Do You Fit the Mold For Startup Success?

When Michael Dell was a 19-year-old freshman at the University of Texas at Austin, he
raised a little cash by selling computer clones from his off-campus apartment. Business
was so good, he didn’t bother registering for his sophomore year.

By JOSEPH R. MANCUSO Wall St. Journal

Mr. Dell’s lack of education hasn’t hurt him, though. Sales at Dell Computer Corp. topped
$31,168 million last year, and in an industry flush with entrepreneurial success stories,
Mr. Dell ranks right up there with Bill Gates at Microsoft Corp. and Steve Jobs at Apple
Computer Inc.

Creating a successful business from nothing requires motivation and perseverance that
border on obsession. Sometimes it demands ruthless behavior and a willingness to
neglect everything but the business, including family and friends. Many successful
entrepreneurs are considered antisocial and some are thought of as downright nasty.

But in truth, no two entrepreneurs function or behave the same way. One may be a shy,
gentle engineer who turns her technical know-how into a gadget that helps a space
shuttle fly more safely. Another could be a brash marketing consultant who hits on a
better way to sell toothpaste. Despite their personality differences, these two innovators
share many traits. By studying what entrepreneurs have in common, you can determine
whether you have the necessary characteristics to survive on your own.

If you have a million-dollar idea but are afraid to launch it yourself, review the following
traits of top entrepreneurs. Perhaps you have more in common with Mr. Dell than you
realize.

Learning Close to Home

The independent way of life isn’t so much genetic as it’s learned, and the first school for
any entrepreneur is the home. It’s only natural that if you have a parent who’s
self-employed, you’re more likely to launch a business than if your folks are, say, civil
servants. The parents of both Howard Hughes and Donald Trump were self-employed, and
studies show that more than 60% of all successful entrepreneurs can claim at least one
self-employed parent.

More School?

Many entrepreneurs are impertinent and boast an almost compulsive need to be right.
Few teachers are appreciative of that attitude. That’s why many entrepreneurs aren’t
college graduates, and only a precious few reach graduate school.

Failure is part of this scenario. Entrepreneurs aren’t known for their high grade-point
averages. Many receive failing grades at some point in their college careers, unless they
were wise enough to drop the course when their interest waned. They may also have
failed in past jobs where they weren’t allowed to think for themselves. This was the
reason Thomas Watson was fired in 1913 from National Cash Register Co. (now NCR
Corp.). He joined a competing tabulation and recording company and ended up running it
for about 40 years. He also changed its name to International Business Machines Corp.

Lemonade! Lemonade!

Most enterprising adults began as enterprising children. If you were an innovative kid who
developed new ways to earn money, that entrepreneurial spirit will likely re-emerge
throughout your life. I’m not just talking about the summer you mowed lawns for $5 each,
or the paper route you held for three years. The real entrepreneurs of tomorrow promoted
dances at the local community center and sold encyclopedias door to door. They saw the
potential income of shoveling snow on a winter day, but instead of pulling on gloves and
galoshes, they hired other kids to do the dirty work and handled the more sophisticated
(and somewhat warmer) sales efforts.

Where Do You Fit In?

If you’re the oldest child in your family, the entrepreneurial world is your oyster. With an
average of about 2.5 children per American family, the chances of being the first born are
only 40%. Yet entrepreneurs tend to be the oldest children almost 70% of the time. One
reason: The motivation to achieve is much higher among those born first, according to studies at Harvard and Columbia universities. That means if
you’re a second or third child — and there aren’t at least six years separating you from your oldest sibling — you’re bucking severe odds by trying
to launch a business.

Money Alone Isn’t Enough

If your prime motivation for starting a new venture is to become rich, you probably won’t succeed. Entrepreneurs start businesses because they
can’t stand working for someone else. They want to call all the shots, and more often than not, money is simply a byproduct (albeit a welcome
one) of their efforts.

Measure Your Brain Power

When faced with a difficult question, do you buckle down and concentrate on finding a solution? Or do you mull the question over while doing other
things until an answer emerges? Entrepreneurs favor the latter approach. They see it as the difference between working harder and working
smarter. Rather than force an answer, they allow the answer to suggest itself whenever possible. Deadlines can certainly prompt a quicker
response, but chances are the solution will be better when it’s allowed to bubble up rather than pop out.

Flip Again, Double or Nothing

The typical entrepreneur might surprise you at a racetrack. Instead of wagering it all on a long shot, self-employed executives would more likely
bet on the 2-1 favorite. In fact, few entrepreneurs are high risk-takers. They tend to set realistic, achievable goals. And when they do take risks,
they’re usually calculated ones that depend more on their personal skills than on chance. If an entrepreneur found himself in Las Vegas with his
last $10, chances are he’d make telephone calls in search of a financial backer.

Love Blooms Around Every Corner

One of the biggest weaknesses of entrepreneurs is their tendency to fall in love too easily. They go wild over new ideas, new machines, new
contacts and potential new businesses, but these love affairs usually don’t last long. The problem is that during the infatuation period,
entrepreneurs lose their objectivity. They refuse to listen to reason from friends and associates. But when the idea or product proves to be
disappointing, they start looking eagerly for the next new "love" to come along.

Rosencrantz and . . . , Laurel and . . .

Choosing a business partner or right-hand assistant is a critical move for would-be entrepreneurs. Many search for bright, energetic people much
like themselves. That’s their first mistake. Would you be happy or efficient as someone else’s assistant? Probably not.

Choosing someone bright but lazy is a smarter move. That person isn’t out to prove himself, so he won’t butt heads with you at every turn. And
while he’s relieved at not having to make critical decisions, he’s a whiz when it comes to implementing them. Why? Because unlike the
entrepreneur, he’s good at getting other people to do his work. It’s called delegating.

A Place for Everything

Organization is key to an entrepreneur’s success. In fact, it’s the fundamental principle on which all new ventures are based. How entrepreneurs
organize their days varies by person, but every entrepreneur has some system for keeping tasks and appointments carefully coordinated. One
strategy is to keep a "to-do" list on your desk or in your pocket, crossing off tasks as you complete them and adding to the bottom as needed.
Pocket calendars work just as well.

If you’re regularly late for appointments or forget when term papers are due, you’ll likely flop as the head of a company, even if you’re the brains
and motivation behind the company’s product or service.

Is the Glass Half Empty?

Entrepreneurs are eternal optimists. They believe that with the right amount of time and money, they can do anything. Many also believe that
chance plays a part in their successes, but that being at the right place at the right time is a result of smart thinking and hard work, not chance
alone.

To illustrate the plucky optimism of entrepreneurs, consider the story of the Midwestern shoe manufacturer who sent his two sons to rural India to
scout out new markets. One wired back: "No point in staying on, no one here wears shoes." The other son wired back: "Terrific opportunities here.
Thousands are without shoes." Guess which son eventually took over the business?

The Competitive Spirit

The most famous quote attributed to the late football coach Vince Lombardi is "Winning isn’t everything, it’s the only thing." But a lesser-known
quote of his that’s closer to the entrepreneurial philosophy is "We didn’t lose any games this season, we just ran out of time twice."

Starting a business or new venture is a competitive game and new entrepreneurs have to be prepared to run out of time once or twice before
experiencing success. With the right characteristics, however, they can add a few more minutes to the clock.

— Mr. Mancuso is founder and president of the Chief Executive Officers’ Club Inc., a New York-based not-for-profit educational association of
CEOs and entrepreneurs.

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