The company was eventually sold for more than 100 million euros. “Real entrepreneurs turn setbacks into opportunities,” he says. “So when a client doesn’t want your product, you can either think that your company is dead or that your product needs improving.”
The right team
Successful entrepreneurs are people who can put together teams with the right mix of talent and make them work together, especially in a fast-moving industry, says Babinet.
“The people you bring on board will represent your company, share your vision, and complement your weaknesses. That is why you should not get people who resemble you,” he argues. They need to have different skills, and to increase the ‘human wealth’ of the company, they should also have different traits. In a start-up, every function is of utmost importance as negotiations with the bank or a marketing campaign can potentially bring about success or failure.
After graduating from INSEAD (’63) and Wharton (’66), Woolsey launched a series of ‘free distribution’ publications before switching to point-of-sale systems in 20 countries in 13 languages. He later launched one of the earliest outsourcing IT firms in Estonia.
Positive cash flow
The entrepreneur also needs an idea or product or service that ideally has, or can be made to provide, a positive cash flow with minimum downside risk, says Woolsey.
What happens when money runs out? Bar-Gera recalls that they got carried away with the internet craze and did not know the importance of generating cash quickly. “The business model assumed that we would be able to go back again and again to the financial markets and raise money. However, when the markets shut down – we had a problem. So you need to have a back-up plan in your business.” Eventually, they decided to change the business model and develop the next generation product. As a result they were able to acquire paying customers, resulting in a healthier cash flow.
Timing
When asked during the session whether being in the right place at the right time matters to an entrepreneur, Woolsey quotes Seneca, the Roman philosopher, that luck is where opportunity meets preparation. In practical terms, timing is ensuring the market is ready and planning the launch to benefit from PR and free media. “You do what you need to do locally but be ready to ratchet up nationally and globally if you get it right.”
The first INSEAD Global Entrepreneurship Forum was held at INSEAD’s Europe campus in Fontainebleau on June 19-20, 2008.
-
View Comments
(1)
-
Leave a Comment
Related Reads
Entrepreneurship
The entrepreneur’s motivation
Responsibility
Entrepreneurship awards and grants: are they worth the chall
Entrepreneurship
Anonymous User
13/11/2018, 07.33 am
Thanks for sharing this.
I have read this post about three times since it was published and I still find it useful.
You rightly summarized it in a more succinct and cogent write-up.
Many people believe that great entrepreneurs were born with something extraordinary and that they themselves need that “extraordinary thing” to be successful.
The truth is that all entrepreneurs develop specific characteristics, attitudes, and skills that are needed to succeed.
As for me, Creativity, Passion, and Proper planning are the engine that drives every entrepreneur. I read that “Creativity gives birth to something new” and that something new is the main objective of every entrepreneur.
I have read a lot about Gilles Babinet and how confident he has been over the years. That is why confidence is one of the key characteristics of successful entrepreneurs.
Once again, thank.