The 21st century is a “golden age” for entrepreneurship, thanks in large part to the growth of information technology. Accordingly, today’s younger generations are proving to be some of the most entrepreneurial in recent memory. They’re motivated by the potential for financial success, the ability to work for themselves, and the potential to leave behind a meaningful legacy.
Still, founding a company is not for everyone. Much of a person’s ability to succeed as an entrepreneur depends on his or her mindset and character. Successfully establishing and growing a company requires a founder to have grit, let go of defensiveness, and control his or her confidence. Each of these traits is explored below.
The trait you need: Grit
Being a successful startup founder requires a number of talents, but if most industry veterans had to narrow these down to one quality that’s universally necessary for all entrepreneurs, that quality would be grit. Without grit, it’s impossible to build a successful company.
Grit is a difficult concept to define because it is a combination of many distinct but related qualities. It is a brazen tenacity—a dauntlessness in pursuit of a difficult long-term goal. It is a combination of inner strength and willpower that allows founders to bounce back quickly from failure, then use the lessons they’ve learned to improve themselves and their work.
Grit is essential to success in entrepreneurship because it keeps founders going during challenging phases when others would give up out of frustration, hopelessness, or exhaustion. A founder with grit is more likely to attract good people to a project because the quality inspires the belief and trust of employees and business partners. Entrepreneurs who demonstrate grit are also more likely to secure financial support from investors. A majority of people who work in venture capital or angel investment will not support a product or service, no matter how potentially lucrative, if the person leading the company lacks grit. Investors bet on people as much as they do on products, and grit is usually a nonnegotiable trait in entrepreneurs.
The trait you need to let go of: Defensiveness
Establishing a startup is a journey with both high and low points. Every path to success is different, and there is no direct path for an entrepreneur to follow. While the failures are painful, every small success along the way is profound. Building a company from the ground up is an emotional investment—often a passion project or a labor of love that the founder feels extremely protective of. Unfortunately, this can lead to oversensitivity where feedback is concerned.
This passion can express itself as defensiveness—the one quality that every entrepreneur would be better off without. Defensiveness prevents founders from listening to others’ advice. Being defensive about constructive criticism, especially from investors or mentors, can block meaningful change. This attitude can also turn away valuable professional connections that could further the growth of the company.
Letting go of defensiveness and welcoming feedback is a mark of maturity in the startup sector. It attracts the right kind of support and demonstrates that the founder is secure in both the company and his or her position in it. This is especially true when it comes to startup founders who are working with venture capital investors. Some company leaders fear a VC’s input due to a misplaced fear that their company is being “stolen” from them. In reality, a VC’s goal is to help make the company as profitable as possible. Entrepreneurs who let go of their pride and eschew defensiveness open themselves up to valuable input that can take their product from “good” to “great.”
The trait you need to control: Confidence
Confidence is a quality often discussed in terms of personal growth and development, but it is valued equally in the professional capacity when it comes to entrepreneurship. Confidence is an important quality among company founders because it sets the tone for the quality of the business’ product. When an entrepreneur lacks confidence, it translates poorly for the company. If a founder doesn’t truly believe in what he or she is selling and doesn’t have faith in the inevitability of the company’s success, no one else will either.
Confidence is also important because it helps sustain entrepreneurs through the early stages of startup growth, when problems are common and investors and business partners say “no” much more often than “yes.” Maintaining high levels of confidence helps build resilience against disappointment and keeps startup teams inspired and energized. However, entrepreneurs also need to control their confidence to some degree.
In certain situations, confidence in oneself and one’s company—even overconfidence—is necessary. However, unchecked confidence can turn into outright arrogance—a corrosive quality that can destroy professional relationships and damage a startup’s growth potential. Arrogant startup leaders are at risk of poorly representing their brand in meetings, and they tend to value their own time and own opinions more than others. This kind of attitude closes doors that would otherwise open. An arrogant entrepreneur can also deter potential investors from backing a company—even a particularly promising one. Many investors find that the payoff of working with an arrogant entrepreneur over several years is not worth the frustration it will cause.
Because of this, confidence is the biggest quality that entrepreneurs need, but also must learn how to control. Striking a healthy balance between confidence and arrogance is key to maintaining an inspired, loyal startup staff and bringing aboard investors who believe in the company and the founder’s ability to lead it.