Entrepreneurs must develop these 5 traits to be successful

I’m often asked, “What does it take to be a successful entrepreneur?”

This query is difficult to answer because an entrepreneur must possess many personality traits to be successful. Some of these traits you either have or you do not. However, this does not mean that they can’t be developed over time.

Here are some of the most significant qualities you wish to succeed in entrepreneurship.

1. Be a risk taker

If you already know me, my approach to risk-taking is not going to surprise you. After all, I at all times repeated the mantra: Ready, Shoot, Aim. I’m not risk averse, which has been crucial in my journey as a successful serial entrepreneur. Small business owners must be willing to take risks if they need to achieve their goals.

At the same time, entrepreneurs must make sure that on the other side of this risk there is very real profit potential. Too often, small business owners take risks without rigorously considering the potential rewards. They will focus all their energy on attacking. They then successfully manage this risk and reach break-even. I have at all times believed that only profitability ensures sustainable business development.

I might add one more caveat: you’ll be able to’t act recklessly and take unnecessary risks because it can draw some sort of adrenaline rush. This is a recipe for disaster. This may be a challenge for me. Because risk-taking has been such a successful strategy for me, I tend to take risks when I could achieve the same result with a more conservative approach. This is where having a good network of advisors can come in handy, which I’ll write about later.

2. Be a connector, build a network

To be a successful entrepreneur, you wish to be able to assemble a team. This means being open to individuals, their skills and how they will make it easier to on your path. They say it takes a village and it’s true. It takes a village to start and successfully sustain a business.

I encourage young entrepreneurs to network each at in-person events and on social networks. You never know when that one connection you make will determine the success of your small business for many years.

Over time, you’ll build an invaluable network of trusted advisors. I have this network – a handful of individuals with different personalities. They tend to be more risk averse, which is a good thing (see “Be a Risk Taker”), which tempers my sometimes cavalier approach to risk-taking.

3. Be confident

While this seems similar to the concept of risk-taking, it is not the same.

If you’re taking risks, sometimes you’ll fail. It’s the nature of the beast. But are you able to get up after failure? Self-confidence means resistance to failure. Confidence as an entrepreneur must be woven into your psyche.

It is also not only confidence in making initial decisions about your organization, but also confidence in your ability to change if you hit an obstacle. This is one other type of self-confidence. You need to be confident not only that you have chosen the normal path that you have done all of your research on, but also that you would be able to change it if you wish to and go in a direction that actually works.

4. Use growth capital

Too often, entrepreneurs run their firms on a limited budget, fearing the costs of raising capital and/or servicing debt. I see. Owing people money can be an emotional burden. But it doesn’t have to be that way when you think about these two ways growth capital can transform your small business.

First, funds can support an initiative to generate more revenue. Reminds me of a friend of mine who sells newsletters to the legal community. For years he merely attended a large conference attended by his readers and sponsors. He recently decided to take on a small amount of debt and grow to be a sponsor of the conference, which ultimately resulted in a threefold increase in investment income.

Second, acquiring capital will free you up for more essential entrepreneurial tasks. If you are consistently adjusting your checking account to make sure you have enough funds or giving presentations to individuals who might invest in your organization, you are not meeting the operational needs of your small business.

That’s why it is important to understand your options. Increasingly, alternative financing firms are offering ways to determine how much equity you are entitled to without having to face the dreaded inquiry on your credit report. Entrepreneurs are often shocked by the amount they will apply for. And then when they compare the cost of servicing that debt against the time spent trying to keep their company afloat with limited resources, they grow to be more open to that prospect.

5. Delegate, delegate, delegate

The willingness to delegate is absolutely essential to entrepreneurial success. You must be the leader of your enterprise. This means you wish to find people with skill sets that complement what you do. You may be able to do it, but they will do it higher.

I’ve been delegating my whole life. There is no way I might take the risks vital to grow my business without someone to handle the details, whether it be accounting, marketing basics, or writing, to name a few.

This is much more true when it comes to technology. Surround yourself with those that can handle the operational side of technology so you do not have to. When your site goes down, you need to use speed dial assistance.

In summary, being aware of the ingredients of the recipe for entrepreneurial success is the foundation of that success. Whether you were born with some of these traits or not, you’ll be able to shape your future decisions with these concepts and approaches in mind.