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How to Build A Successful Business?

Starting a business and becoming successful is often part of the American Dream. But there is a difference between starting a business and building a successful business. Many businesses fail within the first few years of existence due to the lack of planning for the long-term. There is not enough vision and there is not enough done to strengthen the business properly from the ground up.

what it takes to be a successful entrepreneur

If you want to start a business there is an easy way to get a better understanding of why some businesses fail and others don’t. When starting a business think about it similar to building a house. If done right it is protecting you against any kind of storm or danger of the outside world and will last for a long time. It offers shelter and protection. For you and your business that could be translated to that you want to have a business that is able to weather economical ups and downs (=storm) and that will provide income to pay the bills (shelter and protection).

Qualities Of A Good Entrepreneur

When building a house there are several different steps you need to follow to have the house build. You know you want a house, but you got to pick a location and get an architect to plan everything out. In the business world that would be: you know you want to start a business, but you have to come up with a business idea and work out a business plan. The next thing for the house would be to build the foundation (and eventually the basement) for the house. In the business world – you got to build the initial infrastructure (example: connecting with vendors, find a manufacturer for your product, create a sales team, rent office space, get a delivery truck, etc.). Once that is in place you able to actually do business and earn some money. But you are not completely done yet. You need to build a frame, put in windows and you also need a roof on house. For your business this means that you pay off debt, improve business processes and get professional help when needed (example: find a tax accountant, select a payroll service, etc.).

List Of Successful Entrepreneurs

Once the house is build you probably want to fill it with furniture and make it livable for the future. Nobody wants to sleep on the floor, right. Again translating this to the business world it could mean that you invest money you earned back into your business. You buy machinery instead of leasing it. Eventually you buy a building, hire more staff, develop more products, move into new markets, build up a high cash reserve, and buy other businesses and so forth. This is often the step where winners and losers separate. Re-investing money into the business is a key factor for success. If you go and spend all the money on your own salary to buy things you have nothing to go back to when the economy slips into a recession or if disaster strikes.

Most Important Characteristics Of An Entrepreneur

The successful business owner has build up a cash reserve or can borrow money from bank – securing loans with the assets of the business. Going back to building a house this pretty much matches the same efforts. You pay off your mortgage and have equity available to eventually borrow against when emergency arises. Emergencies do not include paying off credit cards to use them again or to buy a car. Financially responsible you should be looking at the long term and not finance short-term goods with long-term debt.

Entrepreneur Names

It is a well-understood axiom of the business world that there are two ways to improve the bottom line of the business. Stated simply, those two ways are to make money or to cut costs. Now no business can cost cut their way to profitability. But by the same token, waste and excessive internal costs for any business can eat away any profits that business is enjoying. So to get ahead in a competitive business environment, both methods must be employed.
When a business turns its eye to cost cutting, there is a stated or unstated business objective that the business owners will discover significant bleeding of revenues that are going on within the systems of doing business. So if those systems can be improved to eliminate that waste, the business would literally make money from the inside out because the overhead of the business would drop so dramatically.
The usual progress of such a cost saving campaign by a business is to find “the low hanging fruit” first. By that we mean that in order to satisfy the demands of management, middle management will identify superficial savings in hopes of satisfying the requirement. Hence switching from disposable cups to mugs or cutting back on break room amenities often go on the chopping block first.
Sadly, while there may be some superficial savings to be found in such places, the significant introduction of efficiencies for any business lie at a deeper level and take a more in-depth process of locating problems with how things get done internally. The methodology of finding these “money pits” within a business is often called “Process Improvement.” The concept of process improvement is to diagram a particular business process from inception to completion and document the stages it goes through, the handing over of authority for the process and to pin point places where inefficient methods are causing excessive cost in executing that process en route to the final stage of process completion.
Routinely, the areas of business structure that most often identified as being candidates for a process improvement examination are…
* Excessive overhead between departments. Departments within a business are notorious for taking on the atmosphere of a fiefdom and becoming resistant if not suspicious of other departments in the same company. When that happens, department managers will introduce paperwork and unnecessary processing to cause “work” to move to his or her department from another or for completed jobs to continue along their path. This excessive overhead can be costly at the department level and bog down the business as a unit enough to actually reduce the profitability of the organization.
* Communication problems. A business process moves through the organization as each department or entity adds value to the process through to the completion of the job. However if communications between departments or people along the process chain are flawed, a process can grind to a halt and wait for hours if not days before the missed communication is discovered and the work is put into the cycle to be completed. This slow down or break down in communications can be a tremendous drain on the company. To correct the problem, modern tools of communication should be reviewed so each significant person along the chain is quickly made aware of work that needs to be done and can signal to the next agent that their step is complete and that the process is moving to the next stage.
* An inefficient IT infrastructure. Out of date computer programs that are not integrated with each other cause needless work to be done to take data from one system and moving it into the next computer program only to be entered again at the next stop along the chain. Standardization and integration of data and systems will introduce huge efficiencies to the process.
By streamlining the process of moving a business requirement from inception to conclusion, we can remove much of the inefficiency and waste that has become inherent to that process. We can introduce up to date integration designs both at the IT and process level to quickly move the process from one department to the next upon completion. The outcome is a streamlined organization that is no longer “bleeding money” due to inefficiencies and as such is making money “from the inside out”.
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List Of Successful Entrepreneurs

My husband and I work together on cutting wood for our heat source for the winter months. I enjoy helping him as much as he enjoys the help. I am an entrepreneur and he is a man who enjoys the comforts of a 9 to 5 job. Both of us take pleasure in being out doors in nature. It may be the only thing we have been on the same page about during our 20+ years of marriage.

One particularly nice morning my husband asked me to go into the woods to collect the logs he just finished cutting. I joyfully agreed but when I got out there he was already returning to the house to tune up his chain saw. "No problem", I thought, "I'll just keep busy until he comes back."

As I looked around the parameter of the forest I couldn't see the log he said he had cut up. Going deeper into the thicket of tall brier's and spindly trees, my clothes were being pulled and torn, thorns were cutting my shins and my unhealed broken ankle began to throb from stepping into holes.

I eventually found the log he had cut up and looked around for a better path to get back to the road. "Surely he cut one for me." I thought. "We just discussed this yesterday. Does he really expect me to lug this hard wood such a distance with a hurt foot and without a path?" Within seconds of looking around it became obvious there was no path to get back to the road besides the trail I had just made.

By the time I had taken out two arm loads of wood, I felt beat up, my skin was torn up and I was totally focused on my husbands lack of consideration. "This is how he does everything!" I exclaimed exasperated. "He needs to understand that the way you do anything is the way you'll do everything and this is why we're never on the same page!"

By the time he returned I had spewed all the negative thoughts in to the wind and I couldn't speak. I no longer wanted to lay into him because I knew my thoughts had shifted to an epiphany. I realized the truth. In the years I've wanted him to be involved in my business, I had never once made a clear path for him either. I want him to enjoy helping me in my business, but I have never actually shown him the possibilities of how it could be done. How would he know what the joys or pitfalls could be unless I cut a clear path for him to?

I used this wood cutting experience because as entrepreneurs its important that we allow our spouses paths to be easier to journey through. If you desire to be on the same page then ask yourself one simple question: If I could cut a path for my spouse to understand my work, what would that path look like? If you really give this some thought I think you will find ideas you've never thought about before.

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Entrepreneur Qualities And Characteristics

Are you intrigued by the possibility of being your own boss and starting a business but not sure you have the right qualifications to be an entrepreneur? What are the characteristics of an entrepreneur? Although there is no single perfect entrepreneurial profile, there are many characteristics that show up repeatedly in successful business owners.

Following are the top 10 essential entrepreneurial traits that anyone who is interested in starting a business must possess:

    (1) Independence - This is the most common denominator of all entrepreneurs. They want to seize control of their future; thus they decide to become their own boss instead of laboring under the gaze of a master. (2) Persistence and Determination - The world of entrepreneurship is fraught with both success and failure. An important quality of a successful entrepreneur is the doggedness to continue pursuing a goal despite some setbacks and obstacles they may encounter on the road. This persistence and determination is fueled by a burning desire to achieve the goal of succeeding in the chosen field of business. (3) Self-Confidence - Along with independence, an entrepreneur possesses self-confidence. They believe in their capabilities and makes sure that they will put in their best effort into their particular endeavors and likewise expect the best results from it. Belief in one's capabilities is very important in achieving any goal - especially in the world of entrepreneurship. (4) Creativity - In the business world, you can not afford to be complacent and uncreative unless you want the competition to move up on ahead of you. Creative people are naturally curious, inquisitive, bright and highly flexible when thinking. They keenly observe their environment and have an eye for spotting new trends that could spark a business opportunity. (5) Organized and goal-oriented - An entrepreneur knows the value of organization in a business endeavor. A good entrepreneur has the ability to consolidate resources. (6) Visionary - An entrepreneur has a vision for his/her future. (7) Risk-taking and Tolerance for Failure - A good entrepreneur realizes that loss and failure are inherent in any business endeavor. Thus, an entrepreneur must always be ready to make calculated risks and face whatever consequences accompany those risks. As in all fields of endeavor, the characteristic of a successful entrepreneur is in never giving up and in picking up the pieces and continuing the journey even if failure momentarily obstructs the way. (8) Perseverance and Hard Work - These are perhaps two of the most important entrepreneurial traits. (9) Commitment - An entrepreneur will not achieve success if he/she gives up at the first sign of trouble. (10) Honesty and Honor - Another very important mark of a good entrepreneur is being honest and honorable in all business dealings and interpersonal relationships - whether it is between business partners, employees, peers or investors.

If you possess these traits, you may have the necessary skill set to become a successful entrepreneur.

Qualities Of Entrepreneur With Examples