Entrepreneurship is one of the greatest hallmarks of capitalism.
The notion that someone with a great idea and strong work ethic can build an empire from virtually nothing has enamored people for generations.
This promise of success within anyone’s reach is contagious–and why so many entrepreneurs leave the safety of employment to pursue it.
According to recent publications, the gig economy is booming with an estimated 55 million US workers–or 35% of the workforce–engaged in some form of freelance or ‘alternative’ work. Likewise, record rates of people quit their jobs this year.
In direct support of new businesses, venture capital activity reached a record high of nearly $150 million in 2015. Advances in patents and intellectual property rights are being made. And the number of on-campus entrepreneurship programs have risen over 10-fold since 1990.
If you’ve been wanting to start a company, there has never been a better time to do so.
I have considered entrepreneurship extensively this year. I went out on my own in spring to be an independent contractor for financial planning firms. I also built my personal brand website and started this blog.
And while I love being a solopreneur, I have another business idea that’s been burning on my mind all year. I recently decided that it was time to do something about it. So, on a whim, I signed up to pitch my idea at a local startup competition.
It was a big step. My nerves nearly got the best of me but when my turn came, I spoke with surprising conviction. There were points when I faltered but I delivered my vision as succinctly as I could. Then in the blink of an eye, the minute was up.
Out of the 22 pitches, only 8 were selected to progress to the next round. I wasn’t one of them. But it doesn’t matter.
I felt like an entrepreneur that night. And I wasn’t alone. I connected with a community of other passionate people also fighting to bring their ideas to life. People who were determined, as Steve Jobs once said, “to make a dent in the universe.”
I hope to pitch again someday but I realized that you don’t need to be pitching in front of investors to be an entrepreneur. It starts way before that.
Entrepreneurship is a mindset, not a title. It underpins everything you do. Click To TweetEntrepreneurship is a mindset, not a title. It underpins everything you do. Whether you’re a bright-eyed college student, a driven employee, or a stay at home mom (all of which I’ve been before), the paradigm is the same.
If you’re wondering whether you have what it takes to bring your great idea to the world, here are 7 indicators of the entrepreneurial spirit.
1. Problem solving
Entrepreneurs are first and foremost problem solvers. They identify a gap–whether it be in resources, understanding, innovation, etc.–and seek to find solutions to fill that gap.
This requires alertness and vigilance. Some people go through life oblivious to gaping needs. They focus on what’s immediately in front of them instead of looking around to observe potential threats or opportunities. A few may see the needs but they merely shrug and keep on walking.
Entrepreneurs are keen enough to see the needs but they’re also creative enough to find ways to meet them.
And really, solving a big problem is just a series of solving smaller problems.
Luckily, there’s no shortage of problems needing to be solved in the world so if you’re a problem solver, you’ll never run out of ways to leverage your critical thinking skills.
2. Curiosity
Related to problem solving is curiosity that manifests itself in asking a lot of questions.
Entrepreneur and business coach Michael Gerber wrote in his book The E-Myth Revisited, “Contrary to popular belief, my experience has shown me that the people who are exceptionally good in business aren’t so because of what they know but because of their insatiable need to know more.”
Instead of defaulting to the status quo of how things operate or have always been done, try asking why things are the way they are. That reveals opportunities to explore further and leads to people who have more information.
Sometimes you’ll be led down a rabbit hole but I’ve found that solutions to big problems don’t often lie within plain sight. They usually require a lot of digging.
Keep asking questions. Sometimes it takes ten thousand tries to get the right answer.
3. Faith
There is always a level of risk involved with entrepreneurship. To get it off the ground requires significant investment of time, money, energy, manpower, etc. But unfortunately, there’s no guarantee that it’ll pay off.
You need to have faith to put skin in the game, to believe in the business enough to invest your personal resources into making it happen.
Essentially, starting a business is making a long string of bets. You need to have faith to deal with the risks that come with betting. Otherwise, if there’s no risk, you’re not betting at all. You’re merely speculating.
4. Humility
This one is underrated but it’s absolutely necessary. Why?
As mentioned above, you probably won’t know all the answers to solving your problem so you need to be humble enough to ask for more wisdom.
Additionally, you need to know when to ask for help. Some of the most successful entrepreneurs are not those who do it all themselves but who are humble and smart enough to delegate to others.
Lastly, you need to be able to receive input and criticism. One of the main factors that investors look for when deciding to fund a business is how receptive the entrepreneur is to feedback. Apparently, investors value coachability even more than sheer competence or business fundamentals.
Beyond angel investors, customers also provide plenty of feedback that you must be willing to listen to. Doing so will produce greater customer satisfaction and consequently more sales. So it pays (literally) to have humility.
5. Connection
There are many levels of connection. The most obvious is connecting a problem to a solution and figuring out the logistics needed to get that solution to market.
But there are also deeper levels of connection.
One of the most important is connection with people. You’ll have a lot of stakeholders involved with your business: customers, employees, investors, regulators, and the greater community. They’re lumped into groups but at the end of the day, they’re all people. Being able to genuinely connect with each of them is paramount to building a successful business.
Another type of connection is with purpose. Perhaps the greatest question to ask yourself (and do so repeatedly) is WHY you’re building this business. If you don’t have a clear answer, you have some more connecting to do.
I believe we have a moral responsibility to build companies that are more than just profitable. Reflect on how your business fits into the narrative of humanity and seek to make a connection to that greater purpose. Doing so will give you the greatest fuel for creating and the grit you need to see it through.
The heart of entrepreneurship
On the night I went to pitch my business idea, I witnessed something remarkable as I watched the other presenters deliver their pitches. I experienced the heart of entrepreneurship in action.
I saw the courage that it took to stand up for an idea and put oneself out there. I felt the undercurrents of hope and possibility that those ideas were founded on. And I sensed the empathy in striving to meet the needs of others as we work to solve aching problems in the world.
No matter our background, industry, or platform, we were all there for the same reason. We dreamed that a better world was possible. And we were there to build it.
Now, it’s your turn.
Great insights! Loved your words, “One of the most important is connection with people. You’ll have a lot of stakeholders involved with your business: customers, employees, investors, regulators, and the greater community. They’re lumped into groups but at the end of the day, they’re all people. Being able to genuinely connect with each of them is paramount to building a successful business.” Thank you for your writing! High five
Thanks for your comment, Dan! I learned from the best 😀 High five back!