6 CHARACTERISTICS OF AN ENTREPRENEURIAL MINDSET
You have a great idea or specific business experience and you want to start a business. You may be overly confident about your ability to succeed or you may actually be a bit worried about starting a business. You need to make sure you have what it takes to succeed. What sets entrepreneurs apart from other people is their unique mindset. They’re passionate and dedicated, and they think outside the box. These unique traits aren’t something you’re born with. You can, however, learn the mindset you need to become a successful entrepreneur. And, you should probably make sure you have these 6 CHARACTERISTICS OF AN ENTREPRENEURIAL MINDSET before starting your business.
1. You Focus on Problem Solving
Often an entrepreneur’s business idea is sparked by the need to solve a problem. This is how they are able to create such great business. When other people simply see a problem, someone with an entrepreneurial mindset will instead focus on finding a solution. Entrepreneurs listen to people and grasp the challenges they’re facing, and then get to work looking for solutions. A customer facing a problem will happily pay for a product or service that solves it. Often an entrepreneur’s business idea is sparked by the need to solve a problem.
Entrepreneurs focus on solving problems not just from the products or services they provide. They also focus on problem solving in their daily operations. Whether it’s machinery that’s not working as it should, a leak in the roof, or a customer complaint, entrepreneurs are always problem solving.
Facing challenges is inevitable and you need to learn to face them with the right mindset.
2. You Face Challenges
In order to be an entrepreneur, you need to love challenges. Facing challenges is inevitable and you need to learn to face them with the right mindset. And, believe me, there will be lots of challenges when starting and operating your business!
I dislike the word “problem”. I like to think of unexpected or unwanted situations as challenges rather than problems. The word “challenges” just makes the entire situation more positive and easy to tackle. This example is just part of the entrepreneurial mindset that you must have to operate a business.
3. You Learn from Everything
Entrepreneurs see absolutely everything as a learning experience. This includes both successes AND failures. In fact, errors and mistakes often teach you much more than your successes do. When things don’t go as you had hoped or planned, you can analyze the situation and figure out what went wrong so that you can do it right the next time. A successful person gets their ego out of the way and realizes that there is always something to learn from every situation.
One thing I’ve learned over the years is NOT to buy inventory from closing businesses. I’ve done it not once, not twice, but three times. Usually, when a business is closing the inventory they have left are the items they are not able to sell. As I write this I must admit I’m a bit embarrassed to admit that it took me three times to realize this.
An entrepreneur doesn’t work for their pay. They build a business that generates revenue. In order to be an entrepreneur, you have to break out of the “working for pay” mindset.
4. You Think Beyond the Paycheck
Employees are used to being paid for their time or what they produce. Entrepreneurs, however, must take a longer-term view. An entrepreneur doesn’t work for their pay. They build a business that generates revenue. In order to be an entrepreneur, you have to break out of the “working for pay” mindset.
New businesses only have a 50% chance of surviving over 5 years. In fact, according to the U.S. Bureau of Labor, 75% of new businesses survive the first year, 69% survive the first two years, and 50% make it to five years. As an entrepreneur, you have to be able to think long-term regarding your personal income. This is why many entrepreneurs start their new businesses as a “side hustle” while still working for someone else. When I started my business I still was working nights and weekends at my family’s business and I also had rental income from a building my brother and I own. Had I not had those other sources of income, I wouldn’t have survived that first year in business. Luckily I had a longer-term vision and worked hard to ensure business profitability.
5. You Network Everywhere
A successful business owner needs to know many different people in many different fields. These valuable contacts can offer you their expertise and help when you need it. For this reason, entrepreneurs talk to everyone everywhere they go and see every person as a potential contact. This includes people outside of their industry. You never know what kind of person might be valuable to know. If you want to grow your business, get in the habit of getting out of your orbit and meeting new people.
Sometimes I’m reluctant to talk about my business during social settings. This is crazy because I’m not a shy person! I just don’t like to seem too “selly.” However, people love to do business with people they know and trust. And, they cannot do business with you if they’re unaware of your products and services. So you need to be prepared to network everywhere.
6. You Take Action
Finally, entrepreneurs take action. Of course, they have to plan and plan very well, but when it’s time to act, they can act decisively. An entrepreneur knows that you learn as you get out there and do it, not by being indecisive. Even if you have the time to consult with others, you have to make decisions. And, doing so should be comfortable for you. Sometimes you won’t have time to think about something; you’ll need to be decisive . . . and quickly.
Your business idea and your passion are important but you must also be realistic about your abilities AND mindset!
If you are considering starting a business, make sure you have these 6 CHARACTERISTICS OF AN ENTREPRENEURIAL MINDSET. Your business idea and your passion are important but you must also be realistic about your abilities AND mindset!
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Good, good advice and commentary.