What It Takes to Become an Entrepreneur

The best thing about being in business for yourself is this: your financial future is now in your hands.

The worst thing about being in business for yourself is this: your financial future is now in your hands.

Most people dream of being the boss with no worries, no stress, a balcony overlooking the beach, lemonade and sunglasses in the sun, trade winds coming from the east with sun tan lotion so you can bake as long as you want, etc.

But if this is the reality that awaits us, why are so few people not ready to take the big first step and go out on their own?

The reality is that becoming an entrepreneur is much tougher than working a job and people inherently know this. Most people are not ready to leave the security of a job and move into the more exciting adventure that is entrepreneurship. It offers no guarantees and as such the income potential is limitless. So it takes a totally different mindset to become an entrepeneur.

Let's take a look at some of the characteristics of successful people in business.

Visionaries

Most entrepreneurs are visionary thinkers; they have a dream that is going to require a number of years to achieve.

They are committed to seeing their dream come to reality and as such understand that showing up to work every day is not just for a paycheck but is bringing them one step closer to what they really want. If you're looking to become an entrepreneur you must begin with the end in mind or you shouldn't even bother getting started. If you start anything for the wrong reasons you will eventually quit for the wrong reasons.

Know what you want when you want it, and what you're willing to give up to get it. Knowing the sacrifice you're willing to make is more important.

Long-Term Thinkers

This goes hand in hand with the first characteristic. Entrepreneurs understand that they are in business for the long haul and whatever temporary setback they face is simply just that: a temporary setback.

Their focus is always on their long-term goals for financial independence or freedom or whatever they may be shooting for. If the dream is big enough, setbacks will be seen as little speed bumps along the way that you have to slow down for just so you don't ruin your vehicle but the second you get past them you can put your foot on the gas and keep on trucking.

Mentally Tough

Entrepreneurs understand that they are different from the masses and as such never seek approval from them but can still handle critics. When most people tell them that they're working too hard that means they're on the right track. And furthermore, when people criticize their product or idea they get even more excited because that means they're on fast-track. A famous quote states that "if people aren't criticizing you it probably means you're not about to do anything great."

Entrepreneurs understand that when you stick your head above the crowd and do something different you're liable to get tomatoes thrown at you. This is part of the job description and does not diminish the belief they have in what they are doing.

People-pleasers, people who worry what everyone else thinks about them, never become successfull entrepreneurs.

Leaders

If you are going to be a successful entrepreneur you will eventually have to develop and possess leadership qualities.

People will only follow leaders stronger than themselves and so your business and the people working for you will be a reflection of your leadership. Successful entrepreneurs are obsessed with personal growth, which is why their organizations always seem to be growing rapidly.

If you can get on a personal development program of books and tapes, you will be well on your way.

Enthusiastic

Enthusiasm is a character trait that every successful business owner possesses.

To become a business owner you must develop a genuine enthusiasm for your product or service. Enthusiasm is contagious and produces excitement in those around you.

You cannot transfer enthusiasm because this comes from passion. You can however transfer excitement. If you promote your value to others with passion and enthusiasm you will soon have a following of many excited people who eventually become committed to the vision for your company. And if you're not an enthusiastic person, just act enthusiastic!

Eventually it'll become part of your personality.

Key Takeaways for Would-Be Entrepreneurs

The biggest takeaway is that becoming an entrepreneur takes less educational intelligence and more emotional intelligence. Emotional intelligence is the ability to control your emotions regardless of the outcome.

Business is not steady. It never grows as fast as you want it to and never will. While becoming an entrepreneur, you will experience more emotions than you probably ever have your entire life but that is what makes it so worth it.

Entrepreneurship is tough enough to keep the weak ones out, but simple enough that anyone can take a shot at it. If you think you have what it takes then I encourage you to go ahead and take the first big step.

An old Chinese proverb states that "the best time to plant a tree is 25 years ago. The second best time is now." Don't waste time, do it now, because your dreams and goals are yours to claim this lifetime. Good luck!

The Root Cause of Failure in Entrepreneurship

Most businesses are guaranteed to fail within the first five years for a number of different reasons.

The sad reality, however, is that most of these businesses fail due to their having been founded by inexperienced overly-enthused entrepreneurs.

This is usually the single most important reason for business failure early in a business.

The first step to fixing a problem is identifying what it is. So let's take a look quickly at some of the reasons why most businesses fail. If you are looking to start a business or have already started a business of your own, you can use these tips to hopefully avoid some of these pitfalls in your own business career.

Wrong Motivation

As a business owner you are hopefully starting for the right reasons. I cannot tell you what your reason should be but I can recommend it be something that you think about often, something that perhaps gets your emotions going, something other than just money. For most people it usually is a shock that most successful people are more passionate about something else that is dear to them which is why they are successful at what they do which is also why they make a lot of money.

Here's the big takeaway: if you start something for the wrong reasons, you will stop for the wrong reasons. If your only intention for getting into business is to make lots of money then your resolve and mental toughness will be test greatly if after five years you haven't even turned a profit. Attach the monetary value that you are shooting for to something bigger. Maybe you want to build a school, or donate money to charity, or retire your mother, something that will keep you going when life hits you upside the head.

Poor Management

Many a report on business failures cites poor management as one of the biggest reasons for failure. New business owners frequently lack relevant business and management expertise in almost all business functions and do not have enough capital to hire the necessary people to take care of what they do not know. Unless they recognize what they don't do well, and more importantly seek help, business owners may soon face disaster.

A successful business owner is also a good leader who creates a work climate that encourages productivity as well as innovation. You must be skilled at hiring competent people, training them and able to empower people to go above and beyond the call of duty. A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future.

A tall order for someone who just gets into business, which is exactly why most people are not able to defeat the battle of attrition that comes with new business.

No Mentorship and Lack of Experience

A lot of the setbacks and hiccups, failures and hurdles that are encountered along the way can either be avoided or alleviated with the help of a business mentor. If you are starting out a business entirely on your own you might as well have started the journey five years ago blind-folded.

A mentor can help you identify potential pitfalls as well as confirm certain setbacks you will face if you continue what you are doing. They are an invaluable asset that you must seek to have in your corner if you want to be successful in business and at least get your business off the ground.

Failure to Change with the Times

The only constant in business is change. The ability to recognize opportunities and be flexible enough to adapt to changing times is a key ingredient to surviving and even prospering in the toughest business climate.

The challenge is that most new entrepreneurs are so excited about their idea that they fail to see some of the cons of pursuing it. They choose to ignore their competition that most times are more familiar with the industry and are leveraging the changes in the marketplace. Be sure that as you pursue your business venture you pay respect to the economy before you and the competitors you currently have. They have been running the marathon longer than you have and are still running.

That is a good enough reason to pay attention to what they are doing as well as how they are reacting to the economy.

Inadequate Goal-Setting

Business owners often fail to establish clear goals and create plans to achieve those goals, especially before starting out, when they fail to develop a complete business plan before launching their company. You can't achieve your goal if you do not have one. Having a goal gives you purpose and direction.

Goals act as your life map. They are like the dashboard on your car and chart your course and tell you when you have arrived at your destination. Most young entrepreneurs focus too much on the details versus just mapping out the end of the journey. You needn't worry about how you will achieve your goals. Simply concern yourself with the process of setting short term, medium term, and long term goals.

A written goal is infinitely more likely to be achieved that one that is merely kept in your thoughts or spoken aloud. Write your goals down and review them consistently.

Retirement Myths

In today's economy the biggest challenge for most people is not so much getting a job but keeping it until they are eligible for retirement age.

This is not to say that getting a job is easy because that is not the case. But for a lot of people who worked hard to get where that are currently in their occupation, the future is a little shaky if they cared to take a look at what the economy is currently experiencing.

According to an article released by CNN early in August of 2008, "Employers cut jobs in July for the seventh straight month, while the unemployment rate hit a four-year high". The labor department reported a net loss of 51,000 jobs in the month of July and the latest report brought the total job losses this year to 463,000! Now if that is not getting people to stop and think then we have a big problem.

So with all this recession talk, people losing jobs, companies cutting costs, restricting and everything else, why is retirement something most people still feel they are guaranteed by age 65?! Robert Kiyosaki, an investor, businessman, self-help author and motivational speaker, is quoted as stating that "if you still believe in retirement, you probably believe in Santa Claus and the Easter Bunny".

Quite the comparison, but I believe he may be on to something here. Let's take a look at some similarities between them and why such a comparison makes sense in light of what we're seeing today in the economy.

Everyone believes they exist, till they get older

Everyone remembers waking up as a little toddler Christmas morning with the anticipation of seeing gifts under the Christmas tree that good ol' Santa Claus had just dropped off through the chimney earlier. And most of you also remember that fateful Christmas morning when you woke up a little earlier than usual and to your surprise found not Santa but your father putting down the last of the Christmas gifts before sneaking back to bed. Oh how betrayed we all felt when we realized our parents had been lying to us the whole time.

Well fortunately for us we don't have to wait until we're 65 to figure out Santa Claus isn't real (and if you still never figured it out I apologize for spoiling it for you).

The reality is that more people are getting the pink slips these days than bonuses or raises at their job and the only reason they hang around long enough to get the boot is because of their belief in retirement. The days of starting with one company and finishing with one company are long gone.

Ask the senior citizens you see at Wal-mart stores at the entrance whether or not they're working because they're bored or broke. They'll probably tell you they're bored but we know the truth. They found out that retirement isn't feasible for many Americans. According to the social security administration, 98 percent of Americans today cannot retire at age 65. So you've got a 2 percent chance if you keep doing what you're doing. Exciting isn't it? Remember the quote, "growing old is automatic but growing up is optional". The wise ones among us stopped believing in Santa a long time ago. If you're still not sure you might want to check out the facts.

Give you something to look forward to

The seductiveness of Santa and the Easter Bunny is they are nice, fluffy characters and are associated with a lot of fun and enjoyment.

This is not a good proxy for how life as an adult will be which is exactly why kids are the primary target for those holidays. Christmas is celebrated by all, but the young ones are usually the most excited and for good reason.

Christmas happens once a year and as such always has such a build up to it. It is the one time when everyone is supposed to be happy and cheerful and thankful for the start of a new year. You get to receive gifts from your family and friends which in a way is the affirmation that in spite of all you went through together that year you are still a good person.

Once again we see the similarity with the concept of retirement. Most people are educated for about 16 years through school with all the pressures and stress that comes with it. Then they eventually get a job which they hope will take them through the next forty years but we know that is not realistic anymore. And the dream for every working person is to at some point never have to work ever again. They paid the price, they did everything they were supposed to and the reward should be an easy retirement.

The dream of being free is one of the biggest motivations for people going to work for forty years only to find once again that there is life at the end of the tunnel; it's a freight train coming right at you.

So the bottom line is get over the fact that what you thought was true actually isn't. Retirement is definitely realistic; just without money. I hate to be the bearer of bad news but all you have to do is take a look at those before you and ask yourself what you are doing differently from them that will put you in a position better than they are currently right now when you get to their age.

If you're like most people, you really can't say you're doing anything different. That's okay, but just remember that Santa Claus was as real as your parents were real, until you found out that he was your parents!

Start planning now for your retirement. Don't rely on your company's 401K plan and pension plan. Most companies don't even have a pension for employees just getting into the work force today. They can't afford it. Start looking for other ways you can diversify your income, and I'm not just talking about portfolios. Get a business of your own. Take the entrepreneurial plunge; you just might like it. It beats finding Santa is your mom or getting a pink slip at age 45. The choice is yours.

Entrepreneurship or Job Security?

Today, kids are going to school, working hard, getting good grades, and securing great jobs coming out of college, but the problem is they happen to be a little bit more ambitious than their parents.

And, they should be. Given the recent financial times, choosing entrepreneurship over job security may actually pay your bills on time.

Millennials, the generation that watches MTV's "Cribs" and "Lifestyles of the Rich and Famous," have no desire to work for someone else, and definitely not forever.

Most of the wealth they see on TV are from people who are rewarded for their own personal accomplishments, be it in music or athletics. Needless to say, working in a cubicle for 30 to 40 years doesn't measure up.

A quick glance at the economy points toward the fact that the challenge today is not even getting a job, it's keeping the job after you get it. In an attempt to cut costs and get out of the red, companies are restructuring, downsizing and reducing their biggest expenses: employees.

So, in today's world, the question is not "if" you will be laid off in the future, but "when."

Staying with one company for your entire career is not realistic anymore and certainly not feasible. The economy continues to change so rapidly that a job needed today may be obsolete in the next five years. Job security is an oxymoron, kind of like jumbo shrimp, death benefits etcetera. The problem today is that people are still trying to force the conventional job to give them a lifestyle it is not designed to give.

Why is entrepreneurship fast-becoming the new choice for a career? Robert Kiyosaki, a best-selling author of the book Cash Flow Quadrant and many other books on business and entrepreneurship, advocates that "people are starting to realize that just because 98 percent of the people happen to work a job as their primary source for income does not make it the most effective way for making money". In laymen's terms, just because a million people are doing something does not make it the right thing to do.

If you want to be successful just observe the masses and do the opposite. The general opinion of most employees is that going into business for oneself is very risky. The truth is NOT going into business for yourself is risky.

It makes more sense to be in control of your own income stream rather than relying on the good favor of your boss and the economy for a potential 3% raise. Raises barely help employees to keep up with the growing gas prices.

However I must emphasize that waking up and remembering that you are your own boss is more appealing not because of the income generated. There really are no short-term financial rewards for going into business on your own. In fact, most of the financial benefits are long-term which is why very few people choose to go out on their own and away from the leaky umbrella of the company they work for.

The biggest benefit of going into business is that you have control. Waking up in the morning and knowing what is going on rather than waiting to find out whether or not you are getting laid off today is much more appealing.

Apart from the peace of mind, most people would work much harder for themselves than they would for anyone else.