In the last 2 years many people have taken up small projects during lockdown that they believe can potentially be converted into a long term business. However, coming up with an idea is a long way from turning it into a profitable business. The statistics do often look bleak for startups: only about half of all startups survive to their fifth year, and only approximately a third of those are lucky enough to make it to a decade.
How can a person identify if she or he has what it takes to transform a dream into a successful enterprise and avoid being another statistic failure? Some could argue that the most crucial factor is the idea’s brilliance. This isn’t the case at all. We all know that if two entrepreneurs come up with the same brilliant idea, only one will succeed at best. It isn’t a dream. It’s the one who is bringing it to life. Here are some of the skills of a successful entrepreneur that we think would be important when being a startup CEO.
Once a founding team has proven that their unique insight passes the test of genuine need, future implications can begin to arise. Startups are tiny groups of people seeking to change the world by creating something that doesn’t exist yet.
In order to create a truly meaningful offering, founders must have a clear vision of the function their firm will play in that future state. That vision must be distinct by default. Other teams would be working toward it if it was evident. Nonetheless, astute founders know to stress-test their assumptions, ensuring that the solution they’re constructing hasn’t been tried before due to a lack of strong vision — not a lack of need.
Another part of a realistic vision is an understanding of the startup’s probable challenges and roadblocks. Every home builder sets aside some of their available budget for the likely case that they will overspend in the event of unforeseen circumstances. A visionary founder must be able to anticipate probable obstacles that they will need to overcome while also acknowledging that there will be unanticipated trials and tribulations on the way.
Many entrepreneurs are motivated only by their passion. Startup founders frequently launch enterprises in industries in which they have experience or an interest. We put our hearts and souls into it, and this generates the massive amounts of energy required to manage a business. Chances are high that founders who pursue their passions with purpose and intention will succeed.
While passion is a necessary entrepreneurial ability, the entrepreneur must also be able to control it. A founder’s maturity and judgement must be adequate to keep their passion in check. Passion is the startup’s rocket fuel, and it must be restrained and channelled properly.
The ability to recover from failures is possibly the most important trait of a successful entrepreneur. Failure is something we all go through, and it’s frequently the best way to learn. What makes all the difference is what you do after you’ve failed.
Founder teams will face numerous hurdles as they try to fulfil their vision. Successful companies quickly learn to be innovative and think outside the box in order to solve problems and get more done with less resources. Those that succeed at overcoming obstacles will do so by trying new ways until they find a means to go where they need to go. Furthermore, founders should be as familiar with their inherent limitations as they are with their skill; this way, they can seek out the help they require early on rather than discovering blind spots after difficulties develop.
It’s one thing to have a clear vision, it’s quite another to be able to mobilise others to share that vision and work toward it as well. When founders start a company, they’re bringing together a group of people to work toward the same goal, and developing a shared culture is a vital part of that process. This culture sets the tone for the company’s future actions, from how decisions are made to the types of people it wants to hire. It’s critical to start off on the right foot. The successful founders that have accomplished this have created cultures of empowerment, ensuring that their staff can operate with confidence even when they aren’t present.
As a result, the founder must possess particular skills in dealing with employers, contractors, and suppliers. Here’s a quick rundown of HR abilities you’ll need:
- The entrepreneur must be capable of making difficult decisions that will affect their employees.
- When making decisions, the entrepreneur must be able to put emotions aside and ignore relationships.
- The entrepreneur must be sympathetic, but not to the point that it interferes with the company’s overall vision.
- The entrepreneur must have some understanding of how people function, enough to predict how and why people will react to the decisions you have made that will affect them.
Confident but humble
The finest entrepreneurs are aware of their own skills and flaws and use them to their advantage. Being aware of your areas of weakness means you are able to find people who can support you and help create a well-balanced team that covers all bases. This self-assurance helps them to make thousands of decisions that affect the business’s profitability, as well as to manage their colleagues.
While being brave, confident, and outspoken as a startup CEO are important skills to have, the problem is that many new business entrepreneurs go into a state of denial regarding their businesses’ flaws and probable failures because of their pride. Successful founders must be willing to listen to the concerns of everyone involved in the business internally or externally. Unfortunately, some new owners merely pay no attention to employees’ advice and cautions. They may be afraid of being seen as weak if they do not go headlong ahead with no meaningful course corrections but really it is a vital trait to have to be humble enough to take advice and use it.
Being successful as a startup is not a guarantee, even if you do have all these skills. Being successful takes a lot of hard work and sacrifice and having all these entrepreneurial abilities is great, however there is always an element of luck involved. But as they say, you can make your own luck!
Originally posted on 7startup.vc