Part 1: 10x Entrepreneurs And Their 10x Factors

I’ll start by giving you a warning:

Starting a business is easy. 

Any dummy can do it because it requires no qualifications to start one.

But running it well so that it produces profits you’ll be happy with that will also grow over time?

That is the HARDEST thing you will ever do in your life.

You don’t have to take my word for it.

Just ask your good friends who have been entrepreneurs for years.

If they’re honest with you, they’ll say exactly the same thing.

A business will require your blood, sweat, tears and money to operate well — with no guarantee you will be successful with it even after years of trying.

That said, some people are born entrepreneurs.

Others can pick up the skills quickly.

And still others will stumble again and again for years before finally making it.

To significantly increase your chances of succeeding and reduce your chances of failing, here are the first five 10x Factors you must have BEFORE you start your business.

Ignore them — and you will increase your chances of failure by a factor of 10.

You have been warned.

Let’s start.

10x Factor No.1: Your Character

Your skills as an entrepreneur can always be improved through experience, learning or hiring the right people.

But if you don’t have the right character traits, you will find it difficult to build lasting business relationships.

And no amount of skill can make up for that in the long run.

Entrepreneurs need strong character traits to gain trust from clients, employees, and investors.

While people may not always be able to see your character in one meeting or a few pitches, they will definitely notice it over time.

And if your character is lacking, you’ll burn bridges — fast.

When I started one of my first businesses, I didn’t have a lot of resources or a track record of success.

What I did have was the trust of a few key people who knew me for years.

They didn’t know much about the business I was planning, but they trusted me because of what they knew about my character.

These people were willing to invest and support me because they knew I had the integrity to follow through and the commitment to make it work.

Without that, I wouldn’t have gotten anywhere.

Now it doesn't mean that a person of good character will always succeed in any business.

As I have said, starting and operating a business is the hardest thing anybody can do.

But it does mean that he will keep pushing forward, learn from failures, and adapt to challenges, even when the odds are stacked against him.

He’ll stay true to his word, remain dependable, and continue to strive for success, knowing that his reputation and relationships are as important as the business itself.

Now, you might think nobody really knows you in the world of business yet, so why does character matter?

Trust me — as an entrepreneur, your reputation will follow you everywhere.

The people who know you can be your best advocates, or your worst enemies.

That’s why it’s so important to build and maintain a good character. It’s your foundation for long-term success.

The earlier you do this (even when you’re still in school — let your children know about this!), the better.

Here are the character traits that I believe are essential for any entrepreneur. Some of them are the same for the 10x employees, but as applied to a business.

1) Integrity

Integrity means doing the right thing, even when nobody’s looking.

As an entrepreneur, this is crucial because people are putting their money and trust into you.

If you lack integrity, word will spread, and you’ll lose support faster than you can imagine.

People with integrity keep their promises, admit when they’re wrong, and always act in a way that builds trust.

2) Commitment

Did I tell you that running a business is the toughest thing you will ever do in your life?

Things can and WILL go wrong despite your best planning, intentions and access to resources.

When they do, your commitment to your vision and your willingness to stick it out will be what keeps you going.

Investors and partners want to know that you’re in it for the long haul, not just for quick wins.

A committed entrepreneur shows up every day, ready to push forward, no matter how hard things get.

3) Dependability

Being dependable is about being someone people can count on. If you say you’re going to do something — well, do it.

How many friends and/or colleagues you know who don’t do what they say? You remember them, because of how they made you feel every time they let you down.

What are the chances of your wanting to do any business with them?

Right. Zero.

Being dependable is important with clients, employees, and investors alike.

A dependable entrepreneur meets deadlines, delivers on promises on things that are within his control, and is consistent.

You don’t have to be perfect. But you do have to be reliable.

People want to know that they can trust you to follow through.

4) Respectful 

Respect is about how you treat others, your business, your clients, and even your competitors.

Respect means valuing the opinions of others, listening to feedback, and treating everyone with dignity.

When you show respect, you create a business environment where people want to work with you and for you.

Without it, you’ll have a hard time retaining employees or building a loyal customer base.

These values form the backbone of a strong character for any entrepreneur.

In business, your character will always come through, no matter how polished your pitches are or how big your ideas seem.

And the more your business grows, the more important your character will become.

People will see it.

And they will decide if they want to work with you based on it.

5) Resilient

Resilience is probably the most important character trait for entrepreneurs.

I've said this before and I'll say it again:

Running a business and making it successful is the HARDEST thing anybody can ever do.

If you don't have the ability to ride out the tough times, you can't be an entrepreneur because ALL businesses will go through setbacks and challenges.

Every business will, at some point in time, hit challenges like a bad quarter, a failed product launch, tough market conditions, difficulty in hiring the right people, and more.

Being resilient means not letting setbacks stop you.

Remember this:

Failures don’t define your progress.

They teach you what to do better next time.

You need to just get back up and learn how to avoid falling again.

If you don’t have resilience, you will find it almost impossible to carry on with your business when the time comes.

How do you know if you have resilience?

Well, what setbacks have you gone through in your personal life, or in your work as an employee, in the past?  

Did you tell yourself that you could overcome the setbacks?

If so, did you set out to do it?

If so, were you successful?

If so - you were resilient.

A business setback can take 10x the effort you took to overcome a personal setback, because it’s not just you you’re fighting for — it’s also your colleagues who give their all to help you run your business.

10x Factor No.2: Your Skills/Talents

As an entrepreneur, these are the tools in your toolbox that help you run your business smoothly and efficiently.

If you have the talent to run a business, it will be much easier for you, even though running a business is still the hardest thing you will ever do.

If you don’t have the talent, you can learn up the skills over time and with you fully committed to learning them up.

The more you develop your skills, the better prepared you’ll be to manage the day-to-day challenges of running a business.

There are 4 aspects to this 10x Factor:

1. Technical Competence

Whereas employees are expected to be technically competent in their job, entrepreneurs usually are not.

There are 2 reasons for this:

1) ANYBODY can be an entrepreneur

You can decide right NOW to become an entrepreneur.

You can easily set up a sole proprietorship, or a partnership, or a corporation and make yourself the main or only decision maker.

You don't need experience.

You don't need any qualifications.

You don’t need to pass an interview.

You just need an idea of what you want to do as a business, and that you want to do it.

And that's the problem.

There is nobody to assess whether you're capable of what you want to do, except you.

And because you are starting a business, you would have obviously assessed yourself as being capable — even though you may not be technically competent in the slightest.

2) An Entrepreneur Has To Wear Many Hats

You need to be good at many, many things other than what you think you're good at.

You need to know at least something about the following:

1) Product creation

2) Marketing

3) Sales

4) Customer support

5) Automation + Programming.

6) Cash flow management

7) Accounts

8) Capital management

9) Hiring

10) Business culture and values

11) Legal and compliance

12) More

Unless you're doing a business entirely on your own (ie you're a solo entrepreneur), you will need to hire people to help you out, or pay for advice from them at the beginning.

If you don’t know enough about an area of your business, you won’t know how to assess any potential hire’s capability, which means you won’t be able to hire the right people.

Since it takes time for you to know if they're proper hires, and if they turned out to be not -- you would have wasted valuable time, resources and money.

Worse, a wrong hire could harm your business before you even realised it.

This is why even a basic understanding of each area is critical.

You don't need to be an expert, but you must know enough to ask the right questions, spot red flags, and ensure things are running smoothly.

Not only that — without knowledge in these areas, it’s harder to hold your team accountable.

When you know how things should work, you're in a much stronger position to guide them, review their performance, and make decisions about your business's direction.

Keep in mind that learning these areas is an ongoing process. Some things don’t stay the same forever, including the best practices.

As an entrepreneur, you should always be refining your skills and adapting to new information.

The more well-rounded your knowledge, the better decisions you'll make — and the stronger your business will become.

2. Experience

Experience is knowing how to do something and having done it enough times to understand the finer details on a much deeper level.

For an entrepreneur, experience is invaluable. 

It gives you the foresight to anticipate problems before they happen and the wisdom to handle unexpected situations.

The more experience you have, the more confident you’ll be in taking risks and making decisions.

However, if you’re starting out in an industry that’s relatively new or evolving quickly, don’t worry about lacking experience as otherwise you cannot start. But you must make up for it by learning fast and being adaptable.

If you’re not in a new industry, and you don’t have the experience, you should seriously considering partnering with someone who does, instead of going it alone.

3. Good Communicator

Whether you’re pitching to investors, managing a team or talking to clients, being able to communicate clearly is most important. 

It helps ensure that your message is understood, avoids confusion, and builds trust.

Good communication skills also make you memorable. You’ve probably come across people who could explain complex ideas clearly and effectively. They leave a lasting impression.

On the other hand, poor communicators are often forgotten because they can’t get their points across clearly.

4. Good Conversationalist

Being a good conversationalist is about engaging people in meaningful dialogue.

As an entrepreneur, this means being able to connect with others, build rapport, and cultivate relationships.

A good conversationalist knows how to listen just as well as they speak, and they can guide conversations in a way that feels natural and engaging.

This talent is especially important when networking, negotiating, or building relationships with clients and partners.

And while you might not be naturally gifted in both communication and conversations, with practice, you can be better and better. The key is to recognise the value they bring and continually work on improving them.

5. Financially Savvy

You must have some ability to budget, forecast and invest profits that your business makes.

If you’re awful at managing your own personal finances, you’ll likely be worse at managing the money that your business brings in.

The most important thing to manage in your business is its cash flow.

Even profitable businesses can run into trouble if they don’t have enough cash to cover day-to-day expenses.

A financially savvy entrepreneur knows how to keep cash flowing, maintain reserves for tough times, and avoid unnecessary debt.

He knows how to stay lean, cut out waste, and where every dollar goes.

Ultimately, being financially savvy is about sustainability.

It allows you to plan for the long term, reinvest in your business, and take calculated risks without jeopardising what you’ve built.

Entrepreneurs who master their finances can overcome economic downturns, pivot when necessary, and take advantage of new opportunities.

It’s a trait that directly impacts your ability to grow and scale your business.

10x Factor No.3: Your Network

A strong network can be a game-changer for any entrepreneur.

It’s about who you know and how those connections can support your business, open doors to opportunities, and help you grow faster than you would on your own.

There are two key aspects to this:

1. Good References

As an entrepreneur, having good references means you’ve built solid relationships with people who can vouch for your work, ethics, and character.

These might be former clients, business partners or even mentors who have seen you in action.

When someone credible endorses you, it builds trust with potential investors, partners, or customers. They’re more likely to work with you if they know others have had positive experiences with you.

This is why it’s so important to maintain a good character long before you even start your business — going all the way back to the time when you were still in high school, if possible.

2. Good Connections

Good connections are invaluable in the business world.

Your network can introduce you to potential clients, investors or strategic partners, or even give you insights into new markets or opportunities that others don’t have access to.

Building and nurturing relationships with people in your industry, or related fields, gives you a competitive edge.

You'll want a large network and meaningful connections with people who are willing to support and help you when needed.

Investors, partners, and clients are often more comfortable working with someone who comes highly recommended by someone they trust (which also requires good character).

This reduces their risk and gives you an advantage when competing for business.

10x Factors No.4: Knowledge

When you have a lot of knowledge about your domain AND generally, you have a huge advantage.

You can make better decisions, avoid common issues, and seize opportunities others miss.

This depth of knowledge allows you to solve problems quicker and more effectively, making you a valuable asset to any organisation or team.

Knowledge is about knowing facts and applying the information to make smarter moves.

1. Domain Knowledge

For a 10x entrepreneur, domain knowledge is non-negotiable.

You need to understand the ins and outs of your industry, not just at a surface level, but deeply enough to spot trends, avoid common pitfalls, and identify opportunities before your competitors do.

This knowledge allows you to make faster, better decisions.

Whether you're in tech, retail, or any other sector, being the most informed person in the room gives you an edge.

Let’s say you're launching a SaaS (Software-as-a-Service) company.

Knowing the current players, pricing models, customer pain points, and emerging technologies helps you plan out what makes you different.

If you're constantly learning and refining your domain knowledge, you'll know when to pivot, when to double down, and when to innovate.

Without this, you’re just guessing.

And guessing leads to mistakes that cost time and money.

Which brings me to a true story about someone I know who was a General Manager of a company selling a certain type of apparel.

He was doing well there, with a good salary and other perks.

But he felt something was missing. He wanted to be an entrepreneur running his own business.

He dreamt about doing this every night in his sleep.

He simply couldn’t shake it off.

And so he quit his job to scratch this itch.

He started a bakery.

Something he knew very little about.

He thought he could learn the ins and outs of this business as he operated it.

After all, what’s so difficult about making the breads and putting them up for sale in a mall under a nice catchy brand name?

However, the new business required lots of equipment, rental of premises, renovations and quite a number of personnel to hire, including a key chef who didn’t come cheap.

All in all, he was down by over a million dollars before he had even started his business. He had some investors, but he also invested a big chunk of his own money.

As such, he was already neck deep in a hole from the beginning.

But he thought his “brand” in malls with good foot traffic would result in lots of sales, and eventually enable him to create a franchise around.

As you would have guessed, it was not to be.

He didn’t know that getting space in a mall with good foot traffic isn’t as easy as turning up at the mall’s management office and asking to rent space in the mall. Such a mall would usually have no space for rent at any time you want to.

New businesses wanting to rent space would be added to a waiting list, to fill any tenants who no longer want to be there, or are asked to leave by the mall for some reason.

It could be years before any tenant moves out and a spot is available.

He didn’t know that before he decided to quit his job.

Since he couldn’t wait for spots to open up, he decided to rent space in second and third-tier malls with a lot lesser foot traffic — thinking that social media would help him get the traffic he needed.

As it turned out — he didn’t make enough sales to keep his business running.

He almost went bankrupt by the end of the business’s first year.

So if you don’t know much about the business you want to start, either don’t start it, or pay someone to learn about it first to see if you have what it takes.

Compared to having a very high chance of your business failing after years of trying to make it work, investing in your education is the smartest investment of your time, effort and money you’ll ever make.

If you need help in this area, let me know and I’ll point you to the best coaches that you can hire.

2. General Knowledge

While domain knowledge keeps you sharp in your industry, general knowledge broadens your perspective.

A 10x entrepreneur focuses on his sector and understands economics, politics, customer psychology and technology trends outside his niche.

This helps you anticipate external factors that might impact your business.

For example, understanding global supply chain issues or new digital marketing trends could give you a strategic advantage.

You don't need to be an expert in everything, but having a broad understanding lets you see the bigger picture and make connections others are not.

Entrepreneurs who ignore general knowledge risk being blindsided by changes outside their immediate industry.

3. Exit Strategy

A good entrepreneur always starts with the end in mind.

It’s a critical part of your business plan from day one.

Knowing how and when you want to exit the business shapes every major decision you make along the way.

Whether you plan to sell, go public, or transition the company to someone else, your exit strategy ensures you don’t just work in the business, but also on it.

Why is this important?

Because an entrepreneur without a clear exit plan can easily get stuck running a business that can’t be sold or scaled.

Without that foresight, you risk building a company around yourself, making it impossible to step away when the time comes.

Let’s assume that you plan to sell your business within 5 years.

Right from the start, you’ll focus on building systems and processes that don’t depend on you.

This means hiring key people who can operate without your direct oversight, documenting workflows, and automating as much as possible.

Investors and buyers look for businesses that are self-sufficient, scalable, and efficient.

They don’t want to buy a company that falls apart the moment you leave.

By having an exit strategy in mind, you’ll also focus on making the business financially attractive.

Keeping clean financial records, controlling debt, and demonstrating consistent growth are crucial.

When the time comes to sell, buyers will scrutinise your finances, so having everything in order makes your business much more attractive.

10x Factor No.5: Capital

Capital is the lifeblood of any business. Without enough money, even the best ideas can’t get off the ground.

As an entrepreneur, access to capital is critical, both to launch your business, and to sustain it until it becomes profitable.

You’ll need capital for everything from renting premises and purchasing equipment to hiring staff and covering operational costs.

And even if your business is already off to a good start, having capital on hand can be the difference between scaling up quickly or missing out on growth opportunities.

There are 2 aspects to this:

1. Sources Of Capital

There are several key sources of capital that every entrepreneur should be aware of:

1) Your Savings

Many entrepreneurs start by using their own savings to fund their business.

While this requires financial discipline and some level of personal sacrifice, it also gives you full control over your business without needing to answer to external investors.

Using your savings means you don’t have to give up equity in your company early on, which can be a huge advantage if your business becomes highly profitable later.

However, it’s essential to manage your personal finances carefully. You need to ensure you can sustain yourself personally while also investing in your business.

Having a solid financial plan in place can help you avoid running out of money before your business has a chance to succeed.

2) Friends and Family

For many entrepreneurs, friends and family are the first sources of outside capital.

These are the people who know you personally, believe in your vision, and are often willing to take a chance on you, even when others won’t.

However, borrowing money from friends and family comes with its own set of challenges.

It’s important to be transparent about the risks and create formal agreements to avoid any misunderstandings.

While it’s great to have loved ones support your dream, you don’t want to jeopardise relationships if things don’t go as planned.

3) Your Network

Your personal and professional network can be one of the most valuable resources when it comes to securing capital.

The people you know — friends, family, colleagues, and business connections — may be willing to invest in your business or introduce you to others who can.

This is why it’s so important to build and maintain a strong network.

Investors often invest as much in the person as they do in the business. So if you’ve built trust and credibility within your network, they’ll be more likely to support you financially.

The broader and stronger your connections, the more options you’ll have when it comes to securing funding.

4) Bank Loans

Traditional bank loans are another option for securing capital. While banks can offer large amounts of funding, they often require a solid business plan, good credit history, and some form of collateral.

If you qualify for a bank loan, it can provide the financial support you need without giving up equity in your company.

However, keep in mind that loans must be repaid with interest, so it’s crucial to have a clear plan for how your business will generate enough revenue to cover the payments.

It’s important to know that banks don’t take the same risks as your investors.

Loans have to be repaid somehow, even if your business fails.

So even if you qualify to take loans, you may not want to rush into it without careful consideration.

Taking on debt adds immense pressure to generate consistent revenue quickly. And if your business struggles, you’re still on the hook for repayment.

This could put your personal assets, like your home or savings, at risk if you’ve used them as collateral.

Worse, the pressure will affect your mental health which can lead you to make the wrong decisions AND affect your personal life.

So before choosing a bank loan, weigh the risks carefully. Make sure your business can handle the financial obligations, even during tough times.

A bank loan can be a useful tool, but only if it aligns with your growth strategy and doesn’t put undue stress on your financial situation.

5) Government Grants and Subsidies

Many governments offer grants, subsidies, and other financial incentives to support entrepreneurs, particularly those in certain industries or regions.

These can be a great source of capital because most don’t require repayment or giving up equity.

The downside is that competition for these funds can be fierce, and the application process is often long and complex.

There are also different types of grants. Some match the amounts you have put into the business, which isn’t as good as those that come without this condition.

However, if you qualify, government funding can be an excellent way to get the financial boost your business needs.

If your business is the type that can wait for a grant to come in before you start it, then by all means apply for them. There’s no pressure in this case.

But if you’re already struggling with your business and you need to solve your cashflow problems quickly, grants are not your best solution in that moment.

2. Allocation Of Capital

Once you have access to capital, the next thing you will need to know is HOW to allocate it so that you get the most bang for your buck.

This section requires quite a few words, so I’ll save it for Part 2 coming up next week. Watch out for it.

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And that wraps up this issue!

As you can see, running a business is not like taking a walk in the park.

For now, let’s take a step back and look at the bigger picture.

Every 10x Factor we’ve covered so far — from character, skills/talents, network, knowledge and capital — is essential BEFORE you start a business.

They don’t stand alone, but work together to give you a much higher chance of succeeding as a 10x entrepreneur.

When you’ve built this foundation, you’re ready to handle whatever comes next— whether it’s rapid growth, tough decisions, or unexpected challenges.

Cheers!

P.S. Know of someone you care about who is thinking of starting a business, or has already started one? Simply refer them to this issue for them to know what to look out for.