7 Characteristics of Entrepreneurs

Many of the characteristics of entrepreneurs interrelate but the following are all worthy of note.

1. Perseverance

I have not failed. I've just found 10,000 ways that won't work - Thomas Edison, inventor and scientist

Entrepreneurs aren’t wired to give up. In fact, they so thrive on challenge that when they “succeed”; they generally don’t know what to do with themselves. Are they adrenaline junkies? Perhaps; but I think it more likely that entrepreneurs are more “committed” than most. I read an article that suggested that ongoing commitment is a lot more important than initial motivation. I think most people think commitment is a result of motivation; except you can be motivated one minute and then not so much in a relatively short period of time. Why is that? Doubt can erode even the strongest commitment. It’s important for an entrepreneur to be obstinate and confident and perhaps why so many people frequently see entrepreneurs as difficult to deal with. I remember one entrepreneur telling me that he doesn’t play well with others. To me that is the hallmark of a true entrepreneur; they can be downright willful about getting their own way.

How do you stay committed? You hold yourself accountable. It’s difficult to walk away if you see yourself as responsible even if you have doubts. You could also say that entrepreneurs are resilient and adaptable. Regardless, if you believe you’re responsible for making it happen then you do, even if you’re not very good at it ... yet.

In Chip & Dan Heath’s book, “Switch” they refer to a study that demonstrated that self control/willpower is an exhaustible resource and that what looks like laziness is actually often exhaustion. The “trick” is not to be forcing yourself. It’s only sustainable if you’re doing it because you want to.

Most people would articulate this as having a passion for what they do but what’s the difference between feeling committed versus passionate? According to Mihaly Csikszentmihalyi author of “Flow: The Psychology of Optimal Experience” the more we absorb ourselves in something, the greater our experience. Committed? Passionate? Ability to be in “Flow”? In the end, it probably doesn’t matter much. What matters is that people pursue the activity for the pleasure of it versus it being a means to an end. And what’s really interesting is that Csikzentmihalyi speculates that the difference is a matter of choice.

2. Clarity

In preparing for battle I have always found that plans are useless, but planning is indispensable - Dwight D. Eisenhower, U.S. President

People who understand the benefits of planning know that the important component is that 80% of the time needs to be in insight in order to implement a change. If you want to get “unstuck”, start planning. The fact that the plan frequently doesn’t get implemented as initially envisioned is not (IMHO) particularly important. Taking the time to work out a way to move forward is.

And it’s notable that at the root of all planning there is always a well defined purpose which needs to be consistent with a person’s values. Which comes first? I don’t it think it matters much as long as they’re in sync.

Also from Chip & Dan Heath's book, “Switch” they talk about what looks like resistance often being a lack of clarity. It works because clarity erases doubt and facilitates commitment.

Change does not necessarily assure progress, but progress implacably requires change. Education is essential to change, for education creates both new wants and the ability to satisfy them. - Henry Steele Commager

3. Confidence

Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make - Donald Trump, real estate and entertainment mogul 

Entrepreneurs are independent which some might perceive as a desire to be in control. My personal belief is that it all goes hand-in-hand with being committed. Entrepreneurs have the confidence to stand alone. Where do they find this confidence? By doing. It’s amazing how confidence improves with practice.

4. Learning Mind Set

An entrepreneur tends to bite off a little more than he can chew hoping he'll quickly learn how to chew it - Roy Ash, co-founder of Litton Industries

Another way to say this is that entrepreneurs are “failure-tolerant”. They are not sidelined by the fact that what they tried didn’t work; in their minds it means they’re just that much closer to discovering what will.

5. Proactive

The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer - Nolan Bushnell, founder of Atari and Chuck E. Cheese's

Entrepreneurs are energetic which again comes back to being committed. When you’re committed it’s amazing how you just want to get it done and before you know it, it is.

I think it’s important not to confuse any of this with being a work-alcoholic. Studies consistently show that productivity goes down after about 48 hours/week and if people get less than 8 hrs of sleep per night. Recently I read that productivity can be optimized (improved by 30-50%) by working in 20 minute segments that are separated by “mini” breaks to “recharge” the brain. I also saw another article that suggested the optimum working time is 90 minutes. The theme of working in segments is consistent even if the time is not. But it doesn’t mean time has to be structured into the classic 9:00 am – 5:00 pm model. Being committed means being both flexible and adaptable and doing what’s necessary to get the job done. If that means some strange hours the truly committed see that as no big deal.

6. Service Orientation

I never perfected an invention that I did not think about in terms of the service it might give others... I find out what the world needs, then I proceed to invent - Thomas Edison, inventor and scientist

People by nature are meaning seeking and entrepreneurs seek meaning in serving their market or customers. The importance of clarity of purpose can’t be understated as it facilitates the necessary sense of commitment.

7. Courage

Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover - Mark Twain, author

Many consider entrepreneurs to be risk takers but where does the courage to take those risks come from? I’d suggest both clarity of purpose and commitment. It provides the means to overcome and persevere in the face of fear.  

Life is either a great adventure or nothing. Helen Keller

In Summary

While entrepreneurs share the above characteristics, it is critical that they have a deep sense of purpose and commitment and taking the time to cultivate them is invaluable.

What are you doing to cultivate and clarify your business’ purpose?

The Importance of Identity in Business

“The value of identity of course is that so often with it comes purpose.” Richard R. Grant

"It matters not what a person is born, but who they choose to be." —J. K. Rowling

From Wikipedia; Brand - A brand is the identity of a specific product, service, or business

How does someone decide what business to be in? Or having decided what business to be in; what niche? I would suggest that before someone can decide what, they must first decide who they and their businesses are. “Who” is an essential prerequisite. For many, the question of “who” they are is done unconsciously but, as with everything else in life, the greater the clarity, the easier it is to move forward.

I recall one business owner telling how he had sold his business and subsequently discovered that the new owner didn’t treat his customers the way he thought they should be treated. He responded by starting a new, competitive business to provide a venue for the service he thought “his” customers deserved. He hadn’t anticipated that selling his business would create that problem or that he’d care as much as he did. But that’s the thing about values; they’re such a part of you that you generally take them for granted. Typically you don’t think about them but they drive your actions and especially if they’re violated. They’re a significant part of “who” and what makes up our identities.

Most consider our identities constant but the reality is they change over time. Initially we’re children and students, who graduate to adults and professionals; where our identity is largely defined by what we do and by the society we live in. Whether we are polite Canadians or astrophysicists, our identities change with time and circumstance.

As most personality assessments include “adaptive” styles; Dr. Robert Cialdini’s book: “Influence - The Psychology of Persuasion”, demonstrates this adaptability with the following example. People were asked to sign a petition to keep California beautiful. Subsequent to that, they and others that hadn’t been asked to sign the petition were asked to put up a large, obtrusive sign on their lawn with “Drive Carefully” printed on it. The result was that people were much more likely to agree to the sign after they had been asked the “identity” question of whether they’d sign the petition. The theory is that by asking the question, people identified themselves as being public-spirited and in support of that, were much more willing to do something they wouldn’t have done before. The conclusion is that by just asking an identity-clarifying question you can shift a person’s identity and actions.

Another compelling example is that people frequently become aware of “callings” at some point in their lives. It might be spiritual or professional but it marks a shift in how people think about themselves and it’s so prevalent that most of us know a number of people that have experienced it.

Interestingly, Dr. Philip Zimbardo notes that good people will do evil things because of their environment, such as abusive treatment by guards towards inmates or prisoners. He did an experiment with volunteer students where some were assigned as prisoners and others guards. He ended up terminating the experiment to avoid what he believed would result in inevitable physical violence. It was only an experiment and the participants knew it but it didn’t stop them from assuming the roles assigned to them and behaving in ways that they wouldn’t have otherwise entertained. I think this demonstrates just how transient identities can be and possibly why thespians can seem so believable.

This concept of changing the environment to change behaviour is also noted in Chip & Dan Heath’s book, “Switch” with Attila the Accountant who was a stickler for procedure and rejected any expense report that missed any detail. But when he spent some time at his clients Not For Profit businesses where they were severely overworked and understaffed he modified his behaviour dramatically. He became fanatical about getting them their money so they wouldn’t face any shortages or delays as he had a new understanding about just how tight their budgets were. This example raises the question: did he simply change his behaviour or did he change his values? I think you could argue that he “valued” the altruism inherent in his client’s business and changed his behaviours to support it. You could also argue that he came to value exactness less and expediency more but maybe they weren’t his “core” values” and hence why he was so willing to change.

I think we’re all a result of our circumstances and environment and when they change so do we. And while I think it’s important not to confuse behaviours with values (Jim Collins warns of this) I still feel values can and do change over time. Case in point, one day some one decides that the pursuit of power is no longer important to them, which for a lot of people coincides with retirement. In this instance, circumstance is powerful and leads to a profound change.

The irksome question is what role does choice play given the apparent high level of predictability of our reactions. I certainly like to believe choice is important. Still we’re limited by our strengths and aptitudes. Some will have an affinity for the physical which might foster being competitive as with a Tennis or Golf Pro while the more academically inclined may value learning more. So choice comes into it but it’s strongly influenced by personal strengths and circumstance.

So we’re adaptable but unfortunately, not always in a good way. But are businesses??? Pundits like Jim Collins say you need to preserve the core ideology (values & purpose) and change the rest. Between writing, “Built to Last” and “Good to Great” he changed his mind about the importance of Leadership, so perhaps, he’ll change his mind about the constancy of values. Jim Collins also suggests that you need to eject people like a virus, if they’re the wrong ones. And while I don’t believe he was very clear about what constitutes the “right” people, I think you could define it as the people that share the company’s values and have the aptitude to achieve the desired outcomes. A business’s values are shaped by its employees and if the employees change, so does the business’s values and culture. The question is: should an organization be shaped with intent from the beginning, i.e., should the criteria for hiring include values?

Jim Collins also asserts that a CEO’s core values should not be confused with the organizations core values. They’re different because the organization has a culture independent of any leader whether they like it or not.

Changing culture is understood by companies like IBM where they’ve made it a point to re-shape the company by bringing in new blood. It was a criterion for their survival. Now instead of being about “Business Machines” they’re about providing innovative business solutions. And maybe IBM will never again achieve their previous glory but you have to give them credit for re-inventing themselves.

When it comes to choosing people everyone wants the equivalent of Wayne Gretzky on their team but the reality is that superstars like Wayne pick and choose who they wish to be aligned with because they can, i.e., they qualify their employers based on their values. Hopefully, any fit works both ways but the chances of stacking the deck with all superstars is unlikely. And there’s really little point in hiring a Wayne Gretzky to play basketball so aptitude is clearly an important criterion relative to suiting the needs of the business. And it’s not all about aptitude - the systems in a business can make a huge difference. Whoever it was that came up with the McDonald’s “system” was obviously very talented (or lucky) but McDonald’s doesn’t need superstars to work in restaurants flipping burgers. In fact, it’d likely be counter productive. Although, I would say they need people that can interpret what people want and achieve a level of customer service that encourages people to want to do business with them. The bottom line is talent needs to be applied strategically, and where it matters.

Small business owners typically want to hire using networking because it provides some comfort around shared values and aptitude but it’s not particularly efficient. Obviously reaching out to a bigger pool is more likely to “net” better prospects but because most business owners aren’t great at qualifying people they avoid doing so. Hiring a HR professional to develop criteria for screening can help.

In the end you can be purposeful about the people and matching their values with the business’s or you can leave it up to chance. Which do you think will work better?

In summary:

• What people “value” will and can be changed
• Values shape culture. Culture shapes identity
• Aptitude influences identity
• Aptitude/talent should fit the business
• Aptitude/talent should be leveraged strategically
• Be purposeful about building the “right” organization