The Formula For Entrepreneurial Success

Succeeding in entrepreneurship is notoriously challenging and not something everyone does well. However, when you look at the people who got it right, they always seem to have a collection of traits in common. The overlaps aren’t perfect, but they are close enough for us to consider the notion that there might be a formula for entrepreneurial success. 

Relentless Work Ethic

At the top of this list has to be their relentless work ethic. Many entrepreneurs are prepared to give all their waking hours and their energy in pursuit of their business goals, ignoring any costs that it might have on their personal lives. 

This relentless work ethic is challenging for them to manage on an individual level, but it does seem to be one of their common traits. No matter what, they keep chugging away at the office. Part of this comes back to their love of what they do. But there’s another side of it: many smart entrepreneurs know they have to put in the hours to beat their rivals. If they don’t, they could fall behind. 

Adaptability

At the same time, many top entrepreneurs are also adaptable. They can bend with the flow of their business lives, adjusting things when necessary. This adaptability shows up in numerous states. For example, it could be when markets shift or when customers demand change. It could also occur when plans fail. By contrast, founders who are stubborn don’t usually last long. Often they make losses and can’t get to profitability. 

Resourcefulness

Another feature of entrepreneurs is their resourcefulness. Many are able to barter, bootstrap, and hustle their way to the top. They don’t wait for the perfect time but make do with what they have to hand right there and then. The ability comes from their drive to succeed. They don’t make excuses but rather mend things when they are broken. They also rely on their creativity. Often, they have to develop ingenious plans to get through tricky situations. 

Vision

You also see many top entrepreneurs with a steadfast vision of what the future looks like. They try to bend reality to their will, forcing the market to do their bidding. Of course, it doesn’t always work. But the best always have a vision in the back of their minds about what they want to achieve and where they want their resources to go. This vision is what sets them apart from ordinary people in their careers. Their job isn’t just to make money and retire one day. Instead, they often want to do something fundamentally new, even against all the odds. 

Delegation

Another feature of the most successful individuals is their ability to delegate. They aren’t afraid to pass challenging work onto other people if they think it will yield superior results. 

For example, tax issues for startups and entrepreneurship can be a real drag. However, intelligent founders always gather people around them who can fix these issues and set the company on the right course. Personally, I have found the book Profit First by Mike Michalowicz a fabulous resource.

This level of delegation can be extreme in some circumstances. Many entrepreneurs simply set the brand vision and then try to put everyone else in place to make it happen, looking for cost savings where possible. It’s this chessboard approach that makes all the difference. 

Continuous Learning

You also see many top entrepreneurs constantly learning. They’re always looking for the next breakthrough book to read to widen their understanding. Some elite founders have discovered that by constantly reading, they can make connections that their rivals can’t. Often, they’re able to predict what the market is going to do next or gain insights into where technology is going. They can even see political patterns. When this happens, they can adjust accordingly and prepare themselves for the storm. 

Financial Savvy

Part of this is their financial savvy. The best entrepreneurs know how money works and use that to their advantage. For example, most know that cash flow is king. If the money isn’t flowing, they understand that this essentially makes their revenue useless. Instead, they take their profits and reinvest them when appropriate. Putting the funds back into the firm helps them get to where they want to go faster. 

Smart Risk-Taking

Finally, the best entrepreneurs always take smart risks. They learn to gain an edge, and then they use that understanding to out-fox their rivals. 

Founders don’t fear risks. Instead, they attempt to understand them and see how they can use them to their advantage. It’s this fearlessness that sets them apart and allows them to do what they do.