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The Five Factors of Success for Entrepreneur


We come across the phrase “Successful entrepreneur” almost every day. It has become the common trend of the previous decades to study and analyze the paths they went through, to emphasize the characteristic features of entrepreneurs and try to find the key to their success.
Here a question arises: what is the difference between a successful entrepreneur and an unsuccessful one? We created a very simple model, which not only describes that difference but also provides a very practical understanding of “how simple” people can reach success. The five talismans of a successful entrepreneur give a simple and brief answer to this seemingly difficult question.

These 5 talismans are the essential resources that one needs to deal with to attain success and prosperity. Whereas before starting an activity everybody studies the available resources and assesses the risks. And these resources are comprised of these five talismans.


The first resource is the time.

Time is the only resource that is given to everybody equally - 24 hours per day. And we are the only ones who decide how to manage our time. It will actually depend on our character and environment. Nowadays there are numerous tools for time management and a significant attention is paid to effective time management. And this has a good reason. We live in an era where not the weak are defeated by the strong, but the slow by the fast.

But time has a disadvantage: it does not return or, in other words, if you kill it, it kills you back.

Thus, the development of the other resources derives from the decisions concerning the time management.


The next resource is the information or knowledge.

Have you ever thought why we spend so much time collecting information and gaining knowledge? Is it worth spending the priceless time for achieving knowledge?

Today being fast is not sufficient for being strong. In all times, be it before our era or after, those who possessed information, ruled the world. For instance, almost 5000 years ago the priests in Old Egypt could calculate the eclipse of the sun, so they possessed the information which the others did not have. Thus they frightened people, saying that if they do not make sacrifices, do not pay taxes, the light will become dark and darkness will be spread all over the world. Their knowledge was their power.

In the Middle Ages during the Crusades, the water in the desert was contaminated and the temple-servants having learned about it drank the water after boiling it. And those who did not have this information died because of intestinal diseases. People believed that the prayers to water and different rituals would help them avoid those diseases.

Nowadays the situation is the same. Facing a problem, we immediately try to find the person, who is expert of the case and is competent in the subject.

Today the information field is very wide and different. Day by day, even hour by hour various changes, discoveries happen in the world. Gathering information is easier and faster now, but it is hard to filter the information, decide whether it is useful, confirm its accuracy and apply it.

To be fast and informed... It would seem that nothing else is needed for being successful, but...

The next talisman of a successful entrepreneur is the skillset.

While studying the ways successful entrepreneur has passed, we come across such people who achieved success due to their skills even if they had lack of knowledge. They changed the world and invested their time in developing skills. Some of them didn’t have a good education but they had more - we can say that they went through the school of life.

Each of us has some skills, be it the skills of speaking or listening. At the first sight, they seem easy and achievable, but they are actually complicated phenomena. Mastering the information does not mean being skillful. For example, if a person does not have selling skills, the literature that he reads can hardly help in that case.

Nowadays many people give significance to higher education, while “geniuses” become successful, the skillful ones become leading, and the talented- appreciated and famous. Here we find the features uniting the talismans of knowledge and skills.

Upon achieving some knowledge, we start developing our skills. We spend our time for being more skillful and professional. On the contrary, skillful people become an object of investigation. People start writing books about them, analyze, model and reveal all the reasons that have become the key to their success. And often, the new knowledge is developed based on that learning.


KNOWLEDGE AND SKILLS

These notions seem alike at first sight, but when we go deeper, we see that they are quite different.

Knowledge is the theory; skill is the successful application of this theory and the way to achieve results.

Experience and mistakes develop the skills. For example, the sales specialist, who has an MBA, studied all the principles and rules of marketing and sales. In the working process, he also gets familiar with the market activities, target market, competitors, etc. All this is considered as knowledge. Turning this knowledge into a successful sales strategy and a profitable outcome depends on the skills of the sales specialist.

The experience and mistakes are often the basis of the development of skills. Sometimes some skills are specific only to some people. But skills can take a person only to a certain level of success. For greater success, he should have the corresponding knowledge, as well. For example, a person can be skillful in carpentry, but at the same time with his engineering knowledge, he can make miracles. Meanwhile, some people may have theoretical knowledge, but unable to perform a task.
From the philosophical point of view, knowledge cannot be materialized if there are no relevant skills. But skills can become materialized and bring to results if they are applied.

Theoretical knowledge can be shared with other people, while some skills can never be transferred to others. For example, the auto-mechanic can figure out the problem of the car at once, as he is skillful and find out the problem even at a subconscious level. However, the mechanic cannot share such knowledge with others.

Summing up it is worth noting:

Knowledge is the theoretical information on a topic, while skill is the practical use of that knowledge;
Knowledge can be gained through learning, while skills are achieved through experience or are innate;

To become professional in any sphere one should have either knowledge or skills.

Well, we have already drawn the ways leading to success. We have the boat on which we have to sail; we master the necessary information and skills for sailing on the boat. But we forgot about the most important - it is difficult to sail alone. And here we need the next talisman - the connections.

Connections are the key to open almost all doors.

Nowadays the establishment of business connections is a priority for many people. They attend different seminars, clubs and other places to establish connections. But this talisman has a drawback. The one whom we need does not need us. For this purpose, we have to find ways to reach them and float on the same level with them. In this term, there are also many methods, tools, even books concerning business connections. As countries cannot live without economic relations, the same is with people.


And how should we understand the relation between this and other talismans?

Friendship is a constant exchange. Exchange with affiliation, time, seldom with money and always with information - (Hania Yanagihara).

Thus, we spend the time to establish some connections, as well as give a part of our time to the people surrounding us. We wish to create connections with those people who are more informed and skillful. Successful people are always surrounded by others, who make them more successful and famous. And as you know, success often becomes materialized. And here comes our last talisman – it’s all about money. Money is the only product which can be exchanged with any other goods. This is the positive side of money: any material outcome has its equal monetary unit. The negative side is that because of lack of information we may lose it or it may be stolen. Money is the common indicator to measure the success. You provide value to others: something that is different and unique to make you stand out in the crowd. When you create a value you get access to the financial world, i.e. the world pays you back by money. So you are able to get money along with the freedom which money is believed to bring with it.

These five talismans are so simple that a question arises: “Well, what is the secret?” How can the successes of entrepreneurs be conditioned by this simple scheme?

Here is the answer: Successful people start with time and unsuccessful ones start with money, using lack of money as an excuse: “If I had money, I would have time. If I had money, I would gain knowledge. If I had money, I would have skills. And finally, if I had money, I would have many people by my side”. This is one of the most common mistakes that people usually make. From the beginning of their actions, they strive for the last talisman, i.e. the money. However, the truth is that not everybody can start with money, but everybody can start with time. And it will be easier if you focus on the result itself (the value you created) and not the material profit which is just the outcome of your created value. Everyone cares about the value you create, no one cares about how much money you want to earn.
There is another important secret. Successful is the one who can exchange one resource with another and as a result, develop and successfully maintain all the resources available to him.

Now everything is ready to reach the success: the only thing left to do is to have courage, act, going through the stormy ocean, grasp all the given opportunities and surf towards success.