Week 4 - Successful Entrepreneurs Born or Made? Growing a Business?

This week I really enjoyed an article provided entitled "Are Successful Entrepreneurs Born or Made?" by Jeff Sandefer (Acton Foundation Article), that shares the interview of three as it describes "grizzled" veterans of the "Entrepreneurial Wars" in asking questions regarding there success. The interviewer focused on asking these individuals the question:

"So what was the secret to your success? Was it skill, character, or luck?"

Through moments of silence and as I am only sure awkwardness for the interviewer, there was finally response from one of the individuals focusing on "skill" and particularly the ability to "sell", I really liked what one of the other individuals followed up with in regard to skill and salesmanship he said:

“It helps to be born with an engaging personality,” the man who had built a fortune
in rent houses added. “But that’s no substitute for knocking on door after door and
every time you are turned down, having the courage to knock again. Sales is a matter
of learning about human nature, yours and theirs, through trial and error.”

I really grasped what this business owner was saying, a have spent a good chunk of my sales career knocking on doors, training guys to knock on doors, and yes knocking more doors being a door to door or outside salesperson. And definitely agree that there is something to be said for being able to have courage to knock again (over and over again) and that there is a beautiful result that can develop from having that courage and in my opinion it would be developing a further understanding of "human nature".

Then another individual in this article responding to the interviewers question, that character trumped skill. And used the analogy of sport stars "Michael Jordan" and "Tiger Woods" that they may have been blessed with talent and skill, but without the hours of free throws or practicing a swing there skills would not have been developed. This also in my opinion almost falls back to the quote from one of the businessmen in the article that mentioned prior that there is no substitute for doing the work and learning trial and error, in turn building the skills. But the last quote that stuck out to me from this article that I couldn't help but read it several times over. In response to the interviewer following up and asking about "Luck" and that surely there had to be some luck involved in their success or getting into their industry? The businessmen said this:

 “Sure, luck played a part,” the junk dealer said. “But you asked
about success. Luck is the difference between making a million dollars and ten
million or a hundred million. It’s not the difference between success and failure.

"Each of us was going to be a success; it was just a matter of how long it took.”
“Entrepreneurial success isn't about money; it’s about freedom. The goal isn't to make more than you need, it’s to spend less than you make. Because that way your free time belongs to you.”

“You can be the luckiest person on earth,” another added, “but when luck comes
to someone who is unprepared or lacking in character, or sees money as the most
important thing in life, nothing good ever comes of it.”

I think the thought of the difference in luck only being the difference between "making a million dollars and ten million and hundred million dollars" was something I didn't wrap my brain around until I read it at least four times. Basically if someone prepares, works, and masters the other skills of building a successful business the luck is really just the multiplier, regardless of how prepared someone is the luck will or can come, but if someone lacks the fundamentals or foundation to build off of, as the quote says "nothing good ever comes from it".

This leads to my other thought of how to grow a business? In the case study this week for class we read an example of someone (Mills) of opening/starting a greeting card type business where we are approached with the question if it might be better for a plan of slower developed growth or faster more aggressive growth? With more time to think about the question I have decided that it really depends on the market, if you are a new industry and you know that competitors are entering the marketplace at the same time there might be a need for faster growth, to ensure you are "in the game" and aren't shoved out before you had a chance to grow at all. If you are entering an industry that is more well established, that has a set market place already that you are entering to market your niche and price point, slow growth might be more optimal.

From starting a business (on my second venture), having parents with a successful business, and seeing others with their successes. It is different for everyone! The only similarity I see is the same principles of hard work, character, and skill development. I hope that I can consistently learn more and grow my business with these same principles.