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These 3 types of people succeed in business

man counting money

One in three Aussies want to start their own business.

Sure, the US has Apple, Europe has Nestle and we have Commonwealth Bank of Australia (ASX: CBA) and BHP Billiton Ltd (ASX: BHP).

But at heart, we are a country of small businesses. Mum and dad, and family type organisations, perhaps with a few employees.

Running a business is one of the easiest ways to get ahead financially. Need proof?

Think of the wealthiest people you know, then ask yourself: do they have anything in common?

It’s an unspoken rule in business that employees (workers) are the cheapest — and best — way to invest money.

In what other scenarios can you get a complete stranger to spend a quarter of their life making you money?

Having a business is also a great way to implement some positive change on an industry or community. In addition, it gives you the flexibility to maintain your independence (unless you’re like 90% of finance businesses, of course).

Unfortunately, starting a business isn’t for everyone. And successfully running one is for even fewer of us, seeing that more than 60% of new businesses fail in their first year.

Nonetheless, you and I — Australia — need more people to fail.

Why?

Success = 2x your rate of failure

In places like California, parts of Europe or even in New Zealand, sticking your head above the crowd and ‘giving it a go’ is admirable. In Australia, however, it seems the opposite.

Get a j-o-b. Stay in it. Then apply to a bank for permission to live the Aussie dream.

That’s what we’re told.

No thanks.

3 types of people who succeed in business

I attended a venture capital conference run by Capital Pitch earlier this month. Venture capital is the area of finance where professional investors with lots of money invest in start-up businesses or ideas for businesses.

But behind all the interfaces, high-sugar drinks and technology, what investors are really investing in is the founder(s) of the business.

In startup land, it is well established that just three types of people succeed. Usually, it’s a combination of all three of these personality traits:

1. The Hacker.

Hackers are the people who have the technical knowledge. For example, Xero Limited (ASX: XRO), the $4.7 billion cloud accounting software business, uses complex server-side technology and accounting rules to produce a “beautiful” piece of software.
But it’s not just high-flying tech companies that need hackers. You wouldn’t start a bakery without a great baker, or a mechanics shop without a mechanic.

2. The Hipster.

Every company needs a designer or a creative mind. People won’t use something if it doesn’t look the part.

Chances are, you have experienced it before…

Those early 90’s looking websites ‘might’ have what you want but you’re worried that your credit card details will be stolen. Design adds legitimacy, authenticity and brand.

The same could be said of any early stage or mature business. Praemium Ltd (ASX: PPS) is an ASX-listed small cap fintech business. Its platform has come a long way in recent years and customers have responded.

3. The Hustler

Most businesses start with a hustler, an eager salesman or woman who pounds the pavement in search of new sales. These people are particularly important in service type businesses, in which people rely on the mastery or skill in a niche. But they are also vital if your business operates in a competitive industry, like retail.

Foolish Takeaway

The best businesses have all three these types of people in their team. Or, at the very least, are founder-run, by a person who can switch hats until the time is right to bring people on board.

If starting a business isn’t for you — you can always buy someone else’s.

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Owen Raszkiewicz owns shares of Apple.

Follow Owen on Twitter @OwenRask.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Apple and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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