Seven Strategies that Entrepreneurs Must Apply
This is a guest post by Al Jacobs, the author of Nobody’s Fool: A Skeptic’s Guide to Prosperity
A popular comic strip dating back to the 1930s declared that “Heroes are made, not born.” Each day the misfortunes of the main protagonist were humorously revealed as he invariably caused things to go wrong. The moral, easily grasped, related to the character flaws our antihero displayed. And there’s a lesson to be learned from that comic strip of long ago. It is that entrepreneurs of the present mimic heroes of the past. Most surely, entrepreneurs are made, not born. It is the meld of traits and reflexes developed over time, and honed to habit, that distinguish the achievers from those others that inhabit our workaday world.
With that said the question to ask is whether you are among that select group whose inherent ability to compete has become a mark of character. You will be able to answer yes to that question if you embrace the following principles.
1. For a helping hand, look to the end of your arm. This may be cliché, but its utterance conveys more than mere platitude. Concerning those endeavors in which you are a participant, no one will exert more effort on your behalf than you. You dare not rely upon others to represent your interests without overseeing their actions. This is true regardless of their position or supposed expertise. In any circumstance where the outcome is important, you may not passively defer to others.
2. Separate illusion from reality. This fundamental capability, to a great extent attitudinal, is one hallmark of an entrepreneur. Thus, when on the 10 o’clock television news, an SEC official proclaims “a stunning victory” for investors, in announcing that the nation’s major securities brokers have agreed to pay $1.7 billion in fines for “fraudulent activities,” without any admission of guilt for such activities, you should instinctively question the sort of victory won. You might also wonder whether any portion of that sum will find its way to the defrauded investors, rather than flow to the SEC’s special fund. It’s crucial that focusing on substance while dismissing irrelevance becomes second nature to you.
3. Pay attention to Murphy’s Law. In its essence, Murphy’s Law declares: “If anything can go wrong, it will.” Though overstated for humor and effect, it contains an element of truth that no mindful entrepreneur ignores. Recognizing that financial decisions be made to minimize unexpected risk requires that you shrewdly conduct your affairs with Murphy always in your consciousness.
4. Don’t violate the basic rule of income and expenditures. The late English historian and economist, C. Northcote Parkinson, perhaps the most lucid writer of the twentieth century, expressed the rule most articulately: “Expenditures invariably rise to meet and exceed available income.” Whether describing an individual or an organization, this impulse to spend whatever is available is a universal scourge. A prudent entrepreneur rejects this tendency to spend up to and beyond a financial limit. The necessity to retain reserves for unexpected contingencies had better become rote.
5. Refuse to commit to things you do not understand. Perhaps the most persuasive inducement that commits one to a course of action is the admonition: “If you fail to act now, the opportunity will be lost.” Although you recognize the importance of making timely decisions, and are often willing to shortcut procedures that unduly interfere with a successful undertaking, you should steadfastly resist being rushed into any involvement that you do not fully comprehend. When required to make decisions on factors you consider less than reliable, tend to postpone binding commitments until you get the missing information. One of most knowledgeable investors I’ve ever known summed it up in an unforgettable way, when he said: “I’ve missed the boat many times, but I’ve never been on one that sank!”
6. If a goal is worth achieving, pursue it diligently. The principle was never better stated than by the nineteenth century British Prime Minister Benjamin Disraeli: “The secret of success is constancy to purpose.” An aggressive entrepreneur will ardently adhere to the dictum that if a goal is worth attaining, it is worth pursuing vigorously. And in so doing, ascribe to the adage: “The harder I work, the luckier I get.”
7. Recognize that luck is something you must make happen. Possibly the most profound concept relating to personal achievement consisted of two sentences that appeared in a now-forgotten newspaper article. The text read simply: “Ed Callaway is a lucky man. He arranges it that way.” Those persons, who recognize that the end result of a project will be affected by manipulating the ingredients in the project, can arrange for an ending perceived as “lucky.” As an entrepreneur, you must embrace this notion as you make luck appear to happen. Never forget that in life’s crap game, the players are rolling loaded dice and that whether the dice are weighted to favor seven or, instead, snake eyes can be influenced by the roller.
Returning to our initial premise, there is no doubt that entrepreneurs are made, not born. And most importantly, the creation is not the handiwork of unskilled labor, nor the result of outsourcing. An entrepreneur must be self-made—as well as self-sustained. And it is by grappling with challenges and opportunities that the species thrives.
Al Jacobs has been a professional investor for nearly four decades. He is a nationally syndicated columnist and appears regularly on ProducersWeb.com, DrLaura.com and SheKnows.com. He draws on his extensive expertise in estate, mortgage, and securities investments to counsel millions on how to invest wisely and spend prudently. He is the author of Nobody’s Fool: A Skeptic’s Guide to Prosperity. Subscribe to his financial column, “On the Money Trail,” at no cost or obligation, by visiting www.onthemoneytrail.com.
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