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Subject: |
Seven Strategies that Entrepreneurs Must Apply |
| Date: |
2009-04-13
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Seven Strategies that
Entrepreneurs Must Apply
By Al Jacobs
www.onthemoneytrail.com
A popular comic strip dating back to the 1930s declared that, "Heroes
are made, not born." Each day, the misfortunes of the main protagonist
were humorously revealed as he invariably caused things to go wrong.
The moral, which was grasped easily, related to the character flaws the
antihero displayed. And there's a lesson to be learned from that comic
strip of long ago. It is that entrepreneurs of the present mimic heroes
of the past. Most surely, entrepreneurs
are made, not born. It is the meld of traits and reflexes
developed and honed over time that distinguishes the achievers from
others we interact with throughout the workday.
With that said, ask yourself whether you
are among that select group whose inherent ability to compete has
become a mark of character. You will be able to answer yes to that question if you embrace
the following principles:
- For a helping hand, look to the end of your
arm. This may sound cliché, but its utterance conveys
more than mere platitude. Concerning those endeavors in which you are a
participant, no one will exert more effort on your behalf than you. You
dare not rely upon others to represent your interests without
overseeing their actions - this is true regardless of their position or
supposed expertise. In any circumstance where the outcome is important,
you may not passively defer to others.
- Separate illusion from reality. This
fundamental capability - to a great extent attitudinal - is one
hallmark of an entrepreneur. Thus, when on the evening news, an SEC
official proclaims "a stunning victory" for investors - as a result of
the nation's major securities brokers agreeing to pay $1.7 billion for
"fraudulent activities" without any admission of guilt - you should
instinctively question the victory won. You might also wonder whether
any portion of that sum will find its way to the defrauded investors,
rather than flow to the SEC's special fund. Focusing on substance while
dismissing irrelevance is second nature to you.
- Pay attention to Murphy's Law. In
its essence, Murphy's Law declares: "If anything can go wrong, it
will." Though overstated for humor and effect, it contains an element
of truth that no attentive entrepreneur ignores. In order to recognize
that financial decisions should minimize unexpected risk, you must
shrewdly conduct your affairs with Murphy always in your consciousness.
- Don't violate the basic rule of income and
expenditures. The late English historian and economist C.
Northcote Parkinson, perhaps the most lucid writer of the twentieth
century, expressed the rule most articulately: "Expenditures invariably
rise to meet and exceed available income." Whether describing an
individual or an organization, this impulse to spend whatever is
available is a universal scourge. A prudent entrepreneur rejects this
tendency to spend up to and beyond a financial limit. The necessity to
retain reserves for unexpected contingencies should be rote.
- Refuse to commit to things you do not
understand. Perhaps the most persuasive inducement that commits
one to a course of action is the admonition: "If you fail to act now,
the opportunity will be lost." Although you recognize the importance of
making timely decisions, and are often willing to shortcut procedures
that unduly interfere with a successful undertaking, you should
steadfastly resist being rushed into any involvement that you do not
fully comprehend. When required to make decisions on factors you
consider less than reliable, you tend to postpone binding commitments
until you get the missing information. One of most knowledgeable
investors I've ever known summed it up in an unforgettable way when he
said, "I've missed the boat many times, but I've never been on one that
sank."
- If a goal is worth achieving, pursue it
diligently. This principle was never better stated than by the
nineteenth century British prime minister Benjamin Disraeli, who said,
"The secret of success is constancy to purpose." An aggressive
entrepreneur will ardently adhere to the dictum that if a goal is worth
attaining, it is worth pursuing vigorously. And in so doing, an
entrepreneur ascribes to the adage, The harder I work, the luckier I
get.
- Recognize that luck is something you must
make happen. Possibly the most profound concept relating to
personal achievement consisted of two sentences that appeared in a
now-forgotten newspaper article. The text simply read, "Ed Callaway is
a lucky man. He arranges it that way." Those people who recognize that
the end result of a project will be affected by manipulating the
ingredients in the project, can arrange for an ending perceived as
lucky. As an entrepreneur, you must embrace this notion as you make
luck appear to happen. Never forget that in life's crap game, the
player's dice are loaded and whether the dice are weighted to favor
seven or snake eyes can be influenced by the roller.
Returning to our initial premise,
there is no doubt that entrepreneurs
are made, not born. And, most importantly, the creation is not
the handiwork of unskilled labor, nor the result of outsourcing. An
entrepreneur must be self-made - as well as self-sustained. And it is
by grappling with challenges and opportunities that the species thrives.
Al Jacobs has been
a professional investor for nearly four decades. He is a
nationally syndicated columnist and appears regularly on ProducersWeb.com, DrLaura.com and SheKnows.com. He draws on his
extensive expertise in estate, mortgage, and securities
investments to counsel millions on how to invest wisely and spend
prudently. He is the author of Nobody’s
Fool: A Skeptic’s Guide to Prosperity. Subscribe to his financial
column, "On the Money Trail," at no cost or obligation, by visiting www.onthemoneytrail.com. Permission granted for use on
DrLaura.com.
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