Do I Have What it Takes to Own A Business?

With new technology and our global economy, entrepreneurship is becoming more and more popular, and many people are attracted to the idea of starting their own business, but in reality, few actually achieve this goal. They may understand that while the idea of owning their own business may sound exciting, the truth is that it isn’t for everyone and it comes with a lot of risk. Did you know that more than 50% of American businesses fail within the first 3 years. You may find this very discouraging and it may be a primary reason for your hesitation in stepping out in faith to start your own company. But let’s take a step back and really look at what it takes to be a successful entrepreneur. You may discover you have what it takes!

To start your own business, the first thing you need is a clear vision and a strong business idea that considers both external and internal factors for success. If you are unsure how to choose a good business idea, checkout this article that explains 5 important filters to run every business idea through.

Once you have determined that your business idea is promising and will do well in the market, you need to determine if you have what it takes to start that type of business, and successfully run it. If you don’t have what it takes, no matter how good the idea is, you are likely to fail.

Before we dive into looking at top characteristics of a successful entrepreneur, you need to understand that almost all of these qualities are things that can be learned and strengthened. So, if you are weak in a few areas, but you are determined to make it as an entrepreneur, you can certainly focus on strengthening your weaknesses. Do not be discouraged if there are some attributes that you still need to work on– as long as you are willing to put in the work to develop these skills, you can still be a successful entrepreneur. 

Although all of these characteristics are important to be aware of, perfection is not the goal, nor is it realistic! And, even if you have not mastered all of these areas, it does not necessarily   mean you are not ready to start your own business. 

Fear of failure is the most common reason for people not following through with their dreams – we encourage you to take steps today to achieve your goals of tomorrow. 

So what is the  “entrepreneurial spirit” that people often talk about, and how do you measure up? Here are the top 10 common characteristics of successful entrepreneurs:

#1: Passion

The first question you need to ask is if you are truly passionate about the business idea. If the thought of working on this business concept does not excite you, it is likely that you will quickly lose the motivation and drive needed for success. One of the perks of entrepreneurship is being able to choose what you do, so be sure to choose something you enjoy. And when looking at the world’s greatest and most successful entrepreneurs, they all enjoyed the challenge of their work and were passionate about it. Profits and wealth were not their driving force. When you take a job, there is always the option to move on to something else if you decide it isn’t a good fit. But when starting your own business, it is more like a marriage and your commitment level is much higher. Do not take this decision lightly. 

#2: Good Communicator

Strong and successful leaders are good communicators, and clear communication is needed in all areas of a business– from interacting with clients, stakeholders, investors, or your own team, good communication can help you avoid unnecessary conflict. As a business owner, you will certainly face time-sensitive operational processes and decisions, pressing issues you need to address, and unexpected events that leave customers and employees needing information and answers. Being a good communicator is a key factor to all of these elements and perhaps most importantly, being a good communicator is a driving contributor to establishing healthy relationships that yield mutual benefits. 

#3: Determination

It’s no surprise that starting and running your own business is demanding, and at times the pressure may seem overwhelming and the idea of quitting could be very tempting. But successful entrepreneurs have perseverance that can help them overcome trials and uncertainty, and this is a key characteristic to successful entrepreneurism. Developing a business to reach maturity and its full potential takes time, and only those committed to working through challenges will reap the benefits. 

#4: Willing to Take Risks

It’s simple – starting a business is risky. But the risks don’t stop with launching your new enterprise, they continue throughout the life of the business. Risk taking is not irresponsible or fly-by-night, it includes fully assessing the situation and context, and making  tough decisions (although informed) for the good of the business and others. As an entrepreneur, you must believe in yourself, your product, and your brand, and you must be willing to put your neck out, try new things, and then advocate for the decisions and changes you implement. Entrepreneurship isn’t easy, but it sure is exciting!

#5: Learn From Failure

Successful entrepreneurs learn from their failures. If utilized correctly and intentionally, organizations can become stronger, better and more refined through their failures. To gain value from failures, it is important that businesses “fail quickly,” meaning the owners and leadership team should be proactive in identifying the reasons for failure and be quick to implement a strategy for moving forward. This growth mindset is what sets successful entrepreneurs apart from the rest. 

#6: Perform Well Under Pressure

External factors outside of your control will certainly impact your business and its operations – examples could include economic downturn, shifting societal trends, political events, a natural disaster, or a global crisis, and your response will test your ability to lead your company to success. But the pressure doesn’t end there – apart from external factors, internal events can also strain your business and cause you to experience significant pressure. Internal pressures could include employee turnover, social media scandal or bad publicity regarding your employees or product, company culture, poor employee performance, and difficult workplace relationships. Entrepreneurs must persevere and withstand pressure in a mature, thoughtful and wise manner. 

#7: Self-Motivation

Many people are attracted to business ownership because they want to be their own boss. While this is a benefit of entrepreneurship, many people do not realize that with that freedom and flexibility, comes the need for self-discipline, motivation and drive, which will be the characteristics to keep you focused and moving forward when you are working long hours for not much return. Successful entrepreneurs must manage their time well and be disciplined in setting goals and meeting deadlines.Without motivation, business-owners quickly lose the momentum needed to sustain and grow their business. 

#8: Open to Feedback

If you want to be successful, you must be humble and open to feedback, even when it hurts to hear. An effective business owner will seek wise counsel from business mentors and other industry leaders, and receive feedback with humility. Having an entrepreneurial spirit includes the ability to not take constructive feedback as personal criticism, but rather an opportunity to grow and improve. When you are open to suggestions and constructive criticism, you will strengthen relationships, your reputation and your likelihood for success will increase.  

#9: Effective Decision-Maker

As an entrepreneur it is important that you are an effective decision maker, able to make informed decisions with consideration, confidence and wisdom. One poor decision can destroy your reputation or years of hard work, so you must be intentional and deliberate when making decisions for your company. Indecisiveness or careless decision making can waste time, energy, resources, and cause significant damage to your enterprise.Good decision making is a skill that should be learned, cultivated and practiced by all entrepreneurs. 

#10: Relational

Business is about relationships, period. You could have the most amazing company and product, but if you do not connect well or relate to people, or if you treat people poorly and earn a negative reputation, your business will not last long. And as a values-driven entrepreneur with an eye on community impact, you should understand even more the importance of establishing and building positive relationships with everyone around you, including leadership, employees, customers, stakeholders, and even the general public. Successful business owners value people and relationships, further establishing them within their community and industry. 

If you’d like to rate your entrepreneurial characteristics to identify your strengths and weaknesses, use our free Entrepreneurial Self Assessment. Use it to create growth goals or to process and work through with your mentor or business coach.

If you need help starting or growing your business, check out our Business StartUp course! Through this self-paced, online course, you will identify your personal values, strengths and assets, and learn what makes a good business idea, how to conduct market research by using our simple and clear step by step market research guide, and even how to write a strong business plan by using our business planning master tool and templates. But that’s not all,  you will also learn how to create a purpose-driven company, how to maintain a healthy life/work balance, time management, goal setting, leadership skills and vital financial management tools. Don’t miss this opportunity! Start today!