Building your own business is not a sprint, but a marathon, with hills, headwinds, heat and dust. Those who succeed are not necessarily the fastest or the strongest. The successful ones are those who are able to endure.
Many have been the entrepreneurs who have set out on their own business marathons and there are nine characteristics that make some of them resilient enough to go the distance:
- They possess a strong internal locus of control:
Resilient entrepreneurs are disciplined individuals whose working hours, pace, workload and output are not controlled by something imposed upon them from the outside, such as an employment contract, peer pressure, a boss or the clock on the wall.
They set their own standards and targets, and they set them high. The “boss” who makes sure that they get the job done is their own psyche, and more often than not, it is a very demanding boss.
- They tend to diversify and expand:
Single-outlet, single-product and single-client businesses are vulnerable to setbacks. The loss of an important contract, the opening up of a competitor across the road, or the sudden flooding of the market with a cheap competing product can be fatal.
In contrast, the more entrepreneurial type of business owner who constantly looks for new markets, product lines and clients usually has more than one income stream to fall back on when misfortune strikes.
- They have strong social connections
Resilient entrepreneurs constantly cultivate their networks of clients, suppliers, peers, friends and family, not only to promote their business and to support them emotionally, but also to learn, to keep in touch with changes in the market, and to find new opportunities.
- They see themselves as survivors, not victims
Setbacks are a certainty for any business, and when they strike, the resilient entrepreneur gets up, dusts himself off and moves forward. They have little time for self-pity, and while they may be quick to apportion blame, the focus is on the action needed to get going again.
- They learn from setbacks
Like everyone else, resilient entrepreneurs do their best to avoid setbacks, but when they come, they tend to handle them with an unusually open mind. If any time is spent ruminating on the plan that didn’t work out, their thoughts would revolve around what in their business-and in themselves-needs to improve in order to avoid a repeat.
Also, the new set of circumstances following a setback is viewed entrepreneurially-what new business opportunities does it present? Is this a chance to change direction and find new markets and income streams?
- They are frugal
Flashy high-flyers usually don’t last long in the world of owner-managed businesses. Resilient entrepreneurs tend to adopt low-key lifestyles. They save and cut costs where they can, but they do so sensibly without choking the growth of their business.
- They are cash-flow conscious
The frugality of resilient entrepreneurs is linked to their tendency to keep the cash flow through their business top of mind. They are no bean counters, but they are aware of who owes them money, when they can expect it to come in, how much they owe and to whom and how far they are off their break-even sales target.
- They see the big picture
It is easy for anyone running a business to get lost and overwhelmed by the sheer volume of information, systems, tasks and crises that shout out for the attention of the business owner. And when a setback strikes, the close focus of the entrepreneur on the immediate crisis can make it seem bigger than it really is.
In contrast, a resilient entrepreneur has the ability to see the bigger picture amid all the chaos of running a business. They have a clear picture of where the business will be in a year’s time, or even three, five or ten years’ time. It helps them to prioritise, to keep the ship sailing in more or less the right direction, and also to remain emotionally resilient against temporary setbacks.
- They pay attention to detail
Paradoxically, entrepreneurs who survive also have the ability to focus on the minutiae of the day-to-day running of the business, even as they keep a constant eye on their long-term goal. They check and recheck prices, costing, supplier arrangements, contracts, insurance premiums, staff performance, production systems and all of innumerable things that could stand in the way of reaching the finish line. n
Fosters Kalaile is country manager for Business Partners International