What type of Entrepreneur are you?

Every person, whether he or she is an entrepreneur or wants to become one, idolizes someone in life. That role model we revere has a great part to play in our way of life, the way we carry out our businesses, and the way we see everything in life. We may mimic him or her in all regards. Fashion ourselves, brand our businesses, and follow everything that they do. But still, we are different. Each entrepreneur is different. Simply put, we can only idolize someone but are never 100% the same. Entrepreneurs come in all shapes, sizes, and styles, with different traits, different strengths, different skills, backgrounds, different sets of resources, and different goals. However, the one unique thing that entrepreneurs possess is their urge to create something out of nothing, be their own boss, and live life on their own terms. Different types of entrepreneurs lead their businesses in different ways. But most entrepreneurs go through similar struggles when it comes to finances, marketing, people, and managing themselves. Each has his or her own way of handling situations. You must be curious about knowing what type of entrepreneur are you. Whether you are the daredevil Branson type, or you are of the Steve Jobs or Jack Ma type, maybe the socially awkward Zuckerberg type or the flamboyant Elon Musk type? Could be more of a philanthropist Tata type, capitalist Adani type, or a mix of all these types? Knowing about yourself gives a clearer picture of how far you are in your journey. So let’s delve into the distinct types of entrepreneurs based on the work initiation in a business environment. Let’s determine where you belong.

The Innovators

These are the entrepreneurs who revolutionize. I mean, they come up with completely new ideas that altogether change our perception of products and services around. They turn their ideas into viable businesses. Innovators are the extremely passionate kind, or more so, they are obsessive about their ideas. They find new ways of doing things in everything that they do, design or produce. This makes them different from the crowd, even creating a new crowd. The first name that comes to mind when thinking of innovators is Steve Jobs who created Apple. This company remains an innovator type company even after Jobs. They surprise us with their products all the time. Microsoft’s Gates and Google’s Page are also the stand-out types. These innovators transformed our world. We cannot think of our lives without Google or Microsoft and a bite of Apple a day. So, if you are the innovator kind, it’s the customers’ good luck to have you around. Of course, innovating is tough. You may have to take all the bullets but you also get all the glory for being the first of your kind. You may need lots of capital to build your business but your monopoly stays around (for a long time). Ready to get your name on the innovators' list then?

The Imitators

Everyone cannot be an innovator. But there is no restriction to being an imitator. Imitating a successfully running business in a new pack is also an art. The world may refer to these as ‘copy cats’ but I keep them in high regard. In fact, if you see, the majority of the businesses are copied-cats with a hat. I used the term hat because they bring something new to the primary business. It’s great and it works great in the market. We have choices of the same products from different brands only because of the copycats. As customers, we can bargain because we have choices. So ‘copycats’ is not something disparaging. It has its own worth. They put in great effort to observe the existing businesses, identify the deficiencies and replicate them to give a better solution. They improve the existing product or production process and enhance the attributes for customers. Don’t we enjoy it when we have Ajanta and Ashoka Shoes along with Bata and Crocs? We relish the Domino’s Pizza and the Pizza Hut offering as well. So trust me, if you are an imitator type, you are doing a great service. One best thing about being imitators is that refining your business idea becomes easier and less stressful. Plus, you can always learn and avoid making mistakes that the original makers made.

The Bootstrapper or Hard-worker Entrepreneur

These are the entrepreneurs who work hard. They are self-starters motivated by their dreams and vision. They may have tight purse strings but never fear risking the money they have into something they see an opportunity in. They start small but dream big and make it big. They dare to enter into highly-leveraged businesses. They can sell anything. Must have heard about Ray Croc, the man known for expanding Mc Donald’s into a global name from a mere local restaurant run by the McDonald brothers. Croc saw an opportunity in the business and created the restaurant’s operating system. He chose the unique path of persuading franchisees and suppliers to buy into his vision. And the result is what we see today, the Golden Yellow arches everywhere! OYO Rooms is another example of hard-worker or bootstrapping venture. Ritesh Agarwal, the man behind creating this multinational room aggregator business, persuaded hotels and inns to put his brand’s name on all booking services. It made him one of the youngest billionaires in the world today. Hard-worker types are thus action-oriented and always prepared. So if you are the type who senses the importance of small things and has the vision to make those effective and efficient, be proud. You are here to change the way businesses operate.

The Financers or the Money Magnets

The Financers are the richer guys. They have deep pockets and they buy promising businesses. If they find any business viable, they never waste time thinking. Instead, they pour in their money, acquire it and find the most suitable person to run it. They enter into businesses that are in existence. The advantage is that they don’t have to worry about innovation. Technically speaking, financiers are investors in a business. Some may not consider them entrepreneurs, but I believe financiers are the type of entrepreneurs who are into businesses through their investments. They study businesses to invest in. Warren Buffet is a financier entrepreneur whose company Berkshire Hathaway Inc. has investments in companies like HP, American Express, and many more. So if you are the money magnate like Paris Hilton type, born with a silver spoon in your mouth, you can be the financier entrepreneur. People with great businesses and ideas but less money need you around.

The Researchers

Researcher entrepreneurs are meticulous planners. They take time to decide because they believe in gathering all relevant information before putting their idea into full action. Failure is not an option for them as they believe they have analyzed and tested the idea several times. They rely on facts and figures more than their intuition and instinct. The drawback is that they fall victim to information overload. However, they possess the capability to direct the environment by creating demand for their products. Larry Ellision, Co-founder of Oracle is a researcher entrepreneur. Believe me, it takes hard research to earn such popularity as Oracle has in cloud-powered AI and machine learning. But it’s worth it. So, if you are somebody who has a keen sight for analysis and has the guts to turn your tests into products or services, you surely belong to this club.

The Fabian or the Wantrapreneur

As Seth Godin (author and entrepreneur) puts it, ‘the only thing worse than starting something and failing is not starting something!'. Wantapreneurs are of the second type. They have plenty of ideas in their heads yet fail to put them in force. Fabians are slightly different. They are not prone to sudden decisions and shy away from any innovation. These kinds of entrepreneurs vanish in due time. Kodak Films does not need any introduction, I guess. It was one of the top-notch companies at one point in time. But they failed to visualize the future of cameras, and hence failed to innovate. They didn’t adopt modern technologies nor did they make any notable modifications to their product line. The result is what we all see today. Nowhere is Kodak in the digital camera space. Panasonic also tasted the same fate. There is a reason why I put Fabian and Wantapreneurs in the same bracket. They only think but fail to act; they fail to decide. So if you have dozens of business ideas in your head, dare start one at least. I know you don’t want to put yourself on this list.

Now that you read this blog, you must have figured out the type of entrepreneur you are or the closest you belong. You must have recognized your possibilities and strengths. Once you know, it becomes easier to be in business and work for growth. Remember, success is not a miracle that happens overnight but a journey that continues throughout. The clearer the picture is, the smoother the journey. Keep going till you become somebody’s icon someday.

Why your new business doesn’t have customers yet?

Source: Dreamstime.com

No customers mean no business being in business. Individuals running businesses, big or small, know this well. They fret dry days without customer footfalls and visitors to their websites. It's true equally for products and service providers. In a highly competitive marketplace, some businesses face customer dearth in the beginning. This is mostly the case in online selling. But why is it difficult to find a niche base in a world full of people, people, and people? Why is it so that your business does not have customers yet but your competitor attracts many?

It is important to find the answers to these questions before the market compels you to pack your bags and say goodbye. Please remember that you came into the business to do business not to be out. So let’s find the reasons for such shortfalls and discuss the ways to get customers and grow our businesses.

The first issue new businesses face is their failure to identify customers and their problems.

It’s true that there is no dearth of people. But the problem is finding people who can become customers. Not everybody is a customer. For example, a healthy individual is not a customer for the doctor. A diabetic person is not a customer for a psychologist. Doctors are in business because there are patients with particular ailments. The same is with other businesses. For people to become customers, they need to have problems. Only when there is a problem, will they seek a solution. So, new businesses need to properly identify the problem that people face and for which they seek solutions. This way, you will have an idea about the type of product you can offer to people who can become your customers. Once you determine this, research your competitors. See what solutions are they providing. Try giving a smarter solution than your competitors. If you ask me why Maruti Suzuki is the largest car company in India year-on-year (with around 51.2% market share in 2022), I would say, they know who their customers are, and what problems they seek solutions for.

The second issue is the failure to differentiate between customer wants and demands.

New businesses must know that there is a difference between wants and demands. Wants are wishes that are influenced by factors such as society, culture, values, and individual personality. Wants reflect the desired preferences for specific ways of satisfying our needs. A person is thirsty but wants something sweet. So he would choose Coca-Cola or maybe Sprite over water. On the other hand, an individual may want to have a Louis Vuitton handbag but lacks the ability to buy it. Want is a desire for benefits but are optional, i.e. it’s not necessary. Only when wants are backed by the ability to purchase, it can be termed demand. Without demand nothing sells. Hence, new businesses must be in a position to identify the demands. Let me give an example of how Colgate has been able to convert the wants of the people into demand. There is no denying the fact that Colgate has been dominating the oral care market in India for a long time. Its target customers are the middle class and lower class. With different brands offering solutions for oral care, Colgate has seen a slight dip in its share. But it has emphasized its oral care solution keeping in mind the price sensitiveness of its consumers. Therefore, a 13-gram pack of Colgate is also available on shelves. Colgate has remained a leader as it has offered a product that even the low-income group consumer can afford to buy without compromising their oral health.

The third reason why the new business does not have customers is that they fail to reach them.

Communication is important to reach the targeted audience. Businesses fail to garner customers because their marketing techniques fail. Consumers should have knowledge of a product that can solve their problems. They should know what the product or service is all about in order to make any buying decision. Your target audience needs to know why they should choose you over your competitors. If we go back to the Colgate example, TV commercials are the main way of communicating the product to the customers. It helps to penetrate the larger customer base in India. You won't see any Louis Vuitton ads on television in India. What if Louis Vuitton starts marketing itself on primary Indian channels through advertisements. I wonder if the costs incurred would fructify into any leads. See here, the target market for the company is the wealthy middle-aged women. These consumers have the need to feel prestige wearing or carrying it. The masses don’t. So it adheres to premium advertising policy in fashion magazines.

The point to be made here is that new businesses must strategize on the marketing part. Picking up the proper marketing technique is crucial to making an impact on the minds of the customers. It may be anything like Instagram, Facebook, Pinterest, TV commercials, banners, newspaper ads, or organic ways like word-of-mouth. Choose properly so that the message reaches the intended customer. Remember that customers are king and they decide whether you play the game for long or go back to the pavillion.

How Important is Focus and Thinking for Success in Business

Good focus and clear thinking are ingredients of success in business. Our focus determines our thinking, and our thinking determines our decisions. The greater our focus, the clearer is our thoughts, and the better our decisions. Why only business, focus is necessary for our everyday lives as well. The quality of our thinking determines the quality of our life. So it’s almost a black and white thing. If you can focus well, you succeed, and if you cannot, you fail.

In this era of digital revolution, we are bombarded with a hell lot of information; information from all sides and quarters of life overpowers our minds. No escape, technology is both a boon and curse. These days, we see a lot of young people of our generation becoming obsessed with technology. They, literally, cannot stop staring at the mobile screens and fiddling with its buttons. It may sound absurd, but this is also stopping us from focussing. Simply put, we hardly focus, and rarely think, nowadays.

But do you know, how important is focus to think clearly? Focus means the centre of our interest or activity. Focus is the state of producing clear visuals. So unless we know what is our centre, how do we visualize success? In business, decisions regarding men, money, meetings, products, etc. are activities that entrepreneurs need to engage themselves with. These are or should be the centre of interest. Our decisions determine success and its rate. Business decisions are not something to take in the blink of an eye. Many great businesses rose and fell, and many others got immortalized based on business decisions that entrepreneurs took.

So focus is extremely important to make good business decisions. Focus is necessary to eliminate information overload. It transforms negative thinking into positive action. There are various ways to practice focus. The yogic way, the Zumba way, etc. etc. There are different ways, tricks and games that help to focus. This article is not about how to focus. Maybe we shall try discussing it in our next articles. Today, we will simply talk about the importance of focus and thinking in business.

Let’s consider that our focus is on having the best workers for our factory. The number one rule for success in business is to cut the losses when you realize it. Bad investment, bad hire, bad relationship; cut these losses. The faster you cut your losses, the faster you grow. Now that you know that your focus is on people, people and people, it’s always necessary to think about the consequences. What consequences hiring or firing workers can have? If the consequences are big, it’s always better to take time to think. Hiring an important person for an important position can have tremendous potential consequences. It determines the future of your business, and not to mention, a great amount of salary too to the new employee. The issue is big as the focus is big, i.e. a better workforce. The longer you take to make the decision, the better the decision will be. Now take the opposite scenario. Suppose, you know your accountant is not being honest at his work. And you have to take the call. When it comes to firing, it’s been said that the best time to fire a person is the first time it crosses your mind. The longer they stay, the more it’s going to cost you. In this case, you need to think quick. You know what’s your focus, right. All that matter is the honesty in your business transactions. You just need a replacement. The consequences are small. Probably, you have to deal with a few days of bookkeeping issues till your new accountant is on the rolls. But it will spare you financial and mental suffering. Fast thinking is intuitive, automatic, and reactionary. Management experts say that fast (people) decisions are invariably wrong (people) decisions. But I believe, it’s not always so, especially when you focus well.

Now let’s say you want to expand your product or services line. What do you need to do? Where should your centre of activity revolve around? Is it that you need to do some research, innovate, or invest in technology to improve production. Anything else? Just think, take time, and see the pros and cons. Greater focus on each of these individual aspects helps you think clearly about the choice you need to make. When you focus you visualize the solution. If you find that your focus is technology, you automatically start thinking of ways to get the technology you require. With companies that use technology, especially knowledge-based, internet-based, etc., chances are your model is obsolete. Companies that profit is quick to change their business model. It does not mean that the model is wrong but one should be open to the possibility that the model is obsolete and sticking with it may result in bigger consequences. Competitors may eat away the market share. Keeping your focus area in mind helps to act in a timely manner. You have to make sure that you stay true to focus, something like laser focus, to materialise great things. Focus on what truly matters. Focus is the gateway to all the thinking. As you focus, you think and when you think, you foresee the consequences. And when the consequences are considered, you make wise decisions. Not to mention, wise decisions help create great businesses.

Tenacity, an Entrepreneurial Attitude

 

Giving up is so easy, isn’t it? It does not take much time. Only fools keep wasting time and energy on something that is not materializing, right. If that is so, then, all successful people in this world are fools. Every successful businessman is insane. Gates, Steinbrenner, Disney, and even Steve Jobs, all were crazy heads. Every known innovator is stupid enough to ruin his entire life in a closed laboratory. Edison, Einstein, Curie, all were insane.

Each one of these people failed at least once in their attempts. Some failed 100 times or even 1000 times. But can we deny that their names remain etched in our minds when we talk of success and successful people in the world? What if they had given up on their dream projects? What if, they did not show the tenacity to continue their passion in spite of failure and ridicule? It’s scary even to think that we would not have electric bulbs, Microsoft, Disney, Apple then.

You know, why did all these people succeed in spite of failures and their part of struggles? It’s because they did not give up. It’s because their visualization was so strong that others could not see what they saw. It’s because they knew they can; it's due to their tenacity to keep on doing things, though small, with dedication and belief. It’s because they were true innovators and entrepreneurs who could think much ahead of their times. It’s because of the attitude of people like Edison, “I didn’t fail 1,000 times. I found 1000 ways of how not to make a light bulb”.

How many of us have succeeded in what we tried in the first attempt? Not many, right. This proves that success is not an easy sweet. It cannot be attained in one day. There are exceptions where people become successful easily. But when it comes to running a business or any other tough task, it takes a lot of patience and needs many attempts. And to remain glued to the task, one requires the attitude to never give up. Now, this is called tenacity. When it comes to business, tenacity is very important. It is not a skill but a trait and it goes hand in hand with various other traits in successful people. Not to mistake it, tenacity is not burning out oneself completely. It simply means the quality or fact of being very determined. That is persistence.

The Tenacious e-commerce seller

It’s not about raising your hands to give up. It’s about remaining unfazed during each episode of failure. This is usually among people who are focussed on their major goal, and who love what they do. Let’s understand it with an example. So here there is a new seller on those eCommerce sites. He opened his account, completed all the business-related formalities, and listed all his products very well. Now he is waiting for his orders online with the hope that he will sell all his inventories within a week or so. One week goes by, the second week goes by, the third, fourth, and even the fifth has gone. Still, he did not receive a single order. He started with the incredible hope that he will see great profit in a week. He had heard people saying so about eCommerce. In reality, this happens to a few.

So what most entrepreneurs would do? They would rather give up saying, eCommerce is not for them. But our hero did not. He decided to stick with it. He tried to understand why did not receive any orders. What does he need to do now to drive traffic to his listing? He tried reaching the root cause of the issue. He found out that his sales did not materialize because his products did not rise up in the customers’ search results. That he needs to find out great keywords to describe his products and that he needs to do some search engine optimization now. He is not a computer engineer of course. But he did not give up. He hired somebody who would help him in this task while he did the rest of the things. He is enjoying the process and he is optimistic that the issues will get resolved. So it did in a few days’ time.

So what did we learn from this? That tenacity is about telling oneself that you are in love with your work. You are passionate about your job and that you will overcome all obstacles. Our hero did not leave his night’s sleep or become frustrated. But he dealt with every issue with patience and sense. It did not matter to him that he did not sell any product for weeks. He knew that if he resolves the issues, things may work out. He remained optimistic.

How to keep your tenacity levels high

Tenacity revolves around your love for something. So it is important to find out what you love. Remember, anything you are curious about or you love doing becomes an enjoyable process. You do not have to struggle to keep yourself going!

When one thing does not work, keep looking out for an alternative way of doing it. If you are serious about something, you will always find a way. That is why it is being said, ‘where there is a will, there is a way!’. If your goals are too big, break them and set micro tasks where you might only need some micro-level tenacity. Soon micro-level tenacity will turn into macro one. So if you want to know you are tenacious enough to build a business, ask yourself whether you are passionate about the idea you have picked up. Let the world discourage you, and be against you. If you believe in your idea, give a huge smile and say, I can. Just keep visualizing your final goal and keep working. You will succeed.

Four Important Milestones in Entrepreneurship: Launching a Business and Growing it

Ever wondered why half of the new businesses fail. What causes many businesses to bring shutters down just after launch? Of course, there are things that might go against it. Sometimes it’s the market volatility, sometimes it’s due to some unforeseen calamities like the coronavirus epidemic. Some businesses fail due to poor timing of the launch. There can be a slew of reasons that are outside our control. Even when things are in control, the majority of small businesses fail. This is because launching a business and growing it are two different things. Launching, I would say is far simpler. It is like kick-starting your bike to go on a journey to a destination. Scaling or growing is difficult. There are many milestones that entrepreneurs should reach to continue journeying.

Businesses need to be looked at from a practical perspective rather than a theoretical one. Like I had said in my earlier blog, in entrepreneurship, every day is a new day and new learning. Hitting a new milestone every day or every few months is very crucial in growing a business. You need to look into growing your network of clients, work on the scaling of operations, marketing your company and its products, acquire more funds, etc. It is now converting your business into a profitable model. You must work upon your milestones now. There are a few entrepreneurial milestones that every new business must look forward to achieving to successfully converge into growth.

Milestone 1: Work on a creating a profitable business model

What regular textbooks teach is that entrepreneurs should find answers to these questions: What is it that your client requires? How would you give that value to your client at the right cost? And finally, why do you want to be in this business? Till you know your clients' needs, how would you give them what they need? And these would determine your 'why'. 'Why' is not about profit but why means your purpose. What’s your cause, your belief? Why does your organization exist? This is the outside-in approach. Most businesses work on this model of growing a business. I would not say that this is flawed. It may work, it may not. But if you ever happen to observe successful companies on earth, they work inside out. They ask why, how, and what.

Why do you think Apple is so successful? Why do you think Apple is more innovative? Year after year after year, they are more innovative than all their competitors. Why is it that they seem to have something different? They are like every other computer company, yet they are market leaders. So what is Apple’s business model? Apple communicates like this: Everything we do, we believe in changing the status quo, we believe in thinking differently (why). The way we change the status quo is by making our products beautifully designed, simple to use, and user-friendly (how). We just happen to make great computers (what) Would you like to buy one? And that’s why not only computers but everything they make gets sold. That’s why they make profits. People don’t buy what you do, people buy why you do it. So the message to my entrepreneur friends is, 'work on creating a profitable business model that answers inside out'. Your goal is not just to sell to people who need what you have, the goal is to sell to people who believe what you believe. This is what will make your business profitable.

Milestone 2: Work on bringing the right kind of people around

When you first launched your business, it may be that you started out all alone. You were one in all managing everything like a superhero. But now that you want to grow, your next milestone must be to grow your network of partners. You may now need to build networks with individuals and organizations that relate to your business. This means you need to work with your suppliers, your product wholesalers, and retailers. Start networking to find out the right people that will feed your business uninterrupted.

Milestone 3: Work upon growing your operations

Once your business starts showing signs of growth in sales, you might need to expand upon your operations. You need to fine-tune production processes to ensure quality, hold down the costs of materials and labor, and cut costs that don’t add value to the finished product. You also need to build a good workforce. Let us get back to the earlier milestone, to explain why you need to start with why. Because your goal is not just to hire people who need a job, it’s to hire people who believe what you believe. If you hire people just because they can do a job, they will work for your money, but if you hire people who believe what you believe, they will work for you with blood and sweat, and tears. So start finding people who understand your purpose, your mission, and your goal. Get in place managers who are experts in marketing, fundraising, operations management, sales, etc. Surrounding yourself with the right workforce; the right kind of people will help you grow your business. Ours is a competitive business world. Hence you need to stay ahead in terms of technology too. Invest in technologies and software that can help your business run more effectively.

Milestone 4: Secure your authority in the industry

Now, that you have placed everything in place, it’s obvious that things are working in your favor. You have started reaping profit in terms of growth of sales. Your next target should be to become a leader in your area of work. Let yourself be known in the industry. Create the type of content that your industry requires and publicize your business. Arrange local events or be a part of local events that allow you to showcase the expertise you have in your business. Become a member of the groups that have a hold on the market. Engage with the leaders to become one among them.

Entrepreneurship is a journey, a process. As you grow, you will become a confident and astute business person. Your business can be one among the list of top-performing businesses in the world. Keep setting milestones in your journey and keep trying to achieve those with sheer focus and determination. Keep growing!