How to be an Efficient Business Owner
Whether or not entrepreneurial spirit is innate or created, one that’s for sure is that many proud and productive business owner share similar characteristics. As a heads up, investors know what those characteristics are and they adamantly search for them while they analyze your business plan. If you don’t display those abilities in the business proposal to your lenders, your idea will be stomped out before it has a chance to take flight. Furthermore, if you are able to display those important traits, you should find investors chomping at the bit to get a piece of the action.
What are those key traits? We’ve compiled a few below:
Taking opportune risks
If you’re highly against taking any risks, it doesn’t reflect well onto your determination for success as a business owner. In general, launching a start-up business can be opening yourself up for failure. Taking on the endeavor of building a business from the ground up usually requires that you take a shot in the dark and hope that things level out. This move holds some sense of fear by needing to pull out funds from your own savings account instead of adding to them — all for a chance at being a successful entrepreneur. Additionally, researchers agree that this shows a qualifying entrepreneurial spirit and a recent study, from the University of Cambridge, shows that entrepreneurs harbor a desire to make decisions that may put them in iffy situations that also give them the chance to take advantage of previously unseen opportunities.
Whether you’re afraid to take risks or not, believing in yourself and in your own ideas are of the utmost importance. Investors truly enjoy seeing the fact that any individual entrepreneur invested their own funds into their business idea. It shows the entrepreneur’s confidence in their product or service and shows investors that they won’t back down when the business gets in a pinch. Additionally, business owners that show confidence in their business plan are better equipped to present it. When any salesperson is personally confident in the product or services, it instinctively displays to clients or investors. As Mike Jones, the former CEO of Myspace, states accurately, “When you invest in someone with confidence, you're investing in someone who can typically get investors on her side and sell her vision to the staff. Importantly, that entrepreneur will likely also have a better chance of selling the business to a buyer in the future.”
A sturdy network
According to TalkSession CEO and founder Melissa Thompson, the “ultimate asset” of a business is a sturdy network, “It is the innate power of a good founder's network that will turn napkins into products and products into successful businesses.” Networks are fantastic resources for mostly everything any company requires to begin. The more networking contacts you have the better and many can help spread the word about your business, put you in touch with reliable finance sources, or can even become helpful in assisting your endeavor. Networking contacts can also give you suggestions for your business or they can simply act as a source of support when situations force you to roll with the punches. With an established support system in place, the difficulty of creating your company can be a world of difference.
Be open minded
If you are completely incapable of receiving negative feedback and processing it into constructive criticism in order to adapt your business, then it’s possible that your business might be headed for a rocky road. Having an open mind is one of the many characteristics that are crucial when creating a start-up that’s headed places. All the feedback that you receive, whether it’s from customers or knowledgeable business experts, provide a plethora of essential research that you can’t get anywhere else. By actively listening to what they have to say, you get a chance to obtain objective insight on your business model. If you aren’t able to use feedback and criticism to adapt your business plan, it will quickly alarm your potential lenders. Thus, you shouldn’t pause when trying to demonstrate that you have are open to suggestions that relate to your business plan.