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3 Reasons Why Being Broke Will Make You A Better Entrepreneur In 2020

Gudtalent Chrisent

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becoming a better entrepreneur

3 Reasons Why Being Broke Will Make You A Better Entrepreneur In 2020

Have you ever being broke to the extent you realize who you really are? Have you ever wondered why greater percentage of the world’s richest men actually come from the poor or middle class?

They are sure reasons why being broke will make you a better and good entrepreneur. Until not too long ago, I made a healthy living as a campus show boy and a printer. It was a job I loved and thought would be my sole source of income for the indefinite future– until something happened.

That something occurred in mid-late 2014 when I ran into a great loss of investing in poultry farm business with all my savings.

This caused me to take inventory of my life and ask the tough question, “What would happen to my family if something happened to me?” The same week, my company made a change to my commission structure and overnight my income was slashed by 80 percent.

That was the final straw: I almost had HBP regardless of the fact that I was too you to talk of such medical issues. I decided it was time to take control of my life and begin my entrepreneurial journey toward building a passive income.

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Since that time, I have watched my bank account dwindle as I’ve spent more than I’ve made month after month. At that time, I had less than one month’s expenses remaining in the bank and am not sure when the bleeding will stop.

In spite of the pain that my I have experienced hard times while trying to invest in different businesses both the entertainment, publicity, event planning, and management, Sports betting and poultry, I have learned there are three reasons why running out of money will make you a better entrepreneur.

Most times you need to experience and feel problems for you to become a great leader so that you will not lead your followers blindly and inexperienced.

The three reasons I’ve been able to put down are:

  1. You’ll ask better questions, and get better answers.

As an entrepreneur, you are going to experience extreme highs and extreme lows. When your back is up against the wall and the future of your business is in jeopardy, maintaining a positive attitude is not easy as many eyes will be on you waiting for you to just make a little mistake.

During those challenging moments, you should pay attention to the questions you ask yourself. Instead of playing the victim and asking, “Why does this always happen to me?” choose to ask a more productive question like, “What lesson can I learn from this situation?”

Up until the moment I asked myself this question, I had not realized how lavish my lifestyle had become regardless of all the advice I have been getting from people I follow their footsteps. Time and money were wasted on things that did not matter, and the things that were most important to me, like time with my family, often fell by the wayside.

By asking better questions, however, I was able to analyze what mattered most in my life and business and ensure that my most valuable resources were allocated appropriately. How can asking better questions make a difference for you?

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ALSO READ: 10 PEOPLE WHO WILL DESTROY YOUR BUSINESS

  1. You’ll get back to the basics of what made you successful.

As people achieve more success in their careers, and things get comfortable, they tend to forget the little things that made them successful, to begin with. One day they will wake up only to be in trouble. In these moments, entrepreneurs often seek counsel from mentors and advisers.

When I was at my own lowest point, one of my close friends — whom I’ll call Charles — suggested that if I were to change the way I looked at things, the things I looked at would change. I took this to heart, as he too had been down this road.

Charles had been very successful in business, becoming a millionaire before in the late 20s and a multimillionaire in his mid-30s, before his life spiraled out of control. Looking back, he realized he had stopped doing the things that made him successful, to begin with. It took losing millions of Naira and almost losing his family to wake him up.

As I considered Charles’s history, I realized I was traveling down the same path. I had stopped doing the basic actions that made me successful. In that moment I felt very grateful that it had not taken losing millions of Naira and my loved ones to arrive at this realization.

So, should things get rough in your own life, ask yourself, “Am I still taking the actions that made be successful to begin with?” You may realize that you got comfortable and lost your way. If so, it’s time to get back to the basics.

  1. You are the problem, and hope is not a plan.

Always learn to accept the fault that the current problem which you face is in one way or the other your fault. That will make you accept self-defeat and work on your weakness but the moment you begin to give flimsy excuses and reasons for your problems, you will not look for a pragmatic solution to your problem.

Looking in the mirror and evaluating yourself and your situation objectively is not something that comes naturally to most people. When you face adversity, you hope your situation will change. Unfortunately, hope is not a plan.

Last year, I spent more than I made every month, and never developed a plan to get back in the black. The sales were not rolling in as they used to and I did not have a plan to rebuild my funnel.

I drifted from day to day hoping things would change, but they just got worse. Finally, it took a financial crisis to wake me up and force me to take action: to form a plan that would stop the financial bleeding and rebuild my sales funnel.

As an entrepreneur, you’ll discover that one of your most admirable qualities is the ability to create something out of nothing. It’s always fun and gives you this great feeling when you come up with something new, but the thing that holds you back from taking an idea from creation to fruition is often yourself.

The best entrepreneurs recognize this fact when times get tough. Learn to drop your ego and look at yourself objectively.  Where could you do better? Where are you falling short?

Got some answers? Now go put a plan in place and create the life you deserve.

I have taken out a good time to share with you reasons why being broke will make you a better entrepreneur and I know it was helpful to you. that is my love for you.

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I'm that Lazy and controversial entrepreneur, Popularly known for my Quora Secrets. Founder and CEO of SumoTrust, Motute and CrowdFacture. Read about my Bio at personal website. Connect with me on Facebook, Twitter, Google, Linkedin and Instagram.

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What Are The 4 Types of Entrepreneurs?

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When you know the different types of entrepreneurs, you will be able to decide which one you want to be and how to go about it or improve on it. The truth is that the world of entrepreneurship has been booming recently. With so many budding and well-established entrepreneurs out there. Entrepreneurship involves so much work and commitment. You must also possess certain skills if you want to be successful as an entrepreneur. Many individuals venture into this field just because they want to be their own boss but it is worth noting that entrepreneurship is much more than that.

Whether you are just starting out or you are already an entrepreneur, you need to know the kind of entrepreneur you are or you wish to be. If you feel stuck and not making much progress in your business, knowing the type of entrepreneur, you are can give you the clarity you need to move forward in your business.

The 4 Types of Entrepreneurs

This article explains the 4 major types of entrepreneurs we have.

  1. The Hustler Entrepreneur
  2. The Innovative Entrepreneur
  3. The Imitative Entrepreneur
  4. The Research Entrepreneur

(1) The Hustler Entrepreneur

These types of entrepreneurs are always goal-driven and very determined to achieve their very goals. They are the kind of entrepreneur that have not made it yet but eventually will. To start and grow a business successfully, one needs a lot of resilience. It can be a very difficult task especially if you do not have the necessary capital to start. You would also need to be very patient and able to see the big picture.

Hustlers don’t seem to worry about the problems they encounter on the way, because they see them as stepping stones to greater things. They tend to start small and gradually work their way to the top, willing to do whatever it takes as they climb the ladder of success.

A hustler believes that hard work is more important than capital when starting a business. Their work ethic is simply off the charts, though they are prone to burn out due to intense work.

(2) The Innovative Entrepreneur

An innovative entrepreneur introduces new ideas into the system. They come up with new and better ways of doing things and them into a viable business. Discovering a new market, a new method of production, and eventually reorganizing the enterprise. Their major drive is to make life better and easier for people and in doing so they create a business around their innovative idea. Innovators always look for a way to make their products look unique in the eyes of customers and make their company stand out.

Although these types of entrepreneurs require a lot of capital to bring their innovative ideas to life and often experience resistance from shareholders. They also enjoy all the glory that comes with the success they achieve in the process of implementing their new ideas. They create the rules and often do not have to worry about competitors during the initial stage of establishing their business. With a strong belief in their new ideas, they tend to achieve success though it might take a while.

(3) The Imitative Entrepreneur

Unlike hustlers, imitators just copy certain business ideas and build their own from there. They also tend to improve on the business ideas by making the product better or just doing something else that the parent business is not doing. They combine both the qualities of an innovator and a hustler. Even though the idea is not originally their own, they are willing to work hard, make the business better, and rake in large profit from it. They are known to possess a lot of self-confidence and are very determined.

While some do this by modeling after someone else’s business, others just copy everything exactly the same way. You see them use the same website, same theme, business cards, and even similar logos. This might seem like an easy way out, instead of thinking of their own original idea. But copy cats are always faced with the problem of competition and being compared to their parent business. Modeling is a better way, in which you figure out what works and apply it in relevance to your business.

(4) The Research Entrepreneur

Preparedness is key to these types of entrepreneurs. So, they spend a lot of time gathering all the needed information about any business they want to start. They look at every possible scenario, challenges they may encounter, and the strategies they would use to start the business.

With adequate preparation, they believe failure is not an option since they would have already looked at every possible pitfall likely to be encountered in the business. They would make sure they fully understand all that the business is about before even launching it, this makes them spend a lot of time in the decision-making process.

While it is a good approach to have a good deal of the business and financial plan of a business figured out, a researcher might be stuck in the decision-making stage for a long time and eventually end up not making it to the implementation state.

Conclusion

From the list above, have you been able to figure out the type of entrepreneur you are? Entrepreneurship requires hard-work no matter the type of entrepreneur you are. Whether you imitate or innovate, you still need to do a ton of work to make your business stand out and achieve notable success in any field you choose. Leverage the freedom that comes with being an entrepreneur and find out what works for you. List out your goals for your business and strive to reach them.

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