Secrets Successful Entrepreneurs Know That Struggling Entrepreneurs Don’t

In my few  years as an entrepreneur and working with successful entrepreneurs and successful business professionals, universally I’ve discovered that they have learned to think and act like successful people. This is what has allowed them to rise to the top of their profession. Each would tell you that along the way they have learned how to think differently.

True, entrepreneurs struggle with their business opportunities for a variety of reasons. Among the most obvious are a lack of capital, lack of understanding about marketing, and personal issues. However, from my own entrepreneurial experience and knowledge of others, there are three major reasons individuals fail in entrepreneurial ventures.

1. They tie the success of their business with their own self worth.

2. They neglect to set realistic goals and plans for themselves and their business.

3. They are not prepared to pay the price of success.

True entrepreneurs with the right thinking prevail over a period of time. They have learned to understand the axiom Roles, Goals, and Tolls.

Roles

Successful entrepreneurs, in contrast to those who struggle, have learned to separate their roles in life from their self worth or self-identity. They understand that role performance or failure with their entrepreneurial venture is not a judgment of them as an individual. People who tend to equate their self-worth to their composite role identity are inherently risk-adverse and look to maintain the status quo. Being able to differentiate these two identities allows them to be risk prone vs. risk adverse, a key ingredient to success as an entrepreneur. Individuals who have risked failure, experienced it, and learned from it, have not only learned how to differentiate their role identity from their self-identity, they have learned the lessons of risking and failing. They understand that early failure in ventures is a natural part of successful startups. They are able to embrace those experiences, learn from them quickly and move on. This is critical to success as an entrepreneur. They must be willing to face and deal with early failures in order to prevail over time.

Goals

Even though much is said and written about goals and plans being necessary for success as an entrepreneur, few people learn the mechanics of successful goal setting and planning. It’s not the plan but the planning that is important, and the goal setting process allows them to develop the confidence to take risks and fail. Successful entrepreneurs are not only goal driven and goal oriented; they have learned to execute the process of strategic and tactical goal setting and planning. Visualizing goals, writing them down and putting together a detailed plan for achievement provides the confidence and motivation to prevail. More than just business or operational plans, they have goals and plans for all the important roles in their life. They have learned early that if they aren’t working their own plan they are probably part of someone else’s goals or plans. They chart their own destiny, embrace risk-taking leadership positions, make adjustments as required and prevail over a course of time.

Tolls

Finally, entrepreneurs understand that there is a toll to pay. To be successful in any role in life you must be prepared to pay full price one time. There are really no overnight successes as an entrepreneur. In fact, I’ve heard it said that overnight success generally takes 15-20 years. One of the early tolls that entrepreneurs are quite often forced to face is the “re-branding” of themselves that can include growing beyond their current circle of contacts. Since most people tend to stay within their own psychological comfort zone, they begin to lose identity with the risk taker. They are comfortable with the type of person who is more like them. Quite often the entrepreneur moves on to a different circle of associates who understand the journey. Stepping out, being your own person and venturing into the risk prone unknown is lonely by itself. Consequently, there can be a new-found stress in old relationships. It’s been said before that trailblazers get shot in the front and the back, and only through a process of differentiating role performance from self-worth, being risk prone, prevailing through adversity, sticking to your goals, and adjusting your plans will you be prepared to pay the daily toll.

An entrepreneur has much to learn in order to be successful, including the day-to-day mechanics of running a business, producing products, delivering services, making money and dealing with people. The biggest challenge of all is developing an understanding of themselves. They come to grips with what they want and what motivates them; this sustains their willingness to prevail over the long term against adversity. Successful entrepreneurs have learned to transform their thinking, allowing them to prevail where others fail along the way.

 

HOW GREAT LEADERS COMMUNICATE

You’ve just been promoted into one of your organization’s Big Jobs. Now you’ve got an impressive office, a hefty budget and vast expectations about how you will lead dozens or even thousands of people. Can you stick with the leadership style that brought you this far? Or do you need to recalibrate your approach, starting with the way you communicate?

Some fascinating rethinking is under way on exactly that topic. Scholars such as Harvard Business School’s Boris Groysberg argue that effective leadership no longer revolves around brilliant speeches and heroic exhortations. Instead, Groysberg and co-author Michael Slind argue that the higher you go in an organization, the more you must engage other people in conversations, rather than trying to shout them into submission.

I’m have traveling 70% of the way down that road that without becoming so chatty that you lose the ability to stretch people’s horizons. Over the past 25 years, as a business-book author and writer for the likes of Forbes, Fast Company and The Wall Street Journal, I’ve seen a lot of corporate leaders in action. Here are seven ways that the best leaders increase their effectiveness by the ways they communicate.

1. Bring the vision to life. Anyone can write a mission statement, full of lofty words that sound good. But you aren’t communicating that vision unless you repeatedly signal how those values translate into concrete actions. What people learn from your routine decision-making matters far more than what you pack into your speeches.

 In the same spirit, bring your bedrock values into the daily workplace. Salute other people’s actions that reinforce what you prize. Call out conduct that doesn’t. And infuse these principles into other people’s thought patterns by referencing key values as decisions are being made.

2. Ask smart questions.  Studies have shown that when you want to persuade someone, questions can be more powerful than statements. The reason: you engage another person’s heart and mind more strongly. You get him or her thinking about the ideal answer – and then all the steps necessary to get there. By being less dogmatic, you let people on your team build game plans that they believe in, rather than trapping them in a helpless state until you issue your next command.

3. Take time to read the room. Once you’re in senior leadership, you will meet a lot of outsiders that you hardly know ... but whose support or forbearance is crucial to your company's success. Do 90% of the talking, and it’s tempting to think that you carried the day with everyone standing for you, Guess what? If you don’t know what the other party really wanted, all that bluster was in vain.

Take a tip from Silicon Valley executive Meg Whitman, early in her career, when she was building eBay into a global e-commerce powerhouse. Some of her most important meetings were with eBay’s Power Sellers. These merchants booked huge amounts of business on the site, yet for a time they felt the company didn’t understand their frustrations with fees and service issues. Every few months, she would visit Power Sellers on their turf, looking for ways to fix their problems or at least offer sympathy. Her keen ear helped eBay stay ahead of its competitors.

Don’t fall prey to the belief that careful listening is only for the little people in the room. When you listen carefully, you win people’s trust – and that’s crucial to everything else you want to accomplish. There’s a maxim in the public speaking business: “The more your audience talks, the more they think they have learned from you.” Use that sly insight to your advantage.

4. Create a climate where things get done. In any organization, there's a huge gap between projects that are headed to the finish line, right now -- and ones that live indefinitely in limbo, hardly moving forward. Which do you prefer? If you're looking for results, make sure your employees and front-line managers are repeatedly aware of your top priorities. Help set interim mileposts. Get roadblocks out of the way. Walk through the areas where specific tasks are being done. Even a 10-minute visit by the boss conveys the clear and uplifting message: "This is important."

Be mindful of how many "top priorities" your organization can handle successfully. Better to win two big campaigns a year than to stumble in the midst of 20. I've seen ambitious but unfocused organizations end up with overcrowded agendas that create internal strife -- with the unpleasant consequences of missed deadlines, constant changes of directions and ugly battles for resources and recognition. The higher up you go in an organization, the more important it is for you to communicate key goals with clarity and brevity.

5. Use stories to get your points across. When you’re at the top of an organization, you can seem pretty distant from the people on the front lines. Now you’re in a job where it may be impossible to schedule enough face time with everyone you’d like to influence. One of your best ways to compensate: sharing teaching anecdotes, so that even people who hardly know you will still feel they know your human, authentic side.

You don’t need to be nearly as polished as Buffett to succeed in this domain. Just think how you would explain your week’s battles and goals to a neighbor, a spouse or a college roommate, and you’ll find the right tone.

6. Be mindful of what you don’t know. If your subordinates are any good at all, you often won’t know the fine-grain details as well as they do. Expect to be learning constantly on the job. Find ways that your in-house experts can quietly bring you up to speed on emerging issues that are catching your eye. You’ve got vital strengths that other people don’t, particularly in terms of experience, broad perspectives and judgment. As you work toward important decisions, make sure your remarks and conversations are opening the way for other people to keep augmenting your knowledge base.

7. Make people feel they work for a winner. Can you single-handedly improve your organization’s morale – in ways that genuinely translate into better performance and innovation? That’s one of the great mysteries of leadership. Some executives try smothering their employees in perks. Others praise good work, hoping that it will lead to greater doings in the future. Still others scold slackers and kick out the weakest performers, believing that some situations call for toughness.

Any of those approaches can work; yet I’ve seen executives try all three and still come up short. A memorable insight here came from John Young, who was CEO of Hewlett Packard for many years during its prime. We chatted after his retirement, and he contended that what shapes morale the most is employees’ conviction that they are working for the best company in their field. Earn that honor, he said, and you gain a level of employee commitment that cash and perks alone can’t buy.

All the other six techniques in this article point toward this final priority. If you’re conveying a clear vision, asking good questions, setting the right priorities and so on, you’re creating that winners’ aura that is the ultimate reward for great leadership communication.