I have been in the real estate investing business for over ten years now and I would consider myself to be a successful business owner.
Was I always successful in my business? No, I wasn’t and I have made plenty of mistakes along the way.
What makes a successful business owner? In my opinion this is due to a number of things. I have learned from my own mistakes and I have also received guidance from people that I respect to get to where I am today.
My aim with this post is to share with you what I believe are the traits that you need in order to become a successful business owner. This applies to any business that you are currently involved in or are thinking of starting.
I believe in learning from others that have already made it in business. Through my various mentors and studying others that have been successful in business, I developed a blueprint for business success that I will share with you.
You may think that you are a successful business person right now and I applaud you if this is the case. But I am confident that you will still learn something from reading this post until the end.
In my opinion, you can never have enough information on what can help you to be successful in business.
How do you become a Business Owner?
If you want to own a business then you essentially have to options:
- You can use your own ideas and then create a new business around them
- You can buy a company that already exists and change it to make it even more successful
Both of these options have advantages and disadvantages. I have always started businesses using my own ideas. In general, this has worked out pretty well for me.
But new ideas can fail, and you can spend a lot of time, effort and money chasing a dream that is not going to make it.
The other side of this coin is there is nothing more satisfying in my opinion to start a business from scratch and watch it grow and prosper. It was your idea and you made it happen.
Real estate investing is not a new idea by any means, but I made it work and I am very proud of that fact.
I have started businesses with next to nothing and made them successful. If you do not have a lot of startup capital then you may be forced to start a new business.
These days there are many stories of people that made a fortune online for example. They started with an idea and their only expense to get started was a few bucks on a domain name and web hosting.
If you do have capital to invest then you may prefer to purchase an existing business that is already profitable. You will then take this business and grow it to make it even more profitable.
When you are able to purchase an existing business that has a good history of revenue and cash flow then your chances of success will be higher than with a new business according to the USASBE (United States Association for Small Business and Entrepreneurship).
Whichever option you choose then I highly recommend that you create a detailed business plan for your business and set smart goals for it. You need to figure out how you are going to operate your business in the most successful way and a business plan will help you to do that.
Setting goals for your business is essential as this will provide you with the inspiration and the motivation to keep working on your business every day. You are going to face some difficult times with your business whether you start from scratch or acquire an existing company.
If you are starting a new business then you need to decide on the right structure for it. You can start of with a sole proprietorship which means that you will be the sole owner.
This is very easy to set up but you have minimal legal and financial protection.
Going in to business with other people may be right for you and you may want to form a partnership for your business. There are certain tax advantages in the US from forming business partnerships and you can form a general partnership, a limited partnership or a limited liability partnership.
You may want to form a new limited liability company (LLC) as there are several benefits from doing this. It is possible to benefit from tax advantages that partnerships and sole proprietorships can enjoy and you will have the protection of limited liability.
I recommend that you seek professional advice on the best structure for your new business.
What are the Qualities of a Good Business Person?
I believe that a good business person needs a number of qualities. Some of these are more important than others. If I had to rate the top 5 qualities of a good business person then this would be my list:
- You need to be reliable
- You need to be prepared to take risks
- You need to be a good communicator
- You need to be a good leader
- You need to take the initiative
Let’s take a look at each of these in more detail now.
A good business person is always reliable. You can depend on them to do what they say they are going to do. They will be available to work on their business a great deal of the time and will be there for their customers and the people in their team.
If you want to be successful in business then you need to be prepared to take risks. I am always taking risks with my real estate investing business and most of these pay off well for me.
It is better to take calculated risks rather than go into something blind. You can minimize your risk by doing your homework first.
Communication is an essential quality of a good business person. You need to be able to communicate well with everyone that is involved in your business. Your customers need to be your top priority and you need to be clear on what you can do for them and when you can do it.
Building a team is important for business success. This doesn’t have to mean employing people directly in your business. These days, many business owners use freelancers and specialists to achieve their business objectives.
It is critical that everyone in your team understands where you are going and what you expect from them.
Being a good communicator and a good leader are intertwined. You need to make it very clear to your team what direction you want to take your business in and the role that they need to play to achieve this.
Leadership is a very important quality. Everyone that works with you will look up to you for guidance and inspiration. You need to ensure that all members of your team are pulling in the same direction.
Tell them where you want to be and how they are critical in helping you to get there.
A good business person will always take the initiative. They will not wait around for others to tell them what to do. Taking the initiative means that you will make the necessary decisions to drive your business forward.
If there are problems that need resolving then you will take the initiative for coming up with the best solutions.
Being proactive rather than reactive is the right way to be. You need to anticipate what is likely to happen and have a plan for steering the ship back on course if it deviates.
I take the initiative in my real estate investment business every day and you need to do the same for your business.
What is the Key to become a Successful Business Owner?
For me, the answer to this question is making the right decisions. You need to make good decisions when things are going well in your business and when they are not.
Having a good knowledge of the business that you are in is very important for you to make the right decisions.
Both your customers and your team will appreciate you a lot more if you make confident decisions. The more that you know your industry, the more confident that you can be with your decision making.
There are going to be times when you do not know what the best decision is. Perhaps you are in a situation that you have not experienced before and you need to think fast and clearly to get out of it.
Never be too proud to ask for the help of others in a situation like this. I have always used mentors in my business that have more experience than I do.
There are other things that you can do to help you to make the right decision. You can usually find case studies or examples online of the important decisions that other business owners made to move their businesses forward.
No matter where you get your advice from, you are responsible for making the final decision.
Sometimes you will make the wrong decisions and it is important that you are able to learn from these mistakes. It is better to make a wrong decision and learn from it than never make a decision at all.
Face your fears head on and make those important decisions.
What are the Secrets of a Successful Entrepreneur?
What are the characteristics of successful entrepreneurs? I have been looking for answers to this question and other questions such as “how can entrepreneurs succeed in business?” for many years.
I am a life learner and committed to learning from my own success as an entrepreneur as well as the success of others. My strong recommendation here is that you do the same.
What are the key points that make a successful entrepreneur? Here is my list of the qualities that I believe you need to possess to be a successful entrepreneur:
Make a Start
Successful entrepreneurs always make a start. They do not hang around waiting for the economy to be right or for perfect market conditions as these rarely exist.
A successful entrepreneur is totally passionate about their ideas and “thinks success” from the beginning.
If you want to be a successful entrepreneur then my advice is to set challenging goals for your business. Goals will inspire you to get started and take the necessary action to achieve them.
Never wait around for anyone else to get started with your ideas. Money loves speed!
Successful Entrepreneurs know the Market
I have entered several different markets that I didn’t know much about and on each occasion, I have made it my business to know the markets. You do not have to do this alone and these days there is a ton of information available online to fully understand your market.
You need to know who your target audience is and what they want. If you are not aware of this then the chances of you creating products and services that fail due to lack of demand will be much greater.
More small businesses have failed for this reason than any other.
Know their Strengths and Focus on them
Most successful entrepreneurs know their strengths and focus on them. You cannot be good at everything, and trying to do everything yourself is a road to disaster.
OK when you are just starting out as an entrepreneur you may be on a budget, but it will always pay you in the long-run to use experts when this is appropriate.
I am not saying here that you cannot develop new skills because that is not true. But trying to do things that you have no interest in is dangerous. As a busy entrepreneur you are not likely to have the time to acquire the necessary skills to do these things either.
So, find experts that can do these things for you while you focus on driving your business forward.
Successful Entrepreneurs Work Hard
I have lost count of the number of times that people have said that I have been lucky in my real estate investing business. They have said things like “you were really lucky to find such a good property at that low price” and “you were lucky to find renters that were willing to pay top dollar” and so on.
I can tell you without hesitation that “lick” had absolutely nothing to do with it. The reason that I am able to find great properties for my projects is due to the hard work that I put in identifying them.
Working hard is something that all successful entrepreneurs do.
Successful entrepreneurs do not work hard for the sake of it. They work smart and channel all of their energy into things that will grow their businesses. If you want to achieve success as an entrepreneur then you need to be prepared to work hard too.
Just be sure that you are smart about this.
Successful Entrepreneurs Expect the Unexpected
This doesn’t mean that a successful entrepreneur expects to fail. It means that they are smart enough to know that not everything is going to turn out the way that they expected it to. In any business, things are going to go wrong from time to time.
The way that an entrepreneur deals with the unexpected will determine if they are going to be successful or not. No matter what the setback is, a successful entrepreneur will take this in their stride, learn from it and move on.
They will always persevere with their dreams no matter what obstacles get in their way.
A Successful Entrepreneur always puts their Customers First
Customers are the lifeblood of any business. Without them you do not have a business. The top entrepreneurs know this and are always looking for ways to provide their customers with a better experience.
They are innovative and look for solutions to problems that they know their customers will benefit from.
As your business grows you will have many different things to deal with to stay ahead of the game. But nothing is more important than the customers that provide your revenue.
You need to make your customers your number one priority and ensure that your team do the same.
A Good Team is Vital for Entrepreneurial Success
You need the right team of people that you can call up to support you in your business. A successful entrepreneur will never try to do everything themselves. In my real estate investing business, I do have my own employees. But my team is larger than this.
Other crucial members of my team are realtors, management companies, lawyers, contractors, accountants, taxation experts and more. One of the first things that you need to do is to identify the team members that you need to help you be successful with your business.
My Final Thoughts on What Makes a Successful Business Owner
You now know what makes a successful business owner. How to become a successful business owner is all in this post and I urge you to take action on what you have learned here
Some of the recommendations I have included in this post are my own and the rest is what I have learned from other successful entrepreneurs.
In my opinion, there are few things more exciting in life than running your own business. Starting a business from scratch and making it work will give you enormous satisfaction.
If you prefer to buy a going concern to grow it and make it more profitable then this is very satisfying too.
I would love to hear your thoughts on what makes a successful business owner, so please add them to the comments section below. Thank you and have a great day.