10 Skills for a Successful Company: Perspiration and Appetite for Risk

Mark Suster, a serial entrepreneur turned venture capitalist (VC) at GRP Partners, outlines 10 essential skills he looks for in entrepreneurs before investing in their company. These skills are not easily identified in a few brief meetings; instead, they are revealed through the entrepreneur’s actions over time.

In the second part of his series, Suster focuses on two crucial skills: perspiration and appetite for risk.

Perspiration: The Importance of Action

Suster emphasizes that inspiration alone is not enough to build a successful company. Entrepreneurs need to be able to translate their vision into action, demonstrating a strong work ethic and commitment to achieving their goals.

• Inspiration without perspiration is like being a coach, not a CEO. VCs provide inspiration, guidance, and support, but it's the CEO who needs to drive the company forward on a daily basis.
• Avoid being a "celebrity CEO." While networking and public speaking are important, a CEO’s primary focus should be on running their company and making critical decisions.
• Be obsessed with your company’s success. True entrepreneurs are passionate about their vision and work tirelessly to make it a reality.
• Starting a company is not a job, it’s a way of life. Success requires a dedication that goes beyond the typical 9-to-5 work schedule.
• The competition is fierce. If a company achieves significant success, expect others to emerge and challenge its position in the market.

Appetite for Risk: Taking the Leap of Faith

Entrepreneurs are inherently risk-takers. They believe in their vision and are willing to make bold moves to achieve it. Suster highlights the importance of embracing risk, both for the entrepreneur and for investors.

• Be prepared to take a risk on yourself. Investors are more likely to invest in a company if the entrepreneur is fully committed to its success, which often includes quitting a secure job.
• Don’t let fear of missing out on a small payout stifle a big opportunity. A true entrepreneur will prioritize a new venture over the remaining compensation from a previous one.
• Embrace risk, even when it comes to your career. A willingness to take risks demonstrates confidence in one’s abilities and a belief in the future potential of the company.
• VCs also take risks. When investing in a startup, VCs are willing to forgo certainties for the potential of high returns.

Building a Successful Company: A Holistic Approach

Building a thriving company requires more than just passion and perseverance. Entrepreneurs need to possess a variety of skills, including the ability to adapt to change, build strong teams, and navigate challenging situations. It is essential to remember that entrepreneurs need to be resilient and adaptable, able to pivot and adjust their strategies as needed.

• Having one strong skill without others can be a disadvantage. For example, tenacity without the ability to adapt to market feedback can lead to failure.
• Great companies are made up of great individuals. A successful entrepreneur needs to be able to bring together a team of talented individuals with complementary skills and perspectives.
• VCs search for entrepreneurs who possess the "whole package." While few people have all the necessary skills, finding those who demonstrate a combination of crucial traits is essential for success.

Summary: The Importance of Skills and Mindset for Company Success

In conclusion, Mark Suster’s insights highlight the critical importance of developing essential skills and cultivating the right mindset for entrepreneurship. Perspiration, appetite for risk, and a combination of other key skills are crucial factors in building a thriving company.

Key Takeaways for Entrepreneurs

• Inspiration is only the beginning. It is vital to translate ideas into action, demonstrate a strong work ethic, and be committed to your company's success.
• Be willing to take calculated risks. Embrace challenges and trust in your ability to overcome obstacles.
• Focus on building a strong team. Surround yourself with talented individuals who can contribute their unique skills and perspectives.
• Never stop learning and growing. Continuously seek new knowledge and experiences to improve your abilities as an entrepreneur.