The entrepreneurs’ ingredients for success

Garry Barnes 

First, it should be noted there are no specific rule(s) that if followed will ensure success.

Generally, “success” does not come easily, nor does it come suddenly to most of us. It seems to be elusive and frequently just around the next bend. To a certain degree, success is just a matter of self-perception. Regardless of what guidance is offered by the latest “how to” books, written by well-known and successful business leaders, success is not a paint-by-the-numbers process.

Business coaches and advisors tell us it is leadership, the product or service offered, marketing efforts, company personnel, quality customer service and technology. Great advice and all correct, but can it be explained more specifically; can it be more personal, more simplistic?

Although, there is no single absolute prescription for success, there are certain self-management procedures or techniques that if followed closely, will lead us much closer to success, regardless of the endeavor we attempt. In most situations, there are many influences or forces that determine the outcome of our efforts, some outside our control, yet just as many within our control. Arguably, the influences or forces within our control may have a more meaningful impact on desired results.

The first step is for the entrepreneur to define their interpretation of success. It needs to be put in writing, defined, measurable and quantifiable. If it cannot be defined, it will not be achieved. It should be noted there may not be one definition of personal success. It may come in layers — different quantifiable levels of achievement spread over months or even years. It is human nature that when one level of success is achieved, a higher level of success is defined and the process continues.

An example of several determinants totally within our control are the “Three T's” of success: our time, our treaure and our talent. By managing the “Three T's” to success, one has the power to become the architect of one’s own future and achieve the level of success desired.

Time

Time is our single biggest asset. Therefore, we must determine the highest and best use of our time and then be willing and capable to commit the required time to the specific endeavor.

Time is a finite resource and once invested or wasted, can never be recaptured. What is the best use of one’s time? How can we best invest our time to provide the highest return? These questions probably evoke additional questions.

An example might be, is there an established objective or goal? What are the desired results of one’s efforts? In other words, one must start the process by establishing a clearly defined objective and desired set of outcomes. Using the words of Stephen R. Covey from his well-known book The Seven Habits of Highly Effective People: “Begin with the end in mind.” If one does not identify goals in life, then it probably does not matter how much time is invested. However, the results may not be very satisfying.

Once the desired results have been identified, the next step is to estimate the amount of time that will be necessary to invest to accomplish the desired outcome. This may not be an effortless process, but as one clearly identifies the action steps involved in working through the challenge, a timeline becomes more obvious.

The key is to creatively think through the process, identifying all the issues, all the obstacles and all the time-consuming steps necessary to successfully complete the project. Generally, it is more productive to allow nine months to complete a project and then finish in six months than to allow six months and find it will actually require nine months to complete. Perhaps the real questions then become: “Is the time needed to accomplish the desired results realistic?” “Are there better, more productive uses of one’s time?”

If one subscribes to the philosophy that “time is money” one will not find it difficult to accept the economic reality of investing time wisely. The question we must address is “How long are you willing to commit to a plan?”

Treasure

The “treasure” referred to is one’s personal financial resources or financial wherewithal, also known as one’s available capital. One can assume that most projects require some level of financial commitment. This can range from taking an equity position in a project, the investment of advertising dollars (newspaper ads, brochures, signs, etc.) or travel expense.

Still more questions: What is one’s objective? Once established, then one must identify the financial commitment required to accomplish this goal. More questions: What is the project term? What is the level of risk associated with the project and how does that fit your risk appetite? Moreover, what are the mitigates to these risks? Is the return (yield) adequate for the level of risk? Will the project, if finished successfully, provide for the return of principal, and return on principal? What are the investment alternatives, if any?

When overall market rates are low, investors tend to accept greater risk to achieve increased return.

Talent

In this case, "talent" refers to one’s experience and skills that will add value to a project or business venture. Some people have strong accounting skills while others may have a natural sales ability or the innate ability — we call it intuition — to recognize opportunity. Call it what you will but it is a culmination of one’s training and experiences into the ability (it is an “art”) to look at a deal and decide if it is worth the commitment of one’s talent.

It is a challenge to wisely decide if a project is worth our commitment. Is the reward worth the time invested or are there more rewarding alternatives around the next bend in the road? Perhaps most importantly, does one’s skills match the project, or would it be best to pass on the current opportunity and look for the next deal? Most everyone has a unique set of talents and skills. The most important consideration is for one to recognize one’s talents and compensate for one’s weaknesses. In most cases it is wise to do what one does best. Never stop being a student.

Invest your Three T's wisely and success is yours.

Garry Barnes is a freelance writer and director at PW Partners Consultancy in Salt Lake City. He is also managing director of FBO Sales in Scottsdale, Arizona. He is former president and CEO of banks in Arizona, California and Utah. He has taught at the university level and is a frequent writer/lecturer on banking, finance and real estate matters.