5 Things Every Entrepreneur Should Know About Risk-Taking

Taking risks is scary, whether you’re going all-in during a friendly game of poker or quitting your long-time career to pursue one of your promising business ideas. Most people tend to avoid risks when possible, because inaction is often safer than action, but most successful people will tell you they got to where they are because they were willing to take risks no one else was -- whether that was developing a product nobody else thought would work or investing a sum of money everyone else thought was crazy.

Still, taking risks is intimidating, especially for new entrepreneurs. But it’s more complicated than just “doing something that might turn out bad.” To feel more comfortable taking risks and make more informed risk-based decisions, keep these five considerations in mind.

1. Risk-taking is inherent in entrepreneurship.

If you aren’t prepared to take risks, you have no business being an entrepreneur. Entrepreneurship is fundamentally linked to risk-taking. You’ll need to invest some of your personal capital into a growing business -- in most cases. You’ll stake your reputation on an unproven idea. You’ll sacrifice a steady paycheck for the first several months to a year -- again, in most cases.

And from there, every decision you make carries some small risk -- your new hire might leave in a month, your lead generation strategy might fail, your new approach might anger one of your best clients, and so on. Accepting risk as a part of the deal, and you need to be ready for that as you enter the entrepreneurial world.

2. There are different types of risks.

I’m not just referring to “big risks” and “small risks” here -- though those exist, too. There are calculable risks, which involve a series of knowns that allow you to reasonably predict the odds of success. For example, you might be able to infer from historical data that there’s a 30 percent chance a tradeshow’s attendance will dip to a point that makes your attendance unprofitable.

There are ambiguous risks, which involve some knowns and some unknowns, which complicate your decision making process. Most business risks fall into this category, because so many factors, like consumer behavior and economic shifts, are difficult to quantify or predict. Then there are complete unknown risks, which arrive when you bring something truly unique to the market. Knowing the differences between these risks can help you better understand how “risky” your decisions at certain points actually are.

3. Some of your risks won’t pay off.

The optimistic risk-taker will always see things as half-full, a 50-percent rate of success is “pretty good odds” and a 75 percent rate of success is a “sure thing.” This is compounded by the cultural idea that risk taking is generally a rewarding strategy. However, don’t be fooled into thinking that all risks are good risks or that always taking the risky option will pay off.

Some risks -- even carefully calculated ones -- will fail. Instead of ignoring this fact to overcome your apprehension toward risk, embrace it. Let yourself accept the possibility of failure, and when you do fail, don’t take it personally -- learn from the experience and move on.

4. We’re inherently biased toward predicting disaster.

There are two inherent biases in the human mind that skew our perceptions of risk. The first is that we tend to exaggerate the possibility for failure. In raw estimates (with limited numerical data), people tend to pessimistically predict failure more than real situations would warrant. The second is that we greatly exaggerate the consequences of those failures -- we envision the worst-case scenario, when the reality is far more manageable.

Keep this in mind when imagining the negative possibilities associated with your risks.

5. Risk is a differentiator.

Some risks offer the promise of higher value. Some risks offer smaller potential consequences than others. Some risks could make or break your business. But there’s one key element all risks have in common: They’re differentiators. Because most people are unwilling to take risks, the risk-takers of the world naturally stand out in the crowd, and as we all know, entrepreneurs and businesses that stand out are the only ones with a shot at breakout success.

Even if you end up failing, you’ll end up “failing in style,” so to speak -- and you might reveal more opportunities for yourself just because you were willing to stand out and break away from the norm.

Hopefully, these facts have transformed your perceptions of “risk” as a general concept, even if only slightly. It takes time to get to know the complexities and nature of risk, and even more time to get comfortable taking them, but eventually it will become second-nature to you. Focus on the known factors when you can, accept ambiguities -- and understand that failure is never the end of the road.

Larry Alton

10 Behaviors of Genuinely Successful People

We live in a strange time. People can call themselves anything they want and get away with it. If you believe what they write about themselves, pretty much everyone’s a CEO, an entrepreneur, a leader, a startup founder, an award-winning keynote speaker, a best-selling author, or a self-made millionaire.   

That’s how it seems, anyway. In reality, the only people these phonies fool are fools. Granted, there must be a lot of fools out there, but you don’t have to be one of them.

Look, the world is full of successful people. As a veteran of the high-tech industry, I live and work in Silicon Valley. You can’t walk down University Avenue in Palo Alto without bumping into at least four or five CEOs and VCs – not the fake kind, but the real deal. Unfortunately, you’d never know it. They’re not that easy to recognize.

The question is, how can you tell the difference between truly accomplished executives and business leaders who have something to offer you and the “fake it ‘til you make it” shysters who spew all sorts of BS all over the blogosphere, social media, and self-help business books? Simple. By their behavior. This is how real successful people behave. 

They run real companies.

They have real careers. They run real companies with real products and customers. They have real experience managing businesses and leading organizations that you’ve probably heard of. If all their bio talks about are books, seminars, and speeches, they’re not the real deal.   

They love their work.

If you ask Tim Cook, Mark Zuckerberg, or Satya Nadella what they do for a living, all you’ll hear about is Apple, Facebook, and Microsoft. They’re passionate about their work and proud of their company’s products and achievements. Success may come with the territory, but it’s not what drives them.

They do things their own way.

The way they lead and the culture they build is never copied and pasted from somewhere else. Sure, they have mentors and sometimes stand on the shoulders of giants, but they still do things their own way, follow their own instincts, and have little patience for the status quo.  

They know what they don’t know.

The vast majority of accomplished people possess humility. The ones who don’t usually pay for their hubris, sooner or later. That’s not to say that CEOs don’t have strong egos, but when you’re smart and experienced, you simply know that you don’t have all the answers … and that anyone who acts like he does is full of it.

They have common sense.

If it sounds too good to be true, it is. If it sounds utopian, it isn’t real. If it sounds like wishful thinking, it’s nothing but fluff. If it’s a quick fix, a magic bullet, a miracle cure, or some personal habit, it’s just a foolish fad. Successful people are savvy. They think for themselves. They have common sense. And they can smell BS a mile away.

They’re never satisfied with their own accomplishments.

Great CEOs and VCs are usually perfectionists who are never satisfied with their own achievements. They always want to do better – to build the next product customers love or fund the next great startup. They know that business success is about growth; it’s a marathon without a finish line.     

They’re not super-visible.

Of course there are successful people who are highly visible – Mark Cuban and Donald Trump come to mind – but they’re rare. Most are not the slightest bit interested in being famous. If fame and fortune is what drives you, I’m afraid you’re going to be gravely disappointed with the outcome.

They’re not trying to sell you anything.

Real executives and business leaders may write a book or a blog, and after they retire they may give a speech or two, but in general, they made their living running and growing their companies and selling products, not getting you to break out your wallet to hear their pearls of wisdom.  

They don’t self-promote.

They don’t have to. Their careers, their accomplishments, the success of their companies speak for themselves. You’ll never hear them breath a word about how much money they have or make. They tend to be fairly modest. There are some flashy exceptions but they’re few and far between. 

They don’t preach.

They’re generally not inspirational or motivational – unless, of course, you’re one of their employees or customers. They don’t think they possess the key to success, happiness, productivity, or any of that nonsense. They may offer lessons learned from real world experience, but they don’t do shtick. If it sounds gimmicky, then it is.

Look at it this way. How well you do in life is based entirely on the work you do, the decisions you make, and the actions you take. When all is said and done, you want to look back and feel proud of what you’ve accomplished. You want to feel good about the life you led and the impact you had on others. And you want to know you lived your own life on your own terms.

Steve Tobak

The 5 Elements of Storytelling Every Entrepreneur Needs to Know

Is it possible to be born an entrepreneur? The concept of following a particular career or lifestyle, predetermined at birth, is a controversial one, so I’ll just say this -- I began my entrepreneurial journey at a very young age, and I feel that I am meant to follow the path I’m on.

I love everything that being an entrepreneur stands for. Entrepreneurship depends on extreme dedication and passion toward a greater purpose. It means an undying commitment to serving an unmet need within the communities in which we live. Becoming an entrepreneur requires that you use creativity to develop ideas and execute strategies that are intended to change the world -- even when people think you’re crazy for it.

By the age of 6, my brother Adam and I had several growth-hacking and business-funding experiences, including a leaf-raking and snow-shoveling business and a can collection business. We developed great negotiation and customer service skills as we ran tables at the local swap meet with our Grandpa Joe. Both Grandpa Joe and our beloved swap meet experiences were paramount to starting our first “official” business, Dipper-Do Stunt Airplanes, just before I turned the ripe old age of 8.

My brother and I were lucky to have someone to teach us the entrepreneurial lifestyle so early on. Grandpa Joe helped us set up Dipper-Do stunt airplanes and sell them at a local folk festival, where we sold out before the festival ended. The entrepreneurial bug hasn’t left us since!

Today, we are regularly approached to become advisors to startups and serve as mentors for new entrepreneurs, and we’re constantly entrenched in the world of small business. I am deeply invested in staying on top of entrepreneurial trends in order to best serve these startups and provide them with the most value possible.

With this exposure and our commitment to supporting entrepreneurs around the world, we strongly feel that in order to stay relevant, entrepreneurs must possess the ability to captivate an audience through storytelling.

Unfortunately, we’ve come to the realization that one of the main challenges entrepreneurs struggle with is their ability to summarize what they do and what they’ve accomplished, which can be done through the use of storytelling. Whether they are attempting to raise money, build a team, speak at a conference, build an online course or close business deals, every entrepreneur must be able to tell his or her story. And in order to be memorable, that story must be told in a clear and powerful way.

By many standards, my brother and I have experienced some tremendous entrepreneurial success. However, we too have struggled with the challenge of articulating what we do clearly and concisely. We’ve often found ourselves lamely answering the question, “What do you do?” with an uninspiring, non-captivating response.

Here is the problem: Though “storytelling” is a buzzword right now, very few people are teaching entrepreneurs how to do it -- even when they understand the impact great storytelling can have on a business.

I had the chance to speak with The Campfire Effect’s Chris Smith, who has worked with some amazing figures like JJ Virgin, 6th Division, Old Republic Title, Wells Fargo Home Mortgage, and Northwestern Mutual. Chris outlined for me the powerful brand and storytelling formulas taught within his four-part proprietary methodology, The Campfire Effect. He explained that five particular elements, contained within these formulas, are critical to executing successful storytelling.

1. Who we are

Many entrepreneurs tend to share more of what they do than who they are. People buy from other people, and an entrepreneur’s ability to connect with another human being through his or her authentic story will have a more profound influence on someone than all the information in the world about his or her product or service.

2. What we do

When sharing what you do, you must be succinct, clear and thought-provoking, but most importantly, your summary needs to spell out a benefit to the person you’re speaking with. After someone learns what you do, they should clearly understand how it would benefit them and want to know more.

3. Why we do it

Most entrepreneurs realize that we live in more of a purpose-driven world than ever before. People aren’t only buying what you do -- they’re buying why you do it. They “why” in your story can be one of the biggest differentiators between your business and a competitor’s.

4. How we do it

Despite the importance of this element, very few entrepreneurs truly understand it. People aren’t only interested in what you do and why you do it -- they also want to know how you do it. Your ability to powerfully articulate the method in which you do what you do will make you look both confident and experienced -- even if you aren’t. Though entrepreneurs often get excited about simply sharing what they do, sharing how they do it can establish trust and credibility between themselves and a potential customer.

5. Proof

Potential customers want proof of a time you have successfully achieved a result for someone, and they want to hear what you did, why you did it, and how you did it. Nothing will drive someone more to write you a check or support you than a customer success story. Tip: When telling such a story, start by sharing the pain and difficulty the customer was facing when they came to you; then explain what you did for them and why. Finally, divulge the benefits the customer holds now that he or she has worked with you. This method allows the listener to relate to the customer in your story, and will hopefully give them the confidence necessary to go to you for a product or service.

It can be incredibly difficult to outline what you do, why you do it, how you do it, and when you’ve successfully done it while staying concise, unique and engaging. What I enjoyed about The Campfire Effect is that they’ve developed formulas within their framework that allow us to easily do all of the above which results in an ability to powerfully influence others and chart a course for success. Personally, I was astounded by what I uncovered about myself in going through The Campfire Effect -- the impact I have on growth and sales has inflated with my ability to articulate what I do in a meaningful way.

Have you looked into storytelling as a part of your business and personal branding strategy? What is the most difficult aspect of storytelling for you? Nearly everyone could improve their answers to the question, “What do you do?” 

Here’s to great storytelling!

Matthew Toren

7 Signs You're Meant to Be an Entrepreneur

Being your own boss is not for everyone.

While entrepreneurship comes with freedom and flexibility, there is also a great deal of responsibility and an even greater need for discipline. Curious as to whether or not you would cut it as an entrepreneur? Here are seven telltale signs:

1. You’re a self-starter.

Taking initiative is crucial in entrepreneurship. No one is standing over your shoulder telling you to get things done. Vacation days don’t require a written request. There’s nowhere to clock in or out. Without extreme self-control and natural drive, work can fall to second to the many distractions of life.

A good indication that you’re a self-starter is your past involvement with groups or causes that didn’t provide you any monetary gain. In college, did you start an organization that wasn’t already established on campus? Do you volunteer for a charity in your community? Having a get-it-done personality could help you bring your vision to life more easily.

2. Passion is prevalent.

A blasé attitude is not associated with overwhelming success as an entrepreneur. If you don’t genuinely love what you’re doing, it will be hard to overcome the inevitable obstacles. Starting your own business is rarely an overnight success. From lack of customers to profits, it’s not easy street. Without an undeniable passion for the industry you’re entering, it will be difficult to stay afloat among the disappointments and hard times ahead.

3. You possess people skills.

While being a loner doesn’t rule you out as a potential entrepreneur, lacking social gumption could hinder your success. Having people skills suggests that being an entrepreneur might be more realistic, since communication is a necessity in any business endeavor. Without it, you could face difficulty forming partnerships, attracting customer and networking within your industry.

4. You’re not willing to take no for an answer.

Giving up easily is not a typical trait among entrepreneurs. Securing your own success requires perseverance and the ability to be persuasive and think outside the box. Not everything is going to go exactly as planned and people, permitting, laws and codes can quickly turn to roadblocks inhibiting your business from growing. You need to possess the strength to try harder -- or try other options -- to overcome these obstacles.

5. You’re a creative thinker.

Creativity isn’t just a quality found in writers and artists. It’s a common component of entrepreneurs as well. Research identified that while just 47 percent of people are creative thinkers, the percentage jumps to more than three quarters when looking at entrepreneurs. Since finding innovative ways to solve ordinary problems takes creative thinking, it’s actually not that shocking that the majority of entrepreneurs think differently.

6. You are competitive by nature.

There’s a reason some companies heavily recruit athletes for sales and business positions. The desire to strategize and win translates perfectly into business. If you played sports growing up or are the type that excels when faced with a little rivalry, you might just have what it takes to be an entrepreneur. A competitive nature will force you to not just be better -- but be the best.

7. You're hardworking.

At the end of the day, those who are willing to put in the most work are usually the ones who reap the greatest reward. If you’re the type of person that likes to skate by doing the bare minimum, the heavy workload of entrepreneurship will likely bury you. Entrepreneurs aren’t afraid to wear more than one hat, work through the weekend or sacrifice for the success of their business.

As an entrepreneur your output is directly impacted by your input, and if you’re not willing to put in the time, your great idea will likely tank. 

Dan Scalco

The Best-Kept Secret of Entrepreneurial Sales: Be Yourself

I clearly remember the evening I received a phone call from a leader at a well-regarded start-up accelerator. Our conversation centered around sales. “Can you speak to our entrepreneurs on sales?" the principal asked. "Most of our entrepreneurs have great ideas; most are inventors, engineers or numbers people. They do understand the importance of sales/revenue generation.

But: "They do not seem to enjoy sales," he acknowledged. "It is not their forte." 

I considered the invitation and replied that before accepting, I first needed from each of the entrepreneurs some data about the top two sales-related items on their minds. Thanks to Google Forms, my request was quickly fulfilled, And, I duly noted, the beautiful thing about free form expression of thought is that it encourages people to articulate their needs, in the form of questions embedded in their subtext. Looking for the trends, I pulled out five implicit questions:

1. How do I find my targets efficiently?
2. How do I build credibility in the first meeting?
3. How do I build trust?
4. How do I take it to the next meeting?
5. How do I get long-term engagement?

While looking for these connections, I experienced a "light bulb moment"; I even chuckled at the idea. I was actually looking forward to the discussion.

'Be yourself.'

The day arrived. Once everybody settled in, I posed the first question: “When you hear 'sales,' what comes to your mind?” I then listened patiently to an earful about used car salesmen, comparisons to aggressive recruiters and diatribes on morals and ethics. And I picked up on the near-consensus that sales as an activity might be necessary, but was not not these entrepreneurs' cup of tea. 

I next projected those five questions on the wall. “If we get some answers to these questions, is that a useful discussion on sales?” I asked. There was a collective nod in the room.

If that is the case, I told my audience, referring to their grin and bear it attitude toward sales, the answer is, “Just be yourself. That is the secret of success in sales.” Nods quickly morphed into perplexed faces, as a collective skeptical look was directed my way.

I redirected those looks back to the five questions. “Please re-look at the questions -- the context of the first four questions could be a first date," I said. "Your success in that arena could bode well in a sales meeting.” There was a perceptible giggle among my listeners.

Sales is a lot like dating.

With that statement, I projected a couple of statistics.

• Percentage of married couples first introduced by someone they mutually know -- 63 percent

This stat is powerful, as it keeps the end goal in mind. Drawing parallels, converting a target into a customer, the best odds occur with customers who are introduced by a mutual acquaintance. That is the headline-grabbing part. There is another stat that gets little attention, but provides a good dose of realism:

• Percentage of first dates arranged by friends moving into a second date: just 17 percent

Even if you get ten dates arranged by friends, on average, eight may evolve into rejects/no gos for a second date. In other words, approximately only two in ten first dates get to the second date. Keep this perspective when some well-meaning customer introductions through referrals do not lead to second meetings! Rejections are the anathema of motivation; this larger perspective on odds is a wonderful counterbalance.

Circling back to the audience, when this conversation first started, folded hands and relaxed, pushed-back seating had been the norm in the room. But at this point, many attendees were leaning forward, with coffee in hand, absorbed in the statistical analogies I offered. Entrepreneurs usually like to work in environments they can control. So, while sales might seem like an afterthought worthy of delegating to a professional sales person, dating was not!

What matters.

Having engaged these entrepreneurs' attention, I next added, "Now, I am interested in your thoughts on what works/ does not work on a first date.” What followed was a mixture of sparks, deep thinking, reflections on missteps and some all-out zingers. I took my marker and started jotting down the synthesis of what, for my listeners, "works." The two leading areas of consensus that emerged were:

• Good listeners
• Sharing of related stories, experiences -- a two-way connection

I then posed a follow-up question: “How much time do you spend preparing [to talk] about you before the first-date meeting?” Not much, was the answer. But many ventured to add that they do spend some time researching their dates online!

Drawing a parallel to sales, I asked, should you, the entrepreneur, spend a lot of time preparing customized slides before every customer meeting or spend some time knowing more about the customer? After all, the customer might not explicitly acknowledge it, but he/she is looking for a "good listener." And, in this informational day and age, many customers do their research about you and your product before they accept your meeting. (Daniel Pink’s modern-day book To Sell is Human delves deep into this new internet age paradigm of informational parity.)

I personally believe that listening and credibility have a high positive correlation, built on that age-old mantra: Understand before understood. Sharing of related experience back and forth builds on that.

It was getting time to end my talk. I did so with a question. “All of this is great," I said. "So, if all goes well, how do you ensure the next meeting?” I answered my own question: Just ask for the next meeting! I said. There was another set of chuckles in the room as we wrapped up the session.

Parting thoughts

"Sales" can conjure up different images and emotions, whether they be that of the old-fashioned used car salesman; an on-stage monologue; an enthusiastic, informative teacher; or a two-way, engaging date. The choice is yours. But if you choose the last option, the time you spend on preparing content will be the least you'll need among these four scenarios -- and time is one thing many entrepreneurs have in short supply. 

At the very least, it would be wonderful to spend those extra few hours saved, with family and friends. Above all, the biggest bonus would be that you could be your nice self and still be successful. And nothing beats that.

Karthik Rajan

21 Success Tips for Young and Aspiring Entrepreneurs

Being successful often means learning from those who have already achieved their goals. Having a mentor is an amazing blessing to an entrepreneur, but not everyone can find one in person.

If you haven’t yet found your personal business guru, here are 21 tips for young or aspiring entrepreneur to help get you started.

1. Challenge yourself. 

Richard Branson says his biggest motivation is to keep challenging himself. He treats life like one long university education, where he can learn more every day. You can too!

2. Do work you care about. 

There’s no doubt that running a business take a lot of time. Steve Jobs noted that the only way to be satisfied in your life is to do work that you truly believe in.

3. Take the risk. 

We never know the outcome of our efforts unless we actually do it. Jeff Bezos said it helped to know that he wouldn’t regret failure, but he would regret not trying.

4. Believe in yourself.

As Henry Ford famously said, “Whether you think you can, or think you can’t, you’re right.” Believe that you can succeed, and you’ll find ways through different obstacles. If you don’t, you’ll just find excuses.

5. Have a vision. 

The founder and CEO of Tumblr, David Karp, notes that an entrepreneur is someone who has a vision for something and a desire to create it. Keep your vision clear at all times.

6. Find good people. 

Who you’re with is who you become. Reid Hoffman, co-founder of LinkedIn, noted that the fastest way to change yourself is to hang out with people who are already the way you want to be.

7. Face your fears. 

Overcoming fear isn’t easy, but it must be done. Arianna Huffington once said that she found fearlessness was like a muscle -- the more she exercised it, the stronger it became.

8. Take action. 

The world is full of great ideas, but success only comes through action. Walt Disney once said that the easiest way to get started is to quit talking and start doing. That’s true for your success as well.

9. Do the time. 

No one succeeds immediately, and everyone was once a beginner. As Steve Jobs wisely noted, “if you look closely, most overnight successes took a long time.” Don’t be afraid to invest time in your company.

10. Manage energy, not time.

Your energy limits what you can do with your time, so manage it wisely.

11. Build a great team. 

No one succeeds in business alone, and those who try will lose to a great team every time. Build your own great team to bolster your success.

12. Hire character. 

As you build your team, hire for character and values. You can always train someone on skills, but you can’t make someone’s values fit your company after the fact.

13. Plan for raising capital.

Richard Harroch, a venture capitalist, has this advice for upcoming entrepreneurs: “It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.”

14. Know your goals. 

Ryan Allis, co-founder of iContact, pointed out that having the end in mind every day ensures you’re working toward it. Set goals and remind yourself of them each day.

15. Learn from mistakes. 

Many entrepreneurs point to mistakes as being their best teacher. When you learn from your mistakes, you move closer to success -- even though you initially failed.

16. Know your customer. 

Dave Thomas, the founder of Wendy’s, cited knowing your customer as one of his three keys to success. Know those you serve better than anyone else, and you’ll be able to deliver the solutions they need.

17. Learn from complaints. 

Bill Gates once said that your most unhappy customers are your greatest source of learning. Let unhappy customers teach you where the holes in your service are.

18. Ask for customers’ input. 

Assuming what customers want or need will never lead to success. You must ask them directly, and then carefully listen to what they say.

19. Spend wisely. 

When you spend money on your business, be careful to spend it wisely. It’s easy to spend too much on foolish things and run out of capital too soon.

20. Understand your industry. 

Tony Hsieh, the founder of Zappos, once said, “Don’t play games you don’t understand, even if you see lots of other people making money from them.” Truly understanding your industry is key to having success.

21. Deliver more than expected.

Google's Larry Page encourages entrepreneurs to deliver more than customers expect. It’s a great way to get noticed in your industry and build a loyal following of advocates.

Being a successful entrepreneur takes a lot of work, a lot of vision and a lot of perseverance. These 21 tips, from entrepreneurs who have already found success, will help you navigate the path much more easily.

Sujan Patel

Shocker! Entrepreneurs Often Are Not CEO Material.

Though just 24 years old, Nadav Shoval has already launched five business ventures, including Spot.IM, , where he serves as CEO. Many of us assume an entrepreneur who has successfully launched a startup will thrive as a CEO but Nadav has learned the two roles require vastly different, and often incompatible, skill sets. He shared his insights on the different responsibilities and challenges each role presents.

What do you believe is the biggest misconception about the entrepreneur turned CEO?

It may sound provocative to say this, but entrepreneurs are not CEOs-in-waiting. We need to stop thinking of them that way if we want to build truly successful and, above all, sustainable companies. We like to think of the great product developer or disruptive innovator as just the precursor to being the head of a hugely successful company. But the truth of the matter is, there are marked and critical differences between being a successful entrepreneur and a successful CEO. Sometimes, they even require quite opposite or contrasting skill sets.

What are the main responsibilities of being an entrepreneur? What about  a CEO?

An entrepreneur acts as a hugely powerful engine for disruption and change. That’s incredibly valuable, especially at the start of a project. At this point, success is based on identifying a problem to solve, quickly creating a solution to fill that need and then convincing potential investors, partners, employees and users/customers that the solution will work.

But a CEO has to be a vehicle for sustainable success. If you’re leading a company it’s simply not enough to just be the engine. That might get the journey started but provides no guarantees of getting to your destination in one piece, if at all. What’s key to a CEO’s success, and what can actually be inimical to an entrepreneur’s creativity, is structure. A CEO has to provide the working infrastructure around different hubs or engines of creativity, if they want to do their job well. It’s less about providing the power, and more about harnessing it for a larger purpose or goal.

For a CEO, milk matters, whereas for an entrepreneur, it doesn’t have to. What I mean by that is that a CEO has to worry about small, seemingly minor matters that an entrepreneur has the luxury to ignore. A CEO has to worry that their company has a health insurance and pension system in place, that there is a clear policy on sick days, vacation, and bonuses and perhaps most significantly, that there is milk in the fridge for everyone’s morning coffee. There are dozens of unexciting logistical and administrative issues that come under a CEOs purview (even if someone else is doing the actual work). That might frustrate an entrepreneur who wants to be free to focus on the product.

Can an entrepreneur also succeed at being a CEO?

When we think of archetypal entrepreneur-CEOs, we think immediately of their brilliance and talent for design and innovation, and despite what I’ve said above, there are of course some entrepreneurs who also make for great CEOs. But for many of us, brilliance or genius can sometimes conflict with being the person every employee in a company can trust to lead them.

If an entrepreneur needs enough genius to see something no one else can, the role of the CEO is actually not necessarily to be the smartest person in the room. The key to being an effective CEO is identifying and channeling the genius of others and understanding how to apply it with the wider interests of the company in mind.

How else do entrepreneurs and CEOs differ?

In the same vein, another key difference between an entrepreneur and CEO lies in their primary function. An entrepreneur needs to create a product or service. The onus is on them to create the "something from nothing" / ex nihilo idea that gets the process started.

But a CEO can’t focus solely on getting things started because, as I said above, they need to provide the infrastructure for longer term success. In that sense, a CEO has to be more of an editor than a creator. His job is knowing when and what to cut away from new ideas to shape them (and the company) into the form that will ensure the highest chances for success.

How do entrepreneurs and CEOs fit into the overall business structure?

If an entrepreneur needs to insist on doing things his way, (which may often, to be fair, be the most effective way to do something), a CEO has to accept his way may not always be the right way.

Within the framework of a larger company, any given situation will require different standards and ways of doing things. One project may require efficiency to drive the pace, while another perfection, and success lies in knowing the difference and being flexible enough to adapt. Even more, it means recognizing that different colleagues are going to bring different perspectives and approaches. Learning to trust their expertise and decision-making, even when you might do things differently, can be critical.

An entrepreneur can afford to have tunnel vision. Focusing all of their attention on the opportunity they see in front of them is critical for their success. But, to continue the metaphor, a CEO needs to have double vision. They need to be able to see both the opportunities for growth and the obstacles that lie in the way of that growth. If they can’t employ this kind of preemptive problem solving, they will inevitably fall into every pitfall that crosses their path, and while that may work for a time for an entrepreneur, for a CEO responsible for a whole company, those are setbacks you can ill-afford.

Murray Newlands

5 Kinds of People Who Will Help You Succeed as an Entrepreneur

Entrepreneurship is, in many ways, about achieving independence. You won’t have a boss anymore. You won’t have a network of supervisors and coworkers to set your schedule or monitor your success. Instead, you’ll become a master of your own destiny, and you’ll become accountable only to yourself for your ongoing actions.

That independence can also be a curse, however. The fact of the matter is that even though entrepreneurship is an independent act, the most successful entrepreneurs in the world only got to where they are because of the help they received from the people around them. You’ll be making your own decisions and carving your own path, but if you want to be as effective and as impactful as possible, you’ll have to rely on a few types of people to help get you there.

1. Mentors you admire

Mentors are indispensable resources for entrepreneurs, especially if you’re starting a business for the first time. Most business entrepreneurs have owned multiple businesses in the past, and have made more mistakes and learned more lessons than you can imagine. They’ll help you by providing advice, perspective and guidance whenever you need it -- often for nothing. They also typically have an extended network of resources and contacts you can take advantage of when building up the infrastructure of your business.

Be sure to find a mentor you admire and trust. If you do, he or she can guide you down the right path for years. If you struggle with finding a mentor for your business, look on social media for older entrepreneurs in your industry and in your area. You can also start attending local networking events and talking with everyone you come across -- you never know who you might meet.

2. Partners you respect 

Whether you’re forming a partnership to run the business together or you’re simply finding other businesses to join forces with, finding partners you respect is critical to increasing your chances for entrepreneurial success. With a foundation of mutual respect, business partnerships are less likely to succumb to the usual weaknesses such as bickering, manipulation or general selfishness.

Finding great partners isn’t easy, but it is important if you want to maximize your potential, so don’t rush to find one, take your time and wait for a perfect fit.

3. Employees you can trust 

A business can’t succeed with leadership alone. You’ll need to have a dedicated, reliable network of employees to help you execute the day-to-day operational responsibilities of your venture. They’re going to serve as a vehicle for your directives, so you need to trust that they can accomplish the tasks you set out or at least communicate when they find themselves unable.

To help create an environment that naturally attracts the trustworthy type of employees you need, establish clear guidelines for your company culture, and be especially critical during the interview process. Look for candidates with great personalities and genuine sincerity over candidates with a long history of accomplishment or those with an exceptional educational background.

4. Friends you make time for

Your friends will help you through your entrepreneurial journey more than you realize, but only if you allow them to. Once you get in the thick of things as an entrepreneur, it’s too easy to sacrifice your personal relationships -- working long hours and on weekends is a necessary evil at times, but it’s also important to draw a line and take some time for yourself.

By maintaining a healthier work-life balance, you’ll enjoy your time as an entrepreneur much more, and you’ll make better decisions if you’re well rested. Your friends will help ground you and make sure you don’t burn yourself out.

5. A family that supports you 

Finally, never neglect the power and importance of your family. They were there for you before you started the business, they’re there for you now, and they’ll be there for you regardless of whether your company becomes a breakout success or a total failure.

Don’t be afraid to share your problems, fears, worries and challenges. Holding these issues in can make you even more stressed and could alienate you from your family even further. Take regular time off to be with your family, and keep them an active part of your entrepreneurial journey.

With these people by your side, helping you make the right decisions and standing by you when things don’t pan out, you’ll be far more likely to succeed as an entrepreneur. Surround yourself with people you trust, love and respect, and even if you fail, you’ll be able to enjoy the journey. 

Jayson Demers

6 Questions You Must Answer 'Yes' to Before Becoming an Entrepreneur

Entrepreneurship has recently become a sexy and trendy topic. The media glorifies the startup unicorns that hit big and TV shows like Shark Tank have introduced the entire world to entrepreneurs, leaving many people asking themselves, “Can I be one?”

While entrepreneurship can be rewarding on many levels, it requires a certain type of person to excel, whether he or she is venturing into this world straight out of school or transitioning out of a 9-to-5 career. There are so many questions to ask yourself before making the move -- and a lot of these questions relate to specific circumstances. But here are six things you most definitely have to answer "yes" to. 

1. Can you afford to take the risk, financially?

An entrepreneur fresh out of school with few to no financial obligations has less of a financial risk than someone with a family, a mortgage, multiple car loans and all the other standard monthly bills families have. 

You need to understand the big financial risk associated with starting a business. Your idea may flop, you may be unable to pay yourself for a long period of time and there is always the possibility of losing it all.

If you already have a stack of financial obligations, start your business on the side. That scenario may not be ideal, but it’s still possible to find success this way. If you don’t have those obligations, and you fully believe in your idea, then go all-in. 

2. Do you have a strong support system in place?

If you decide to start a business, the road is going to be filled with bumps and intersections, each with multiple options; you will have questions, lots of them. It’s important to surround yourself with a support system that will be there to help you solve problems, seek answers and be available when you just need to vent.

Having family, friends, mentors and industry connections to turn to will greatly increase the odds of your business being successful. The moral support alone is priceless. Keep the doubters away. They are toxic and need to be avoided if you desire success.

3. If you keep getting knocked down (and you will), are you going to keep getting back up for more?

You are going to get knocked down -- most likely several times. There is also the possibility of making a wrong decision that causes you to fall flat on your face. If you are expecting to hit a home run the first time you go up to bat, you may as well not even play this game. You’re going to strike out. You’re going to become frustrated.

What differentiates the entrepreneurs that quit from the ones that go on to experience success is the latter group's tenacity -- their willingness to keep taking devastating punches and their willingness to keep getting back up for more.

My favorite example is James Dyson, founder and designer of a highly successful vacuum cleaner. Dyson's first 5,126 prototypes were failures, but the 5,127th one went on to become the top-selling vacuum in the United States. He wouldn’t be worth $4.5 billion right now if he had stopped getting up after being knocked down more than 5,000 times.

4. Can you remain motivated, even without personal luxuries and conveniences?

Mark Cuban often talks about his early beginnings, when he was eating mustard and ketchup sandwiches and sleeping on the floor of a three-bedroom apartmenthe shared with five friends. Put yourself in that situation. Could you remain 100 percent motivated while sleeping on the floor and eating mac and cheese or Ramen noodles?

If not, entrepreneurship may not be for you. It’s often the personal sacrifices that make the biggest difference. Would you sell your car and take public transportation to your office if that meant being able to invest more money into your business? Would you sell your house and move into a small apartment if that meant being able to grow your business faster?

If you want it badly enough, you will do whatever it takes, while remaining laser focused and motivated. 

5. Do you understand that your work/life balance will be extremely unbalanced in the beginning?

Most of your time will need to be allocated to your business in the beginning. You will see your friends and family less and miss out on a lot of the little things you used to do -- like getting together for beers after work on a Friday and taking weekend trips. Instead, you'll have long nights at the office and work-filled weekends.

You have to be willing to put in the time and effort in the beginning. When you start a business, everything is on your shoulders. It’s an enormous amount of pressure that some can’t handle. Over time you will be able to create a healthier work/life balance, but understand that it will be very unbalanced in the early years. It’s just recently that I’ve started to get away from my marketing agency 100 percent on the weekends, to devote that time to myself, my family and friends.

6. Can you envision your success?

Believe you can and you're halfway there. -- Theodore Roosevelt

That's one of my favorite quotes about envisioning success. If you can’t envision success, then you aren’t ready. You need to see it, and see it clearly. You need to wake up envisioning your success. You need to have that picture engraved in your head. You need to dream about it when you go to sleep.

So, have you answered "yes" yet?

Jonathan Long