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October 27, 2010

How To Develop the Entrepreneur Mindset

The true potential of your business will only reveal itself if, you, as the business owner, start thinking “business.” Without the right entrepreneurial mindset, you certainly won’t see your business going anywhere in the years to come.

Small to medium enterprises, including home-based businesses, fail for a lot of reasons. Reasons include, but are not limited to, poor management, ineffective marketing, wrong market potential, and miscalculated capitalization.

But for whatever reason these businesses fail, one major factor to look into is the ability of the business owner to think and plan strategically to allow the business to overcome any challenges that may come its way.

When you start a business, you have to be prepared for all sorts of pressure coming your way. You have the utmost pressure to get it right the first time – make the right decisions, implement the right marketing strategy, hire the right employees, and have the right funding.

This may be achievable in an ideal business school setting, but things vary greatly in the real word of business.

It is necessary that you develop a business instinct so that you’ll know at once if a particular idea will work or not before you spend time, effort, and financial resources.

Some steps for developing an entrepreneurial mindset are listed below to help you get ready to embark on that dream business of yours:

1. Get an Ego-Check: Because they own the business, business owners often think that they can do whatever they want with it without needing the opinions of the other parties who make up the business model.

No matter how intelligent you are, there will always be something you won’t know, and this is where communication and open-mindedness will come to play. In the real world of business, it’s really not as simple as black or white.

2. Be Curious: When you are curious, you begin to explore other options and get to the root of the matter. Sometimes, if you focus too much on what you know, you will be blinded by your distinct belief in that certain idea.

By being curious, however, you are able to uncover possibilities and options which can make your business better. It’s always recommended to become a sponge for information in order for you to build an entrepreneurial mindset.

3. Don’t Focus on the Solution Alone: Instead of finding fast fixes to your problems, why not clarify the issues you have at hand first? You need to go through all aspects of the company and the problems you are facing so that you know where you stand.

And remember, unless your solution provides a business value or prevents another problem from occurring, then it will be a worthless one.

4. Gather Proofs: For you to really get to the bottom of things, you need to have hard evidence of what’s causing the problem. Be sure and be very specific with the questions you ask in order to get the correct answers.

Through these specific answers, you will be able to really see the real picture of things.

5. Calculate Risks: Risks are always a part of any business endeavor. But you must be able to weigh every investment and its corresponding return. You have to see how your decision will impact the business before you even implement it.

It is also necessary that you have a benchmark of success for your business so that you can check back at certain times to see if it is indeed progressing.

6. Consider Your Employees’ Welfare: Aside from thinking about how your decision will affect the business, you also have to consider how it will affect each and every one of your employees.

Any successful business owner will tell you that you cannot accomplish this on your own but you need a team of talented, loyal people working towards your goals.

7. Be Forewarned: If you see early signs of possible obstacles, then do your best to resolve it before it can even snowball into something larger. Even if you fail to resolve it when you see it the first time, at least you won’t be doing severe damage control later on.

8. Get to the Bottom of Things: Instead of solving the effects, see to it that you go right to the source of the problem. In order to understand completely, you must get all the facts and underlying truths. Never stop asking questions.

By taking these tips into mind, you will definitely be able to develop a business/entrepreneur mindset. Without it, your business won’t flourish as long as you want it to.

Kathy Dobson is a free spirited business owner and entrepreneur dedicated to helping others achieve financial and personal freedom. Learn to leverage your time while exploding your business. Grab this free report: