An entrepreneur is a person who initiates a business. This business may be in manufacturing or in the service sector. An entrepreneur is a person who is responsible for arranging all the finances, technology, manpower, and raw material required for the project. He is the one who has to undertake all the risks for failure or success of the project.
To take all these responsibilities he expects to earn profits in return. These kinds of people are very important for the economy as a whole since they are the people who help in creating wealth, innovation, and growth. With the growth of the entrepreneurs the economy also moves in the path of growth and progress.
An entrepreneur is a person who changes the business by innovation. He is also referred to as an innovator. It is said that there are four main resources for the development of a country.
The first and foremost is the land /natural resources which are present, secondly the labor, thirdly Capital, and fourthly it is entrepreneurs. Without the presence of entrepreneurs, all the other resources will be left unused. They are the key persons who know how to harness these resources and encourage growth, both for the country and for themselves.
To make an entrepreneur successful there are a few key take away that are required in a person.
- Firstly the most major skill of the entrepreneur is the skill of risk-taking. A person who wants to undertake any project has to weigh all the pros and cons as well as have to be aware of the risks involved at each level. The risk may be financial, legal, or due to a fall in reputation. A person who is able to understand all these risks and has a plan to overcome them is the one who is called a successful entrepreneur.
- Secondly, the entrepreneur has to have the skill to arrange for finances if he does not have them with him. Any financial institution will only extend credit to the entrepreneur if they are satisfied with the project and foresee that the project is viable in the long run. An entrepreneur should have the skills to raise capital for the project and should have the ability and skills to convince the financial institutions to extend a credit line to them. He is also required to arrange for finances as and when an interim requirement is created. A person who is well versed in the financial sector can overcome all these issues.
- Thirdly, the presence of skilled and qualified manpower is the major resource that an entrepreneur should have to become successful. To be able to arrange for skilled manpower the person should have complete knowledge of all the processes of the business and should be able to decide the type of work experience required by the labor.
The mindset of an entrepreneur has to be such that he may be able to overcome all the shortcomings in all the fields and continue in the path of progress. The government on their part has listed out the policy and the terms to encourage entrepreneurship.
The government is well aware that the growth of the economy is based on the growth of entrepreneurs, so they want to encourage people to become one. The government has created various agencies to help entrepreneurs to access the risk of projects. A detailed risk analysis of each sector is prepared by the government and can be made available to the entrepreneur to make them aware of the risks and to plan ways to overcome them.
The entrepreneurs have to ensure that the projects that they are about to undertake are not so risky that the chances of success are minimal. The person has to establish the risks involved at each stage of the project and then contact various agencies and persons to find ways and means to overcome the problems. The one who has the foresight to see the problem is the one who will minimize his risk and be a successful entrepreneur.
The requirement of capital is an ongoing process in doing business. An entrepreneur has to be aware of the possibilities of arranging for capital from various sources available and the cost of borrowing in each case. For new entrepreneurs, various new forms of funding have come up. They may be through venture capitalists, hedge funds, crowdfunding, or angel investors.
A person has to be aware of the liability that he carries in the form of borrowed capital and needs to service it regularly so that he does not get into default. An entrepreneur’s vision should be such that the cost of borrowing the funds should be well within the limit set in the project report. Till the time the cost is lower than that mentioned in the project report then it is fine otherwise it may just go out of hand and bleed the project.
Human resource management is the most crucial aspect of entrepreneurship. A person has to have a very balanced outlook towards his employees to get the best results. The biggest fallout of businesses has happened when too much power was bestowed in the wrong hands and the misuse of power led to the complete shutdown of the project.
The entrepreneur has to ensure that jobs are assigned as per the ability of the person and not as per the whims and fancies of the bosses. If the human resource is used carefully it will be able to give the entrepreneur a long-term gain and will ensure his success.
The entrepreneur is blessed with a creative mind, without a creative mind it is very difficult to become an entrepreneur. A creative mind is one that can create avenues for development. A small example is a technology that has been developed by such creative minds.
Whoever thought that we would be able to speak with each other on a video call say about 35 years ago. But the creative minds of various developers undertook the task and ensured that it could become a possibility at a very minimal price. Only such a mindset with clear goals and a solid determination ensures that the final goals are met within a shorter duration than planned.
They are the people who ensure that it is the perspective of an individual which opens the vistas for future development in any field. These are the individuals who have helped shape the economies of the world.
Another aspect that is required to be a successful entrepreneur is the persuasive skill of the person. Some people have an inborn quality of being persuasive while others have to learn the art of persuasiveness. The benefit of constant persuasion helps an individual to close deals after dogged negotiations. A persuasive person is more likely to be an inspiring leader and a great boss.
Such persons set the rules for others to follow in their company. They persuade their own people so much that their set rules are followed to a T by their people. This helps them in growing the company.
Motivation is a keyword in the dictionary of entrepreneurs. Without motivation, a boss cannot make his team reach the goals that he has set for them. Intrinsic motivation is a trait that is seen in entrepreneurs. They keep themselves self-motivated by setting themselves long-term goals and then work themselves with their teams to achieve them. There are various ways that an entrepreneur can motivate his team members.
He can ensure that the employees are given a good working environment where each individual is comfortable and are able to give their best for the company. The entrepreneur has to work by example and show that a particular work can be done even when the employees do not think so. The owners have to talk the talk, they have to communicate with their employees and tell them what is expected of them.
Another assurance that the employees need from employers is that they should honor their commitment, especially with increments and promotions. Once they have such confidence then they work that extra yard to benefit the company. Motivation can also be achieved by some motivational talks with the staff and getting their feedback on the various policies of the company. Having a motivated workforce will ensure that the company is successful.
Failures create a negative mindset in an individual. However, an entrepreneur has to keep a very positive frame of mind even in the event of a failure. “A failure is a step to success” should be the norm for an entrepreneur. He has to learn from each failure and analyze his own mistakes in them. He should ensure that the mistakes done by him are not repeated and he is able to overcome them in the future. Once a person learns from his mistakes he is sure to be a successful businessman.
All in all, it is the various qualities of a person that will help him in being a successful entrepreneur. These qualities are more of a mind game and need a very good mindset to grow a successful business.
Rennie Curran is a keynote speaker, author, and the CEO of Game Changer Coaching. His mission is to empower individuals, teams, and organizations by delivering powerful presentations, workshops, and private coaching on topics such as leadership, performance, and personal branding. He obtained his Bachelors in Business Management from the University of Georgia and received his coaching certification through the Life Purpose Institute. Visit renniecurran.com for more information.