Cultivating an entrepreneurial mindset

I had the opportunity to sit down and chat with the winners of the 2024 Go Negosyo Most Inspiring Microentrepreneurs Awards last month. These 10 microentrepreneurs were selected from hundreds of applicants and were recognized not just for their outstanding achievements but also for their stories.

One of our key objectives was to showcase the successful practices and strategies of thriving microentrepreneurs and in the process encourage more people to take the leap and start businesses. I’ve noticed that despite their own successes, successful entrepreneurs continue to look for better ways to run their enterprises. So I was not surprised that this year’s winners would still seek my advice on entrepreneurship. Continuous learning and improvement are indeed the hallmarks of a successful entrepreneur.

In the Go Negosyo book on entrepreneurship, “Eight Success Tips for Successful Businesses,” several pages are devoted to developing the right entrepreneurial mindset. Mindset is everything when it comes to achieving sustained business success. To be a successful entrepreneur, you must cultivate an optimistic and resilient outlook. This is because the specter of failure is always lurking around the corner. The sooner you accept the possibility of setbacks, the stronger your resolve will become. What doesn’t help, however, is getting bogged down by negative commentary and noise. I advise the microentrepreneurs to be selective about the information they consume, focusing instead on data like exchange rates, commodity prices and power rates – the numbers that will have a direct impact on their business operations.

Mind you, being an optimist doesn’t mean expecting everything to go your way. In fact, behind every successful business is a trail of failures – stories that entrepreneurs are often reluctant to share, but which ultimately build resilience and are the source of priceless lessons. For example, one of our past mentees, a husband-and-wife entrepreneurial duo, learned the hard way that it’s best to have one partner maintain a steady job while the other focuses full-time on the business. This provides a reliable source of household income and allows for clearer, less desperate decision-making.

Maintaining a strong network of entrepreneurial peers is also crucial. Fellow business owners can serve as teachers, sounding boards and sources of new perspectives. I often compare the experience to attending a church service – being surrounded by like-minded individuals who share your values and beliefs can do wonders for reinvigorating your entrepreneurial spirit.

Being open to criticism and new ideas is another trait of successful entrepreneurs. Traveling, whenever possible, and continuously meeting new people can provide fresh insights that you may have overlooked while operating within your bubble. This was the case when I stumbled upon the idea for my Kettle Korn business. While attending a trade fair, I saw a popcorn cart in operation and was inspired to put my own spin on the concept even though there were already similar offerings in the local market. I improved upon the competitor’s product and now we have hundreds of Kettle Korn shops nationwide.

In fact, I often encourage the microentrepreneurs I mentor not to be afraid of copying successful business models. There is no shame in it – in fact, it’s all part of the game. We did it ourselves with our Pop Cola brand, carefully analyzing what made the market-leading soft drink so popular and then finding ways to make it more affordable for consumers. That calculated move cost us hundreds of millions initially, but ultimately led to a hugely profitable acquisition and resale of the Cosmos brands a few years later.

Sometimes, brands that may appear to be small, local players have the potential to become major industry contenders. That was the case with Selecta, which started as a family-run brand and which RFM acquired in 1990. We recognized its potential to challenge the then-dominant Magnolia, and by learning from the market leader and putting our unique spin on the product, we were able to transform Selecta into the undisputed leader in the Philippine ice cream market.

One key lesson here is not to be intimidated by large, established companies. In reality, the big players are always closely monitoring the “number three” and “number four” brands, as those are often the hungriest and most innovative competitors that pose the biggest threats to the market leader. These smaller, more agile players aren’t afraid to take risks and disrupt the status quo – and it only takes one well-timed breakthrough for them to dislodge “number one.”

Another reality is that not everyone is cut out for the entrepreneur’s life. Just as some individuals thrive and find fulfillment in building businesses from the ground up, there are some who are better suited to the structure and security of the corporate world. The key is to be honest with yourself about your strengths, skills and overall temperament, and then pursue the path that aligns with your personal and professional goals.

And if you do decide to become an entrepreneur, define your objectives clearly and ensure that your path matches your capabilities. If you don’t have a specific venture in mind, consider starting as a franchisee or reseller of an established brand. Many successful entrepreneurs have taken this approach, using it as a learning opportunity to understand the inner workings of an industry before branching out on their own with original ideas. Consider it an on-the-job training in things like inventory management, customer service and sales and marketing.

And if you do decide to become an entrepreneur, the key is to approach it with a resolute, optimistic mindset. Failure is an inevitable part of the journey, but it is through these setbacks that you build the resilience and skills necessary to achieve long-term success. By surrounding yourself with a supportive network of like-minded peers and remaining open to new ideas and perspectives, you will be well on your way to realizing your entrepreneurial dreams.