January 20, 2012
You may have heard stories or know someone successful who has made a pile of money as an entrepreneur. Others may also know of stories where the person has lost everything. There is no sure-fire way of guaranteed piles of money as an entrepreneur but here are some tips that may assist you to become successful and make varying levels of income.
Characteristics and Traits
Do you have the personality and traits required to be a successful entrepreneur? This is an excellent question to ask yourself and good starting point for self-assessment. A cross section of successful entrepreneurs exhibit characteristics such as motivation, determination, educated, experienced in operations and management, excellent partnership building and negotiation skills, and good people skills. They have great instinct and have vision. With goals in mind, successful entrepreneurs can see a pathway and plan to achieve those objectives.
Money and Financial Planning
Entrepreneurs need money to start a business. Whether it’s a $500 or $1 million start up, self-starters will need owner equity requirements to start up a business. That doesn’t mean you need to cover 100% of the costs, but that you need some of your own cash that can be leveraged to obtain a commercial loan and other sources of funding.
Astute entrepreneurs are good financial planners. They can foresee the financial risks and plan to mitigate those risks. Entrepreneurs undertake strong financial analysis to ensure goals can be met. They analyze financial indicators such as return on investment, return on equity, profit margins, etc. Business owners will develop a future financial plan for the utilization of profit, or potential investment plans for retained earnings.
A high percentage of all successful ventures have completed detailed business plans. A business plan is your blueprint for business. It incorporates everything you must plan for in your operations and management of the company. Through research and due diligence you will identify the right markets for the right products and services at the right price at the right time.
Establishing goals and objectives is the essence of every plan. The management, operational, financial and strategic plans are all built around end goals and objectives. With proper planning you will achieve your revenue goals and objectives. The more effort you and your team put into planning, the closer actual results may be to your planned objectives.
Partnerships & Collaboration
To increase your chances of success, consider partnering with successful people or companies. If you want to be successful as a new entrant in an industry or want to expand, you will most likely need to consider partnering and collaboration. Partnerships bring new skills, new markets and new revenue streams to your existing base. It is exciting to know that success usually breeds success. Never underestimate the power of partnerships.
Revenue Generators and Opportunities
Analyze your revenue streams carefully. Assessments of opportunities are extremely important. Your role as a manager, executive and owner is to maximize benefits from existing resources, operations and new opportunities. An opportunity may provide a low revenue level, but the profit margins may be huge. Likewise, a huge revenue generator may result in a break-even or losing venture. Once again, assessments and planning around these opportunities are critical steps to undertake.
Remember, nothing is guaranteed. Money, income or revenue levels can never be guaranteed, but through your commitment, hard work, planning and perseverance, your chances of becoming successful and making a pile of money may increase like mad.
Go forth and plan well.
© Strategy Plan One 2012
Business information, resources and tips for the entrepreneur