It’s a thing of beauty to watch an entrepreneur build a successful business from an idea on a chalkboard to a viable company generating great profits. It is not an easy thing to do to build a successful business. Statistics show that 90% of new startups fail. The successful ones share some common threads and it doesn’t matter if you are producing paper clips or building 15 bedroom mansions on the beaches of Florida.

The Entrepreneurial Spirit

Some people believe you have to be born with the entrepreneurial spirit before you can unleash the characteristics that will ultimately lead to a successful product and business. Still others believe one can be taught and inspired to become an entrepreneur regardless of one’s predisposition to having the ability to do so. The reality is most successful entrepreneurs fall somewhere in between those two notions. The one thing almost all entrepreneurs have in common is an intense desire to create something of their own.

8 Ways Entrepreneurs Craft Strategies That Work

If you find yourself filled with that intense desire to create but aren’t sure how to focus your energies, all you have to do is look around you and start asking questions of those who have succeeded before you. What you will most likely discover is there are several common ways your fellow entrepreneurs crafted strategies that ultimately led to their success. Eight of these would commonly be:

1. Develop Something You Believe In – While you’re building your business, there will be times when your passion and commitment will be tested. When those times come, it will be your belief in what you are doing that is going to give you the drive to keep going. Without this belief, your conscious mind will choose flight over fight when things get rough.
2. Learning to Go for It – If you are going to invest the time and money to develop something meaningful, don’t settle for taking another person’s idea that may not reflect your passions and interests. You need to commit yourself to coming up with a radical or new idea that both motivates you to move forward and others to show an interest in what you are developing. The big ideas lately are coming from the “disruptors” that find or create new markets.
3. Getting Over the Fear of Competition – If you lack the desire or fortitude to fight your competitors for what you want, you have no business being an entrepreneur. If your idea is truly great, others will borrow it and try to make it better. You need to be prepared for the fight and show customers why your products are both original and better.
4. Secure Enough Working Capital – By hook or by crook, you need the capital reserves in place to allow you to fully develop your idea and get it to market. Costly mistakes will be made along the way and you simply can’t let money be the reason you had to pull the plug on your endeavor. If traditional bank loans are not available, there are many resources in the crowdfunding industry. Kickstarter, Indiegogo and Gofundme are the top sites, but there are others.
5. Own Your Company – While you’re building your business, others might be drawn to your concept and want to come in for piece of the action. Don’t give up control of your passion. You wanted to build something meaningful and you need to be prepared to see it through to end, or at least until you are prepared to sell the company and walk away. But don’t be too hooked on your equity stake when circumstances dictate it’s time to bring others into the deal who can take the business further. It’s better to own 10% of something really big, than 100% of not much.
6. Run a Lean Business – You have to learn how to develop a lean budget and be willing to adhere to it. Runaway expenses are the number one nemesis for entrepreneurs who are just starting out. You have to control your expenses in order to make sure your capital is secure.
7. Don’t Be in a Hurry – Starting your own business is exciting and it gets the juices flowing. However, this is a long-term endeavor that requires careful planning and patience. You will make fewer mistakes by taking your time and letting it all come together naturally.
8. Enjoy the Process – The chance to build your own business is a privileged, one that many would die to have. If this is going to be your life’s goal, stop and smell the roses. Celebrate the incremental successes with family and friends and take great pride in your accomplishments.

It’s a great achievement to create your own business from a simple concept to the marketplace. No one is expected to be a preeminent entrepreneur without the requisite experience. The above concepts are intended to provide the framework for creating a viable business with a minimum of frustration.

There may be a thousand definitions of success, depending upon your personal perspective and experience.  However, there are 50 qualities that every modern day entrepreneur is likely to possess. When you examine the list, you’re likely to find many qualities that may seem very familiar. If you can’t identify with all of them, don’t fret. With practice and a winning attitude, each quality on the list can be developed with time, commitment and a winning attitude.

Here are the hallmarks of every successful entrepreneur.

1. The vast majority of entrepreneurs enjoy what they do. It will always be true that a person gets out of their business what they put into it. A lack of enthusiasm or commitment will easily reflect in your business’s success or failure. If you don’t find joy in what you’re doing, chances are you won’t be doing it long.
2. Successful entrepreneurs take what they do seriously. They believe in the products and services they sell. The number of people working successfully at home has grown by leaps and bounds.
3. They plan. No stone is left unturned. They know what they have to do and they find the discipline to get it done.
4. They know how to manage their time and money. To them, time and money are the same. Knowing how to manage both is a pathway to success.
5. They are not afraid to ask for business. Advertising and marketing are worthless unless you ask for the sale.
6. They remember that it is always about the customer. Products and services exist for only one thing—the customer. Everything is customer-focused.
7. They maintain a professional business image at all times. They know that a first impression is a lasting impression. They maintain the attitude that every time a customer receives service, it’s administered like it’s the first time.
8. They know their customers. This way, customer can receive personalized attention. Eighty percent of business is repeat business. Repeat business comes from knowing your customers.
9. Entrepreneurs aren’t afraid of new technology. They embrace and leverage it to their advantage. They build competent teams. It’s important to surround yourself with talent; the right kind of talent.
10. They’re considered to be experts by their peers and customers.
11. They can leverage marketing to create competitive advantages. Is better customer service a matter of pricing, offering discounts or more flexible payment options?
12. They invest in themselves. They read business journals, books, magazines and stay on top of their education.
13. They’re accessible. They know how to make it easy for their customers to do business with them? Too few people are willing to work hard and go out of their way for others. Be that person.
14. They build and polish their reputation. A good reputation has to be earned and nurtured. Whatever your offer, make good on it. Your customer’s trust is built upon this rock.
15. Educate your customers about the benefits of your product or service.
16. Get and stay involved with your customers.
17. Find ways to grab your customers’ attention. The more engaged they are, the more willing they are to share your story.
18. They know how to negotiate. Negotiation skills are extremely important. Almost important as asking for the sale.
19. They design their environment for success. They know what type of surrounding keeps them motivated and focused.
20. They know how to organize.
21. They take time off when needed.
22. They limit the number of hats because they take a hands-on approach.
23. Entrepreneurs are excellent at following up on things.
24. They can easily idealize things.
25. The ability to visualize is second nature.
26. Verbalization is a valued means of communicating.
27. They exude confidence.
28. They take responsibility and feel pride of ownership.
29. Entrepreneurs are passionate about learning new skills.
30. They feel that being dedicated is a virtue.
31. They show gratitude for their good fortune.
32. Successful entrepreneurs are optimistic by nature.
33. They lead by example.
34. They welcome risk and realize that it’s connected to success.
35. They possess a positive mental attitude.
36. Successful entrepreneurs are extremely self-confident.
37. They have a positive attitude toward failure.
38. Successful entrepreneurs possess the right mix of knowledge and skills.
39. Independence is their hallmark.
40. They are dependable. They do what they say.
41. They are resourceful. They’ll find a way to get it done.
42. They never feel constrained.
43. They’re ambitious. They know what they want to achieve and they go after it.
44. They’re healthy. It’s hard to focus if health is a concern.
45. They’re realistic. They dream big, but they know their limitations.
46. Entrepreneurs are problem solvers. If it weren’t so, they wouldn’t be entrepreneurs.
47. They’re okay with no pay. They may have to wait long periods before getting paid, but generally they are not it in for the money. They are in it for the personal satisfaction.
48. They don’t mind being original.
49. They’re comfortable with uncertainty.
50. They embrace humility.

There’s a strong likelihood that you’ll possess a majority of the above traits if you are an entrepreneur. You can bet that some of the most successful entrepreneurs may have mastered all fifty.

Image Source: “Golden Number 50 With Spotlit” by Stuart Miles,  FreeDigitalPhotos.net 

However, owning a business also comes with plenty of challenges that require big sacrifices. No one hangs up a shingle, opens the door and starts raking in the cash. There are always dues that need to be paid.

Making Sacrifices

It’s certainly possible you will put your heart in soul into starting your business only to watch it struggle and eventually fail. However, it is incumbent on you to become the king of your kingdom and do everything you can to make success the only possible option.

The most important thing any entrepreneur can do for themselves is to make sure they are ready to make the sacrifices necessary to give the business every opportunity to succeed. Among the sacrifices usually required are:

• Financial – It goes without saying there are financial risks and sacrifices required when starting a business. There are very few start-ups that don’t require some type of financial investment from the business owner. You might need to live on beans, bread and water while investing all your available capital into the business. If push comes to shove, you might even have to run up those credit cards in order to infuse much needed cash. Incurring personal debt to start a business is often part of the deal.
• Time – In the beginning and for the foreseeable future, you’re going to find yourself investing long hours pulling the pieces of the business together. It doesn’t mean you have to do it all by yourself. However, there are thousands of little important decisions that need to be made during the planning stage up until the company generates its first sale. During the day, you are shaking hands and establishing business contacts with people and companies that maintain normal business hours. During the evenings, it planning, budgeting, marketing, accounting, hiring and product development issues demanding your attention. If you have a family, you would be advised to enlist their cooperation while you are MIA. The sacrifice is theirs as well.
• Physical, Emotional, Mental – Because of the time investment and escalating stress levels, there is going to be a physical, emotional and mental toll on your mind and body. The long hours might affect your sleeping and/or eating habits. The constant stress and drive towards success will keep your emotions heightened while the details keep you mind racing. There will be no part of you being left unaffected.

The Rewards

If you make these sacrifices, endure the growing pains and succeed, the potential rewards are unlimited and are more than just about the money. Financial security is certainly one of the most important rewards. However, there are some personal rewards that are just as important. The amazing sense of accomplishment you get from succeeding will light up your life. The knowledge your family has a secure future gives you peace of mind. Also, your status within the community will give you a strong sense of belonging. It’s these kinds of rewards that make the sacrifices seem so small in the end.

Common Growing Pains for Small Business

As alluded to above, there will be growing pain you have to endure. If you can accept the fact that growing pains are part of the business building process, you will give yourself the necessary perspective to avoid getting frustrated. Here are three common growing pains small business can anticipate.

Lack of Adequate Funding – Adequate capital resources are a crucial factor when starting a business and keeping it going, especially in the early years. Most businesses fail because they simply run out of money. Cash flow issues can become a major business distraction, causing you to lose focus on the businesses’ primary goals, generating sales and creating profits. The best way to keep this from happening is through the use of management tools such as a business plan, a budget and a cash flow projection. The objective of these reports is to identify when cash is going to be needed. If you are able to anticipate cash needs in advance, you have a higher probability of finding the necessary resources and being able to prevent business shutdowns or early issues with creditors. Most lenders will require these types of financial reports prior to approving loans.

Difficulty Establishing Company Roles – New business owners have a tendency to micro-manage and try to handle everything by themselves. If the business is small enough that you can’t afford to hire employees, it is understandable you will be handling every aspect of the business. However, over-worked business owners miss important details or get so mired down in running the business, they miss developing the business. It is highly recommended you consider hiring employees as soon as the business is able to absorb the costs, even if it is done on a temporary basis. Employees should be used to handle the mundane day to day tasks, freeing you up as the owner to deal with financial, marketing and business development issues.

Misuse of Technology – Many technological advancements were made to make your life easier as a business owner. It takes time to identify the right software/hardware combination for your business. You might want to start with smaller online software packages and allow your business to grow into the larger, more sophisticated packages down the road. The secret is to identify the right balance between the technology and the related costs. If you’re not a sophisticated technology user, this is one area you should consider tapping into outside resources is order to save time and make sure you find the technology that best meets your companies needs both short-tern and long-term.

In the final analysis, there will be many days that you question whether the sacrifice is worth it; only you can make that determination. However, if you start with a solid business idea and model, believe in the end game and persevere through the tough times there are few other experiences as rewarding as starting your own business.

Over the past 10 years, advanced education has been advocated as the best way to achieve success in a highly competitive business environment. The recession of 2009 succeeded in paring down the number of people employed, which has created a bevy of issues. For those who were laid off from high-paying jobs, the recession caused them to take stock of their situation. While many have been able to find new employment, there are others who decided to return to school for the purpose of getting into an MBA program with a focus on becoming a future entrepreneur as the end goal.

The Evolution of the MBA Program
There was a time when getting a MBA was a very prestigious and rewarding endeavor. It was an educational path that was usually reserved for those students who were educationally and/or financially privileged. Then a strange thing happened about 5-10 years ago. As more high school students decided to pursue a college education (63% in 2011), advanced education became the only way to retain any kind of advantage in the job market. So, more students began entering business schools to get that coveted Masters. Because of the rising demand for affordable MBA programs, many schools added MBA programs and MBA degrees began to lose a bit of that historical luster due to market saturation. With about 90% of those available Masters programs unaccredited, it created yet another blemish on the value of a Master’s degree.

MBA Programs for Future Entrepreneurs
One of the most interesting phenomenon created by the shrinking job market is the revelation more individuals are showing an interest in starting their own businesses, likely to avoid the need to rely upon an unstable job market. With so many of these individuals loaded with ideas but very little business sense or experience, MBA programs have become a popular way to try to obtain the tools necessary to successfully start a business. This has raised the question whether or not MBA programs are necessary and do they really bring the kind of value people expect?

The Great MBA Debate
This is no shortage of proponents and opponents to the use of MBA programs as a means to become an entrepreneur. The arguments on both side of the issue seem to have validity. In the end, it’s really up to the individual to look at what they are trying to achieve and then determine whether or not an MBA program is their best means to an end. To help in the process, here are some pros and cons to consider related to the issue.

Pros of Entrepreneurship MBA Programs

Improves Chances of Success – There are no guarantees that a Master’s degree and/or program is going to bring someone any degree of success whether as an entrepreneur or employee. However, more education is never a bad thing from a knowledge perspective. It would be difficult to argue that an MBA programs doesn’t improve the possibility of success. With 1-2 years of intensive business training, a student can’t help but walk away with more tools than they had when they entered the program.

Obtaining Business Sense – Some people have inherent business sense. They just seem to have a knack for understanding business concepts without formal training. However, those kinds of people are the exception rather than the rules. The value of a MBA program is it teaches the student the elements of good business instincts. They learn valuable marketing concepts, how to use business tools such as budgets and business plans, and they learn how to process business information more efficiently than they would without this valuable training. The ability to make educated decisions on the fly is one of the most valuable characteristics an entrepreneur can possess.

Networking and Connections – Many of the best MBA programs offer students plenty of exposure to the outside business world. Whether it be through seminars or intern programs, students are given the opportunity to talk to and work with people who have successfully made their mark in the business world. Many a professor can teach the technical aspects of running a business, but students crave knowledge from those who have already done what they want to do. In the process, students can become part of the MBA program’s entrepreneurial network with both piers and connections to interact with in the future.

Cons of Entrepreneurship MBA Programs

Financial Risk Versus Future Reward – The tuition charged by many of the better MBA programs is quite substantial. Most students can’t afford to cover these costs on their own and must look for student loans to cover much of the financial burden. If the MBA program delivers the goods and the student goes on to a financially rewarding career as an entrepreneur, the cost is justified. However, there are enough students who have made the investment without getting the desired end result to warrant a cautious approach.

Other Methods to Succeed as an Entrepreneur – Earning a Master’s is not always the best solution. There are plenty of successful entrepreneurs who were able to garner much success without any kind of higher education much less a Master’s. MBA programs are a tool for success, but not the only tool in the toolbox. There are plenty of people who have enough natural drive, ability and knowledge to step up to any challenge. If things get tough, they can surround themselves with people who have what they need.

Quality of MBA Programs – With so many MBA programs unaccredited and not very selective with enrollment, there are far too many MBA programs available that simply offer little of value. Not everyone has access to the best programs and often have to settle for the second string, which often falls short of delivering what’s promised.

The desire to be an entrepreneur is among the noblest endeavors a person can pursue. If they believe an MBA program is necessary to achieve success, they are probably right, at least for their given situation. However, it’s a choice that needs to be carefully considered. It’s great to have that educational training, but the end has to justify the means.