The number one reason why being an entrepreneur is so difficult
We meet hundreds of entrepreneurs each year, but only a tiny percentage of them will ever become successful. So why is it so hard to become a successful entrepreneur?
In one of my previous posts, I discussed the concept of competences. We observed that effective behavior of entrepreneurs, is about balancing pairs of competences that each look like opposites. This act of balancing competences is hard, which is why experience does matter here.
We sese 6 pairs of competences that need to be balanced:
1. Focus vs. Adaptability: Entrepreneurs need to be focused on their core competences, differentiators and core customers. At the same time, they have to be alert and adapt themselves to customer feedback and changing market conditions.
2. Short term action vs. Long term strategy: Great entrepreneurs are pro-active and have a can-do mentality to solve problems. But they never forget to lose sight of the company’s strategy and are also investing to secure the future.
3. Result driven vs. People-focused: Effective leaders know how to find balance between focus on results, and focus on the people’s well-being and their needs at the same time.
4. Data driven vs. Intuition: We are strong believers of using as much data as possible to assess situations and create options. On the other hand, data often comes short of predicting the future or choosing between different scenarios. Intuition on deep domain knowledge will make the difference here.
5. Ambition vs. Modesty: A clear ambition is the precondition of success. However, big ambitions and big egos are a very toxic mix. A big ego can block success and even destroy the value of the company.
6. Discipline vs. Creativity: Discipline will ensure that things get done. Yet, great companies offer more than just predictability. Being different to make an impact requires creativity too.