5 foundations of the successful entrepreneur

Striking out on your own seems to be currently in vogue when it comes to the world of business. So why are so many people going it alone and what are the foundations you need to give your business the best chance of success?

One train of thought about why being self-employed is now a more appealing option is the carrot of being your own boss and running things the way you want. Recessions restrict employment opportunity and squeezes wages so working for yourself is an easier step to make. Building on these foundations will give you the perfect start on your journey to success.

Whatever the driver, budding entrepreneurs need to develop these five foundations to give their project a fighting chance, failure to do so could result in a failed pipe dream.

The idea

The ‘eureka!’ moment doesn’t have to be a completely new innovation but could be an improvement to an existing product or service. Introducing a corporate social responsibility angle could be the differentiator your offer has over a competitor. Customers and clients are looking for businesses that offer ethical values and they are usually willing to pay a bit extra for an extra helping of corporate responsibility.

One thing is for sure, you, the driving force behind the initiative, needs to be passionate about the idea. Passion for your project is easily felt by customers, clients, even your employees. If you are not passionate, how can you expect people to buy into your business?

Your skills

Developing core skill are essential in any business, entrepreneurs often have supplement this by developing on-the-job skills and training. Skills can be developed in unusual places, playing online poker can improve your negotiating and decision making skills. Participating in charity work can develop team work and empathy skills.

Individuals and education institutions are reacting to this shift in the job market through offering tailored MBA programmes around financial services, public sector and social enterprise to enhance essential skills unique to that industry.

Networking

Succeeding in business is all about making connections. This no longer applies to the little black book or an old boys club, networking now extends to social platforms and virtual communities. This is no longer a nice to have but a necessity.

Networking is a skill in itself. You have to seek out networking events locally and nationally to extend the range of your business activities. It is not just to get new business but a way to expand your knowledge. You might pick up some ideas to develop your business plan and become more successful.

Research

So you’ve got the killer idea and the associated skills needed to launch but is there a market for it? Research and hard data is vital to understanding whether your product or service has a future. Those adopting the ‘build it and they will come’ approach could be about to make a very costly mistake.

Business plan

Writing a business plan is critical to the success of your venture. Not only does it help solidify your thoughts but also helps in securing third party support and funding. Flexibility is one of the entrepreneur’s greatest strengths so having the ability to amend these plans can be critical to success.

The skill set of business leaders are not just reliant upon academic excellence but also core skills such as negotiating, leadership, accounting and marketing. A successful entrepreneur starts with these foundations and can build their business from the ground up.