Characteristics of a Successful

Entrepreneur
Most people desire to be an entrepreneur. Becoming your own boss and
creating your own career is very attractive to most people. Additionally,
many movies glorify people who found a way to make a living on their
own. However, not everyone has an entrepreneurial mindset. If you ever
desired to be an entrepreneur, you need to examine yourself. Here are
the top five ualities of an entrepreneur.
!. "hey are self-motivated
#uccessful entrepreneurs do not need someone who holds them
accountable or forces them to be efficient and productive. $nfortunately,
without a manager, many people can not take their business past the
planning stages. It takes hard work to create your own business% most
people need someone who forces them to keep working. Moreover, when
people do not have someone to hold them accountable, they may let
their work&s uality suffer. 'or example, many freelance writers set their
own hours and choose their workload. However, for this same reason,
many freelance writers do not work how they ought to work.
(. "hey are creative
)hen creating a business idea, many entrepreneurs have to be very
creative. "here is a good chance that someone else has already
established himself as the authority for the niche that a new
entrepreneur chooses. However, with a little creative twist, new
entrepreneurs can take old ideas or business models and revolutioni*e
them, making them attractive to potential clients or customers.
+. "hey are intuitive
,ntrepreneurs do not become successful due to luck. ,very successful
entrepreneur created his own path with his intelligence, creativity and
intuition. Business models are constantly changing. -onseuently, the
way business owners market and grow their business constantly
changes. "he most successful entrepreneurs understand how fast current
trends change. More importantly, however, they know how to keep up
with the changes.
.. "hey are authoritative
If you were to open your own business, you would learn very uickly
that there are many people with whom you need to network. However,
not everyone has your best interest in mind. /ou may encounter
naysayers, manipulators and scammers. "herefore, you must not allow
yourself to be easily influenced% you must be authoritative. "hough there
is nothing wrong with taking advice or opinions, in the end, you must
make decisions that you strongly believe will better your company.
0. "hey are strong-willed
#uccessful entrepreneurs started their business with a vision 1 a dream.
"hey acted on their dream by taking small steps towards accomplishing
their goals. )ith every step, entrepreneurs get closer to attaining their
ultimate goal or vision. However, not all steps are easy to take.
$nfortunately, nothing worth fighting for is easy to attain. #uccessful
entrepreneurs only made it past the difficult times by being strong1
willed. "hey never let pessimism, difficulty or any other problems stand
in their way.
If you think you have these five ualities, you may have the mindset of
an entrepreneur. ,veryone has the ability to follow their dreams.
However, only some people actually try.

7 Characteristics of
Successful Entrepreneur
s
David Cummings / May 5, 2012
Everyone loves to pontifcate about what it takes to be a successful
entrepreneur, myself included !here"s no one #ri$ht% answer but rather
many di&erent traits, that when combined, result in $reat outcomes
'ere are the seven most common characteristics ("ve observed about
successful entrepreneurs)
Forward-looking * able to anticipate trends, opportunities, and future
or$ani+ational challen$es
Hard working * they love puttin$ in the hours and reali+in$ a sense of
satisfaction when accomplishin$ $oals
Passionate * true enthusiasm and ener$y around the work that they
do
Opinionated * ready and willin$ to take a stand for how they believe
thin$s should be done
Confdent * when someone looks you in the eye and tells you they can
do it, even if it"s far fetched, you"re more likely to believe them
Resourceful * when there are so many unknowns, it takes uni,ue
talent to put everythin$ to$ether on the -y
Positive * with the roller coaster ride that is entrepreneurship, stayin$
positive helps the team $et throu$h very low lows
.otice ( didn"t say smart, hi$h inte$rity, or any number of other common
characteristics that mi$ht be thrown around !hose are often present but
("ve seen cases where some items were less than desired !hese seven
characteristics have proved to be the most common in successful
entrepreneurs ( know
/hat else0 /hat are your thou$hts on these seven characteristics of
successful entrepreneurs0

Regardless of your definition of success, there are, oddly enough, a
great number of common characteristics that are shared by
successful businesspeople. You can place a check beside each
characteristic that you feel that you possess. This way, you can see
how you stack up. Een if you don!t hae all of these characteristics,
don!t fret. "ost can be learned with practice and by deeloping a
winning attitude, especially if you set goals and apply yourself,
through strategic planning, to reach those goals in incremental and
measurable stages.

The Home Business Musts
Like any activity you pursue, there are certain musts that are
required to be successful in a chosen activity. To legally operate a
vehicle on public roadways, one must have a driver's license; to
excel in sports, one must train and practice; to retire comfortably,
one must become an informed investor and actively invest for
retirement. f your goal is success in business, then the formula is
no different. There are certain musts that have to be fully
developed, implemented and managed for your business to
succeed. There are many business musts, but this article contains
believe to be some of the more important musts that are required to
start, operate and grow a profitable home business.

1. Do what you enjoy.!hat you get out of your business in the
form of personal satisfaction, financial gain, stability and en"oyment
will be the sum of what you put into your business. #o if you don't
en"oy what you're doing, in all likelihood it's safe to assume that will
be reflected in the success of your business$$or subsequent lack of
success. n fact, if you don't en"oy what you're doing, chances are
you won't succeed.

2. Take what you do seriously.%ou cannot expect to be effective
and successful in business unless you truly believe in your business
and in the goods and services that you sell. &ar too many home
business owners fail to take their own businesses seriously enough,
getting easily sidetracked and not staying motivated and keeping
their noses to the grindstone. They also fall prey to naysayers who
don't take them seriously because they don't work from an office
building, office park, storefront, or factory. Little do these skeptics,
who rain on the home business owner's parade, know is that the
number of people working from home, and making very good
annual incomes, has grown by leaps and bounds in recent years
3. Plan everything.'lanning every aspect of your home business is
not only a must, but also builds habits that every home business
owner should develop, implement, and maintain. The act of
business planning is so important because it requires you to
analy(e each business situation, research and compile data, and
make conclusions based mainly on the facts as revealed through
the research. )usiness planning also serves a second function,
which is having your goals and how you will achieve them, on
paper. %ou can use the plan that you create both as map to take
you from point * to + and as a yardstick to measure the success of
each individual plan or segment within the plan.

4. Manage money wisely.The lifeblood of any business enterprise
is cash flow. %ou need it to buy inventory, pay for services, promote
and market your business, repair and replace tools and equipment,
and pay yourself so that you can continue to work. Therefore, all
home business owners must become wise money managers to
ensure that the cash keeps flowing and the bills get paid. There are
two aspects to wise money management.
The money you receive from clients in exchange for your goods
and services you provide ,income-
The money you spend on inventory, supplies, wages and other
items required to keep your business operating. ,expenses-
. !sk "or the sale.* home business entrepreneur must always
remember that marketing, advertising, or promotional activities are
completely worthless, regardless of how clever, expensive, or
perfectly targeted they are, unless one simple thing is
accomplished$$ask for the sale. This is not to say that being a great
salesperson, advertising copywriting whi( or a public relations
specialist isn't a tremendous asset to your business. .owever, all of
these skills will be for naught if you do not actively ask people to
buy what you are selling.

#. $emem%er it&s all a%out the 'ustomer.%our home business is
not about the products or services that you sell. %our home
business is not about the prices that you charge for your goods and
services. %our home business is not about your competition and
how to beat them. %our business is all about your customers, or
clients, period. *fter all, your customers are the people that will
ultimately decide if your business goes boom or bust. /verything
you do in business must be customer focused, including your
policies, warranties, payment options, operating hours,
presentations, advertising and promotional campaigns and website.
n addition, you must know who your customers are inside out and
upside down.

(. Be'ome a shameless sel")*romoter +without %e'oming
o%no,ious-.0ne of the greatest myths about personal or business
success is that eventually your business, personal abilities,
products or services will get discovered and be embraced by the
masses that will beat a path to your door to buy what you are
selling. )ut how can this happen if no one knows who you are, what
you sell and why they should be buying1 Self#promotion is one of
the most beneficial, yet most underutili$ed, marketing tools that the
ma%ority of home business owners hae at their immediate disposal.

.. Proje't a *ositive %usiness image.%ou have but a passing
moment to make a positive and memorable impression on people
with whom you intend to do business. .ome business owners must
go out of their way and make a conscious effort to always pro"ect
the most professional business image possible. The ma"ority of
home business owners do not have the advantage of elaborate
offices or elegant storefronts and showrooms to wow prospects and
impress customers. nstead, they must rely on imagination,
creativity and attention to the smallest detail when creating and
maintaining a professional image for their home business.

/. 0et to know your 'ustomers.0ne of the biggest features and
often the most significant competitive edge the home based
entrepreneur has over the larger competitors is the he can offer
personali(ed attention. 2all it high$tech backlash if you will, but
customers are sick and tired of hearing that their information is
somewhere in the computer and must be retrieved, or told to push a
do(en digits to finally get to the right department only to end up with
voice mail$$from which they never receive a return phone call.

The home business owner can actually answer phone calls, get to
know customers, provide personal attention and win over repeat
business by doing so. t's a researched fact that most business ,34
percent- will come from repeat customers rather than new
customers. Therefore, along with trying to draw newcomers, the
more you can do to woo your regular customers, the better off you
will be in the long run and personali(ed attention is very much
appreciated and remembered in the modern high tech world.

11. 2evel the *laying "ield with te'hnology.%ou should avoid
getting overly caught up in the high$tech world, but you should also
know how to take advantage of using it. 0ne of the most ama(ing
aspects of the internet is that a one or two person business
operating from a basement can have a superior website to a 564
million company, and nobody knows the difference. 7ake sure
you're keeping up with the high$tech world as it suits your needs..
The best technology is that which helps you, not that which
impresses your neighbors.

11. Build a to*)not'h %usiness team.8o one person can build a
successful business alone. t's a task that requires a team that is as
committed as you to the business and its success. %our business
team may include family members, friends, suppliers, business
alliances, employees, sub$contractors, industry and business
associations, local government and the community. 0f course the
most important team members will be your customers or clients.
*ny or all may have a say in how your business will function and a
stake in your business future.
12. Be'ome known as an e,*ert.!hen you have a problem that
needs to be solved, do you seek "ust anyone's advice or do you
seek an expert in the field to help solve your particular problem1
0bviously, you want the most accurate information and assistance
that you can get. %ou naturally seek an expert to help solve your
problem. %ou call a plumber when the hot water tank leaks, a real
estate agent when it's time to sell your home or a dentist when you
have a toothache. Therefore, it only stands to reason that the more
you become known for your expertise in your business, the more
people will seek you out to tap into your expertise, creating more
selling and referral opportunities. n effect, becoming known as an
expert is another style of prospecting for new business, "ust in
reverse. nstead of finding new and qualified people to sell to, these
people seek you out for your expertise.
13. 3reate a 'om*etitive advantage.* home business must have
a clearly defined unique selling proposition. This is nothing more
than a fancy way of asking the vital question, 9!hy will people
choose to do business with you or purchase your product or service
instead of doing business with a competitor and buying his product
or service19 n other words, what one aspect or combination of
aspects is going to separate your business from your competition1
!ill it be better service, a longer warranty, better selection, longer
business hours, more flexible payment options, lowest price,
personali(ed service, better customer service, better return and
exchange policies or a combination of several of these1

14. 4nvest in yoursel".Top entrepreneurs buy and read business
and marketing books, maga(ines, reports, "ournals, newsletters,
websites and industry publications, knowing that these resources
will improve their understanding of business and marketing
functions and skills. They "oin business associations and clubs, and
they network with other skilled business people to learn their
secrets of success and help define their own goals and ob"ectives.
Top entrepreneurs attend business and marketing seminars,
workshops and training courses, even if they have already
mastered the sub"ect matter of the event. They do this because they
know that education is an ongoing process. There are usually ways
to do things better, in less time, with less effort. n short, top
entrepreneurs never stop investing in the most powerful, effective
and best business and marketing tool at their immediate disposal$$
themselves.

1. Be a''essi%le.!e're living in a time when we all expect our fast
food lunch at the drive$thru window to be ready in mere minutes,
our dry cleaning to be ready for pick$up on the same day, our
money to be available at the cash machine and our pi((a delivered
in :4 minutes or it's free. %ou see the pattern developing$$you must
make it as easy as you can for people to do business with you,
regardless of the home business you operate.

%ou must remain cogni(ant of the fact that few people will work
hard, go out of their way, or be inconvenienced "ust for the privilege
of giving you their hard$earned money. The shoe is always on the
other foot. 7aking it easy for people to do business with you means
that you must be accessible and knowledgeable about your
products and services. %ou must be able to provide customers with
what they want, when they want it.
1#. Build a ro'k)solid re*utation.* good reputation is unquestionably one of
the home business owner's most tangible and marketable assets. %ou can't
simply buy a good reputation; it's something that you earn by honoring your
promises. f you promise to have the merchandise in the customer's hands by
!ednesday, you have no excuse not to have it there. f you offer to repair
something, you need to make good on your offer. 2onsistency in what you
offer is the other key factor. f you cannot come through with the same level of
service ,and products- for clients on a regular basis, they have no reason to
trust you . . . and without trust, you won't have a good reputation.1(. 5ell
%ene"its.'ushing product features is for inexperienced or wannabe
entrepreneurs. #elling the benefits associated with owning and using the
products and services you carry is what sales professionals worldwide focus
on to create buying excitement and to sell, sell more, and sell more frequently
to their customers. %our advertising, sales presentations, printed marketing
materials, product packaging, website, newsletters, trade show exhibit and
signage are vital. /very time and every medium used to communicate with
your target audience must always be selling the benefits associated with
owning your product or using your service.
1.. 0et involved.*lways go out of your way to get involved in the community
that supports your business. %ou can do this in many ways, such as pitching
in to help local charities or the food bank, becoming involved in organi(ing
community events, and getting involved in local politics. %ou can "oin
associations and clubs that concentrate on programs and policies designed to
improve the local community. t's a fact that people like to do business with
people they know, like and respect, and with people who do things to help
them as members of the community.
1/. 0ra% attention.#mall$business owners cannot waste time, money and
energy on promotional activities aimed at building awareness solely through
long$term, repeated exposure. f you do, chances are you will go broke long
before this goal is accomplished. nstead, every promotional activity you
engage in, must put money back in your pocket so that you can continue to
grab more attention and grow your business.21. Master the art o"
negotiations.The ability to negotiate effectively is unquestionably a skill that
every home business owner must make every effort to master. t's perhaps
second in importance only to asking for the sale in terms of home business
musts. n business, negotiation skills are used daily. *lways remember that
mastering the art of negotiation means that your skills are so finely tuned that
you can always orchestrate a win$win situation. These win$win arrangements
mean that everyone involved feels they have won, which is really the basis for
building long$term and profitable business relationships.
21. Design 6our works*a'e "or su''ess.2arefully plan and design your
home office workspace to ensure maximum personal performance and
productivity and, if necessary, to pro"ect professionalism for visiting clients. f
at all possible, resist the temptation to turn a corner of the living room or your
bedroom into your office. deally, you'll want a separate room with a door that
closes to keep business activities in and family members out, at least during
prime business and revenue generating hours of the day. * den, spare
bedroom, basement or converted garage are all ideal candidates for your new
home office. f this is not possible, you'll have to find a means of converting a
room with a partition or simply find hours to do the bulk of your work when
nobody else is home.
22. 0et and stay organi7ed.The key to staying organi(ed is not about which
type of file you have or whether you keep a stack or two of papers on your
desk, but it's about managing your business. t's about having systems in
place to do things. Therefore, you wan to establish a routine by which you
can accomplish as much as possible in a given workday, whether that's three
hours for a part$time business or seven or nine hours as a full$timer. n fact,
you should develop systems and routines for "ust about every single business
activity. #mall things such as creating a to$do list at the end of each business
day, or for the week, will help keep you on top of important tasks to tackle.
2reating a single calendar to work from, not multiple sets for individual tasks
or "obs, will also ensure that "obs are completed on schedule and
appointments kept. ncorporating family and personal activities into your work
calendar is also critical so that you work and plan from a single calendar.
23. Take time o"".The temptation to work around the clock is very real for
some home business owners. *fter all, you don't have a manager telling you
it's time to go home because they can't afford the overtime pay. /very person
working from home must take time to establish a regular work schedule that
includes time to stretch your legs and take lunch breaks, plus some days off
and scheduled vacations. 2reate the schedule as soon as you have made the
commitment to start a home business. 0f course, your schedule will have to
be flexible. %ou should, therefore, not fill every possible hour in the day. ;ive
yourself a backup hour or two. *ll work and no play makes you burn out very
fast and grumpy customer service is not what people want.
24. 2imit the num%er o" hats you wear.t's difficult for most business owners
not to take a hands$on approach. They try to do as much as possible and
tackle as many tasks as possible in their business. The ability to multitask, in
fact, is a common trait shared by successful entrepreneurs. .owever, once in
a while you have to stand back and look beyond today to determine what's in
the best interest of your business and yourself over the long run. 7ost highly
successful entrepreneurs will tell you that from the time they started out, they
knew what they were good at and what tasks to delegate to others.
2. 8ollow)u* 'onstantly.2onstant contact, follow$up, and follow$through
with customers, prospects, and business alliances should be the mantra of
every home business owner, new or established. 2onstant and consistent
follow$up enables you to turn prospects into customers, increase the value of
each sale and buying frequency from existing customers, and build stronger
business relationships with suppliers and your core business team. &ollow$up
is especially important with your existing customer base, as the real work
begins after the sale. t's easy to sell one product or service, but it takes work
to retain customers and keep them coming back.
James Stephenson is an experienced home based consultant with more than
15 years of business
1 5igns 6ou Might Be an
9ntre*reneur
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/ntrepreneurs are a unique group of people. 8ot only do they think
differently; they act differently. They draw on personality traits, habits and
mind$sets to come up with ideas that straddle the line between insanity and
genius. )ut "ust because youCre an original thinker and came up with an idea
to replace gasoline in cars doesnCt mean youCre cut out to be an
entrepreneur.
f you ever wondered if you were an entrepreneur, check out the following list.
%ou may not have all these traits or skills, yet if you have some, this is a
pretty good indicator that you have what it takes.
$elated; The ( Traits o" 5u''ess"ul 9ntre*reneurs
@. %ou come from a family of individuals who "ust couldn't work for someone
else. %our parents worked for themselves. Though this isn't true for every
entrepreneur ,myself included-, many have a family history with one or both
parents having been self$employed.
?. %ou hate the status quo. %ouCre a person who is always questioning why
people do the things they do. %ou strive to make things better and are willing
to take action on it.
:. %ouCre self$confident. .ave you ever met an entrepreneur who was
pessimistic or self$loathing1 *fter all, if you donCt have confidence, how can
others believe in you1 7ost entrepreneurs are very optimistic about
everything around them.
A. %ouCre passionate. There will be times when you spend an excessive
amount of time and do not make a dollar. tCs your passion that will keep you
going.
6. %ou donCt take no for an answer. *n entrepreneur never gives up $$ ever.
B. %ou have the ability to create unlikely partnerships from out of nowhere
because of your ability to connect the dots. 'eople tend to gravitate toward
you because you are likable. 7any times this is because of your passion.
D. %ou spend more time with your co$founder than your spouse or significant
other.
3. %ou dropped out of college like )ill ;ates, #teve <obs and 7ark
+uckerberg.
E. The daily commute to your office is from the bedroom to the living room.
@4. %ou were always a lousy employee and probably have been fired a lot.
Fon't worry; you're not alone. personally have been fired several times in my
life. Fon't take it as a sign that you're a bad person. #ometimes it's in your
F8*.
$elated; &Bad& Millennial Traits That !re !'tually 0ood "or
9ntre*reneurs
@@. %ouCve always resisted authority; that's why you've had a problem holding
down a "ob.
@?. %ou believe that there is more than one definition of "ob securityG %ou
reali(e that your "ob is safe as long as you are in control as opposed to
relying on a boss who could ruin your career after one swift mistake.
@:. 7ost of your wardrobe consists of T$shirts; some you probably got at
#H#!. 0thers display your company's name or logo.
@A. %ou have a competitive nature and are willing to lose. %ou always know
that you can do something better.
@6. %ou check ;it.ub when you wake up in the morning.
@B. %ou ask to be paid in game tickets, shoes or whatever else you love.
There are "ust some things that are better than money, right1
@D. %our idea of a holiday is a working day without anything interfering with
the tasks you really need to get done.
@3. %ouCre unemployable, and thereCs nothing wrong with that. Life skills are
more valuable than the office politics commonly found at E$to$6 gigs.
@E. %ou work more than B4 hours a week; yet you earned more money at an
hourly "ob when you were in high school.
?4. %ou want to be in control and in command of your own company. %ou
typically like overseeing most things that go on at your company.
$elated; !nswer These 3 <uestions Be"ore =um*ing 4nto
9ntre*reneurshi*
?@. %ou see opportunities everywhere. &or example, you walk into a building
and are curious about its worth or the companies inside.
??. The word IpitchJ no longer has an association with baseball.
?:. %our take a personality test, like one offered by the /nneagram
nstitute, and end up with a result calling you a 9reformer type,9 someone
purposeful, self$controlled and perfectionist.
?A. %ou recogni(e that the best seats at your favorite coffee shops are those
closest to power outlets.
?6. %ouCre a logical thinker with ideas about how to correct problems and the
overall situation.
?B. #peaking of problem solving, have you checked to see if there's an app
for that1 'erhaps you've already begun to create a business model and the
software architecture to see if itCs feasible.
?D. %ouCre a people person. %ou have no problem communicating with
people.
?3. %ou regularly quote #teve <obs mainly to keep yourself from falling to
pieces.
?E. %ou sold stuff as a kid like at a lemonade stand. .eck, when there were
class sales, you were probably one of the top sellers.
$elated; # 5e'ret >ea*ons o" 5hy 9ntre*reneurs
:4. %ou get more #7# alerts from people you follow on Twitter than from
actual friends listed in your address book.
:@. %ouCre a self$starter, meaning you donCt give up on a pro"ect until itCs
completed.
:?. 8o matter what you do on a daily basis, you always think of it in terms of
delivering a return on investment.
::. %our dress code is shabby chic and your suit is "ust collecting dust. %ou
prefer T$shirts and "eans over a suit any day.
:A. %ouCre unrealistic. *s an inventor or innovator, you kind of have to be this
way.
:6. %ou think outside of the box. f not, what will change1
:B. %ouCre a charming and charismatic person.
:D. =ules donCt apply to you. !eCre not talking about breaking the law.
nstead, you believe in efficiency and will bend rules to make things run
smoothly.
:3. %ou reali(e that you canCt do everything alone. %ou have an idea and can
promote it but also know that youCre not skilled at every task of running a
business.
:E. %ouCre very opinionated. That's another reason you got fired a lot.
$elated; De)5tress and ?nwind >ith These 3 8ree $ela,ation !**s
A4. %ouCre unpredictable. *s an entrepreneur, you know how quickly things
can change. Thankfully, you're ready and willing to make ad"ustments.
A@. %ou en"oy being with a group but don't relish much being alone. %ou
probably get most energetic when working with groups of more than four
people.
A?. %ouCre determined. %ou have to make the impossible possible.
A:. %ou have the support of your friends and family. These are the people
who get you. *nd theyCll be there to support you along the way.
AA. tCs normal for you to take a nap under your desk to catch up on sleep.
*fter all, getting eight hours of sleep sometime between @4 p.m. and B a.m. is
antiquated.
A6. %ouCve done the market research. %ou know that "ust because you have
an incredible idea doesnCt mean that itCs profitable. )ut youCve already looked
into whether customers will make the purchase.
AB. %ou surround yourself with quality people $$ not leeches who will bring you
down.
AD. %ouCre a bit out there. .aving the ability to create something out of nothing
takes a mad$genius type of person. =emember, people thought *lbert
/instein was insane before he proved the theory of relativity.
A3. Fid you ever ask your family, friends or significant other to send you a
calendar invite so that you could talk for all of five minutes1
AE. %ou believe that your time is worth more than money.
64. Furing your most recent rant about growth hacking, your spouse or
boyfriend ,or girlfriend- totally understood what you were saying.
/ven if you donCt have all the above traits right now, youCll probably develop
more of them over time. *fter all, being an entrepreneur is a lifestyle, not a "ob
or hobby.
4 The ( Traits o" 5u''ess"ul
9ntre*reneurs
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/nter 9entrepreneurial traits9 into ;oogle, and the menu of frequent searches
will complete the query with 9... of #teve <obs9 and 9... of )ill ;ates,9 among
others. These are the forces of nature that spring to mind for most of us when
we think of entrepreneurs$$iconic figures who seemed to burst from the womb
with enterprise in their F8*.
They inspire, but they also intimidate. !hat if you weren't born with <obs'
creative genius or ;ates' iron will1 There's good news for the rest of usG
/ntrepreneurs can be guided to success by harnessing crucial attributes.
#cholars, business experts and venture capitalists say entrepreneurs can
emerge at any stage of life and from any realm, and they come in all
personality types and with any grade point average.
2ontrary to conventional wisdom, you don't have to be Type *$$that is, an
overachieving, hyperorgani(ed workaholic$$or an extrovert to launch a
successful business. 9Type *'s don't take the risks to be entrepreneurs,9 says
/lana &ine, managing director of the Kniversity of 7aryland's Fingman
2enter for /ntrepreneurship, adding that the same goes for straight$*
students. 9Lery often it's 2 students who become entrepreneurs.9
.owever, the best entrepreneurs do share a collection of characteristics, from
tenacity to the ability to tolerate risk, that are crucial to a successful venture.
*n analysis of ?: research studies published under the title 9The )ig &ive
'ersonality Fimensions and /ntrepreneurial #tatus9 found that entrepreneurs
have different personality traits than corporate managers, scoring far higher
on traits such as openness to experience ,curiosity, innovation- and
conscientiousness ,self$discipline, motivation- and considerably lower on
neuroticism, which allows them to better tolerate stress.
5hare these ti*s to your "ollowers as a gra*hi'.
3li'k to 9nlarge +@-
Tena'ity
#tarting a business is an ultramarathon. %ou have to be able to live with
uncertainty and push through a crucible of obstacles for years on end.
/ntrepreneurs who can avoid saying uncle have a better chance of finding
their market and outlasting their inevitable mistakes. This trait is known by
many names$$perseverance, persistence, determination, commitment,
resilience$$but it's really "ust old$fashioned stick$to$it$iveness.
9Tenacity is 8o. @,9 says 7ike 2olwell, who runs 'lains *ngels, an owa angel
investor forum, and the accelerator )usiness nnovation +one for the ;reater
Fes 7oines 'artnership. 9#o much of entrepreneurship is dealing with
repeated failure. t happens many times each week.9
!hen failure happens, you have to start all over again. <ett 7c2andless was
a partner in a fast$growing freight logistics operation. )ut the rapid expansion
triggered mistakes, including an invoicing glitch that left the company without
enough cash reserves. The business had to be sold for a fraction of its value.
7c2andless didn't agree to the terms and was fired. .e lost the company
house and car and wound up moving into his girlfriend's apartment. 9t was a
very tough time,9 he recalls. 9 came very close to going bankrupt.9
.e went on ?6 "ob interviews and got offers for logistics positions paying
5?44,444 and up. )ut 7c2andless, who grew up in #ection 3 public housing,
wondered, Should I take a comfortable, secure ob, or could I build something
better! 9 was afraid that failure could define the rest of my life, and wasn't
going to let that happen,9 he says.
#o rather than accept one of those big offers, he started over, founding a new
company, 2arrierFirect, in 2hicago. .amstrung by the noncompete contract
with his previous firm, he created a wholly new space in the logistics field.
nstead of matching shippers with truckers, he switched to consulting,
providing marketing and sales for logistics companies. n two years
2arrierFirect grew to 5:6 million in revenue. 9'm glad didn't take one of
those corporate "obs,9 he says now.
Passion
t's commonly assumed that successful entrepreneurs are driven by money.
)ut most will tell you they are fueled by a passion for their product or service,
by the opportunity to solve a problem and make life easier, better, cheaper.
97ost entrepreneurs know believe they will change the world,9 says <ay
&riedlander, a professor of sustainable business who works with
entrepreneurs at the 2ollege of the *tlantic and at )abson 2ollege. 9There's
an excitement and belief in what they're doing that gets them through the
hard times.9
'assion based on your company's specific mission is an intrinsic drive that
provides the internal reward that can sustain you between paydays. <ohn
=oulac is passionate about hemp, which has a host of industrial and food
uses and can be grown without herbicide, making it a keystone crop for
sustainable agriculture. !ith a mission of providing a new market for
2anadian hemp farmers, =oulac launched his company, 8utiva, in @EEE with
a hemp food bar. )ut he quickly ran into interference from K.#. 2ustoms
officials who associated hemp, part of the cannabis family, with mari"uana.
9nitially, they tried to harass us,9 =oulac recalls. 9They would say our
products couldn't leave the warehouse; then they could. t was very hard to
stay in business.9 Two years later the <ustice Fepartment published a rule
that put hemp products in the same illegal category as heroin. 9t was either
go out of business, keep going or go to "ail,9 he says. 9t could be bankruptcy
or humiliation.9
=oulac had more than 5@44,444 invested in the business by this point. * lot of
people told him to quit. nstead, he decided to go on the offensive and sued
the Frug /nforcement *dministration. !ith support from the natural$products
industry, particularly soap company Fr. )ronner's, he won the suit two years
later. =oulac's belief in the power of his mission had prevailed.
9 believed that was on the side of truth and that there was a government
agency trying to prevent something good happening for the country,9 he
explains. 9 feel at a core level that this is my destiny to help create a better
food system.9
Today 8utiva sells a variety of organic products, from hemp protein shakes to
virgin coconut oil. =oulac's advice when things get toughG 9Fig deeper.9
Toleran'e o" am%iguity
This classic trait is the definition of risk$taking$$the ability to withstand the fear
of uncertainty and potential failure. 9t all boils down to being able to
successfully manage fear,9 notes 7ichael #herrod, entrepreneur$in$residence
at the 8eeley #chool of )usiness at Texas 2hristian Kniversity.
.e sees the ability to control fear as the most important trait of all. 9&ear of
humiliation, fear of missing payroll, running out of cash, bankruptcy, the list
goes on.9
<ill )lashack #trahan knows the fear factor. The founder and 2/0 of
Tastefully #imple, a direct$sales company for gifts and easy$to$make meals,
remembers the calls to her bank when she was three months overdue on her
mortgage. 9That fear that would lose my house almost controlled me,9 says
)lashack #trahan, who also had to overcome the deaths of her brother and
then her husband shortly afterward. 9The night after the funeral of my
husband, thought maybe should give up, get a "ob and be a mom.9
This is where the ultimate entrepreneurial test takes place, on the mental
battlefield. %ou can go with the fear and quit, or push through it. 9 said no;
this idea is going to work,9 )lashack #trahan says. 9!e have the power to
control our thoughts. !hen we commit mentally, our action follows.9 #he
made a conscious decision to push through the fear. .er company had sales
in ?4@? of 5E3 million.
!hile many would feel powerless in the face of such adversity, 9the
entrepreneur looks at the situation and knows he has some control over the
outcome,9 says <onathan *lpert, a psychotherapist and author of "e
#earless: $hange %our &ife in '( )ays.
Aision
0ne of the defining traits of entrepreneurship is the ability to spot an
opportunity and imagine something where others haven't. /ntrepreneurs
have a curiosity that identifies overlooked niches and puts them at the
forefront of innovation and emerging fields. They imagine another world and
have the ability to communicate that vision effectively to investors, customers
and staff.
7any people would be satisfied with a couple of successful businesses, but
/ldad 7atityahu saw beyond his two thriving fro(en$yogurt stores. .e'd been
reading about the fiber$optic space and decided he wanted in on the
technology sector that surrounded him in #ilicon Lalley. #o he sold his yogurt
shops and his .arley and got into a field he knew nothing about. .e took a
"ob with a fiber$optic company to learn the business and discovered his niche
there.
2ustomers told him they were frustrated that they couldn't have access to see
who was on their networks$$important for security. 9 reali(ed there was no
solution on the market addressing this pain point,9 7atityahu says. 9 took the
time to figure out why.9
The products 7atityahu created made activity on the network easily visible
and also protected the system. .e bootstrapped his company, 8et 0ptics,
with 5@44,444$$the proceeds from his two yogurt stores and .arley ,along
with a small investment from family members-$$turning down venture
capitalists along the way. n 0ctober ?4@: he sold the company for 5@E4
million.
9/ntrepreneurs often face naysayers, because we see the future before the
future plays out,9 7atityahu says. 9%ou have to be several steps ahead of the
market.9
5el")%elie"
#elf$confidence is a key entrepreneurial trait. %ou have to be cra(y$sure your
product is something the world needs and that you can deliver it to overcome
the naysayers, who will always deride what the ma"ority has yet to validate.
=esearchers define this trait as task$specific confidence. t's a belief that
turns the risk proposition around$$you've conducted enough research and
have enough confidence that you can get the "ob done that you ameliorate
the risk.
9%ou have to have a lot of self$confidence. )e willing to take a risk, but be
conservative,9 says <ason *pfel, founder of &ragrance8et.com, an e$
commerce site for beauty products. *pfel didn't know anything about the
beauty world when he started the company, but he believed he could create a
solid website to sell such products. 9 thought selling a commodity online at
the most competitive price would work,9 he says. .is company has outlasted
well$funded competitors and sees 5@A6 million in annual sales.
8le,i%ility
)usiness survival, like that of the species, depends on adaptation. %our final
product or service likely won't look anything like what you started with.
&lexibility that allows you to respond to changing tastes and market
conditions is essential. 9%ou have to have a willingness to be honest with
yourself and say, 'This isn't working.' %ou have to be able to pivot,9 says
2olwell of 'lains *ngels.
!hile still a student at )abson 2ollege, 7att Lau(on wanted to digiti(e the
process of designing personali(ed "ewelry. *fter raising 5644,444 from
.ighland 2apital 'artners, he launched a custom "ewelry design platform for
retailers in ?443; however, a year later there was no payoff in sight.
9n theory, it was a perfect match, but in practice we found that we simply
couldn't change the "ewelers' focus on selling the expensive inventory they
had sitting in their display cases,9 Lau(on recalls.
.e reached out to his "eweler customers to solicit feedback. 90ne of them
actually said, '%ou have built something so ama(ing, with so much potential,
you should let people use it directly,'9 he says.
Lau(on decided to do exactly that, and with additional rounds of financing,
relaunched the )oston$based company as ;emvara.com, selling the custom
"ewelry experience directly to consumers. .e won't disclose sales, but he has
raised 56@ million to date, including additional millions from .ighland 2apital,
which backed his initial concept. .e has even hired away executives from the
"ewelry world's biggest retail force, Tiffany M 2o.
$ule)%reaking
/ntrepreneurs exist to defy conventional wisdom. * survey last year by =oss
Levine of the Kniversity of 2alifornia, )erkeley, and %ona =ubinstein of the
London #chool of /conomics found that among incorporated entrepreneurs,
a combination of 9smarts9 and 9aggressive, illicit, risk$taking activities9 is a
characteristic mix. This often shows up in youth as rebellious behavior, such
as pot$smoking. That description would certainly hold true for some of the
most famous entrepreneurs of recent years.
n fact, simply starting a business breaks the rules, as only about @: percent
of *mericans are engaged in entrepreneurship, according to a )abson
2ollege report. Foing what the ma"ority isn't doing is the nature of
entrepreneurship, which is where the supply of inner resources comes in.
*re these traits in you1 There's only one way to find out.
The Eight &abits 'f
E(tremely Successful
Entrepreneurs
)reat entrepreneurs don*t write great books. +n fact, they
don*t write many books at all.
,either fact is surprising. Successful entrepreneurs are
typically too busy innoating to write down much of
anything. -nd on those rare occasions when they attempt to
create a book, it*s filled with what they did, and not what led
to their idea in the first place. -s a rule, they are not
particularly introspectie.
So if we want to know what makes them successful.in order
to improe our own companies whether we work for a huge
one or our own start up.we need to study them. -nd that is
e(actly what + hae been doing professionally for the last /0
years.
&ere*s what + hae found.
1. Look at How They Think, Not at What They Do. +f
you %ust obsered the actions entrepreneurs take, you would
conclude there isn*t that much to be gained from studying
them. Each entrepreneur*s behaior is as idiosyncratic as
they are. You would hae to be 2arry 3age and Sergey 4rin
to start )oogle5 'prah 6infrey to found &arpo 3roductions.
4ut.and it is a huge but.if you look at how they reason,
you see remarkable similarities. The process %ust about all
of them follows in creating their companies looks like this.
They7
-. 8igure out what they really want to do.
4. Take a small step toward that goal.
C. 3ause after taking that small step to see what they hae
learned.
9. 4uild off that learning and take another small step.
E. 3ause after taking that step.
8. 4uild off what they learned in step two. -nd then take
another small step:
+f we were to reduce it to a formula, it would be -ct. 2earn.
4uild Repeat.
3ut simply, in the face of an unknown future, entrepreneurs
act. They deal with uncertainty not by trying to analy$e it, or
planning for eery contingency, or predicting what the
outcomes will be. +nstead, they act, learn from what they
find, and act again.
;. They Start with a Market Need. +deas are easy.+
bet you can come up with 10 new product or serice ideas
within fie minutes right now, if you had to. -nd because
new ideas are plentiful, they are not worth ery much. -s
with anything else, if there is a glut.of ideas, in this case.
the alue goes down.
4esides, there is no guarantee anyone will buy the great idea
you hae come up with. +f you start with the idea, you need
to go in search of customers. +f you begin with the need, you
already hae a market.the people who need what you hae.
+f you can discoer a market need you can make a fortune.
4ut intriguingly, that is not the primary motiation of the
most successful entrepreneurs, and that brings us to the
ne(t point.
/. Dont Set Out to Be Rich. The best entrepreneurs don*t
hae making a fortune as their goal, as they start off. 6ealth
is %ust <an e(tremely pleasant= byproduct.
6hy not focus on gaining wealth> 6ell, if your primary
ob%ectie is to get rich ?uick, you are bound to cut corners,
short#change your customers, and fail to take the time to
truly understand what the market needs. -nd that is true
whether you are trying to get your company off the ground,
or are introducing a new product or serice in order to make
this ?uarter*s numbers.
+nstead, they identify the market need we talked about in
point ;, and get to work.
@. Marketing. (!!t. "o#$ete Di%%erent&y' The
conentional wisdom.find a niche5 $ig when others $ag.is
right, but not particularly helpful. +t lacks, to be kind,
specificity. 8ar better is to describe what the best
entrepreneurs do and that is Acompete differently.B
&ow do they do it> &ere are some e(amples7
Make small bets. Your resources are limited and
starting anything new is risky. You don*t want to compound
those risks by betting eerything on one role of the dice.
Make those small bets quickly. ,o, you don*t want to
lose money. 4ut, since you are not risking much, you can
afford to fail. )et out in the marketplace fast and let
potential customers tell you if you are onto something.
-ction trumps eerything.especially planning.
Where do you place those small bets? (I) 'biously,
in areas where competitors don*t e(ist, or are weak. ,ot so
obiously, in places where you feel strong. That confidence
will help you oercome the ineitable hurdles you will face.
Where do you place those small bets? (II) ,o
customer wants to be entirely dependent on %ust one
supplier, no matter who it is. -sk yourself, what your
competitor*s customers want. 4etter yet, ask those
customers yourself.
Let the market define you. 3eople will tell you what
they like, and what they don*t, about your product.
+ncorporate their ideas with yours. "aking the world*s best
ideocassette recorder does you no good, if what people
really want are 9CRs.
One step at a time. 4e satisfied with making one
significant improement in a product or serice. You*re
bound to make mistakes %ust attempting one thing.many
more if you try to do too much.
eep lookin! for placeswhere you hae a genuine
competitie edge. That*s where profitability and security lie.
Tempting as it may be, don*t try to buy your way into
markets where you offer the same product at a lower price.
That*s where you*ll be ulnerable.

D. (inancing. This is perhaps the biggest area people fail to
understand. 6ith all the attention paid to enture
capitalists, there is a mistaken impression that the best
entrepreneurs begin their companies with millions of dollars
in start up financing. That simply isn*t true.
The actual number is E10F,@1G, according to the Hauffman
8oundation, and that figure includes the <relatiely few=
companies, such as biotech firms, that needs millions to
begin.
Sure, E10F,@1G isn*t chicken feed, but the figure is not
particularly daunting.
6hy is it so relatiely low> +t relates back to the ways that
the best entrepreneurs think about starting their
companies. Since they are taking small steps, they only need
sufficient financing to accomplish the ne(t one.
G. Tea# Bui&ding. Yes, of course, the company founder
needs to delegate early. You can try to micromanage but
there are four large obstacles if you do7
)#The business will neer grow bigger than one person <you,
the CE'= can handle effectiely5
)#Your company won*t be able to moe ery ?uickly. Since
eerything will hae to flow through you, you will create a
bottleneck5
)#You won*t get the best ideas out of your people. 'nce they
understand the company is set up so eerything reoles
around you, your employees are not going to take the time to
deelop their best ideas. A6hy should +,B they*ll ask. A&e is
%ust going to do what he wants anyway.B -nd
)#+t*s e(hausting.
7. They $&ay to their !trength!. The biggest surprise,
when it comes to people, is that the best entrepreneurs find
a Yin to their Yang, someone who offsets their weakness and
compliments their strengths. This allows them to
concentrate on what they do best, leaing the things they are
not good at to someone else.
6alt 9isney had Roy 9isney. Stee Iobs had Stee 6o$niak
and 'rille 6right had 6ilbur 6right. 6hereer there is
great innoation, there is a dreamer and an operator5 an
Aidea manB and someone who turns those ideas into reality.

J. Turning O*!tac&e! +nto ,!!et!. + am not big on
clichKs like Aeery time )od closes a door he opens a
window,B or Athere are no problems, only opportunities.B
4ut the best entrepreneurs beliee and act as if eerything is
a gift. 6ell, maybe not eery single thing imaginable. 4ut
assuming that eerything is a gift is a good way of looking at
the problems and surprises you*ll encounter in any
endeaor, such as getting a new enture off the ground,
obtaining buy#in from your boss, or launching a new
product line in an ultra#competitie market.
6hy take this seemingly 3ollyannaish approach> There are
three key reasons.
8irst, you were going to find out eentually what people did
and did not like about your idea. 4etter to learn it as soon as
possible, before you sink more resources into the concept,
enture, or product line. You always want to keep potential
loses to a minimum.
Second, the feedback could take you in another direction, or
sere as a barrier to your competitors. You thought you
wanted to start a public relations firm but a ?uick surey
told you potential customers thought the field was saturated.
4ut more than a few of them said they would loe someone
who could help with their internal communications.
Third, you got eidence. True, it was not what you were
e(pecting or een wanted, but that still puts you ahead of the
person who is %ust thinking about doing something <like
opening another p.r. firm.= You know something they don*t,
and that is an asset. You are ahead of the game.
4ut what if it*s really bad news> +t*s a disappointment. You
were absolutely certain that your boss would approe your
idea for a new software program, and she said no in a way
that is still echoing down the corridor. ,o reasonable person
can define what you*e encountered as anything but a
problem, and most people will try to sole the problem.
<A"aybe she will like the idea if + go at it this way instead.B=
That*s fine if you can. The problem has gone away and,
again, you*e learned something that others might not know.
<The boss hates Y, but she loes L.=
4ut what if you can*t sole it> <She hated AL,B too.= -ccept
the situation to the point of embracing it. Take as a gien
that it won*t eer change, and turn it into an asset. 6hat can
you do with the fact that it won*t eer change> "aybe it
presents a heretofore unseen opportunity. "aybe you build
it into your product or serice in a way that no competitor
<haing not acted= could imagine. Could you do it on your
own> Could you take the idea to a competitor and use it as
your calling card to look for the ne(t %ob>
The thing to remember is this7 Successful people work with
what they hae at hand.whateer comes along.and try to
use eerything at their disposal in achieing their goals. -nd
that is why they are grateful for surprises, obstacles, and
een disappointments. +t gies them more information and
resources to draw upon.
MMM
Paul B. Brown is co-author of Iust Start published by
Harvard Business Review Press.
+! -ntre$reneur!hi$ (or .ou/
Starting your own business can be an exciting and rewarding experience. It can ofer
numerous advantages such as being your own boss, setting your own schedule and
making a living doing something you enjoy. But, becoming a successful entrepreneur
requires thorough planning, creativity and hard work.
Consider whether you have the following characteristics and skills commonly associated
with successful entrepreneurs:
Comfortable with taking risks: Being your own boss also means youre the one
making tough decisions. Entrepreneurship involves uncertainty. Do you avoid
uncertainty in life at all costs? If yes, then entrepreneurship may not be the best ft
for you. Do you enjoy the thrill of taking calculated risks? Then read on.
Independent: Entrepreneurs have to make a lot of decisions on their own. If you fnd you
can trust your instincts and youre not afraid of rejection every now and then
you could be on your way to being an entrepreneur.
Persuasive: You may have the greatest idea in the world, but if you cannot persuade
customers, employees and potential lenders or partners, you may fnd
entrepreneurship to be challenging. If you enjoy public speaking, engage new
people with ease and fnd you make compelling arguments grounded in facts, its
likely youre poised to make your idea succeed.
Able to negotiate: As a small business owner, you will need to negotiate everything
from leases to contract terms to rates. Polished negotiation skills will help you save
money and keep your business running smoothly.
Creative: Are you able to think of new ideas? Can you imagine new ways to solve
problems? Entrepreneurs must be able to think creatively. If you have insights on
how to take advantage of new opportunities, entrepreneurship may be a good ft.
Supported by others: Before you start a business, its important to have a strong
support system in place. Youll be forced to make many important decisions,
especially in the frst months of opening your business. If you do not have a support
network of people to help you, consider fnding a business mentor. A business
mentor is someone who is experienced, successful and willing to provide advice
and guidance. Read the Steps to Finding a Mentor article for help on fnding and
working with a mentor.
Still think you have what it takes to be an entrepreneur and start a new business? Great!
Now ask yourself these 20 questions to help ensure youve thought about the right
fnancial and business details.
(inding a Bu!ine!! Mentor
In the frst months of opening your business, youll need to make many important
decisions. But you dont have to make every decision on your own. Ultimately, youre
responsible for you business, but you can always consult a mentor for advice.
What is a mentor?
A mentor is someone who has been down the same path you're taking. He or she is
experienced, successful and willing to provide advice and guidance for no real personal
gain. But how do you fnd a mentor?
Here are some steps for fnding and working with a mentor for your new small business
venture.
Government-Sponsored Mentor Organizations
The government ofers a great deal of free resources and services to support small
business owners, both online and in person:
SCORE Mentors: Sponsored by SBA, SCORE provides free and confdential counseling,
mentoring and advice to small business owners nationwide via a network of
business executives, leaders and volunteers. You can connect with a SCORE
volunteer through in-person and/or online counseling.
Small Business Development Centers: SBDCs provide management assistance to
current and prospective small business owners. SBDC services include fnancial
counseling, marketing advice and management guidance. Some SBDCs provide
specialized assistance with information technology, exporting or manufacturing.
SBDCs are partnerships primarily between the government and colleges,
administered by SBA.
Womens Business Centers: WBCs provides business training and counseling with the
unique needs of women entrepreneurs in mind. WBCs are a national network of
nearly 100 educational centers designed to support women who want to start and
grow small businesses.
Veterans Business Outreach Centers: VBOCs provide veterans with entrepreneurial
development services such as business training, counseling and mentoring.
Minority Business Development Agency: MBDA advisors help minority business owners
gain access to capital, contracts, market research and general business consulting.
Additional federal counseling programs can be found on Business.USA.gov.
Trade Associations
Many trade associations operate mentor-protg programs that provide guidance to help
you build a business. These mentoring programs are often conducted through a
combination of formal one-on-one mentoring sessions and group networking with fellow
protgs. Business owners might be connected with multiple mentors for a more holistic
experience.
Most industries are represented by trade associations, as are genders, ethnic groups and
business types. If you need help fnding a trade association, consult your local SBA district
ofce.
Mentoring for Government Contractors
If your business plans to sell products and services to the federal government, you may
need specialized mentorship. The General Services Administration (GSA) ofers a Mentor-
Protg Program that is specifcally designed to encourage prime contractors to help small
businesses participate in government contracting. The SBA also has a Mentor-Protg
Program for small businesses.
Look to Your Network
Who do you know? Do you have a previous boss who inspired you or a friend who is a
successful business owner? Ask that person to be your mentor, and learn from his or her
advice and best practices. Just be prepared to share with them why you chose them in
particular, your goals and what you are looking for from them.
Working with a Mentor
If you decide to work with a mentoring organization, ensure there is a formal mentor-
protg structure in place. If you work with an individual, youll need to establish a mutually
benefcial, structured relationship. Remember these tips about mentoring:
Be organized, prepared and consistent. Make sure you are respectful of your mentors
time.
Do not expect your mentor to run your business for you or make decisions for you. You
should have realistic expectations about what a mentor can provide you.
Plan your mentoring sessions in advance. These could be as simple as having a one-on-
one meeting once a month to discuss business goals, obstacles and regulatory
requirements that you dont understand.
Take notes, create action items and be prepared to review progress during your next
session.
Thank your mentor for his or her time and assistance with your business decision-
making skills.
01 2ue!tion! Be%ore Starting
So youve got what it takes to be an entrepreneur? Now, ask yourself these 20 questions to
make sure youre thinking about the right key business decisions:
Why am I starting a business?
What kind of business do I want?
Who is my ideal customer?
What products or services will my business provide?
Am I prepared to spend the time and money needed to get my business started?
What diferentiates my business idea and the products or services I will provide from
others in the market?
Where will my business be located?
How many employees will I need?
What types of suppliers do I need?
How much money do I need to get started?
Will I need to get a loan?
How soon will it take before my products or services are available?
How long do I have until I start making a proft?
Who is my competition?
How will I price my product compared to my competition?
How will I set up the legal structure of my business?
What taxes do I need to pay?
What kind of insurance do I need?
How will I manage my business?
How will I advertise my business?
31 Ste$! to Starting a Bu!ine!!
Starting a business involves planning, making key fnancial decisions and completing a
series of legal activities. These 10 easy steps can help you plan, prepare and manage
your business. Click on the links to learn more.
Ste$ 34 Write a Bu!ine!! &an
Use these tools and resources to create a business plan. This written guide will help you
map out how you will start and run your business successfully.
Ste$ 04 5et Bu!ine!! ,!!i!tance and Training
Take advantage of free training and counseling services, from preparing a business plan
and securing fnancing, to expanding or relocating a business.
Ste$ 64 "hoo!e a Bu!ine!! Location
Get advice on how to select a customer-friendly location and comply with zoning laws.
Ste$ 74 (inance .our Bu!ine!!
Find government backed loans, venture capital and research grants to help you get
started.
Ste$ 84 Deter#ine the Lega& Structure o% .our
Bu!ine!!
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited
Liability Company (LLC), corporation, S corporation, nonproft or cooperative.
Ste$ 94 Regi!ter a Bu!ine!! Na#e (:Doing Bu!ine!!
,!:'
Register your business name with your state government.
Ste$ ;4 5et a Ta< +denti%ication Nu#*er
Learn which tax identifcation number you'll need to obtain from the IRS and your state
revenue agency.
Ste$ =4 Regi!ter %or State and Loca& Ta<e!
Register with your state to obtain a tax identifcation number, workers' compensation,
unemployment and disability insurance.
Ste$ >4 O*tain Bu!ine!! Licen!e! and er#it!
Get a list of federal, state and local licenses and permits required for your business.
Ste$ 314 ?nder!tand -#$&oyer Re!$on!i*i&itie!
Learn the legal steps you need to take to hire employees.
?nder!tand .our Market
To run a successful business, you need to learn about your customers, your competitors
and your industry. Market research is the process of analyzing data to help you understand
which products and services are in demand, and how to be competitive. Market research
can also provide valuable insight to help you:
Reduce business risks
Spot current and upcoming problems in your industry
Identify sales opportunities
How to Conduct Market Research
Before you start your business, understand the basics of market research by following
these steps:
Identify Ofcial Government Sources of Market and Industry Data
The government ofers a wealth of data and information about businesses, industries and
economic conditions that can aid in conducting market research. These sources provide
valuable information about your customers and competitors:
Economic Indicators
Employment Statistics
Income and Earnings
Identify Additional Sources of Analysis
Trade groups, business magazines, academic institutions and other third parties gather
and analyze research data about business trends. Use Internet and database searches to
fnd information related to your location and industry.
Understand the International Marketplace
Todays economy is a globalized marketplace, so its important to understand the
international factors that infuence your business. These resources will help you to
research potential international markets for your products or services:
Market Research Guide for ExportersIdentifes resources for business owners seeking to
sell their products abroad.
Country Market ResearchReports on trade issues in countries across the globe.
BuyUSA.govHelps U.S. companies fnd new international business partners.
5verview of 678 8tatistics on 9ay and
6enefts
678 publishes a lar$e amount of information on the wa$es, earnin$s, and
benefts of workers :enerally, this information is cate$ori+ed in one or
more of the followin$ ways)
:eo$raphic area ;national, re$ional, state, metropolitan area, or county
data<
5ccupation ;such as teacher or carpenter<
(ndustry ;such as manufacturin$ or retail trade<
=dditional cate$ories such as a$e, se>, or union membership may be
used in some cases
9m*loyment 3ost Trends
!his pro$ram publishes ,uarterly statistics that measure chan$e in labor
costs ;also called employment costs or compensation costs< over time?
,uarterly data measurin$ the level of costs per hour worked are also
published (nde>es are available for total labor costs, and separately for
wa$es and salaries and for beneft costs 8ome information is available
by re$ion, ma@or industry $roup, ma@or occupational $roup, and
bar$ainin$ status
Bational 3om*ensation Data
!he .ational Aompensation 8urvey ;.A8< provides comprehensive
measures of occupational earnin$s? compensation cost trends, beneft
incidence, and detailed plan provisions Betailed occupational earnin$s
are available for metropolitan and non4metropolitan areas, broad
$eo$raphic re$ions, and on a national basis !he inde> component of the
.A8 ;EA(< measures chan$es in labor costs =vera$e hourly employer
cost for employee compensation is presented in the EAEA
>ages %y !rea and C''u*ation
/a$e data are available by occupation for the .ation, re$ions, states,
and many metropolitan areas /a$e data by area and occupation are
from the .ational Aompensation 8urvey, 5ccupational Employment
8tatistics 8urvey, or the Aurrent 9opulation 8urvey 8ee /a$es by =rea
and 5ccupation to determine which information suits your needs
9arnings %y Demogra*hi's
Earnin$s data are available by demo$raphic characteristics such as a$e,
se>, race, and 'ispanic or 7atino ethnicity 8ee also Earnin$s by
education
9arnings %y 4ndustry
!he Aurrent Employment 8tatistics survey is a monthly survey of the
payroll records of business establishments that provides national
estimates of avera$e weekly hours and avera$e hourly earnin$s for the
private sector for all employees and for production and nonsupervisory
employees =vera$e weekly overtime hours in manufacturin$ are also
available 8tate and area estimates of hours and earnin$s from this
survey are available for all employees as well as for production workers
;in the $oods4producin$ industries< and nonsupervisory workers ;in the
private service4providin$ industries<
3ounty >ages +<uarterly 3ensus o" 9m*loyment and >ages-
=nnual and ,uarterly wa$e data are available by detailed industry for the
.ation, states, and many metropolitan areas and counties
9m*loyee Bene"its
.ational Aompensation 8urvey*6enefts provides information on the
share of workers who participate in specifed benefts, such as health
care, retirement plans, and paid vacations !hese data also show the
details of those benefts, such as deductible amounts, retirement a$es,
and amounts of paid leave
3om*ensation $esear'h and Program Develo*ment 0rou*
!he Aompensation Cesearch and 9ro$ram Bevelopment :roup ;AC9B:<
carries out research that addresses methodolo$ical, conceptual, and
technical issues of concern to the 5Dce of Aompensation and /orkin$
Aonditions ;5A/A< and other 6ureau pro$rams
5trikes and 2o'kouts +>ork 5to**ages-
Bata on ma@or work stoppa$es are availableEma@or work stoppa$es
involve 1,000 or more workers and last a full shift or lon$er 678 does not
distin$uish between strikes and lockouts in the data? both are included in
the defnition of the term Fwork stoppa$esF
B25 Data on Minimum >age >orkers
678 data on workers with hourly earnin$s at or below the prevailin$
Gederal minimum wa$e are described on the 5verview of 678 Bata on
Minimum /a$e /orkers pa$e
3om*ensation 3osts in Cther 3ountries
Aomparative hourly compensation costs in national currencies and H8
dollars for production workers and all employees in manufacturin$ are
available on the (nternational 7abor Aomparisons 'ourly Aompensation
Aosts tables ;!he (nternational 7abor Aomparisons pro$ram has been
discontinued<

!nswer These 3 <uestions
Be"ore =um*ing 4nto
9ntre*reneurshi*
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/veryone has at least once in their life had a million$dollar idea. The tricky
part is deciding if this idea actually has legs and could be a viable business.
*s a small$business owner for a decade, Cve identified three crucial questions
to ask yourself to help decide whether or not the concept is worth pursuing.
These questions can help scope what like to call *The #uccess Triangle,+
an approach to help budding entrepreneurs decide whether to pull the trigger
on that small business idea.
1. 3on'e*t; 4s it a good ideaD LetCs start with the obvious. 8ot every idea is
a good one and "ust because your mom thinks itCs great doesnCt mean it is.
Too many of us suffer from the Iif we build it, they will comeJ mentality which
can be equally tempting and dangerous. <ust because you are obsessed
with your dogs and think the world is clamoring for the introduction of canine
teeth whitening pens doesnCt mean it will be a hit. tCs easy for something to
seem like a great idea initially but several key questions should be asked to
help determine whether the idea is truly solidG
s there a need1 .ow significant is the need1
.ow much competition currently exists in this space1
.ow large is your potential customer base1
Fo you have a unique ability to provide this productNservice1
Fo you have experienceNpassion in this area1
*re there trends in the marketplaceNindustry that might make my
produceNservice more or less attractive going forward1
$elated; # 5igns 6ou&re $eady to De'lare 6our 9ntre*reneurial
4nde*enden'e
2. 9,e'ution; How >ell 3an 6ou 9,e'ute the 3on'e*tD !hile itCs great to
have a solid business idea, itCs quite another thing to execute it well. %our
idea about selling doggie teeth whitening might be a viable concept that the
marketplace needs, but how well can you execute it1 .ow do you
manufacture the product1 .ow well does it work1 .ow easily is it applied1
.ow do you market and deliver the product1 These questions and others are
critical issues to consider when contemplating how well your business idea
scores on executionG
.ow will you provide great customer service1
!hat is the quality level of your productNservice1
.ow efficiently can you produce your productNservice1
!hat is your time to market1
.ow is your productNservice produced1 &ulfilled1
.ow easyNdifficult is it to market the product1
$elated; >hat :ind o" 9ntre*reneur !re 6ouD
3. Pro"ita%ility; 4s 6our Business Model Pro"ita%leD Knless youCre starting
a nonprofit, most entrepreneurs are hoping to be profitable. ,f youCre not
managing your profit levels, you wonCt be around very long most likely.- *s
part of this analysis, itCs important to evaluate your overall business model.
&or your dog whitening product, you should consider your pricing structure1
*re you selling whitening pens individually or in bulk1 *re you only selling
pens or also providing a whitening service1 !here will you sellG online,
through vets and spas or at retailers1 2onsider these questions to help
evaluate your business model and profit potentialG
!hat is your cost structure1 !hat are your expenses1
.ow much does it IcostJ to gain a client1
!hat is the anticipated demand ,quantified-1
.ow will you sell1 0nline, brick and mortar, using party concept, through
resellers1
*re you focused on )?) or )?2 selling1
*re you selling to individuals or groups1 )ulk or individual products1
*re you using a franchise model1
*re you selling products, services or both1
These questions arenCt a substitute for developing a thorough business plan,
but they act as a simple guide to help the budding entrepreneur begin that
critical vetting process.
4 Books 9very
9ntre*reneur Must $ead
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The greatest lessons you'll ever learn will most likely be from your own
experience. )ut entrepreneurs can also learn a lot from the advice and
experiences of others, as long as we allow ourselves to be teachable.
'erhaps you were in grade school the last time you heard this but it's as true
today as it was back thenG one of the best ways to gain information,
inspiration and education is by reading books. *s an entrepreneur, 've read a
number that 've found invaluable to my professional success.
2onsider the following four books your mentors and teachers as they reveal
skills and lessons that can possibly shave years off your learning curve, and
thousands of dollars from avoidable mistakesG

1. 8irst Things 8irst
by #tephen =. 2ovey ,&ree 'ress, reprinted edition <anuary @EEB-
*s entrepreneurs, we already know our most valuable asset is time, but not
every entrepreneur knows how to properly use that time.*t first glance, #irst
,hings #irst may seem like "ust another productivity book but, as you'll learn,
true productivity is not about getting more things done in less time but rather
doing things that matter with the time you have.
!hile many people will recogni(e 2ovey for his book ,he - .abits of .ighly
/ffecti0e 1eople, this writing focuses on what consider to be the most
important habitG putting 9first things first.9 *nyone who implements even a
fraction of what is outlined in this book should begin to see a dramatic shift in
his or her life.

2. Built To 5ell
by <ohn !arrillow ,'ortfolio Trade, reprint edition Fecember ?4@?-
%ou may have heard the advice 9.ave an exit strategy9 when starting a
business. )ut not many entrepreneurs have considered what it takes to
actually sell a business. n "uilt ,o Sell, <ohn !arrillow presents a compelling
case for entrepreneurs to approach their business from the perspective of
selling it one day.
!hile this may seem counterintuitive for the passionate entrepreneur who
loves his or her work and wouldn't want to stop doing it, the real genius of this
approach is that it can help readers create more value in their business.
8amely, developing a business that is built on systems rather than a legacy
business for which the founder has his or her hand in every day$to$day affair.
That's "ust not scalable.
8ot only is this book a must$read, but it's also written like a story, which
means you should have no problem following along $$ unlike other business
books which can read more like text books.

3. 3hoose 6oursel"E
by <ames *ltucher ,2reate#pace ndependent 'ublishing 'latform, <une
?4@:-
*uthor <ames *ltucher will most likely have you shaking your head in
disbelief when you hear his story. loved it so much that had to get him on
my podcast, The #chool of ;reatness.
believe there are two pivotal moments for every entrepreneur. The first is
when they choose to become an entrepreneur, and the second is when they
take @44 percent responsibility for their success or failure. $hoose %ourself2 is
about that second part $$ taking responsibility.
t's not enough to simply want success or to believe in the possibility of
success. nstead, every entrepreneur must face the reality that nobody else is
responsible for you. *ltucher speaks from experience as someone whose
story takes so many twists and turns that you may find yourself loving him
and becoming frustrated with him at the same time. )ut ultimately you'll
probably arrive at the same conclusion he did $$ that we must choose
ourselves if we wish to succeed. This book can be is a wake$up call for
entrepreneurs who have not taken the reigns of their life and business.

4. Mastery
by =obert ;reene ,Liking *dult, 8ovember ?4@?-
%ou may recogni(e =obert ;reene from his other booksG
,he 3rt of Seduction,he 44 Strategies of 5ar,he 6( &aws of 1ower,he 57th
&aw
;reene is no stranger to influencing lives, and exactly why interviewed him
on my podcast. !hat en"oyed the most about ;reene's book 8astery are
the following principalsG
The value o" a**renti'eshi*; Too many entrepreneurs want to 9fake it till
they make it9 instead of taking the time to develop the necessary skills it
takes to succeed with their craft. t also acknowledges the fact that mastery is
a process, which should alleviate entrepreneurs from the idea that greatness
is either achieved quickly, or not at all.
#ubscribe to =##
$e'ent !rti'les 8rom 2ewis Howes
How to >ork 8rom !nywhere and 3reate 8reedom in 6our Business with
3hris Du'ker
2eadershi* and 2i"eFs 0reatest 2essons !to* The >orldFs Highest Mountains
with !lison 2evine
How an Crdinary Person 3an 3reate 9,traordinary 3hange with !dam Braun
How to 9at and 2ive Healthy +Plus Myths on $ed MeatG PaleoG and the Health
8ood 4ndustry-
11 Prin'i*les o" !%undan'e and Pros*erity to 9nhan'e 6our Business and
2i"e
=ead more on Lewis .owes O
The myth o" mastery %eing reserved "or &s*e'ial& *eo*le; t's easy to look
at a successful entrepreneur on the cover of a maga(ine, or a T/F speaker
on %ouTube and think that the person has been blessed with luck, financing
or superior genes. )ut everyone walks the same path to 9mastery.9 *nd that
path contains failure, setback and sometimes years of wandering.
The only thing 9special9 about people who achieve mastery is their decision to
stay committed.
The author is an /ntrepreneur contributor. The opinions expressed are those of the writer.