Do a Google search on Entrepreneurial Qualities, and hundreds of articles advise on Entrepreneur Qualities and Success Factors. Being an entrepreneur is not easy, but it can be rewarding. It requires dedication, hard work and the right mindset. There are certain qualities that successful entrepreneurs share which can make the journey that much easier.
Entrepreneurial Qualities 101
By adopting these qualities, entrepreneurs can increase their chances of achieving success. With self-discipline, entrepreneurs can push themselves and stay motivated. Resilience allows them to take setbacks in stride and keep going. Creativity helps them come up with solutions and ideas to tackle problems.
Risk-taking is important to be able to try out new ideas. Having focus allows entrepreneurs to stay on track and keep their goals in sight. Passion motivates me to keep going even when times are tough. Networking is key to expanding one’s reach and building connections. Last but not least, communication is essential to work effectively with others. By having these qualities, entrepreneurs can increase their chances of achieving success.
Entrepreneurial Qualities #1: Self-Discipline
Entrepreneurs need to be self-disciplined to achieve goals. Most businesses require significant time and money to get off the ground. Entrepreneurs need to manage their time and resources effectively to get their businesses off the ground.
Self-discipline can also help entrepreneurs stay on track with their long-term goals. The initial stages of a business are often chaotic as entrepreneurs try to work out the kinks. Self-discipline can help entrepreneurs stay focused on their long-term goals and keep moving forward even when the going gets tough. Self-discipline can also help entrepreneurs when it comes to managing their emotions. Businesses are often fraught with challenges and disappointments.
Startups must manage their emotions and not get discouraged or frustrated when things go wrong. Self-discipline can help manage emotions and get past disappointments and challenges as quickly as possible so that the business can move forward.
Entrepreneurial Qualities #2: Resilience
Successful startups can deal with failure and setbacks with resilience. They know that failure is an important part of the entrepreneurial journey and that it is necessary to try new things to find success. They can take setbacks in stride and quickly figure out their next steps. Resilience can help entrepreneurs minimise the impact of failure and setbacks on their emotions.
Resilient entrepreneurs can quickly bounce back and keep moving forward when setbacks happen. Having resilience can help entrepreneurs stay motivated despite challenges knowing they are part of the process. Entrepreneurs need to be able to manage their stress levels effectively.
Having too much stress can negatively impact decision-making and productivity. Resilient entrepreneurs can manage their stress levels and bounce back quickly from stressful situations. Resilience can help entrepreneurs stay focused on the big picture and keep things in perspective when things get stressful.
Entrepreneurial Qualities #3: Creativity
Startups need to be able to come up with solutions to problems and ideas to tackle challenges. Creativity can help entrepreneurs develop solutions to problems and ideas to tackle challenges. Creativity can help entrepreneurs develop solutions to problems and ideas to tackle challenges.
Being able to come up with new ideas allows entrepreneurs to try out different approaches and make their businesses stand out. Creativity can help entrepreneurs develop solutions to problems and ideas to tackle challenges. Being able to come up with new ideas allows entrepreneurs to try out different approaches and make their businesses stand out. Creativity can also help entrepreneurs develop solutions to problems and ideas to tackle challenges.
Entrepreneurial Qualities #4: Risk-Taking
Entrepreneurs take risks every day. They are willing to take the leap into entrepreneurship and try something new. They are also willing to try new ideas and take chances on what works and does not. Risk-taking is an important part of being an entrepreneur. Entrepreneurs must be willing to take risks and try new ideas and approaches.
This is the only way to find what works and make progress. Startups need to be willing to take risks. This is the only way to find what works and make progress. Entrepreneurs need to be willing to take risks and try out new ideas and approaches to find what works and make progress. Taking risks is important because it allows entrepreneurs to try new ideas and approach things differently. This is the only way to find what works and make progress.
Entrepreneurial Qualities #5: Focus
Having focus is an important part of being an entrepreneur. Startups need to be able to focus on the big picture and their long-term goals. They also need to focus on the daily tasks and challenges that come their way. Having focus helps entrepreneurs stay on track and keep their eyes on the prize. Having focus also helps entrepreneurs stay focused on the daily tasks and challenges that come their way.
This is important because entrepreneurs need to be able to focus on the now to get their businesses off the ground. They also need to be able to focus on long-term goals to keep moving forward. Having a focus can help entrepreneurs stay on track and keep their eyes on the prize. This is important because entrepreneurs must stay focused on long-term goals to keep moving forward. Having a focus can also help entrepreneurs stay focused on the daily tasks and challenges that come their way.
Entrepreneurial Qualities #6: Passion
Passion is an important part of entrepreneurship. Startups need to be passionate about their businesses and what they are trying to accomplish. Passion provides the motivation needed to keep going even when times are tough. Entrepreneurs need to be passionate about their businesses and what they are trying to accomplish.
This provides the motivation needed to keep going even when times are tough. Having passion is important because it provides the motivation needed to keep going even when times are tough. Passion also helps entrepreneurs stay motivated even when times are tough. Having passion is important because it provides the motivation needed to keep going even when times are tough. Entrepreneurs also need to be passionate about the products or services they provide. This is important because it provides the motivation needed to keep going even when times are tough.
Entrepreneurial Qualities #7: Networking
Networking is an important part of entrepreneurship. Startups need to be able to network with others and make connections. Networking allows entrepreneurs to expand their reach and get the word out about their businesses. It also helps them find potential clients and partners. Networking allows entrepreneurs to expand their reach and get the word out about their businesses. Networking also allows entrepreneurs to find potential clients and partners.
This is important because it allows entrepreneurs to get the word out and connect with others. It also allows them to find potential clients and partners. Networking allows entrepreneurs to expand their reach and get the word out about their businesses. It also allows them to find potential clients and partners. Networking is important because it allows entrepreneurs to expand their reach and get the word out about their businesses. It also allows them to find potential clients and partners.
Entrepreneurial Qualities #8: Communication
Communication is an important part of entrepreneurship. Startups need to be able to work together with others and communicate effectively. Communication allows entrepreneurs to work together with others and communicate effectively. This is important because it allows entrepreneurs to work together and communicate effectively. Communication also allows entrepreneurs to work together and communicate effectively. This is important because it allows entrepreneurs to work together and communicate effectively. Communication is also important because it allows entrepreneurs to work together and communicate effectively.
Something Extra! Faced with Business Failure? Consider these Alternatives to Closing your Doors.
Business Failure is never at the top of your mind when chasing your Startup Dreams! Starting a business is exciting and rewarding, from naming your business, setting up the website, meeting that first potential client, and reaching your first R1 million in sales. It seems every step is a milestone. But not all businesses succeed, and closing a business is a reality.
The failure rate varies. Some reports say 50% of businesses do not make it in the first year, others say 6 out of 10 businesses shut down in the first two years, and up to 80% of companies do not make it after five years. Yet, despite these reports and statistics, we don’t talk enough about closing down the business. It seems this stage of the life of a business is something most entrepreneurs, managers, and executives would rather avoid and hope to fade away.
This article will examine the hard truths of why businesses close and explore alternatives to closing down a business.
Common Reasons for Business Failure and Why Businesses Shut Down
Running a business is not easy; there are many reasons it fails and closes down eventually. Some reasons are voluntary, such as businesses deciding to retire and sell the business to a third party. Some are involuntary, such as insolvency, failure to comply with regulations (non-payment of taxes or permits), etc. However, here are common reasons why failing in business occurs:
Failure of a Business, Reason #1 ― Poor or Non-existent Business Plan.
Would you build your dream house without any blueprints? Will you hop into your car and travel to your dream destination without a roadmap? Of course not. It would help if you were treated the same for your business. A business plan lets you see if your business can make a profit, estimates how much you’ll need to raise money, and defines your market, suppliers, customers, and competitors.
A business plan contains a lot of details about your business. You leave too many things to chance and eventually close a business without it. There are easy arguments for and against a Business Plan, which you can explore in this article.
Failure of a Business, Reason #2 ― Weak Sales and Low Profits.
Competitors offering better prices and value, failure to capture the key market, over-dependence on a single customer, etc., are only a few causes of weak sales performance. If management fails to increase sales, this may further translate to low profits. The inability to generate enough profits to pay employees, suppliers, and creditors and invest back into business by purchasing new equipment, hiring more staff, etc., will lead business owners to shut down businesses.
Failure of a Business, Reason #3 ― Lack of Capital and Resources.
Producing goods and services require capital and resources (land, equipment, raw materials, skilled labour, etc.). Without these, businesses cannot sell products to customers, cannot invest in Research and Development, and managers cannot expand to other markets, etc., which in the long run will lead to closing down the business.
Failure of a Business, Reason #4 ― Poor Management and Leadership.
A ship without a Captain is dead in the water. Likewise, a business without competent management is highly likely to fail and shut down business Management’s expertise, experience, and vision manifest in the business’s financial performance. Conversely, a business under strong leadership can navigate changing customer tastes, entry of new competitors, the rising cost of doing business, etc.
Failure of a Business, Reason #5 ― Inefficient Supply Chain Management.
Sourcing the right materials for a business’s goods and services involves getting the highest quality materials, sourcing from key suppliers, or buying it at the right price and adapting to new technology. Adapting technology to streamline a business’s supply chain can lower transaction costs, shipping costs, etc. Eventually lowering a good or service’s cost base and maximising profit. On the other hand, failing to adopt technology will affect the bottom line and competitiveness. In the long run, this will cause the closing down of the business.
Failure of a Business, Reason #6 ― Abrupt and Unsustainable Expansion.
For business owners, growth signals are signs of success. With growth, managers can generate more sales and profit, reduce risk, influence market price, etc. But growing too fast too soon can ironically cause businesses to shut down. Over-hiring staff, decline in product quality, lapses in customer service, etc., are only some of the effects of rapid business growth. Take a look at this article that explores various Business Ideas.
Failure of a Business, Reason #7 ― High Leverage.
Zombie companies are businesses burdened with a large amount of debt and can still manage interest debt payments but cannot pay the principal. However, these businesses do not have funds to invest and grow, making them on shaky ground. From the outside, these companies seem like well-run businesses and continue operating for years but eventually will shut down a business.
Failure of a Business, Reason #8 ― A Downturn in the Economy or an External Shock.
Small businesses are hit the hardest during an economic slowdown compared to large companies. Weak sales, budget constraints, limited access to funding, inadequate financial preparations, and not to mention emotional stress can lead a business owner to shut down businesses. Think about the 2008 Financial Crisis and, more recently, the Hard Lockdown period due to COVID-19.
Failure of a Business, Reason #9 ― Changes in Government Policies.
Increasing the minimum wage and input costs (e.g., fuel, electricity, etc.) can burden small businesses. In addition, a rise in corporate tax rates, sales tax, and tax rates for imported raw materials can affect businesses’ profits. But if businesses are not well-prepared to comply with these changes or too much regulation in the industry, businesses will likely shut down.
So you are faced with Failing in Business? Here are some Alternatives to Closing Down a Business
A failing business and closing down a business is a very difficult decision, so all options must be exhausted. Before closing the doors to your business, try asking yourself these simple questions:
- Does my business make me happy?
- Do I still have the passion for seeing it succeed?
- What risks am I ready to take?
- Do I have support from my partners, investors, and creditors?
- How likely will the business turn around? How long before it does?
If you still want to see your business succeed and have weighed the risks, consider these five alternatives to closing down the business:
Failing in Business, Alternative #1 ― Adopt a New Business Model.
Business owners must identify what is working and isn’t in their current and original business model. Then management can adopt a new direction or strategy, such as selling via e-commerce instead of a brick-and-mortar store, offering different price points to suit customer budgets, etc. Consider updating or shifting business models versus a business shutdown. Here are 15 Alternative Business Models you can choose from.
Failing in Business, Alternative #2 ― Restructure the Business.
Restructuring a business involves revamping and realigning the organisational and financial aspects. New investors and partners add equity to the business, renegotiate loans with the bank and other creditors, reorganise the workforce, and streamline processes. These are some steps to do aside from an entire business shut down. Restructuring the business with additional capital and new partners can be a brand-new start. This can be a better step other than closing down the business.
Failing in Business, Alternative #3 ― Consider Temporary Closure.
A temporary business shutdown is done to prevent further losses or expenses and can last for weeks or months. During economic downturns and external shocks like the COVID-19 pandemic, a pause in the business may be a better option than fully closing down a business. When the economy rebounds and consumer confidence bounces back, depending on the industry, business owners who choose to close versus fully shutting down the business temporarily have a slight head start.
Failing in Business, Alternative #4 ― Merge with a Competitor.
Businesses and companies merge because it’s cost-effective, prompts growth, increases market share, obtains competitive advantages, etc. For these reasons alone, merging is a good alternative to a shutdown business.
Failing in Business, Alternative #5 ― Sell the Business.
If the business is not struggling financially, it can be sold as a going concern. The new owners can expect the business to operate for the next 12 months without any threat of closure. If the business is not entirely profitable, a strong customer base, major contracts or licenses, unique systems, IP, and processes are some key points that add value to the business. Business Valuation is a vital component of deciding to sell a business. Look at our Business Valuation Service and what we can offer you.
