Want to become a successful entrepreneur but don’t know where to start? Keep reading. I’m going to spill seven traits every successful entrepreneur has that have attributed to their success.
#1 They Take Calculated Risks
Entrepreneurs are known for being risk-takers. However, entrepreneurs don’t take unnecessary risks; they take calculated risks. Entrepreneurs calculate risks based on the risk-return tradeoff. A risk-return tradeoff is where an entrepreneur looks at the risk and analyzes if the return on investment is worth it. This theory states that if the return is too small compared to the risk, it’s not worth it. On the other hand, if the reward is great, the entrepreneur may take a larger risk.
For example, Elon Musk submitting an offer to buy Twitter is a calculated risk. Elon wanted to change how Twitter is run, deciding that the reward of owning Twitter himself is greater than the risk of losing $44 billion.
#2 They Solve Problems
Entrepreneurs love problems. They love looking for ways to make something better or creating something to solve problems. For example, Steve Jobs saw an opportunity in the phone market to create a smartphone without buttons on the front. Before Apple iPhones, smartphones had keyboards that took away from the “smart” aspect of the phone because you couldn’t see the whole screen. Steve Jobs said that the current smartphones were like carrying around a mouse or stylus, not a handheld computer. So, he designed a new type of smartphone that revolutionized the entire smartphone industry.
#3 They Love the Process, Not the Destination
Successful entrepreneurs create goals for themselves but are more obsessed with the journey than the destination. The journey is where they learn, grow, fail, and challenge themselves to become better. They have their end goal in the back of their minds but are more focused on improving their process and experiencing the journey ahead. The reason is that the journey gives them purpose, whereas the destination is just the end result.
#4 They Don’t Fit In
If you’ve noticed, the most successful people in the world have always been the outliers of society. They were the ones who were picked on in class, didn’t go to parties, and were constantly questioning the world around them. These people didn’t want to be like everyone else because they didn’t want to live like everyone else. They wanted to achieve great things and impact the world.
#5 They Read, A Lot
Successful entrepreneurs read every single day, whether it’s an online publication or physical books. They stay up to date on current events, study financial resources, and learn about diverse subjects. For example, Bill Gates reads roughly one book per week. That’s almost 52 books a year! These successful entrepreneurs aren’t just reading for fun; they read to enhance their knowledge and understand the world around them.
Here are some of my favorite business, finance, and psychology books to broaden your knowledge:
- Think and Grow Rich by Napoleon Hill
- The Millionaire Next Door by Thomas J. Stanley
- Rich Dad, Poor Dad by Robert Kiyosaki
- How to Win Friends and Influence People by Dale Cargenie
- Influence: The Psychology of Persuasion by Dr. Robert Cialdini
#6 They Are Extremely Financially Literate
If you know nothing about money, you can’t manage millions and billions of dollars a year. According to successful entrepreneur Robert Kiyosaki, learning how to manage money and how money works is essential for becoming rich. Plenty of people get a lot of money and blow it all away because they don’t know how to manage money. In addition, many people try to climb the corporate ladder, only to find out they lose more money in taxes.
The difference between these people and entrepreneurs is that they figured out how money works and used it to their advantage when buying assets and building businesses. They know how to use tax loopholes to pay fewer taxes, use debt as leverage, and invest their money to increase their wealth.
#7 They Prioritize Their Personal Development
Entrepreneurs are known for constantly working on themselves to become better. They never settle for mediocrity because they don’t want to be average. For example, I truly began working on my personal, professional, and physical development after my last business failed and I was $495,000 in debt. I was overweight, depressed, and ready to become the best version of myself. So, I started working out, eating better, married the love of my life, and started a successful business.
I believe that your personal, professional, and physical development play a massive role in how much success you can achieve. If your personal life sucks, it doesn’t matter how well your business does. These three areas of development are the foundation from which you unlock your potential in every aspect of life while creating the life of your dreams.