3 business traits entrepreneurs need to succeed

Key Concepts

Value-Driven Organizations: Companies that prioritize ethical conduct, compliance, and a genuine care for their mission.
Talent Management: The strategic approach to managing an organization's workforce, encompassing recruitment, development, and retention.
Veteran Entrepreneurs: Individuals who have served in the military and subsequently started their own businesses.
Adaptability: The crucial leadership quality of being able to adjust to changing circumstances and lead through transformation.
Mentorship: The practice of seeking guidance and advice from experienced individuals in a particular field.
Integrity and Values: Core principles that guide decision-making and business operations, even when faced with lucrative but ethically questionable opportunities.
Resilience: The ability to persevere through adversity and setbacks, a trait often honed through military experience.

Leadership Qualities in CEOs and Entrepreneurial Success

This episode of "The Big Idea" from Yahoo Finance, hosted by Elizabeth Gore, features a special Veterans Day edition with her father, Mike McKe, a US veteran and successful entrepreneur in the talent management industry. The discussion centers on the top leadership qualities in CEOs, with a particular focus on talent management and the transition from military service to entrepreneurship.

Military Service and its Impact on Leadership

Mike McKe's military experience as a flight medic during the Vietnam War (1969-1977) provided a foundational skillset for his later entrepreneurial endeavors. He served as a Staff Sergeant, stationed at Scott Air Force Base, where his unit was responsible for air evacuation of sick and wounded personnel across all military branches and government-related individuals. This role involved operating like a "flying hospital plane," transporting patients to specialized facilities for various medical needs, including burn injuries and mental health treatment.

A significant event during his service was being chosen to help transport Prisoners of War (POWs) upon their release, a "difficult but honorable" task that involved moving them to different facilities within the US. This experience, while challenging, highlighted the importance of service and the shared joy of bringing individuals home.

McKe identifies three key areas where military service prepares individuals for business:

Foundation Building: The military establishes a strong base of physical ability, mental fortitude, and specialized training essential for success.
Teamwork and Leadership: It instills the ability to lead and operate effectively within a team, emphasizing communication and collaboration.
Adaptability: The military environment necessitates learning to "read the tea leaves" and adapt to rapidly changing situations, a critical skill for entrepreneurs.

Transition to Entrepreneurship and Talent Management

Following his military service, McKe transitioned to a career at the YMCA, where he developed his business acumen and confidence. He describes himself as a "builder," not a "maintainer," which motivated him to take a significant risk by starting his own talent management company. This involved borrowing $30,000, a move considered "crazy" by many at the time, but driven by a desire for more time with his children and a better long-term financial future.

His first year in business, he doubled his income from $24,000 to $50,000. However, the second year presented a near-failure scenario. Facing a cash flow crisis and with only two hours before his phone lines were to be cut, McKe received a crucial call from a major oil company. This call, for a career transition outplacement services project, was the result of a pitch made a year and a half prior, where he had been advised by a retired HR executive, Dr. Quinton File, who lent maturity and expertise to the initial meeting. This unexpected opportunity saved his business.

Advice for Veteran Entrepreneurs

McKe offers the following advice to veterans considering starting a business:

Confidence in Abilities: Do not underestimate the skills and experience gained in the military.
Seek Mentorship: Identify individuals in your desired business field and seek their guidance.
Proper Preparation and Resources: Ensure you have adequate preparation and financial resources lined up for success.
Commitment: Once due diligence is done and it aligns with your family and goals, commit fully and pursue it with determination.

Key CEO Leadership Traits for Success

Beyond adaptability, McKe highlights other essential leadership qualities observed in successful CEOs, particularly those who are exiting their companies:

Attention to All Key Business Aspects: Successful leaders ensure their businesses are well-run across all fronts, including product delivery, human resources, team retention, and customer base.
Effective Communication and Leadership: The ability to communicate and lead effectively both internally and externally is critical.
Strong Administration and Foundation: This includes robust accounting, technology integration, and risk management.
Loyal and Returning Customer Base: Cultivating a strong and consistent customer base is paramount.
Integrity and Values-Driven Operations: The majority of successful companies are value-driven, operating ethically and in compliance with regulations. While some may succeed with questionable ethics, it's rare. McKe's firm conducts thorough assessments of company culture and ethics before taking on clients, as private equity firms are increasingly scrutinizing these aspects.

The "Can't Quit" Mentality

A powerful anecdote shared by McKe relates to the near-failure of his business. When asked what military experience he drew upon during that critical moment, he stated, "You can't quit." The military instills a mission-oriented mindset where success is the only alternative. This resilience, the ability to "keep digging and finding a way," is what prevented him from failing. He emphasizes that "you haven't failed until you walk away."

Shout-out to a Veteran-Owned Business

The episode concludes with a shout-out to Willies Distillery, a veteran-owned business founded by Willie and Robin Blazer in 2012 in Ennis, Montana, embodying the independent spirit of the American West.

Conclusion

The discussion underscores that military service provides invaluable leadership training, particularly in adaptability, teamwork, and resilience. These traits, combined with a strong foundation in business operations, effective communication, and a commitment to integrity and values, are crucial for entrepreneurial success. The "can't quit" mentality, honed through military experience, is often the deciding factor in overcoming significant business challenges.