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Entrepreneurship Traits

The telephones are ringing. Inboxes are full of e-mails. There is a lot of activity with people who want to be entrepreneurs.

Business brokers have drawers full of resumes of potential buyers. Classes on starting a business have double the attendance, or more, than just a year or two ago. Franchise reps and brokers are busy. Radio ads are reappearing with the latest get-rich-quick ideas. The line starts just about anywhere if you want to own your own business.

There are really only three options to business ownership. Have an idea? You can start a business (consulting is a form of a start-up). You can buy an established firm (disclaimer: I do a lot of work with people buying businesses although that won’t influence this article). Or, you can purchase a franchise opportunity, which is a hybrid of the other two as you get a recognized name, operating system, marketing and more.

What does it take?

More importantly, to be successful at any of the above you need certain traits. Due to limited space, I will only cover three key traits. This is not the result of any scientific study; rather, it’s things I’ve noticed in successful clients.

Risk – successful owners are not afraid to take risks. In other words, they are not afraid to fail. Often it means trying something within a company that has no guarantee of success. Sometimes these ideas work, sometimes they don’t. But you don’t need more than half of these strategies to work to be very successful. Recently this paper highlighted LFI in Bellevue. While working with the new owner, Bob Baldridge, on the purchase, it became obvious his mind was whirling with ideas. Things he could do once he owned the firm. He’s implemented some of those plans, seen some success and based on conversations with a couple of his employees, they love the new directions and the attitude.

Big Picture – too often owners are myopic on their personal level of expertise. Ten years ago I met an owner who owned equipment worth about as much as his annual sales. An engineering type, he took it literally when someone said, “Always reinvest in your business.” He assumed that meant more and more equipment, not investing in marketing and sales to make the existing equipment more efficient, fill two shifts, etc. Tim Johnstone owns Anywear Shoes in Seattle. In his three years of ownership he has restructured the distribution system, created a financial system and improved sales and marketing. Just some of the reasons his banker says he is one of her best clients.

Sell – Sales is not a dirty word. Those owners who recognize the importance of putting sales at the top of the list usually do well. As a business owner, you have to understand sales and marketing, support it and be part of it. As an owner, you have to balance it with operations and finance, but you can’t ignore it. People don’t magically appear with cash in hand when you open your doors.

It takes a lot of skills, energy and focus to be successful in business. There are many ways to get into business and many strategies once you’re there. As many owners will tell you, it’s worth it.

© Copyright John Martinka 2003. All rights reserved.