Much attention has been paid to analyzing the personality traits of successful entrepreneurs. There are tools that can be used to measure ownership characteristics. For example, I am 7-6-5-3 on the Kolbe Index.
Some entrepreneurs appear friendly. Others are introductions. Some to the right, others to the left, and some keep politics to themselves. There are nerds (shout out to me) and types in the trenches. some golf; Others prefer fun sports (sorry, not sorry).
Some business owners blink. I’ve spent time with people who drive hundred thousand dollar cars and brag about their boats. Then I realized that their company was going bankrupt even after the owner distributions. Others are monks with their money. I talk shop with a gentleman at the gym. Sure, he wears gym clothes, but he doesn’t look like the owner of a $200 million business. But it does. Once I learned, I was excited to see what he drove. In the 1990s there was a certain beat. Probably early 2000s (I’m not good with cars).
The diversity of entrepreneurs can lead one to conclude that there are no common characteristics among successful founders. Instead of trying to understand who they are or what they enjoy, let’s look at what they do.
Working with fellow mergers and acquisitions geeks, I’ve had the opportunity to see those who have achieved tremendous financial success. This perspective allowed me to see three things that the most successful owners do differently:
1. Read business books
The most successful business owners are consumers of business content. When a new business book hits the bestseller list, most wealthy owners have read it or summarized its central point.
It’s not just the printed word. Many find information through audio books, webinars, podcasts, and industry conferences.
The right medium is not so important to these successful founders. What is consistent is their continuous learning style and willingness to use the creative ideas of others and put them to work in their own company.
One of the most dangerous things an owner can do is to fall in. Sometimes things are done one way because “that’s the way we’ve always done it.” Tim, the second-generation owner of the hardware store chain, told me when we visited his flagship store in New Haven, Conn.
Others do things a certain way because they copy what the big companies are doing. John, who owns a Burlington, Vt.-based food distributor, was reluctant to make changes because he was following a national competitor’s template. But large organizations also fall victim to the situation. Additionally, they have different capabilities or funding advantages (or disadvantages) that may make them work less effectively for John or you.
Business owners get rich, in part, by managing the company of the future, not the company of the past.
2. Join ‘Master Men’ groups
In the absence of a board of directors, successful founders often use a peer board to hold themselves accountable and get an outside perspective when they get overwhelmed. Michael, who owns one of the largest construction companies in America, first introduced me to peer mentoring groups for CEOs. Michael is a member of the Vistage team in Atlanta. I am part of three organizations, two local and one local.
Other groups include the Renaissance Executive Forum, the Women Presidents’ Organization, and the Entrepreneurs’ Organization. (As a bonus consideration, you may want to direct the second order to COO Alliance.)
Originally made famous by Napoleon Hill’s class book “Think and Grow Rich,” a mastermind gathers a few peers to act as each other’s sounding board. Often chaired, these teams become a lifeline to their owners as they make big decisions in their businesses and personal lives. The beauty of these groups is that they often provide answers to business challenges that we often think are industry-specific.
3. Ask questions
The personality trait that makes successful entrepreneurs read business books and join peer groups is their natural curiosity. They have an unquenchable thirst for knowledge. No matter how successful they are, they want more.
Many founders are also action-oriented, competitive, and hardworking. That laser-focused drive can only get them so far. I don’t have a specific list of what owners are asking for; That’s not the point. In order to build a business that makes them rich, the owner needs to not only do things, but think things through. Things like “what else” or “how”. We owners get into the habit of telling people what to do. We can go even further if we ask our team for their valuable input.
You might be surprised to see the stereotypical traits of successful entrepreneurs, such as persistence, scheduling, and measuring everything. By no means is this a complete list. If I write this column next year, I might come up with three different things. Look at what wealthy owners do to stay sharp, and you’ll see a consistent pattern among the most successful entrepreneurs you know.
