Qualities of an Entrepreneur

By Larrie Peniel
A few days ago, I had the privilege of being hosted by a radio station in Lagos to talk about what makes a successful entrepreneur or qualities of an entrepreneur. We spoke about so many things within the one-hour time limit and I tried to answer as many questions as possible from callers and those who sent sms. I will try to do a summary of qualities I consider as vital for any entrepreneur to become successful.

Passion

This is the main driving force of every business. Shall we refer to it as the engine of any business. When money is not being made, it is passion and genuine love for what one does that sustains. A lady who loves cooking will always be in and around the kitchen, whether she gets a catering job or not. Most people who are passionate about what they do, will become oblivious to time and the environment, once they get started. Research has shown that the most successful businesses are usually tied around the passion or interests of the business owners. Usually, many people will render a service for free or next to nothing, just to show a certain level of competence. Only passion can make one do that.

Integrity

If passion is the engine of any business, integrity must be the watchword. No business thrives if the owner is known to have a fraudulent personality. From my experience, the biggest marketing tool out there is a satisfied client (referral). Your business will be dead on arrival, if you collect money from a prospective client and fail in the discharge of your responsibility. All promises, terms and conditions for contracts must be strictly complied with. As an entrepreneur, you are a dead-man walking, if the reputation that precede s you is negative. If you have promised to show up at a certain time, be sure to get there ahead of time. Never collect a job for a certain date from client A and refund his money because client B offers to pay more.

Discipline

This is one of the most difficult components of being an entrepreneur. Discipline, as I have seen it, is essential in two areas of life, as an entrepreneur. A) Time management. B) Financial discipline. When I resigned from Investment banking, I assumed I will be able to sleep when I like and wake up as I love. Close to it but far from it as well. The difference, as I have observed is that I now sleep very late and wake up earlier. The reason is there are so many things on the mind of an entrepreneur and every time you can afford must be well ‘invested’ into the business. Meetings, attending seminars, reading books, engaging prospective clients and so on, are all geared towards ensuring you are a better business owner. Financial discipline is a little bit self-explanatory except that it must be noted that what you earn in the first few years is not ‘profit’ but ‘income’. So many people think income is the same thing as profit and they immediately start spending it on ‘unnecessary things’. You do not make profit until you break even. You will not break even until you factor in all costs of production, including Land or cost of it, office space or cost of it, labour and capital invested.

Followership

A good entrepreneur understands that he must pay his dues before becoming a success story, by being willing to understudy others. By this I mean learning directly from those you will love to emulate in the line of business. This is the same thing as mentoring. Nothing can replace the place of mentoring in business because it means you can avoid certain mistakes of your mentors whilst tapping into what they did successfully. Only a good follower will become a good leader.

Risk-Lover

There are three types of people when it comes to risks. A) Risk Averse B) Risk Neutral and C) Risk Lover. All entrepreneurs on earth assume a considerable degree of risk and they enjoy it too. As it is said: “the higher the risk, the higher the returns”, however, I will advise that the risk should be a calculated risk before plunging into it.

Perseverance / Long Suffering

This is an important quality that must be possessed by an entrepreneur. Research shows that 90% of businesses fail in the first 3 years. This definitely and clearly shows that only 10% of prospective entrepreneurs can persevere and withstand the storm in the first 3 years. This is not to suggest that perseverance or lack of it is the only reason businesses fail in the first 3 years, however it is a feature every entrepreneur should have.

Selfishness

A good entrepreneur must be ‘selfish’. By selfish, I do not mean being stingy or tight-fisted. An entrepreneur must be so obsessed about his idea that he hardly has time for any other thing. He thinks of himself alone, his idea and how he can get it across to the world. When you meet with him, he introduces himself and what he does for a living, with the hope that he can be of service to you. That is selfishness. He inundates your phone with messages of what he does and how he can be of benefit to you in one area or another. Be ‘selfish’.

Larrie Peniel is an Event Compere/M.C., corporate facilitator and business consultant.

Connect with him on Twitter: @larriepeniel