Regardless of whether it is your first business venture or the tenth one, you are likely to face several challenges as an entrepreneur. You need to be resilient enough to bounce back after fighting the odds.
Entrepreneurship requires a great deal of determination and passion. Like for any activity that you pursue, certain attributes are required to be successful in your home-based business.
Read on to know about the four key attributes that are common to successful entrepreneurs:
1.They Are Calculated Risk-Takers
As the owner of a home-based business, every decision you make is going to make a huge impact on your venture, and will probably have some risk attached to it. For most successful entrepreneurs, the journey hasn’t been an easy one.
For instance, Drew Houston, the co-founder of Dropbox, had to compete with someone like Steve Jobs to establish his presence in the cloud computing market. But, the budding entrepreneur was determined to build a successful company, and wasn’t willing to sell his venture regardless the status of the bidder or the chance of cashing in on a nine-digit figure.
Houston’s projections had already highlighted how profitable Dropbox was going to be. He kept working on enhancing the product offerings and didn’t budge even after Apple launched iCloud.
It is essential for entrepreneurs to explore new terrain, be open to new possibilities, and find new ways to adopt modern practices. You need to seek logical answers to fundamental questions, spot new behavioral patterns, and identify the voids in the competitor’s offerings. This information will help you determine the next big opportunity for your enterprise, and prepare you to take the risk.
2.They Keep up the Learning Curve
Reid Hoffman, founder of LinkedIn, once said, “You are not a finished product. If you don’t keep evolving, you start dying.” His words hold true for seasoned and new entrepreneurs alike.
Most established business owners don’t rely only on their existing knowledge and keep applying innovative and efficient methodologies to their work. You may have conceptualized your business, but you may be a novice when it comes to managing certain aspects of running an enterprise.
At the startup stage, you will be the one calling the shots and hence, you need to know your business inside-out. The best thing about being a part of the startup ecosystem is that you can learn from someone who has survived this phase before you. Approach mentors who hold domain expertise over various industries. They are often keen to help new entrepreneurs.
Additionally, read industry-related blogs, websites, and books on business management, entrepreneurship and leadership to stay better informed and imbibe the various perspectives for a broader outlook.
3.They Manage Their Money Well
Cash flow is, unquestionably, one of the key attributes that defines a successful home business. Most successful entrepreneurs work with effective cash management systems that help them implement their business plans.
Keep your personal and business finances separate. Track your expenditures and revenues, allocate funds to necessary spending accounts, and watch your savings closely.
When it comes to managing a home-based business, you will have to buy inventory, pay for services, promote and market your business, and pay your employees and yourself. For this, you must also assume the role of a finance manager to ensure that the cash keeps flowing in and all dues are paid. The key aspects of money management that a successful entrepreneur should know are:
- How to determine the price value of your product/service
- How to manage financial records, bookkeeping, and taxation
- How to monitor the money (income) you receive from clients
- How to create strategies to boost cash flow
- How much money is spent on inventory, supplies, wages and other elements that keep your business operating
For running a successful small business, owners need to be savvy at setting budget plans and sticking to them. It is quite common for home-based businesses to deal with irregular income. It is recommended to set aside a certain amount of your income for the leaner months to be able to cover the essentials of running the venture.
Speaking on careful investment, Jeff Rose, founder of GoodFinancialCents.com, said, “By diversifying and placing funds into alternative investments, or just setting aside cash, you will give yourself breathing room in the event that you have to call it quits or need to pivot to another business.”
4.They Engage in Activities Other Than Work
In one of the blog posts on the website of Richard Branson’s Virgin Group, it is mentioned, “our brains were never designed to be always on and permanently connected with the amount of data we receive.” When your brain constantly receives information, it loses its ability to distinguish between what is important and what is not.
Numerous entrepreneurs work 24/7 and for 365 days of a year because they believe any unattended task can cause hefty losses. Doing so, however, will only lead to an early burnout. If you are stuck with a problem, then staring at it isn’t going to solve it. In fact, a rested and rejuvenated mind will come up with a creative solution in a shorter period of time.
Step out of your workspace to engage in activities that you enjoy doing. Go for an annual vacation with your family and friends. Allow your mind to rest and partake in other spheres of life.
Reed Hastings, CEO of Netflix, makes it a point to take six weeks of vacation in a year to ensure that his mind and body are adequately rested. Pursuing activities that you enjoy can help you look at situations with a different perspective and change the way you approach business decisions.
To Sum Up
For home-based entrepreneurs, their personal and professional qualities and their correct demonstration are likely to determine the success or failure of their business.
Observing others’ experiences can be a great way to learn without actually facing those challenges, and be prepared to tackle them should they arise. Also, assessing and enhancing your skills periodically will help you lead your business in a progressive direction.