For entrepreneurs to perform at their very best, there are activities that they carry out that eventually become a part of their lifestyle.
Whether its daily, weekly or monthly, we reveal ten practices that successful entrepreneurs often engage in.
1. They read
The benefits of reading are constantly highlighted so it is no surprise that entrepreneurs engage in the activity.
The most obvious is that you gain knowledge to learn new things and solve new problems. Elon Musk, founder of SpaceX, credits his love for books for his vast knowledge of rockets.
Knowledge is cumulative and continues to grow the more you read. Business magnate Warren Buffet, reportedly spends five to six hours reading five different newspapers. He also combs through 500 pages of financial documents. In fact, he estimates that 80 percent of his daily work routine is spent on reading materials ranging from financial statements, journals and business reports, to newspapers and books. “That’s how knowledge works,” he told an investment class at Columbia University. “It builds up, like compound interest.”
Reading also helps with finding answers to problems you may face in business. The more you read about the industry, the easier it is for you tackle problems that may arise. Additionally, you keep up to date with the issues and can gain new insight in how to approach them. So essentially, it contributes to their success by providing the right knowledge, new ways of thinking, new perspectives and to develop necessary skills.
Reading is also a source of self-education, self-improvement and self-development. As an entrepreneur, you want to continuously take steps to better yourself so that you act, represent and execute at your best.
Lastly, reading helps you to relax. According to a 2009 study at the University of Sussex, stress is reduced up to 68% just by reading! Getting lost within the pages of a book leads to absolute relaxation and becomes a source of inspiration and creativity.
2. They practice money management
Money management is critical to starting a business but it does not stop there. It also transcends to your personal expenses and as an entrepreneur, you should be able to control and regulate your personal finances. Here are some ways to practice personal money management:
- Budgeting
- Keeping track of your expenses
- Managing debt
- Save
Budgeting
A budget is a plan. A plan that details how you will spend your money. When you budget you are able to get a complete picture of your finances so that you can allocate your money to the things that you need and are important to you. Essentially, it ensures that you do not spend money you don’t have. When you have control over your money and organize your spending, it allows you to better manage unexpected expenses.
Categorize your expenses into areas such as utilities, debt, savings etc.
We recommend the popular 50/30/20 budget plan. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment. Your income, expenses and priorities will change over time so always review and adjust your budget accordingly, but always have one.
Budgeting involves the other ways of practicing how to manage your personal finances that we mentioned above.
Keeping track of your expenses
This allows you to monitor where your money is being spent all while sticking to your budget.
Here are some tips on how you can keep track of your expenses:
Separate business and personal expenses
It is imperative that the lines between your own money and the business are not blurred. Start by setting up two different accounts for each expense.
Record your expenses
Because it is easy to forget numbers and dates, you want to note your expense as quickly as you can. Whether it is simply jot them down in a notebook or making a note in your phone, record-keeping is important to proper money management. You can then review at the end of the day and properly organize them. You can use softwares such as Freshbooks to keep your entries organized.
Save your receipts
This is related to recording your expenses to keep your budget updated. They are also supporting documents for the data entries in your books and for your tax return. You also want to separate business and personal receipts.
Use an app
Apps like Mint and You Need a Budget (YNAB) allow you to sync your bank accounts and keep track of your spending daily. They also offer monthly bill tracking, including payment reminders to avoid late fees.
Managing Debt
Again, you want to separate your own debt from the business and your budget has to include debt repayment. Prioritizing your debt repayments so they are paid out first is the best way to get rid of debt fast.
There are two popular ways to tackle debt: the avalanche method and the snowball method. Using the avalanche method, you prioritize paying down the debts with the highest interest rates. Using the second method, you focus on paying off your smallest debt first (while paying minimums on the others), then roll the amount you had been paying on it into payments on the next largest. NerdWallet’s debt guide that can help you choose the best approach in getting your debt cleared.
If possible, you can also automate your payments to ensure they are made on time to avoid late fees.
Save
Warren Buffet’s famous quote is, “Don’t save what is left after spending; spend what is left after saving.”
What this means is that one must first save a certain amount of money from their income before they start spending that money. You also have to allocate some of your money towards the future for things such as retirement.
You also want to spend less than you earn by spending within your means. So if you don’t need 20 pairs of black shoes then you don’t need 20 pairs of black shoes.
You want to also save for unexpected expenses by maintaining an emergency fund.
3. They practice time management
In order to work hard and be dedicated, entrepreneurs have a strong work ethic. However, they are not constantly working 24/7 of every day of the year. This would actually imply that they are not maximizing their time efficiently. But everyone has the same 24 hours in a day so how do they do it?
Let’s take a look at a few ways some successful entrepreneurs practice time management:
Elon Musk’s Time Boxing Technique
Elon Musk is founder and CEO of two successful companies, Tesla and SpaceX. In order to manage his repsonsibilities and boost productivity, he uses the time management practice known as timeboxing. Timeboxing involves setting a fixed amount of time for each task. Depending on the complexity of a task, the time that you assign could be minutes, hours or days long. It encourages you to focus on ‘time’ instead of ‘tasks’ and forces you to take control of your schedule. In doing so, you would also avoid the effects of the Parkinson’s law which states that work tends to expand to fill the time allotted for it.
To carry out the time boxing technique, one thing is to create a task list for every single day. The other one is to carry it out.
Elon Musk does it by dividing the day into 5 minutes slots and then decide about how much time is needed to carry out each task (be realistic with your timeline). He then assigns tasks to time slots in his calendar. It is merging your to-do list for the day with your calendar. You then execute each task in the given time slot precisely, sticking to the time allotted.
For example:
- Write article draft: 2 hours
- Answer emails: 1 hour
- Attend meeting: 1.5 hours
- Choose the first task on your priority list. Then, set the clock for 25 minutes and work within that time limit to get it done. When the timer goes off, stop that task, and take a short break. Either set the timer again to continue that task or go to the next item on your list.
Bill Gates also follows a very similar routine to Elon Musk, breaking down his daily schedule into five-minute intervals.
Zuckerberg and Bezos minimize decision fatigue
Amazon CEO, Jeff Bezos, does not like to make any difficult decision before 10 am and 5pm. So, the window between 10 and 5 is where the majority of his decision making gets done. He says, “I like to do my high-I.Q. meetings before lunch. Like, anything that’s going to be really mentally challenging, that’s a 10:00 meeting. Because by 5 p.m., I’m like I can’t think about that today, let’s try this again tomorrow at 10 a.m.”
Similarly, Facebook’s founder, Mark Zuckerberg is always looking for ways to reduce decision fatigue throughout his day. So much so, this is his reasoning behind wearing the same shirt daily. He believes that he is not doing his job if he spends his energy on things that are silly or frivolous. Instead, he wants to clear his life so that the decisions he makes are devoted to serving his community.
Buffet protects his time by saying no
Buffet is also well-known for fiercely protecting his time and avoids scheduling meetings or appointments in advance. He says that time is the one thing money cannot buy. “Keep control of your time. You won’t keep control of your time unless you can say no — you can’t let other people set your agenda in life.”
It is also better to say ‘no’ to a meeting invitation than to be only partially-present. Distracted presence is no presence at all. Understanding which meetings are critical to attend and saying no to the others is an essential practice.
The billionaire investor also does not multitask. You have to focus on one thing, get it completed and then continue to the next task at hand. Multitasking limits your focus and actually leads to less productivity. Similarly, context switching and task switching are silent killers to productivity and efficiency.
Psychologist Gerald Weinberg reported that with each extra task or ‘context’ you switch between takes up 20–80% of your overall productivity. When you’re focused on one thing, you’re dedicating 100% of your productive time to it.
Lastly, the Berkshire Hathaway CEO knows his strength is allocating capital so he focuses on that and delegates the rest. Also, when you are in charge of your own business, you won’t be able to be everywhere at once. Hire a strong team to delegate other tasks so they can still be completed.
Ek Schedules His Goals
Daniel Ek, founder of Spotify, has a habit of writing out his daily, weekly, and monthly goals and tracking their progress every evening. From there, he allocates time accordingly to each goal.
4. They maintain a healthy lifestyle
Being an entrepreneur means dedicating a lot of your time to growing your business. The long hours and early mornings can cause exhaustion and fatigue. It is therefore important to prioritize your health so you can make better decisions and keep a level head at all times. Some entrepreneurs, though successful, remain in poor health for prolonged periods. It is not an easy feat as it will require discipline but making it a habit will ultimately become apart of your lifestyle. Health is wealth!
Maintaining a healthy lifestyle involves:
- Eating Right
- Exercise
- Sleep
- Manage Stress
Eating Right
We all know the benefits of eating a healthy and balanced meal. But eating right not only includes what you eat but also when. Experts recommend waiting about three-five hours between meals. As an entrepreneur, this may sound impossible, but remember that habits are the foundation to success.
Exercise
If you have not already done so, make this activity one of your morning habits. Research shows that exposure to early morning light can help you feel more awake during the day, as well as improve the quality of your sleep at night. Physical activity stimulates the release of hormones to boost your mood, get you energized, helps you to focus, fight stress and more. These things combined contribute to increased productivity.
Such is the case for many successful entrepreneurs.
Billionaire Virgin Group founder Richard Branson, says having a morning (and evening) fitness routine sets him up for success.
Branson is famously active and regularly speaks about the significance of exercise contributing to his success. He has been popularly quoted from his 2017 blog stating, “I seriously doubt that I would have been as successful in my career (and happy in my personal life) if I hadn’t always placed importance on my health and fitness.“
As such, he has created Virgin Active, Virgin Pulse and Virgin Sport which are all aimed at promoting an active lifestyle. He also plays tennis regularly, goes for a run, walks and kite-surfs.
Similarly, Twitter’s CEO Jack Dorsey says, “A healthier lifestyle ultimately makes me more creative and allows me to think more cohesively.” He reportedly also walks 5 miles to his office three times a week. During that time he gets inspiration from the streets of San Francisco.
Sleep
As an entrepreneur, it is easy to forego sleep when you are focused on realizing your dreams. However, a lack of sleep makes you irritable, your brain function decreases and overall reduces your energy. When you prioritize rest, there is a noticeable boost in your physical and mental performance.
Elon Musk confessed in an interview that he used to work 120 hours weekly. He would not leave the factory for three or four days and didn’t go outside. Now he gets at least 6 hours of sleep. “I tried sleeping less, but then total productivity decreases,” he explains.
Likewise, Bill Gates stated in FAQ held by Microsoft that “I used to work all night in the office, but it’s been quite a while since I lived on catnap.” “I like to get seven hours of sleep a night because that’s what I need to stay sharp and creative and upbeat.”
Manage Your Stress
Every entrepreneur will encounter stress but it is essential that they are able to recognize stress signals, reduce the stress and also manage it.
All that we have outlined above, eating right, exercising and getting adequate sleep helps to reduce stress. It is important to regain focus because stress can cause chaos. It is also important to take action and address the issue at hand. Once you are able to identify what the root of the issue is, then stress becomes easier to manage.
According to Bezos, “stress primarily comes from not taking action over something that you can have some control over… stress comes from ignoring things that you shouldn’t be ignoring.”
5. They practice gratitude
Not just saying thank you because someone did something for you. But also being thankful for what you have, allows you to have more. Entrepreneurs agree that this is also a key to their success.
Ariana Huffington, owner of Huffington Post states, “Focusing on the things that you are grateful for on a daily basis can help you in the long run.”
Oprah Winfrey, also practices being grateful. The media mogul has said, “You radiate and generate more goodness for yourself when you’re aware of all you have and not focusing on your have-nots.”
It has been said that, what you focus on, expands and when you can acknowledge what you already have and be thankful for it, it changes how you think and makes you a better entrepreneur.
Gratitude also allows you to focus on the positives and in doing so, you are able to visualize your success before it even comes.
6. They plan their day ahead
There is a saying that goes; plan for tomorrow today. There is nothing better than being prepared for the day the night before. It makes you more relaxed and gives you the confidence to take on the day.
Write your to-do lists, plan your schedule including meetings, appointments etc, pack your bag, plan your meals and even your outfits. This will give you an understanding of what you have for the day and can help you to better organize it. This will also reduce the time you would have taken in the morning and gives you more time to focus on more important things.
7. They develop a morning routine
Having a morning routine helps you start the day on the right track and keeps you grounded and consistent. There are certain morning habits that most successful entrepreneurs engage in as a part of their routine.
Typically, it involves waking up early, doing some form of exercise, meditating and having breakfast.
8. They have mentors
Some entrepreneurs don’t have mentors because they see it as a sign of weakness. However, a great entrepreneur who wants success, is open to learning from others and in turn, they are also willing to pass on what they have learnt to others.
Mentors provide advice, impart knowledge from their own experiences and mistakes and help to keep their mentee focused on their goals.
Bill Gates and Warren Buffet’s close friendship is constantly highlighted so it is no surprise that Gates credits Buffet for some of his success.
“If you ask any successful businessperson, they will always (say they) have had a great mentor at some point along the road.” – Richard Branson
Branson also says, “I wouldn’t have got anywhere in the airline industry without the mentorship of Sir Freddie Laker.” Freddie Laker was an airline entrepreneur best known for Laker Airways.
He also understands the significance of mentorship. “Understandably there’s a lot of ego, nervous energy and parental pride involved, especially with one- or two-person start-ups…Going it alone is an admirable, but foolhardy and highly flawed approach to taking on the world,” he explains.
His blog has also highlighted some of these great mentor relationship between successful entrepreneurs.
Choose someone who has been where you want to be. Leveraging the knowledge and skills from those more experienced than you in your field, is one of the best ways for self-improvement, to help you grow and sharpen your skills quickly and efficiently.
By the same token, you also want to surround yourself with like-minded individuals. Have people who are not only as hard-working but they should inspire and motivate you, challenge you in the right ways and are grateful.
9. They watch and listen inspirational programs
This is linked to our first practice that we mentioned – reading. Just as with reading, watching and listening to inspirational programs are a source for creativity, knowledge and bettering oneself. Whether it is a documentary or docuseries, listening to an informative audiobook, or watching a seminar or online course; driven and go-getter entrepreneurs are always looking for ways to learn more.
10. They relax
Entrepreneurs are often driven and relentless individuals. Working to get the business off the ground and obsessing over strategies for continuous growth can lead to physical and mental burnout.
The reality is, a startup business is demanding but it is important to take breaks and relax without feeling guilty.
You can unplug from your work to realign and refocus. Find out what you need to that makes you feel at peace. Whether it is exercising, listening to music or taking a nap.
“At 8:30, I go for a walk – even in the winter. I’ve found this is often where I do my best thinking.”– Daniel Ek
“As long as I get my exercise in I very rarely feel burnt out. I’ve always managed to get a pretty good balance in my life with things like working from home with the family and having wonderful breaks with them.” – Richard Branson
“Once or twice, I stayed up two nights in a row. I knew I wasn’t as sharp when I was operating mostly on caffeine and adrenaline, but I was obsessed with my work, and I felt that sleeping a lot was lazy.” – Bill Gates
Today, Gates regularly gets at least seven hours of sleep per night.
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