.
See also: The main mistake small business owners keep making: mixing personal and business finances
7. Planning
Entrepreneurship is about building a business from scratch while managing limited resources (including time, money and personal relationships). It’s a long-term commitment, and the idea is to plan as much as possible from the outset. In reality, though, trying to plan everything and have a solution ready for every possible risk can stop you from even taking the first step. Successful entrepreneurs keep some dry powder in reserve, but above all they keep the mindset and temperament to deal with whatever comes up.
You need to do a feasibility analysis, identify your time and capital thresholds, start the business with limited resources, and so on. If you cross your thresholds, look for alternatives and be ready to take the next exit.
8. Social skills
Many people seek comfort in friends, colleagues, neighbours and so on, who are happy to listen to them complain about the global slowdown, weak demand or unfair competition, among other things; but that won’t improve anything. Successful entrepreneurs reach out to more experienced mentors with extensive contacts to get valuable advice.
Having contacts like these, including more experienced mentors, is a key trait of successful entrepreneurs.
9. Being ready to get out in time
Not every effort will turn into success. Unfortunately, the failure rate of business ventures is very high. Sometimes it’s better to get out in time and try something new than to keep spending money you won’t be able to recover. Many successful entrepreneurs didn’t succeed the first time, but they had the composure and foresight to know when to cut their losses.
As Richard Branson says, “You don’t learn to walk by following rules. You learn by doing, and by falling over.” And by getting back up again.
Featured image: Gage Skidmore from Peoria, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons.
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