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CEO Jim Tompkins Reveals 22 Characteristics of Successful Entrepreneurs
Is it possible to be an entrepreneur and not even realize it? Yes it is, according to Jim Tompkins, President and CEO of the global supply chain consulting firm Tompkins Associates and noted business author.
Jim always wanted to be an engineer, but he didn’t realize he wanted to be an entrepreneur until after he became one.
In a recent presentation he gave to a group of North Carolina State University engineering students at a seminar, Jim listed some entrepreneurial characteristics that he has gleaned from his life experiences.
You may recognize yourself in some of these descriptions – now or later.
1. Expectations are important. It is all about mindset and knowing what you want to do with your life. What are you going to do with your career? In 40 years, what do you want to look back on and be proud of accomplishing?
2. Hard work and persistence pay off. An entrepreneur is willing to work hard and fight for what he/she wants. There will be setbacks, and you need to be able to bounce back when you have been knocked down. Life has a peak-to-valley flow, so learn to roll with it.
3. Know the impact of politics. Hard work is definitely important, but pay attention to the politics around you. In certain situations, you may not be able to please everyone. Find the middle ground and know when to compromise.
4. Prepare for paradigm shifts. Paradigm shifts occur very frequently in the business world, creating a whole new ballgame. Entrepreneurs need to be prepared to deal with these shifts. Overall, know that “uncertainty is certain.” For example, companies in today’s world can’t “budget” for the next 12 months, instead they need to do scenario (or contingency) planning. Many events can take place throughout the year, so you need to prepare for various possibilities.
5. Take responsibility. As an entrepreneur, the buck stops with you. You are responsible. Numerous people depend on you, and you have to be accountable. Also, it is important to teach other leaders in your organization to take responsibility and not play the blame game.
6. Value leadership and be a cheerleader. It is important to know how to create a united organization. You do not “manage” cheering. You don’t “manage” motivation. You lead it. Know what motivates your constituents. Be able to encourage people when things don’t go well and keep things moving in the right direction.
7. Nothing is easy. Do not think it is going to be easy. Start applying yourself. Get out of the minor leagues and move into the major leagues. It is actually good to get beat up for a while. The easy win is abnormal, so fight for what you want.
8. Ask “why?” To be successful in business, learn how to ask the question, “why?” Financial institutions, HR, marketing and others will tell you things you don’t quite comprehend, so it is always important to get an understanding of what they are telling you.
9. Establish a dynamic consistency culture. There are three types of culture:
a. Static consistency – This concept says, “Don’t change anything. Do it like you’ve always done. If it ain’t broken, don’t fix it. We don’t do it like that around here.” But if you are an entrepreneur, you need to break it and then fix it.
b. Dynamic inconsistency – This culture creates change for the sake of change and is not based on any consistent direction. Abraham Lincoln said, “Let us not mistake change for progress.” Although this type of culture allows for change, it is worse than static consistency.
c. Dynamic consistency – This culture ensures continuous improvement and is based on a shared, consistent vision of where you are headed. Entrepreneurs set the pace and set the culture.
10. Be prepared. Think about the next meeting. Who is going to be there? What questions are they going to ask? Why will they ask these questions? What are the objectives? What might the objections be? How do we explain the value? Think. Think. Think.
11. Be different and find a mentor. Prove you are special. Be willing to be different. And to be successful, you need a mentor – a trusted and influential adviser who has “been there, done that” and knows how to transfer that wisdom and help guide you safely through the peaks and valleys.
12. Learn to sell and get motivated. In the business world, you have to learn to sell and you need more than an education. To be a great entrepreneur, you have to extend yourself beyond intellect and a great idea to that level where vision and inspiration translate into reality.
13. Set the pace/create a sense of urgency. There has to be a sense of urgency. Know what needs to be done, even if you do not know how to do it. Have great people around you, and set a good pace. With this scenario in place, good things will naturally happen.
14. Create a vision/mission set. Develop a model of success, with requirements to achieve this success. Know where you are going (vision) and how you are going to get there (mission). Share this set philosophy with new employees to ensure alignment throughout the organization.
15. Listen to your customers. Tompkins Associates was able to grow by adding services that were suggested by its clients. For example, the company started out as a warehouse and distribution consulting firm, then it moved into transportation and inventory. Then it expanded into forecasting/demand planning, combined this with Sales & Operations Planning (S&OP), and later made supply chain information technology (SCIT) services available – WMS, TMS, and forecasting software. The firm still offers these services and has evolved with the marketplace to include material handling integration, benchmarking and best practices, global supply chain services, strategic market planning, and now Supply Chain IntelligenceSM.
All of these ideas came from Tompkins’ clients. As a result, the company was able to expand and reach out to a larger client base.
16. Know the true golden rule and have fun. The golden rule is not “treat others as you would have them treat you.” It is “treat others how they want to be treated.” And in turn, you hope that they will treat you like you want to be treated. This will help establish stronger relationships within your company and with outside partners. At the same time, make sure you have fun and are happy with what you are doing. And encourage others to have fun as well.
17. Focus: Success does not breed success. Success breeds failure. It is a struggle to stay on top. Don’t “play how you practice“ because you need to go to the next level on game day. Reinvent yourself (and your company) each time you reach the top. Understand that failure drives the next success, and from failure (the valley), you learn. To go peak to peak to peak, you have to continuously strive for new goals and successes.
18. Uphold ethics, morals and integrity. Do what is right. It is important to live (and work) by your ethics, morals and integrity. You hear a lot about cheating in business with Bernie Madoff, Enron, the global financial meltdown, and similar events. There is a lot to be said for earning and maintaining a positive reputation – in business as well as personally.
19. Learn more about finance and capital. Going into business for the first time requires understanding more about finance and capital, and this is a critical area. You must be prepared to gain a good knowledge of how global businesses work.
20. Have edge in your decisions. There will be times when you have to make tough decisions. And over time, you may see that your decision has not worked out for the best. Be willing to say that you were wrong, and be ready and able to make these difficult decisions.
21. Evidence of success. Success it not just measured by top-line growth; it is also about the bottom line. Profitable growth is the proof of success.
22. Communicate to overcome risk. During the Great Recession, business was terrible. However, Tompkins has been able to maintain talent through open, honest communication. Tell the truth so that others do not make decisions based on rumors. For any new venture or problem, know the risks and how to overcome them, and communicate this with everyone involved.
Conclusion: A Note from Jim:
Years from now, perhaps you will ponder that successful organization, idea, tool or knowledge base that you built and think about the attributes that got you there. When you do, I guarantee that you will see all or many of the characteristics of an entrepreneur.
These 22 characteristics combined create a formula for potential entrepreneurs to pursue. And my achievement – building Tompkins Associates from a company in my backyard to the global firm it is today – is proof that these characteristics create a solid business foundation. Going forward, keep these points in mind as you establish yourself in life and in business.
More Resources for the Entrepreneur
Book: Bold Leadership for Organizational Acceleration
Go!Go!Go! Blog
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