Personal Qualities Required To Be An Entrepreneur And Start Your Own Business

A lack of skill, ability and experience in certain business areas need not be a barrier to success and starting your own business. The personal qualities exerted by a small business owner overcoming deficiencies over and over again are vital and present in many entrepreneurs much more so that specific technical knowledge.

Not everyone is a master of all business attributes in fact very few are. Certainly being a master of all is a fantastic position but unrealistic while certain personal qualities are essential to fight the inevitable battles to come. Business battles the successful entrepreneur wins.

Businesses that have grown and become medium sized and bigger are not reliant on the business owner entirely. Employees are engaged with specialist skills and abilities to develop and grow the business. A sole trader just starting out has to settle for a comfortable living or have the ability to grow the business to the point where more specialist abilities can be added to the business.

Most small business owners who start a new business do so in an area where that small business owner has some knowledge, experience and skill. It is a natural progression having acquired the business knowledge and experience to use those abilities to build the business under self employment rules rather than earn profits for an employer.

The personal qualities a small business owner possesses are more likely to determine the level of success. Abilities such as hard work, determination, persistence, intuition, tolerance and aggression can be the bedrock of success. But the road to success is not all slam wham bang for the entrepreneur.

Small business owners invariably work longer and harder than employees. An employee works for wages and an adequate work performance is enough. A small business owner is more likely to be on the job at first light, miss the coffee and dinner break and twelve hours later announce he has to finish off for the day because he has to go home and do the business accounting books that he started on Sunday.

Determination and persistence go hand in glove with success. Every new business runs into problems at some time or reaches a stage where the business owner needs to be completely focused and stick with a strategy to make the plans work. Things go wrong from time to time; its normal, determination and persistence are valuable qualities to see through these times.

Aggression in forcing through a business plan may sometimes be the only viable option. Not physical violence but the heightened state of anxiety to push through the plan and make it work with controlled aggression and passion. On the other side of the coin there will be times when the small business owner has to exercise tolerance and just go with the flow.

Many small start up businesses go out of business within 2 to 3 years of starting a new business. A major cause is under capitalisation which basically means they run out of money. Liquidity is a major area of concern for every small business entrepreneur and a cautious approach to a new business can be of considerable value.

There is a strong tendency for a new business start up to borrow money and buy new equipment just to get started. Such businesses are taking a major risk the plans will work. Some plans do work but rarely it is a smooth path and a better option is to build the business and reinvest profits made.

A more cautious approach would be to start a new business without borrowing substantial funds because if the small business owner has the ability to make a success of the business and make money then they can usually do so without external funding and use the profits made to build the business in the future.

The sound reason for a small business or a start up business to borrow money is to already be showing a good financial performance. Use the extra funds to speed up future success while borrowing funds with no track record is a gamble and a gamble which fails only too often.

How to Build Your Business in One Day!

The state of the economy is improving, and a lot of businesses are going back out there looking for new clients. Time has always been and will always be essential when doing business. Here are 5 steps to get you started.

• Build your contacts.
Gather all your contacts from past to present. It’s important to keep tabs with all of them as you might need them right now or in the future. Make sure to keep things organized for your own convenience.

• Make contact.
It’s never too early to get a hold of your contacts. Let them know that you still acknowledge them, especially those clients you haven’t spoken in a long time. As mentioned before, you won’t know when you’re going to need their services so it’s better to make them feel important. This can also be a good way to let them know about your new product or service – see if they might be interested or have an opinion about it. After the initial contact, do make sure to keep all kinds of communication open all the time.

• Networking.
This one word is probably something you’ve often heard when you started out working in the real world. Networking is definitely important, and many people will tell you that. It is the best way to meet new people and get to know them and what they can offer. It’s more personal and more interactive. Go and attend several networking events.

• Promote your business.
Spread the word. Do some marketing. It doesn’t have to be expensive, but it has to be interesting. There are so many businesses battling to be on top. Show people what makes your product different and better.

• Research.
Businesses always have room for improvement. Go and do some research. Take notes. Review your initial product. Ask yourself if there’s something that will help make your product or service better. Conduct a focus group where they can try out your product and see what they think about it.
All these steps can be done in one day. But it takes more than that and patience, hard work, and perseverance to help sustain your business’ success.

Business Strategy For Facilitative Leaders

Business Strategy

Did you know that business strategy is the art of deception? The study and design of your business strategy will have far reaching effects on your business. Many business leaders overlook the importance of understanding business strategy. As a result, many businesses fail or operate at sub par levels. There are many areas of business strategy to study, but the key components are (1) gaining a competitive advantage, (2) being an effective leader, and (3) winning with ease. These are all essential principles found in the book by Sun Tzu, The Art of War.

Gaining a Competitive Advantage

Competitive advantage can be won through avoiding commodity business models, knowing when to compete, gaining higher ground first, and by being original.

Avoiding the Commodity Business

Jack Welch, former CEO of General Electric, once said, “We are all just one stroke away from commodity hell”. The commodity is something that any business should stay away from. A commodity is a good that a business is powerless to change the price. For example, farmers are price takers and can only sell their goods for the price the world is willing to put on them. No matter how well the farmers does in raising up goods, the price will be what the market gives. There are many service businesses that have very little ability to change raise prices. If they do, they will not get any business. The bad thing about a commodity business is that the only way to sell is on price and that makes the profits go way down for everyone. The only way to get out of the price war is to gain higher ground.

To avoid commodity hell, the business must find an advantage. Some of the ways to get out of commodity hell are through branding, developing superior technology, and having top notch employees. Some companies develop a superior system that is efficient and that can manage a vast network well. There is a lot that can be said about each of these items.

Know When to Compete

In trying to gain the higher ground, there are a some good things to know. You should only compete when you know that you can win. You should never compete on a level playing field unless forced to do so. And, you should never ever compete in a battle that you are at a disadvantage.

Get Competitive Advantage First

In other words, take the higher ground before you compete. In that way, you will have a good chance to win. In business, battles are won before the competition ever begins. The best companies develop technology or intellectual capital first and then choose to compete when they think they can win.

Be Original

It is unlikely that any firm can gain the competitive advantage by trying to copy another. The reason is that the competitor will always be one step ahead of you and a smart competitor will even mislead you purposefully. Any business that wants a real market advantage will most likely need to develop their own ideas, keep them secret, and follow through.

Being an Effective Leader

A great leader must be strict, reward bravery, and avoid personal character downfalls.

Strictness as a Leader
Discipline must be swiftly carried out against the disobedient. There must be an effective system of rewards and punishments in place. The effective leader will be able to persuade others to the importance of the mission and commit them to work hard for the goal. Any leader that can’t manage their people must be removed.

Leader Character Downfalls

Some of the traits that can cause a leader harm are cowardice, recklessness, worry, hasty temper, and honor sensitivities. According to Sun Tzu, these are the five sins of a leader that lead you to get captured, bring destruction, trouble, shame, and poor decisions.

Rewarding Bravery

A great leader should reward people that are brave. People that step up and get things done that are risky or not popular should be rewarded for their efforts. The act of rewarding bravery has a great deal with keeping a company in competitive advantage. When employees are willing to take risks and give it their all, the intellectual contributions will give the company great advantage.

Winning With Ease

One of the greatest things that Sun Tzu said was, “What the ancients called a clever fighter is one who not only wins, but excels in winning with ease”. The greatest leaders know when to fight and when not to fight. They know how to compete in areas that are not well defended. They know how to use their people to win. When leaders win with ease, they are rarely given credit because it looks so easy. What many people don’t realize is that the battle was won before the fight began due to careful planning and strategy.

Final Thoughts

Business strategy is complicated. The businesses that do the best often the best at deceiving their opponents, balking their competitors plans, or, even better, have the best employees and constantly break new and higher ground before anyone else gets there.