It all starts with an idea.
Starting a company can be intimidating. You may need to take out a loan, lease a commercial property, or hire staff. The details can feel overwhelming.
But if you’ve been working a 9–5 for years, you might feel like you’ve stopped growing. You’re grateful for the people who helped you grow because now you’re ready to use your skills in your own business venture. You know have entrepreneur characteristics and want to know where to start.
The right person will thrive in this environment. They have the entrepreneurial spirit necessary to make it happen and will feel more at peace running their own company than they ever would in an office job.
What is an entrepreneur?
An entrepreneur is someone passionate and innovative who creates a new business. Their business doesn’t need to reinvent the wheel — your favorite neighborhood café is a business, too — but it takes an entrepreneurial mindset to bring their ideas to life.
Entrepreneurship is all about pursuing opportunities. It’s about looking for areas to provide a service or a new product the public might need. It’s also about taking the initiative to bring your ideas to life.
For example, in the 1970s, Steve Jobs noticed computers were popular among hobbyists but inaccessible to the average consumer. He saw an untapped market with huge potential — he just needed to create user-friendly products. From the Apple 1 computer to the iPhone, he did exactly that. His company became one of the most profitable businesses in the world.
At their core, entrepreneurs are individuals who start a business. But on a deeper level, they’re people who innovate. Someone who starts a business is comfortable with discomfort and pushing the limits of their comfort zone. They see challenges and think of creative ways to overcome them. They fill society with new ideas and keep refreshing the old ones.
When we think of an entrepreneur, we might think of big names like Henry Ford or Bill Gates. But you don’t have to fund a Fortune 500 company to walk in their shoes.
The 4 types of entrepreneurs
Entrepreneurs come in many forms, whether they yearn to be their own boss or disrupt the status quo. Here are some common types of self-starters you might run into:
1. The inventor
This person wants to create the next big thing. They see the big picture, imagine products or business ideas that don’t exist yet, and work to bring them into reality.
2. The small business owner
Small business entrepreneurs employ less than 500 workers. These people operate everything from small consultancies to popular local restaurants. They understand the value of hard work and leading a talented team of employees.
3. The online entrepreneur
Whether it’s a side hustle or a full-time job, these entrepreneurs make the Internet work for them. They might sell products on Etsy, maintain a popular financial blog, or develop software to distribute online. But no matter what, they have a direct relationship with clients through their online business.
4. The home business owner
These people use their homes as their home base. A family plumbing business might use its home garage to store equipment. On the other hand, an artisan soap maker could use the basement as their production line. These people make their space work for them.
What are the qualities of a successful entrepreneur?
Starting a new business comes with an inherent amount of risk. You can do everything right, but external events could lead to a negative outcome. While there’s no formula for entrepreneurship, there are good or bad entrepreneur characteristics.
Here are some skills you need to become a successful entrepreneur:
1. Discipline
The number one quality of an entrepreneur is self-discipline. You need to do the work — even when you don’t feel like it.
If you have a day job, this could mean working long hours. You'll need the self-motivation to wake up early or stay up late as you start your new venture.
2. Curiosity
The best entrepreneurs always want to learn more. They ask good questions and look for opportunities to grow themselves and their business. These people don’t dwell on what they think they know but instead, change their opinions when presented with new information.
Curiosity to learn is just part of how they approach the world.
3. Creativity
This is the spark that drives many successful startups. Creativity isn't just for creatives, it's a skill that everyone can cultivate. Entrepreneurs always look for creative ways to solve problems or deliver a service, often with limited resources.
They look in many different places for inspiration, and their creativity helps fuel their love for what they do. Find what gives you ideas and use it as your fuel. To cultivate this skill, lean on habits that support creativity. It could be music, meditation, or meeting new people.
4. Willingness to try things
As an entrepreneur, you’ll constantly be presented with new tasks that challenge your skillset. Resourcefulness goes hand-in-hand with experimentation and problem-solving. Be ready to get creative, think outside the box, and pull from your vast network, experiences, and skills to take on a challenge.
Prepare to watch your solution fail, too. It’s inevitable, and every failure is an opportunity to learn and improve on your ideas.
If you strategize well and outline metrics for tracking success, you can quickly make adjustments and find appropriate solutions. Show your product to a trusted group of friends, read market research to see if there’s adequate demand, and stay up-to-date on the latest industry news.
These strategies will help you take calculated risks while trying new things.
5. Honesty
In the business world, you’re only as good as your word. Honesty and integrity are important traits of an entrepreneur. These personality traits will reap several benefits:
- You will develop a reputation as a strong and honest communicator
- Your employees will value your leadership
- Clients will know you can deliver on your promises
- People will be more willing to lend you money for your next idea
- Your community will support you during tough times
6. Always have a plan
Successful businesses leave little up to chance. They look far into the future, with backup plans to adapt to unexpected events.
You should have a vision for your company 5–10 years from now. To bring that vision to life, you can use the SMART goal-setting method to set short and long-term business goals.
These are goals that are:
- Specific: What is the exact outcome you’re hoping for?
- Measurable: How will you know you achieved this outcome?
- Achievable: Is it reasonable for you to expect to achieve this goal?
- Realistic: Can you arrive at your goal with your current resources?
- Time-Bound: Do you have a clear deadline for your goal?
Each goal should build on the last, bringing you closer to your vision and closer to reality. Also, remember that a lot can change over the years. You’re allowed to adjust your plan if needed.
7. Understanding the value of self-care
Great leaders understand that exhaustion and overwork are a recipe for disaster. They may have all the skills in the world. But, without proper wellness, they won’t be able to execute. Budgeting time for self-care will pay you back tenfold.
The same philosophy applies to your employees. Make sure they understand the value of their work and encourage them to rest when they need it. They will pay you back with a positive attitude and stronger work ethic.
8. Taking risks
Risk takers often do well as business leaders. But you should be clear on your approach, and have a backup plan ready to go should things go awry.
This is a characteristic of a good entrepreneur because business owners often need to go off the beaten path. This can be scary but entrepreneurs must set aside their fears and take the leap needed to make their vision come to life.
9. Adaptability
The world is constantly changing — and so is how we do business. Entrepreneurs have no shortage of unexpected challenges and surprise opportunities, so they must act quickly and efficiently.
This adaptability is what makes a successful business, and it’s particularly true for entrepreneurs with a Millennial workforce. Rather than trying to force templates that worked in the past, entrepreneurs must be flexible to changing norms like hybrid work models and offering better employee work-life balance.
10. Persistence after failure
Successful entrepreneurs understand that failure isn’t the end of the world. Instead, failure is a rehearsal for success. Persisting despite any roadblocks increases your confidence, conviction, creativity, and innovation.
If you fail, you learn lessons to apply to the next challenge and teach yourself you’re grittier than you thought. All that radical thinking may lead to radical results.
5 common mistakes to avoid as an entrepreneur
It’s easy to make mistakes if this is your first time launching a business, but maybe we can help you avoid a few. Here are some things to look out for:
1. Not sticking to your budget
It’s easy to get carried away when you’re starting out. Be careful not to blow your budget too quickly. Stick to the essentials for now, like hiring the right staff, investing in the right tools, and building out your client list. The rest will come later.
2. Making ill-advised hiring decisions
Your business will thrive or die based on who you hire. Choose your employees wisely. Look for people who share your entrepreneurial mindset and have experience working at a new business.
It’s also useful to find people who have different expertise than you to cover any of your blind spots. If you think you're team could use assistance in getting up to speed, you might want to think about providing them with business coaching.
3. Setting unachievable goals
Don’t expect to make the NASDAQ in your first year. Set achievable goals when you’re starting out. Stick the to SMART method we outlined above.
4. Forgetting to delegate
You hired great people. Use them! Many entrepreneurs don't know how to delegate to others or they're afraid to. Consider whether you need to own a task. You can't control everything so only keep the most important ones.
Assign tasks based on others' strengths, set clear expectations, and check in with them regularly. They’re your team and they will deliver.
5. Making decisions out of fear
Clear your head before making big decisions. Emotions like fear, anger, or frustration can cloud your judgment.
When you encounter a stressful situation, take a step back, be mindful of your feelings, and approach the problem later with a clear mind.
Improve your entrepreneurial skills
Modern leaders need an increasingly long list of managerial skills. Here’s what you should work on as you develop your business:
Are you ready to build the future?
You might have the seed of an idea — but now it’s time to water it.
With careful training, planning, and execution, you can watch your idea grow into a successful business. Before you know it, customers will be enjoying the fruits of your labor.
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