The Five Ingredients to the Magic Potion of Startup Success
Remember in Harry Potter how Hermione would make a “Polyjuice Potion” to morph Harry and Ron them into other people?
What if we told you we have sort of a similar one, in order to morph you into a successful entrepreneur?
However this time there won’t be any Hermione Granger to aid you, you will be doing it yourself!
Fret not, we curated a list to help you,
So let’s begin!
If you were to ask an Oxford dictionary it would tell you that entrepreneurship is the activity of setting up a business or businesses, taking on financial risks in the hope of profit but you and I, especially after being the part of of this extensive network know that it is much more than that.
So what are the ingredients that make up for a successful entrepreneur? And what do all successful entrepreneurs have in common?
A study by Harward business school showed that the founders who posses the style of Hands-on Management are more likely to retain employees and see their firm thrives than those who don’t.
Founders are busy people, people with hands always too full. From raising funds to employee recruitment to developing partnership, almost everything falls on their already heavy shoulders.
In such a case, while they get pulled in all different direction it is crucial to keep in mind that one still needs to monitor and mentor it’s the staff.
Effective human resource administration is much more than just keeping the paperwork flowing. One also needs to focus on the strategic part of managing people to make sure they are working on the rights tasks, that they’re getting the feedback they need, and they’re happy in the firm so they’re less likely to quit.
- The network as the best teacher.
Companies often opt for instructors and formal training who teach entrepreneurs about handling their own company, while the instance itself is laced with irony,
What if I told you that these measures are expensive but maybe you don’t even need them?
Research exhibits, founders that they should seek mentor networks with the goal of picking up intensive management techniques that they can use to more efficiently to manage and grow their own teams.
However, if you are expecting these types of exchanges to happen in you next networking cocktail parties, let me just tell you that would not do, all it will make you are a boring host so refrain.
These exchanges are often more personal than formal training programs because the founders tailor the discussion to a company’s specific situation and share their own experiences. However, in order to not jinx it may take one founder seeking out another for a more in-depth talk,
- Trust as a building block
One cannot deny that trust is one of the most crucial ingredients in order to build a startup, especially in a developing country.
While the confidence of in consumers developed countries like the United States is fortified by enforceable contracts, an impartial legal system, and strict regulations, none of that is a given in the developing world.
And till the time the consumer does not believe in your product it is quite unlikely they would pay much attention towards it.
The harsh truth is entrepreneurs who don’t attempt to allay and eradicate the mistrust that permeates these countries are doomed to fail.
- Self-efficiency and innovative-ness.
In the uncertain and competitive environment of new startup creation, many researchers hypothesize that entrepreneurs thrive on a strong sense of personal self-efficacy to execute their visions and a keen eye for innovation to identify new products and markets. Self-efficacy describes a person’s “belief that he/she can perform tasks and fulfil roles, and is directly related to expectations, goals and motivation” High self-efficacy correlates with work-related performance small business growth academic performance career choice. Self-efficacy is measured on two levels of specificity, either as generalized self-efficacy or domain-specific Entrepreneurial Self-Efficacy (ESE). Most researchers focus on the more situation-relevant ESE measure.
- The need for achievement.
The need for achievement refers to an individual’s desire for significant accomplishment,
mastering of skills, and attaining challenging goals.
Researchers hypothesize that entrepreneurs might hold a high need for achievement, as building a business from scratch demonstrates one’s individual abilities in ways that are often hard to match when working within a system in which responsibility is diffuse.
Need for Achievement (nAch) is a concept based on McClelland (1985) “acquired-needs theory” and is one of the dominant needs affecting individual actions in a workplace context.
The concept was first instructed by Murray (1938), and later developed and popularized by McClelland (1961, 1985). Many researchers have found that a high need for achievement predicts entry into entrepreneurship, although this finding is sometimes challenged in specific contexts.
Some researchers also observe a line between the need for achievement and business performance.
And there you have it, your five ingredients to the “Polyjuice Potion” of success, and we are sure all these are present in the pantry of your personality.
All you need to do is throw them in together and start brewing!