Top 8 Characteristics of an Entrepreneur to Build a Startup

Characteristics of an Entrepreneur: In this article, we detail the 8 characteristics of an entrepreneur to be able to build a startup. By no means, this will be an exhaustive list. But, this article will provide a compilation of character traits to think about and develop. Along with the technical skills of being an entrepreneur, you’ll need these behavioural skills which can give you a better chance at success.

Before delving deep into the characteristics of an entrepreneur, it is key to understand the differences between a startup and entrepreneurship. If you’re thinking of creating a small business without aggressive growth, these qualities might not apply at the same intensity. The qualities of an entrepreneur explored in this article are:

• Vision
• Passion
• Self-confidence and belief
• Creativity and Problem Solving
• Risk Appetite
• Ability to Persuade and Convince
• Adapting to change and being flexible
• Working with people – Collaboration

Vision – Characteristics of an Entrepreneur

At the start of a business, you only have an idea. As an entrepreneur, your task is to build this idea into a viable business. In order to achieve this, you’ll need to create a stable business plan. Everything in a business plan starts with your vision. The plan merely indicates how you are going to achieve your vision. Start with the key questions such as

• Why are you doing this business?
• What is the ultimate gain? It can be the social impact or personal experience which embeds you to the cause. Make the vision slightly more than just about money. We’ve seen plenty of businesses fail when they run merely after money.
• Why are you committed to this?

Answering these questions will help you create a vision. The business plan is an exercise of breaking down this vision into set components of the business world. This will include market validation, identifying the capability of your product, etc.

Passion – Entrepreneur’s Qualities

One of the most important characteristics of an entrepreneur or startup founder is your passion. This passion is an indicator of how serious you are about the business idea. Most entrepreneurs start off with a brilliant idea, only to leave it midway. I strongly believe that ideas are a lot easier compared to making a business work. Your passion as an entrepreneur gives you the energy required to chase your vision. Key questions to ask about your passion are:

• Are you truly committed to this idea?
• How far are you willing to go to make this succeed?
• What are your Plan B’s if things don’t work out?

As much as people say you don’t need a plan B, please have one. It is your safety net if and when things go wrong. Startup means nothing if you’re destroying yourself in the process.

Self Confidence and Belief

This is an exceedingly important quality to be an entrepreneur. It is a challenging world out there where your business idea will be put to constant test. Some comments will make you question the validity of your idea or even your capabilities.

It is easy to give in to this circle of doubt and uncertainty. Knowing that you’d be pouring your heart and soul into this business, failure is not an option to even consider. You must find a way to keep your doubts at bay. Consciously try to build your self-belief about your capabilities to work on your business. Most of these characteristics of an entrepreneur are led by your thoughts and emotional balance. Be very careful about the type of feedback you’re allowing into your personal life. Before you decide to consider feedback, ask the following questions:

• Is there a pattern in the feedback I’m receiving? – Don’t let a single outlier destroy your thought process
• Why am I getting this response? Will it help me work on my idea and improve it further?
• Does the person giving me feedback have any prior experience to validate it?

These questions help you identify how to qualify the type of feedback you receive as an entrepreneur.

Ability to work with uncertainty

We touched upon this in the article about dealing with uncertainty in a startup. Uncertainty is one of the most common aspects of the startup world. If you want to start something new – train yourself to deal with uncertainty. Customer will not react to you the way you want them to. Product development will take more time than planned. Things will be far more expensive than you originally imagined.

Apart from this, you will also face more serious problems if the market rejects your solution. Uncertainty is one of the most important quality to develop as an entrepreneur. It not only helps you maintain your calm but also ensures that you can think objectively and reduce the impact of stress in your life.

Creativity and Problem Solving

Most entrepreneurs are rated high for their ability to solve problems and think out of the box. The business world is extremely competitive. The biggest advantage you have as an entrepreneur is your agility and the speed at which you can react. Most large companies will not be able to afford this level of agility.

Your best bet at being an entrepreneur is by honing this characteristic of being a startup founder. The best solutions come out of solving customer problems. If you are able to provide a solution and confidence that your solution will continue to add value, then you have a great chance at proving your worth. With a constant focus on creativity and problem-solving, your innovative approach becomes a key trait in the characteristics of an entrepreneur.

Risk Appetite

Risks are inherent in a startup. You cannot run a startup without risks. Your ability to take risks defines how well you can cope at being an entrepreneur. By definition, most entrepreneurs tend to have left lucrative opportunities to follow their passion. Inherently this comes with a huge risk and the necessity to make things work.

Your ability to deal with risks define how well you can push your ideas ahead. This doesn’t mean that you can turn a blind eye towards risk – that’s just foolish! Instead, identify your risks and be aware of them. Don’t let them crush you! If you’re aware of the risks, you can create mechanisms to deal with risks. Identify your biggest risks and create a plan of action. This doesn’t have to be detailed, but your preparation can help you deal with stress better.

Ability to Persuade and Convince

At the start, one of the characteristics of an entrepreneur is the ability to convey a vision and convince people. This extends from convincing investors, business partners and even suppliers to work with you. Sometimes, this quality of an entrepreneur is also referred to as the art of persuasion.

In fact, the ability to influence people ties in closely with the definitions of charismatic leadership. However, for an entrepreneur, this quality is slightly deeper. It is not just about influencing people, but also the ability to convince them with your ideas and clarity. If you are able to clearly articulate the business idea, its value proposition and uniqueness – you’re halfway through to the point of starting a business.

Adapting to change and being flexible

Change is the most common factor in any startup business. In fact, your ability to change marks the foundational strength of your startup. As an entrepreneur, your business idea is still untested in the market. It hasn’t had a proof of success yet to start scaling the business.

In such circumstances, one of the stronger characteristics of an entrepreneur is in finding out opportunities. Sometimes, this involves changing your business model or pricing. At times, this can also mean pivoting into a different area of work altogether. There are many factors which contribute to being a successful entrepreneur. Change certainly ranks amongst one of these top requirements

Working with people – Collaboration

Finally, the last characteristic quality of an entrepreneur I’d like to talk about is the ability to collaborate and work with people. This quality applies to all areas of work – whether it is a business or even employment. As a founder, you cannot do everything.

You must find good people to work with and hold on to them. Find ways to encourage them and buy them into the vision. A while ago, we talked about the type of people you need to hire for a startup. At the start, you need people who can buy into your vision and be committed to the purpose. These people help you deliver the leadership and strategy required for your vision. If you’re able to create this network of people, you’re headed in a strong position to create a startup success.

Summary: Characteristics of an Entrepreneur

In summary, these 10 characteristics of an entreprenuer provide you a guiding light about possible qualities to develop. However, this is not a comprehensive list. Each startup journey is different and so are the challenges. These qualities help you bank on a set of traits which can help you in difficult times.

Use these traits and consciously hone them. These skills get better with use and time. Make sure that you create adequate opportunities to flourish. Please leave your comments below, I’m very eager to know your views about entrepreneurship and the challenges you’re currently heading through.