• Who makes a good entrepreneur?

    entrepreneurI have come across a couple of people who have left their comfortable corporate jobs to start on their own. Though all of them had different personality traits but there were a couple of common traits as well. Here is the common minimal character set between all self appointed CEOs that I know.

    Shameless at negotiations
    In one of my earlier jobs I was trying to find a software vendor for an application we needed. In a short time I found the perfect software and ended up negotiating the asking price to get a discount of about 20%. When my entrepreneur boss / CEO saw the discounted price he asked for an additional 60% discount. I was shocked. I felt that it was not negotiation but stealing! However, my boss thought that it was his right to get this discount and he confidently argued with the vendor for about an hour to get this discount. That day I was truly amazed.

    Energetic
    Just try saying ‘Your business model has no substance’ to any entrepreneur and you will know what I mean by energetic. You will be bombarded with arguments, market data etc just to prove that the business has the potential to really kick a**. But you will get this reaction only if the entrepreneur in question considers you to be of any significance and thus tries to alter your opinion. Most likely you will end up getting either a shrug or a cold stare.

    Perpetual optimism
    You might doubt for a second whether earth really goes around the sun but under no circumstance a true entrepreneur doubts his business model, even for a second. Confidence in business model and never dying optimism are his second nature. The business may be suffering, employees may be leaving in hoards but an entrepreneur keeps a positive outlook. This helps to keep his and his employees’ morale high and, more importantly, investors’ confidence intact.

    Published on December 6, 2009 · Filed under: Career;
    7 Comments
  • Tonmoy

    Very well written!
    The article, in my opinion, captures some critical aspects of an entrepreneur’s behavior. Being an entrepreneur myself, I find the above observations very apt.

  • amit

    I agree with the “shameless at negotiation” point. I work in a small and specialized industry and have been involved in deals with many startups In many cases we had to provide our s/w for 50% discount and consulting sometimes even for free.

  • Jayz

    I agree with the first couple of points but “perpetual optimism” is neither a ubiquitous character of all entrepreneurs not is it a good trait to have. I have met entrepreneurs who knew exactly where their businesses were going and that helped them decide when to go public or when to start trying to “salvage the ship”.

  • bharathowto

    @Jayz: Perpetual optimism is an impression which an entrepreneur has to give to people around him. It does not imply that an entrepreneur does not fine tune his business model when required. Since entrepreneurs are looked up to for direction and motivation, they cannot afford to be found on the wrong foot or demotivated. So even though they may be selling off their businesses but they will do it with a great promise for future.

  • bharathowto

    @Tonmoy:
    It would be great if you can share your entrepreneurial experiences

  • bharathowto

    @amit:
    Typically startups have little cash to burn so they try to negotiate the best deal.
    What is the most embarrassing excuse you have ever heard in a desperate attempt by an entrepreneur to get a discount?

  • jayz

    bharthowto,

    you have clarified your point well. It would be good if you could put together a write-up on “COMMON traits of budding entrepreneurs”. The points in the article probably constitute a common denominator.