Starting a business is not for the faint-hearted. It involves an exhilarating journey and requires someone who is willing to take risks. Entrepreneurship is so much more than risking loss to make money. It’s about vision, passion, recognizing opportunity, and creating ideas that will work.
At a very early age in my career, one of my mentors taught me the importance of “mindset.” Until that time, I had not used the term. Since then, I’ve depended on a functioning understanding of the term that I began developing the moment he introduced me to the concept.
According to research, an entrepreneurial mindset is highly sought by future employers. University of Michigan (U-M) offers a variety of courses that teach entrepreneurship mindset. The program at U-M breaks the types of entrepreneurship into four categories:
- Small business – according to the Small Business Administration (SBA), 99% of all U.S. businesses are considered small businesses, and most of them are entrepreneurial ventures.
- Scalable startups – these businesses attempt to grow quickly and become a profitable company. These startups seem to attract a lot of attention when they become successful.
- Intrapreneurship – these intrapreneurs utilize the entrepreneurial mindset to employ the resources their current employer has available to them. This model allows entrepreneurs to hit the ground running because of a larger supporter.
- Social entrepreneurship – issues are often created in culture where social entrepreneurs seek to create a solution. The primary objective is to help people instead of making money. Often an initiative or non-profit organization is created to provide change that is needed in the world.
Forbes reminds us that making the critical decisions as an entrepreneur can be over-whelming and cause one to feel lonely. Most experts in the field agree, this role in our culture requires some basic skills to be successful. Here are seven of the most valued mindsets that every entrepreneur must develop to increase the probability of success.
Risk Mindset
It is the willingness to experience loss to potentially reach your goal. Entrepreneurs and taking risks go hand in hand. There are a variety of risks: market, credit, operational, strategic planning, liquidity, event, and more. Every effective entrepreneur takes risks and learns to manage, reduce, or even neutralize the risks they encourage along the path to success.
Passion Mindset
It is the strong emotion, enthusiasm, and intense interest that drives you daily to accomplish your goals. The entrepreneurs who experience success are driven by a mindset to excel and achieve. They are energized and focused and are always looking for ways to contribute more to a cause or need. They do not depend upon someone externally to motivate them. Their passion for what they do comes from within and is activated each morning when they wake up and prepare for the day.
Character Mindset
It is who you are when no one is looking. Character encompasses the unique qualities that distinguish you from others. Successful entrepreneurs possess character qualities like integrity, authenticity, trustworthiness, respect, and loyalty.
Think about an individual who possess these qualities and the way in which they impact you and others. There have been many individuals in my life who have functioned with a mindset of having an impeccable character. Who can you identify in your life that has greatly influenced you by living daily in a way that demonstrates this mindset? In a culture where everything is relevant, we need people to emerge from the crowd and demonstrate this mindset more than ever before.
Leadership Mindset
It is the influence you have on others. There are many definitions for leadership. However, when leadership is understood at the basic level, it is simply how you influence others.
Daniel Goleman reminds of the six leadership styles:
Commanding: do what I tell you. Focuses on threats and rewards to get what you want
- Affiliative: people come first. Focuses on resolving team conflicts and building team spirit.
- Democratic: what do you think? Focuses on employee input before making decisions.
- Coaching: try this. Focuses on developing the individual employee’s resources.
- Visionary: come with me. Focuses on taking charge and inspiring change in vision.
- Pacesetting: do as I do now. Focuses on establishing a standard of excellence for performance and leading team members to respect them.
Successful entrepreneurs will use their influence to accomplish business objectives. The most successful entrepreneurs may us elements from a variety of the different styles of leadership depending on the situation. Here is what we know: this mindset is used by the best entrepreneurs.
Communication Mindset
It is the method you use to listen, inform, inspire, build trust, and create purpose. The best entrepreneurs recognize the importance of verbal, nonverbal, and written methods used to communicate with those around them.
There are times when communication fails. When this happens, it is critical that you identify where the elements of communication broke down. Making the necessary corrections and adjustments to your communication style is essential. Successful entrepreneurs communicate using active listening, reflective listening, qualifying questions, and feedback. Choosing words wisely and deliberately helps ensure your message is easy to understand.
Flexibility Mindset
It is the ability to adapt and adjust. Flexible entrepreneurs are socially perceptive, self-monitored, and invite accountability. Flexible leaders allow interaction with others to align with the organization’s needs, objectives, and strategies.
Someone once said, “When you are through changing, you are through.” In today’s changing markets, social demands, and consumer interests, flexibility is the mindset that can’t be ignored or omitted from those in leadership positions.
Tenacity Mindset
It is the determination to stay strong in the face of hardship and achieve the goal. Entrepreneurs learn early that conflict, opposition, and challenges are opportunities to learn, grow, change, and be disciplined. In today’s market, determination and resilience are required if you plan to reach your objective.
In the world of leadership, tenacity is a revered quality. It is the unwavering determination to get the job done, whatever it takes. Even when the circumstances are not in your favor and don’t look promising, the successful entrepreneur does not allow fear or fatigue to hinder the process of achieving success.
By developing these top seven skills or mindsets, you will certainly be more prepared to meet the challenges of developing or growing a successful organization. In addition, you will illuminate the path of success, creativity, and respect in the business community.