The Keys to Entrepreneurial Success

Copyright: mavoimage / 123RF Stock Photo
Copyright: mavoimage / 123RF Stock Photo

I recently rode my bicycle from the west coast of Oregon to the east coast of Virginia to interview 100 remarkable entrepreneurs who have successfully merged livelihood and lifestyle on Main Street America. I took this crazy 4,000 mile ride to find role models who can teach us the keys to building a successful company. Here are nine key practices I observed which I present in my new book Main Street Entrepreneur.

  1. Start with a Clear Purpose

Successful entrepreneurs are driven by a purpose bigger than themselves. While they realize they need to make money to be sustainable, none of the 100 entrepreneurs I interviewed mentioned money as a primary driver. It is not what motivates them. Instead, they want to do something they are passionate about, solve a problem that intrigues them, create jobs in their town, provide phenomenal customer service, and change the world in their own way.

  1. Build on What You Know

Successful entrepreneurs build companies in industries they understand. About one-third of the entrepreneurs I interviewed worked in the industry in which they started their business. Another third had worked in a related industry. The remaining third were serious and frequent users of the products, so they understood the industry from the customer’s perspective. The better you know your industry, the greater your chances for success.

  1. Launch Opportunities Not Ideas

Ideas and business opportunities are not the same thing. Our business failure rate is high because people launch ideas. A true business opportunity meets the conditions of the NERCM test: (1) Need, (2) Experience, (3) Resources, (4) Customers, and (5) Model. Your chances for success go up significantly when you prove there is a need for your product, you have adequate experience, you bring together sufficient resources, you have customers committed to buy, and your business model is sound.Book Cover Main Street Entrepreneur

  1. Develop Your Supporting Cast

Successful entrepreneurs thrive on the experience of others. They recruit talented individuals to fill in the gaps in their skill set. They build teamwork at three levels: (1) they create a “Brain Trust” of mentors with expertise they need, (2) they build a core team of partners who join them in the venture, and (3) they develop strategic partnerships with individuals and companies who can help them grow their business. Talented teams can go further and faster than any individual working alone.

  1. Maximize All Available Resources

Effectiveness is achieving important company objectives. Efficiency is doing it with as few resources as possible. Successful entrepreneurs are masters of efficiency – they have a real knack for finding and utilizing a host of resources other than money. They borrow rather than buy, defer compensation, partner with their first customers, negotiate excellent terms with suppliers, and use someone else’s plant rather than build one – they think resources first, cash second.

  1. Work with a Zealous Tenacity

Successful entrepreneurs are high energy people. They have two related and vital qualities: (1) a tremendous zeal for their business, and (2) a dogged tenacity to win. Zeal is the fire that fuels the venture, and tenacity is the trait that produces the results. These two qualities combined get you through the challenges of building a business and dramatically increase your chances for success.

  1. Build a Community of Raving Fans

Customers approach companies with preconceived notions of how they should be treated. If their expectations are met, they are basically satisfied. The problem is, satisfied customers are not always loyal customers – they will patronize competitors’ businesses as well. Giving customers more than they expect to receive will set you apart from your competitors and help you create a community of raving fans that love your business.

  1. Pivot to Multiple Revenue Streams

Winning entrepreneurs continue to seek out and develop multiple streams of revenue. They do this by (1) offering related products to their growing customer base, (2) finding new markets for their growing product line, and (3) utilizing their growing resources to create new ventures. Over time, they end up juggling a reasonable number of projects in the same or related industries. Having multiple revenue streams reduces the vulnerability of a single product line, and increases the chances for long-term success.

  1. Serve Your Broader Community

Successful entrepreneurs are intimately involved in the fabric of their communities. They are using their resources to assist individuals and organizations that need their skills, experience and expertise. They are addressing issues in education, literacy, health care, and the environment. Their communities end up saying, “This business supports us, so let’s support this business,” even though this was not the original intent of the service offered. Serving communities is good for everyone.

While there are many things you have to do to build a successful company, these nine keys are the differences that make the most difference between success and failure. Implementing them in your business will help you build the company of your dreams.

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Mike Glauser
Michael Glauser, Ph.D., is the executive director of the Jeffrey D. Clark Center for Entrepreneurship at Utah State University, an entrepreneur, business consultant, and university professor. He is the co-founder and CEO of My New Enterprise, an online training and development company. He is also the founder and former CEO of Golden Swirl Management Company and of Northern Lights. Both companies were sold to CoolBrands International. Mike has consulted with numerous corporations in the areas of business strategy, market research, organizational effectiveness, and leadership development. His clients have included Associated Food Stores, The Boeing Company, Department of Workforce Services, Esso of Inter-America, Harmon Music Group, and USANA Health Sciences. Glauser has held faculty positions at the University of North Carolina, Westminster College, and Utah State University. He has designed and taught courses in business strategy, entrepreneurship, management, and organizational behavior. He has published numerous articles in professional journals and magazines, and published three books on entrepreneurship, his latest being Main Street Entrepreneur. He has appeared on Great Day America, and has been featured in INC Magazine, Forbes, Fast Company, Entrepreneur Magazine, CNN Money, Bloomberg, and others. He lives in Salt Lake City. Visit http://www.mikeglauser.com.