The title refers to a very good book about what it takes to be an entrepreneur and build a great business. The authors of the book are Anthony Tjian, Richard Harrington and Tsun-Yan Hsieh and the book is called Heart, Smarts, Guts and Luck published by Harvard Business Review Press, Boston, Mass, 2012. The authors tried to figure out the basic components of what it means to be an entrepreneur. The four attributes the authors came up with are heart, smarts, guts and luck.

Each of these attributes must be seen if the business is to be successful and it is as simple as the passion for something (heart), the ability to be able to do something about it (smarts), the guts to do (just do it) and meeting the right people at the right time to make it work (luck). Each of these attributes have to be in place to be a success, but once the attributes are in place, it seems like the stars are unfolding they way they should be. The next few blogs will be referenced from this book – it is very good one to have in your library of materials. The group also has a website.

The Heart refers to passion and purpose. It is wonderful to be passionate, it is better to have a idea what the results of the passion will take you. You have a great idea, that is wonderful, but what do you want to do with it? What achievement are you working towards. It is important to note, a survey in the book showed more than 70% started their successful business without a business plan. The business plan is needed to raise money after people can see your vision and sales/profit growth. To start with and to stay with the business day in and day out, there needs to be passion about what you are doing and why you are doing it. In theory there are other non passionate jobs you could be doing that earn you similar income.  The next part of heart is the nuance or what makes your company different and better than the competition – or why you? The nuance is the tangible proof of your passion and purpose of the company.

Heart is not lust or merely to make money from what is hot at the moment. It certainly helps to make money, however every hot market cools, then what? not interested, why would you continue unless you are driven by passion and purpose.

Linking to dividend paying stocks, besides being profitable and able to pay a dividend, it is important to read the Chairman’s message or the Principles and Values of the company. As a profitable one, the principles and values are readily seen and reflected in the Chairman and President’s messages. In many dividend paying companies the senior level of executives are well paid, why do they continue to come to work? why this company? was is the passion and purpose of the company and does it do what it says it is doing?

There are more questions than answers, till the next time – to raising questions