4 characteristics to think like a Successful Entrepreneur

Entrepreneurs are critical to economic development. They create jobs and opportunities for the teeming
populace. Where a service is lacking, they identify the gap and put measures in place to fill the gap. And
they bring new products to the market through their various innovative mindset. Being an entrepreneur
demands a lot of brain work. Especially for those who want to be very successful entrepreneurs. It is not
enough to just come up with an idea. It requires more than that. Successful business thinkers have
characteristics that have helped them along the way in their business, and if you want to tow the path of
being an excellent business thinker, the following are the 5 characteristics:


1. Positive mindset

Mindset, they say, is everything. And having a positive mindset is the first thing you will need as an
entrepreneur. Yes, some risks do bother the mind, especially when it seems you are giving your all to it.
However, you need to think about the positive side. What if it goes right and that is the deal that
changes your life forever?

You require a positive mindset to inspire the rest of your team. You do not want to be the leader who
does not motivate his subordinates to expect the best outcome. If you do that, you affect the team spirit
and the sacrifice needed to see that all goals are followed through.

Know as an entrepreneur there will always be issues that you need to resolve. Having a positive mindset
means being solution-orientated and resourceful, knowing you can resolve problems as they are
presented to you.


2. Problem Solving

Eighty to ninety percent of entrepreneurs are in business because they identified a problem they
wanted to solve. Problem-solving is one of the key traits of an entrepreneur, and on your quest to climb
the ladder of success, you have to always solve problems as they arise in your business. Problems are
not desirable to anyone but you have to be prepared for their occurrence.


3. Creative mindset

Have you ever met any successful entrepreneur who has not been creative since he/she came into
business? To have a business that will succeed demands a creative mindset. You have to always think
outside of the usual ways people of doing things; think of a way to solve that problem or of a better way
to provide your services or innovation in the product you sell. “Creativity,” is said to be “the mother of
invention” and Steve Jobs, Mark Zuckerberg, The Wright Brothers, etc. would not have been known
around the world today if they had not had a creative mindset.


4. Flexibility

One way fits all does not work if you want to be an excellent business thinker. You have to have an open
and dynamic mindset, be open to changes, and do things differently.



  • https://aofund.org/resource/entrepreneurial-mindset-5-characteristics-to-cultivate/
  • https://www.entrepreneur.com/leadership/truly-independent-thinkers-have-these-5-traits/400737
  • https://www.insightassessment.com/article/characteristics-of-strong-critical-thinkers
  • https://www.masterclass.com/articles/strategic-thinking-guide
  • https://study.com/academy/lesson/the-five-attributes-of-strategic-thinkers.html

How to analyze risk as an entrepreneur?

Risk is paramount in every business venture. The business decisions you make are a major risk that may
pan out well or go south. However, knowing how to analyze risk as an entrepreneur may help your
business avoid the unworthy risk that could hurt your business. Before we delve into the risk analysis
mechanism, we will give a brief background into what a business risk or risk is.

According to Patriot, risk comes with a benefit or loss that you may derive from making a business
decision. When such risk is a result of bad risk analysis, it may cause your business to be financially
sick, and in some cases could lead to the winding-up of your business. Thus, you must take
risk assessment seriously in your business.

There are two types of risk in entrepreneurship – Internal risk which is easier to control as it is within the
grasp of your internal control, and external risk, which given they are not easily within your reach you
may not have a direct influence over them.

There is no one-way approach how to analyze risk as an entrepreneur, however, the following risk
management strategies may assist:


1. Identify and document the risk

The first step in analyzing risk as an entrepreneur is to know the risks your business faces. These risks
might be internal based on staff experience or know-how (or lack thereof). Risks might be external,
and relate to competitors; ease of barriers to entry into the niche that you operate within; or
technology or government factors for example. Risk will be anything that has the potential to limit your
business operations, product or service delivery, or success.

You will also need to consider the extent of that risk. What are the chances that the risk will materialize?
How serious is the risk? Note down the gravity of the different risks that your business faces. Define the
risk and note the possible outcome, benefit, and/or danger of taking such a risk and the amount of
effect it will have on your business.


2. Monitor the risk and set up risk control

Monitor the risk. Assign staff to each risk so they can monitor and report it to you. A good risk-reporting
system is the right step in risk management.
After each risk is presented to you and the necessary steps have been taken to know how much risk
affects your business, put in place measures to control or mitigate those risks.


3. Review periodically

Just because you have successfully analyzed and controlled risks in the past does not mean such risks
may not occur again. Further, new risks might eventuate after the review of the previous risk
assessment. Therefore, it is pertinent that you schedule a periodic assessment of risks.

Risk analysis presents an entrepreneur with the avenue to know what threats face their business and to
develop possible ways to avoid those risks. If you aspire to be a successful entrepreneur, you should
always take risk analysis and mitigation seriously in your business.



  • https://www.patriotsoftware.com/blog/accounting/small-business-risk-analysis-assessment-purpose/
  • https://www.investopedia.com/articles/financial-theory/09/risk-management-business.asp#toc-
  • https://www.mindtools.com/abhkwcn/risk-analysis-and-risk-management
  • https://genesacpa.com/startup-101-how-entrepreneurs-can-assess-risk/
  • https://www.entrepreneur.com/growing-a-business/5-ways-entrepreneurs-learn-to-manage-

When should you invoke a business continuity plan?

At what time you should invoke a business continuity plan is one of the most important stages in the
the business life of any entrepreneur.

A Business Continuity Plan is defined by Investopedia as an arrangement put in place to prevent and
recover from potential risk to your business.

There are various risks that a business might be prone to. Risks might include cyber-attacks, floods, client
retention, fire, or other natural disasters. It might as well include what and where you invest profit. As
soon as you can identify those risks, the next step is:

  1. Determine the effect of those risks on your business.
  2. Come up with a strategy to mitigate the risks.
  3. Determine how effective is the strategy.
  4. Keep the process up to date.


Distinguishing a Disaster Recovery Plan from a Business Continuity Plan, the former might involve, for
example, the recovery of the organization’s IT framework after a crisis. The latter involves how to
keep a business going when a disaster happens.

Many businesses do not know when to invoke a Business Continuity Plan. Each business will have
different requirements for and when to put into place a BCP, based on their level of risk. A risk that
will affect profitability and revenue must be surveyed in advance so the business is not affected
suddenly. It is needed because Insurance has a limit to the losses it can cover.

Thus, business owners and investors must consider and develop a strategy around business threats and invoke a continuity

You must plan and analyze risk properly to know whether such is of the magnitude
that requires invoking your Business Continuity plan.


How to buy a Business without Money

Buying a business can be difficult if you don’t have the funds.

There are ways to buy a business and settle on the transaction without the funds and without spending your own money, or lending money from a traditional lender.


1. Vendor financing

Vendor financing is a loan arrangement with the seller for the repayment of the purchase price, plus interest, allowing you to preserve your funds and borrowing capacity with the bank.

The loan could be repaid in increments over an agreed time following the completion of future profits of the business.  To ensure the loan is repaid, the seller might require security over the assets and the future income of the business and a personal guarantee. If you default on the loan, the security enables the seller to claw back the assets access the funds generated by the business, or make a claim on you for the amount.


2. Leveraging the assets 

Businesses that are rich in assets offer internal restructuring opportunities, which might be used to fund the business.

Instead of owning the assets to operate the business, the assets could be leased and the existing assets sold. The funds from the sale of the assets could be used as working capital or to pay the seller for the business.

Alternatively, the assets could be used as security for a loan.  The amount of the loan might be less than the value of the assets, as the assets are usually calculated on what they would sell at an auction in case the assets need to be sold quickly by the financier if the loan is in default.

Before undertaking this strategy, verify that the Seller owns the assets and the assets can be used as collateral.  If the assets are already secured by a finance company, the finance must be released before the assets are sold or secured by another loan.


3. Leveraging the projected income 

A loan can be obtained by borrowing against the projected income of the business, or any outstanding invoices. A loan might not be able to be obtained for 100% of the debts.  The financier might stipulate that only invoices with due payment of thirty days be secured against, rather than using all of the debts owing to the business.


4. Structuring the purchase through equity

Share or equity arrangements through buy-ins or share swaps provide ownership opportunities.

  • Buy-ins: A buy-in is an arrangement where you can work in the business, and be issued shares in the company that owns the business rather than being paid for that work in cash.  Over time your ownership in the company that operates the business increases.
  • Share swaps:   The Seller could be offered shares in the company that is acquiring the business or shares in an existing business you might already own, in return for shares in the company you would like to acquire.


5. Delaying payment depending on results

If the value of the business is calculated upon future contracts, sales o, or earnings that have not yet been received by the business, you could agree to pay the funds attributed to that future value as an earn-out after completion.  If the payment is not received by the business, then no payment will be owed to the Seller.


6. Alternative funding sources 

  • Private equity:  Private equity financiers and angel investors are alternative funding sources to a bank, who provide funds as a loan or in return for the issue of shares in the company buying the business.  The business being acquired must be a viable investment opportunity, or the terms of the loan must be attractive to the investors.
  • Credit Cards: Credit cards may be used to pay for the purchase and can be repaid from the profit or income of the business after completion.
  • Joint Ventures:  An interest in a business might also be obtained by entering into a joint venture with another person or company that has the funds to buy the business.


Due diligence and the agreement  

A combination of strategies can be used to buy a business. However, before undertaking any strategy, due diligence on the business must be undertaken and before completion of the sale, the arrangement must be put into writing.

The agreement should include how the purchase price will be repaid;  details of any deferred payments; when the risk in the business will pass to the buyer;  and the consequences of failing to repay the money.

If the transaction is reliant upon funding documents, these documents should be entered into contemporaneously with the sale agreement for the transaction.



Vendor financing, leveraging the assets and income of the business, using equity and alternative funding sources can be used when buying a business to enable you to buy a business when you ordinarily would not be able to afford it; retain your funds and lending capacity, or to defer the payment and the risk of the business.


Due diligence should first be undertaken to understand the business and whether the particular strategy can be completed.  The arrangement should also be recorded correctly.

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