What Makes an Entrepreneur? A Look at Their 5 Die-Hard Traits!

Startup Stock Photos

Think carefully before you answer. Because, this question is not about distinguishing good entrepreneurs from the bad ones. It’s also not about who among them has a Midas touch and who doesn’t.

Continue reading “What Makes an Entrepreneur? A Look at Their 5 Die-Hard Traits!”

Advertisements

Guest Post – I initiate… therefore I am !!

17th century philosopher Rene Descartes said – ‘I think therefore I am’. With all due respect to him, I am inclined to revise this for the 21st century as – ‘I initiate therefore I am’.

For me the world is truly binary, people who take initiatives and people who don’t and that pretty much decides who survives the marathon and who doesn’t. Don’t get me wrong here. I don’t want to discount the value of thought because the very act of doing has its roots in a thought. However, in the modern world, taking the initiative to execute matters much more than just penning a thought on – is what needs to be done.

wpid-picsart_1410795441553

Before we delve deeper, let’s be clear on the definition of initiative. If you look on the net, you will find many interpretations, but for this write-up, I define initiative as not accepting status-quo and exploring ways to make things better. People who take an initiative are always working for the betterment of their own self, their family, their organization and the society at large. People who don’t are on the receiving end and perpetually complaining about the state of affairs.

Continue reading “Guest Post – I initiate… therefore I am !!”

Guest Article – What can be your core competency in today’s world?

A lot has been written about core competency in innumerable management books. But what does it really mean? Its only when companies understand the real meaning of core competency in today’s context, can they truly work on building a ‘differentiator’ that gives them an edge over others in the market.

A dynamic concept

The notion of core competency has evolved with changing times and market dynamics will continue to do so. For instance, in the times of Sony Walkman, the term ‘core competency’ was associated with deep technical innovation, and at other times,with just the sheer size of assets and deep pockets of a company, since they were crucial in the formation of a large conglomerate.

611

So what can be the core competency of an organization in today’s digital economy, where it only takes a handful of smart guys with minimal funds to bring the next disruptive innovation and consumers adopt it in millions, thanks to the internet?

Can it be the capability of your R&D labs and patents you own? Yes, in some sectors like pharma, patents go a long way in demonstrating a company’s prowess, but not in the industry a general. They can be used to protect the product and manage market leadership only until the next innovation comes around. At the same time, it is not the patent that can be  your core competence, as customers buy products, NOT patents.

Continue reading “Guest Article – What can be your core competency in today’s world?”

Guest Article – Do good leaders make good managers?

A lot has been written in the industry about leadership traits and whether it maps to good management skills or not.

dreamstime_m_14281983-follow-the-leader

In my perspective, leadership and good management are two different skills and an organisation needs both of them. Also, it is very rare to find both the characteristics in the same person and it is imperative for CEO’s to realise this.

The quintessential trait of a leader is to ‘make sense of it all’ in this highly unstructured and dynamic world. Leaders get a good handle on what is happening, and how it will/may transition the industry (or society at large) in the next couple of years.

Leaders don’t believe in status quo and know that change is the only constant in life. What sets them apart is the courage and self-confidence with which they embrace change. While most of us prefer to sit on the fence and see changes happen and try our best to protect our turf from them, leaders actually make changes happen and drive them in the direction they believe is best for organisation (or mankind at large).

Driving Change

So what does it take to drive change or to shape the future of an industry? It starts from having a vision. A vision of where do you want to be in next few years, as an individual, organization, society or mankind itself. While each of us has plans for our future, our vision rarely goes beyond the immediate self and family. A leader’s vision typically starts from the other end, i.e. industry or society in general. A leader wants to see the desired change at a much larger level and his only goal is to make that change happen.

Continue reading “Guest Article – Do good leaders make good managers?”

What does being an already successful one-time entrepreneur do to your chances of being successful again?

Any entrepreneurial journey, even the most successful one, is not a straight line up. There are always ups and downs in that journey.

success
The experience of having built a successful venture exposes you to many of the challenges that one can face in an entrepreneurial journey. It teaches you to keep your assumptions practical. It helps you understand what it takes to make a sale. It give you the wisdom to keep costs low. It teaches you that there will be ups and downs, and it teaches you to be resilient and teaches one that perseverance can pay.

Continue reading “What does being an already successful one-time entrepreneur do to your chances of being successful again?”

How do you decide who becomes the CEO from among the founders?

Well, there is no real logic that can be applied in addressing this question, but a person who understands the dynamics of business better, is good at sales, good at operations management and can be the face of the company to the outside world is a better choice and in the best interest of all, including other co-founders.

Of course, the person who is designated CEO should have what it takes to be a leader, and have the aptitude, the passion and the desire to steer the company in the direction agreed by everyone.

A co-founder who becomes the CEO needs to understand that he/she is NOT the boss who can have special privileges… and that he / she is merely the chief executive who has the responsibility to making critical decisions and making sure that the company is on track to meet/beat targets.

In a startup, a CEO should take up the ADDITIONAL responsibility as a CEO along with an area of the startups business that he/she should take ownership of. E.g. the CEO may take up the responsibility of handling the sales function or operations management or driving the technology piece, etc. But the responsibility of being the CEO is over and above that functional responsibility.

It is also important to designate one person as the CEO from among the founders, as the rest of the team as well as external stake-holders (investors, vendors, partners, etc.) need to know where the buck stops and who would be the decision maker when one needs to be made.

In most cases though, especially when a few friends get together to start a company, who will be the CEO is a tough decision. In such cases, it is best to have a healthy debate within the team and select a CEO. (Some startups, when faced with the task of deciding who the CEO should be have followed the strategy that the founder who will get to be the CEO will give 1% of his/her equity to the other founders i.e. if there are 4 founders, the equity structure will be 22% for the founder who becomes the CEO and 26% each for the other co-founder.

While it is a difficult question, often leading to stress among the team, it is critical to address that and take a decision. Especially if the startup is going to seek VC funding, there will have to be one CEO who is leading the team.

 

What are the qualities of an entrepreneur?

  • High aspiration: Clearly, unless aspiration to achieve is high, it is difficult to create something that is valuable. High does not necessarily mean high in revenues. It could be high in impact as well.
  • Optimism: An entrepreneur must be high on optimism. Simply because they need to believe in the mission, in order to convince others to join them in the journey. However, there is a fine line between optimism and arrogance. An entrepreneur needs to have the humility to test his/her optimism by cross-checking with others.
  • Confidence: Without confidence, all ideas will remain just that – ideas. Taking the first few critical steps, going ahead despite being aware of the challenges, and being wise about taking precautions against these challenges, are traits of successful entrepreneurs. Entrepreneurs however should NOT be blind risk takers. Successful entrepreneurs understand the risks and take necessary steps to mitigate those risks. Confidence in their approach is what helps them deal with the challenges and risks better.
  • Persistence and resilience: Plans will usually not go as you want them to. Hence, resilience (the ability to try again and again) and persistence in pursuing what you believe to be appropriate will help entrepreneurs sail through tough times.
  • Every entrepreneur has to understand ‘sales’: By sales we don’t mean just transactional sales. We mean the ability to convince others about the concept, the value proposition, the plan etc. An entrepreneur does not sell only to customers. He/she has to ‘sell the concept’ to investors, vendors, partners, early employees, parents, early customers etc.
  • Equally important is good communication skills. Unless you are able to explain and pitch the concept clearly to the various stake holders, it will be difficult for them to align themselves to your vision.
  • An entrepreneur has to be good at implementing ideas. Everyone has ideas. But the trick is to successfully implement those ideas into a thriving business. An entrepreneur must have a   deep understanding of the ‘business’ around that idea.

Also, I strongly believe that an entrepreneur must have the courage to face failure and challenges.

Happy entrepreneuring!!