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So you want to be an entrepreneur? 5 things you must have
These five things allowed this former CEO to succeed as a founder and entrepreneur. Make sure you cultivate them before taking the leap.
Today many people wish to break away from their corporate jobs and become entrepreneurs. And apparently they find satisfaction in doing so, because 96% of people who are self-employed have no desire to go back to a “regular job.”
But it’s not an easy transition. The failure rate can be daunting. Some 30% of new businesses fail in the first two years, and nearly 50% do not survive beyond five years. I launched my company, the Humphrey Group, more than 35 years ago, and it’s still going strong. What made it successful and enabled me to break through the barriers?
The following five things allowed me to succeed as a founder and entrepreneur. You’ll need these same things if you want to have a successful business.
1. A SALABLE PRODUCT
Just because you’re good at something doesn’t mean the world will buy it. If you want to go into business, find out first if people will buy what you’re selling.
Before launching the Humphrey Group, I wanted to start a business to help leaders communicate more successfully. To discover whether I had a salable product I asked my boss if I could teach a course on speech writing, which was the product I wanted to go to market with.
When all the C-level executives in the bank I was working for enrolled in my course, I knew it was a salable product. I also ran focus groups and learned that executives wanted speech delivery training, too, so we added that. My efforts meant that by startup time I knew I had salable products.
2. MARKET INTELLIGENCE
Knowing your market means understanding who you’ll sell to, how much they are willing to pay, and how to approach them. I knew my market really well because I had been a speechwriter for CEOs in three different companies. The other executives would come to me for speech writing advice. These were the people who needed help, and they represented my primary market.
I also discovered in talking to these executives that the higher the fees I quoted, the more the executives seemed to value the training. So I kept my rates high.
Finally, I learned, as any entrepreneur should, how to successfully interact with my market. I discovered that when I was selling to prospective clients they wanted to do much of the talking, so I pitched to them by asking tons of questions. That made them feel appreciated, and I usually closed the sale.
3. THE FOUNDER’S MENTALITY
Having a founder’s mentality means you’ll want to keep a watchful eye on every aspect of the company, and not delegate decision-making. This approach is set forth in The Founder’s Mentality, by Chris Zook and James Allen.
A great example of someone with a founder’s mentality is Nvidia’s founder and CEO, Jensen Huang. Instead of building his company on a hierarchical model, he has a more flat organization, with 55 direct reports. This allows him to stay in touch with every aspect of the company and make decisions that only an owner can make.
I, too, had a founder’s mentality for most of my three decades as CEO of the Humphrey Group. I had a hand in every aspect of our firm. I did selling, coaching, course design, and hiring. This enabled me to stay close to every aspect of the business and build it when I saw an opportunity. This approach enabled me to broaden our course offerings.
Today my son owns the company, and he delegates much more than I did. But my having a founder’s mentality early on made for its success.
4. A STRONG NETWORK
To be a successful entrepreneur, you’ll want a network that brings business to you.
The best way to build this network is to have satisfied customers who are willing to refer you to their colleagues and friends. When I coached executives I would always ask for referrals. I’d say, “Do you have colleagues or friends who could use this training?” Or “Would you like me to work with your team?” Invariably the answer was “Yes!” And our business would grow exponentially.
Your network can also be expanded if you go to networking events and seek out individuals who represent your core market. But know in advance who is going to be there, and which people are your target. The more research you do in advance, the more you can impress them and earn their business.
5. CONFIDENCE
If you want to be a successful entrepreneur, you’ll need a big dose of confidence. By this I don’t mean you need to be flashy or over-the-top.
Confidence comes from the assurance that your product meets a need and does so better than any other product in the marketplace. That confidence will lead you—as it led me—to have the willpower to approach prospective clients and successfully sell to them. As you do so, your reputation will win you even more clients.
