Seven secrets to becoming a successful entrepreneur

There is no such thing as a part-time entrepreneur. Yes, it sounds like so much fun to start a business. Some people will say it means that you are free and the world is your oyster. But it is all about hard work. Sure, it can be exciting, and often there are some amazing moments, but don’t expect to get much sleep. Sleeping late is fun.

Being an entrepreneur is not constant fun. It is a full-time journey. Passion is the word you always hear when people talk of start-ups and entrepreneurial ventures. But it is not enough. Just like talent is not enough. It is all about your attitude. Selling is also a fundamental part of an entrepreneur’s journey. We are all selling, all the time. Internally and externally.

Inspiring, motivating, sharing … we love what we do, and we do what we love. It doesn’t always love us back though. And this is where character comes into it. Being an entrepreneur requires strength, and grace.

Read about the “Seven secrets to becoming a successful entrepreneur”.

Small businesses in tough times

Small businesses in tough times: There is no doubt that 2016 to date has been a year where economic downturns, interest rate increases and doom and gloom have been the watchwords.

Although all these factors will have an impact on small businesses, they don’t necessarily mean that businesses can’t grow and move forward. After all, when a business is reduced to its most basic, it is all about managing money coming into and flowing out of the business and ensuring that you understand the market you serve.

Manage your cash flow effectively and sell what people want and the results are a thriving business – despite difficult economic conditions. The most important thing to master is your business’s cash flow. Achieving a balance between “cash-in” and “cash-out” can be especially challenging if stock has to be purchased and held before it can be sold. A good example would be the clothing industry where clothing is purchased one season ahead of actual sales activity taking place.

Contrary to popular belief, the crucial time to get marketing done is when times get tough. In the age of the internet, small companies can compete equally with much larger corporates.

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What makes an entrepreneur?

Building a business is not a sprint, but a marathon, with hills, headwinds, heat and dust. The entrepreneur who succeed is not necessarily the fastest or the strongest, but one who is able to endure the ups and downs.

Find following eight suggested characteristics that make an entrepreneur resilient enough to go the distance in their business venture:

1. Possession of a strong internal sense 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.

2. Ability to diversify and expand

The more entrepreneurial type of business owner will constantly look for new markets, product lines and clients so that they have more than one income stream to fall back on.

3. Development of 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, source new opportunities and keep updated with changes in the market.

4. Attitude of a survivor, not a victim

Setbacks are a certainty for any business, and when they do strike, a resilient entrepreneur will get up, dust himself off and move 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.

5. Skill to learn from setbacks

Resilient entrepreneurs have the ability to not only focus on what went wrong, but also on how to improve themselves or their business in order to avoid a repeat of the same setback.

6. Frugal and cash-flow conscious habits

Resilient entrepreneurs tend to adopt low-key lifestyles. The frugality of resilient entrepreneurs is linked to their tendency to keep the cash flow through their business top of mind. They save and cut costs where they can, but they do so sensibly without choking the growth of their business.

7. Ability to look at the bigger picture

A resilient entrepreneur however 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.

8. 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.

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Employee fraud higher in tough times

Companies could expect more theft, fraud and corruption as cash strapped or even heavily indebted employees resorted easier to dishonesty. An unethical workforce could also undermine productivity and erode competitive advantage whilst compromising earnings. Therefore, companies should not cut back on fraud and corruption reporting mechanisms during tough economic times.

Whistleblowing has come of age and is being utilised more and more by employees who do not condone unethical behaviour being regarded as an efficient and effective means of detecting fraud and corruption in the workplace. The 2014 ACFE Report to the Nations on Occupational Fraud and Abuse, for instance, found that employees accounted for nearly 50% of all tips. It also showed that organisations with hotlines were not only much more likely to detect fraud through a tip off, but experienced fraud that was 41% less costly and detected it 50% more quickly, resulting in significant savings.

Interaction with whistleblowers is key, as the whistleblower needs to feel confident in order to make full disclosure of sensitive information. Employees don’t only make use of a toll free facility, but sometimes feel more comfortable using alternative reporting mechanisms, such as online reporting, fax, email, post or an SMS “callback” facility. Priorities should be protecting a whistleblower’s identity and ensuring that a client received accurate information.

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