6. Money management
It takes time to get to profitability for any entrepreneurial venture. Till then, capital is limited and needs to be utilized wisely. Successful entrepreneurs realize this mandatory money management requirement and plan for present and future financial obligations (with some additional buffer). Even after securing funding or going fully operational, a successful businessman keeps a complete handle on cash flows, as it is the most important aspect of any business.
- Planning (But not Over-planning)
Entrepreneurship is about building a business from scratch while managing limited resources (including time, money and personal relationships). It is a long-term commitment, and attempting to plan as much as possible at the beginning is a noble impulse.
In reality, however, planning for everything and having a ready solution for all possible risks may prevent you from even taking the first step. Successful entrepreneurs do keep some dry powder in reserve, but more importantly they maintain a mindset and temperament to capable of dealing with unforeseen possibilities.
Do a feasibility analysis; identify time and capital thresholds; take the deep dive with your limited resources. If your thresholds are crossed, look for alternatives and be prepared to take the next exit.
- Networking Abilities
How do you tap your network for solutions? Many people seek comfort in commiseration: friends, colleagues and neighbors are happy to complain with you about “the global slowdown,” poor demand, or unfair competition; but that won’t improve the bottom line. What do successful entrepreneurs do? They reach out to mentors with more experience and extensive networks to seek valuable advice.
Having such networking abilities, including more experienced mentors, is a key characteristics of successful entrepreneurs.
- Being Prepared to Take the Exit
Not every attempt will result in success. The failure rate of entrepreneurial ventures is very high. At times, it is absolutely fine to take the “practical” exit route and try something new, instead of continuing to make sunk cost investments in the same venture. Many famous entrepreneurs weren’t successful the first time around. But they had the serenity and foresight to know when to cut their losses.
10.Entrepreneurs Doubt Themselves – But Not Too Much
You may ask yourself, am I an entrepreneur? And the very question may put you in doubt about the answer. Even if you don’t have the flair of Steve Jobs or the hair of Elon Musk, if you have the courage to ask yourself intimidating questions – Can I do this? Do I want to do this? – you have the stuff to be an entrepreneur.
Instead of worrying about fitting the image of the perfect entrepreneur, check in with your gut. Is it on board?
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