5 personality traits of an Entrepreneur

What does it take to be a successful entrepreneur? Is it being born a prodigy? If it having a Type-A personality? Is it being an extrovert who spends all their time tinkering around on projects?

Here are five common personality traits that entrepreneurs possess.

  1. Passion          

For those uninitiated, entrepreneurs are not in it for the money. While there have been some icons who have made more cash than most of us we’ll dream of, think Bill Gates or Steve Jobs, the reality is that most entrepreneurs work an insane amount of hours for little or nothing. Why would they put themselves through this? Because they are driven to either solve a problem or make easier.

How passionate are entrepreneurs? According to research conducted by Tony Tjan and co-authors Richard Harrington and Tsun-Yan Hsieh, 65% of founders have been identified as driven by “heart.” Tjan also added that most entrepreneurs are fueled “by an unshakable sense of purpose.”

Throughout all the trials and tribulations, entrepreneurs reward themselves internally by realizing that they’re on a mission for the greater good. No matter how bad it gets, it’s their passion that motivates them between paydays and during all the times when everyone else tells them to quit.

  1. Resilience    

Sir Winston Churchill once said, “Success is the ability to go from one failure to another with no loss of enthusiasm.” As an entrepreneur, you’re going to fail. That’s just an unfortunate fact. While something that drastic would be too much for most people to handle, an entrepreneur has the uncanny ability to get up and dust themselves off. Instead of giving up, an entrepreneur will learn from their failures. What went wrong? How can I long from my mistakes? How can I succeed next time? These are the type of questions an entrepreneur will ask themselves. An entrepreneur doesn’t stay down when times get rough. They’re resilient and thrive off of the negativity.

If you need proof on the resilience of entrepreneurs, just look into the stories of successful entrepreneurs like Walt Disney, Donald Trump, Steve Jobs, Bill Gates, Henry Food or Thomas Edison. They all experienced setbacks during at some point to only become some of the most well-known and successful entrepreneurs in history.

  1. Strong Sense of Self      

Any entrepreneur will tell that there are numerous problems to overcome. Whether it be not securing enough funding, proving the naysayers wrong or facing the competition head on, it’s not easy being an entrepreneur. And, being passionate and resilient can only go so far. Which is why entrepreneurs also have an extremely strong sense of self.

For example, being self-confident and self-motivated are also key traits for most entrepreneurs. Entrepreneurs don’t think that their idea could be good. They know it’s good. And, they’re going to be motivated enough to illustrate to others that it’s worth the time and money to go forward. While they also understand that they can’t do everything on their own, they realize that they are the only ones to make their idea a reality.

And, just how confident are entrepreneurs? According to a study by the Ewing Marion Kauffman Foundation on behalf of LegalZoom, “91% of entrepreneurs are confident that their businesses will be more profitable in the next 12 months.”

  1. Flexibility     

Being able to adapt to changes and challenges is crucial for any business. In fact, most entrepreneurs will inform you that their idea or business plan is drastically different than when it began. An idea may be brilliant, but in reality it isn’t effective. Entrepreneurs are flexible enough to make the adjustments to make that idea feasible. Furthermore, entrepreneurs are prepared and willing to modify their plan when new information arrives and when there are changes in circumstances.

A great example of being flexible would be the recent story behind Hyungsoo Kim and his company Eone, which is short for Everyone. Kim initially develop a wristwatch that featured braille. He quickly discovered that people want to be included and not have attention brought to their disability. So, he trashed the original plan and came up with a watch that would not only be worn by the blind, but even people with sight.

  1. Vision     

Entrepreneurs see opportunity everywhere. They’re innovators who are always on the lookout to either develop a new idea or improve an existing product or service. And, chances are that’s the main reason why they became an entrepreneur in the first place. At some point in their lives they noticed something that could be better. But, instead of just saying that something could be better wasn’t enough. They actually put a plan in motion. In other words, entrepreneurs have the ability to see the future before it happens.

I always say Entrepreneurs are inspired by things that have never been seen before, things yet to be discovered.  You must have the vision that nobody else does. Then the vision to see it through.

Below you can find the pros and cons of franchises and startups, and decide which one works for you.

 

Buying a franchise… Good? or bad?

In a franchise business, the franchisor provides a developed way of doing business, ongoing guidance, systems and assistance in return for periodic payment of fees and/or purchases.

Buying a franchise can be a viable alternative to starting your own business.

Listed below are some advantages and disadvantages of buying a franchise.

Advantages of buying a franchise.

  1.    Franchises offer the independence of small business ownership supported by the benefits of a big business network.
  2.    You don’t necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model.
  3.    Franchises have a higher rate of success than start-up businesses.
  4.    You may find it easier to secure finance for a franchise. It may cost less to buy a franchise than start your own business of the same type.
  5.    Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support. 

 Disadvantages of buying a franchise

  1.     Buying a franchise means entering into a formal agreement with your franchisor.
  2.    Franchise agreements dictate how you run the business, so there may be little room for creativity.
  3.    There are usually restrictions on where you operate, the products you sell and the suppliers you use.
  4.    Bad performances by other franchisees may affect your franchise’s reputation.
  5.    Buying a franchise means ongoing sharing of profit with the franchisor.

Franchising is seen by many as a simple way to go into business for the first time.

But franchising is no guarantee of success and the same principles of good management – such as informed decision-making, hard work, time management, having enough money and serving your customers well – still apply.

Be cautious when buying into a franchise if you have to develop the market and the brand in your designated area. Make sure your investment generates healthy returns and a capital gain when you sell.

Franchise vs Startup: the good and the bad

Advantages and disadvantages of a franchise

Higher Success Rate: A franchise is a proven system. All franchisees operate under a common system and they are only responsible from their day to day operations. Also, they get trained about the product line, marketing, how to deal with staff and other aspects of their daily activities. Basically, they get an ongoing support for their businesses which brings them success.

Brand Recognition:Franchises bring brand awareness with their names from day one. Therefore, customers will know about your products which will increase your sales. By buying a franchise, you are actually buying a turnkey business that is ready and waiting for you to start.

License Fees:There is a license fee for buying the franchise and ongoing fees that you need to pay to a franchisor. The entrance fees are usually very high and there are fixed costs every month/year for using the brand name.

No Freedom:You don’t have the freedom to change the product line, the decoration of the store or anything else in a franchise system. It is very restrictive and you need to follow certain rules in order to protect your franchise license.

Advantages and disadvantages of a startup

Innovation and Creativity:Founding a startup needs innovation and creativity. If you are a highly creative person full of different ideas and you want to make these ideas a reality, then , you should definitely start it up.

Professional Freedom and Growth:When you have your own business, you can work anytime you want. Also, depending on your business you can work anywhere you want. You don’t need to report to other people. This means you have your own professional freedom. Moreover, franchise businesses can grow only up to a certain point but there is no limit to the growth of a startup business.

Higher Failure Rate:Unfortunately, startups have a higher failure rate compared to franchise businesses. Statistics show that 25 percent of startup businesses fail within their first year, 50 percent of the remaining fail within five years and approximately 30 percent of the remaining last ten years. Therefore, it is very risky to launch a startup but don’t forget that high risk equals high return. If you succeed, you can even be a billionaire.

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