Myths of entrepreneurs 3

Some final truths behind the myths of entrepreneurs to rap-up my discussion on the fundamentals of entrepreneurship. I will then start to share information and provide some useful tools for young entrepreneurs to apply when setting up a new venture. But first, let me show you how entrepreneurs and the process of entrepreneurship are often confused.

Money is the most important startup ingredient…

If the other pieces and talents are there, the money will follow, but it does not follow that an entrepreneur will succeed if he or she has enough money. Money is one of the least important ingredients in new venture success. Money is to the entrepreneur what the paint and  brush are to the artist – an inert tool that in the right hands can create marvels.

Entrepreneurs should be young and energetic…

While these qualities may help, age is no barrier. The average age of entrepreneurs starting high-potential businesses is in the mid 30’s, and there are numerous examples of entrepreneurs starting businesses in       their 60’s. What is critical, is possessing the relevant know-how, experience and contacts that greatly facilitate recognizing and pursuing an opportunity.

 Entrepreneurs are motivated solely by the quest for the almighty dollar…

Entrepreneurs seeking high-potential ventures are more driven by building enterprises and realizing long-term capital gains than by instant gratification through high salaries and perks. A sense of personal achievement and accomplishment, feeling in control of their own destinies, and realizing their vision and dreams are also powerful motivators. Money is viewed as a tool and a way of keeping score, rather than an end in itself. Entrepreneurs thrive on the thrill of the chase, and, time and again, even after an entrepreneur has made few million dollars or more, he or she will work on a new vision to build another company.

 Entrepreneurs seek power and control over others…

Successful entrepreneurs are driven by the quest for responsibility, achievement, and results, rather than for power for its own sake. They thrive on a sense of accomplishment and of outperforming the      competition, rather than a personal need for power expressed by dominating and controlling others. By virtue of their accomplishments, they may be powerful and influential, but these are more the by-products of the entrepreneurial process than a driving force behind it.

If an entrepreneur is talented, success will happen in a year or two…

An old maxim among venture capitalists says it all:  The lemons ripen in two and a half years, but the pearls take seven or eight. Rarely is a new business established solidly in less than 3 or 4 years.

Any entrepreneur with a good idea can raise venture capital…

Of the ventures of entrepreneurs with good ideas who seek out venture capital, only 1 to 3 out of 100 are funded.

If an entrepreneur has enough startup capital, he or she cannot miss…

The opposite is often true, that is, too much money at the outset often creates euphoria and a spoiled-child syndrome.  The accompanying lack of discipline and impulsive spending usually lead to serious                    problems and failure.

Entrepreneurs are lone wolves and cannot work with others…

The most successful entrepreneurs are leaders who build great teams and effective relationships working with peers, directors, investors, key customers, key suppliers, and the like.

Unless you attained 6001 on our SATs or GMATs, you will never be a successful entrepreneur…

Entrepreneurial IQ is a unique combination of creativity, motivation, integrity, leadership, team building, analytical ability, and ability to deal with ambiguity and adversity. Making the entrepreneur a critical element in the entrepreneurial process which is not restricted to a particular level of intelligence.