What makes an entrepreneur? In our recent blog article on developing an entrepreneurial mindset, we talked about 5 aspects of the entrepreneurial mindset. Discernment is important for entrepreneurs to master, and we’ll talk about why in this article.
What Is Discernment?
First of all, what is discernment? Merriam-Webster defines discernment as “the ability to understand inner qualities or relationships.” People who have discernment can see beyond the surface of an issue. They have keen perception about people and situations. They see patterns, make connections, and identify inconsistencies that lead them to find out more.
How Discernment Helps Entrepreneurs Succeed:
Asking questions. As we mentioned in the article about development, successful entrepreneurs do a lot of research. they look at all the aspects of a situation before jumping in. Research often means asking questions, and discernment is about knowing which questions to ask. In addition, an entrepreneur can use discernment to see more opportunities within a business, so they can diversify into additional industries or businesses.
Gathering knowledge. This is where an entrepreneur’s financial team becomes essential. Any successful entrepreneur knows that they’re not an expert in everything. They know what they don’t know. And they aren’t afraid to call a trusted, expert resource to get information to make a solid business decision. As a result, they make good choices that improve their businesses.
Ability to pivot. When you can look deeper into a situation, you can pivot quickly when the need arises. For example, entrepreneurs in the publishing field had to pivot when online began to outpace print editions of magazines and newspapers. This change filtered down through the industry. Suddenly, writers and designers with decades of print experience had to adjust their skills for the online environment. However, some professionals continued to succeed. Due to their ability to read and respond to industry signals, these entrepreneurs quickly aligned with the new reality.
Knowing when to walk away. A discerning entrepreneur knows that not every opportunity is the right one. And they’re willing to walk away from the wrong situation. We often talk about the importance of entrepreneurs having determination to see their projects through. Can someone have both qualities? Absolutely. Determination and discernment are not opposites. Rather, they are qualities that a successful entrepreneur has learned to balance.
In conclusion, discernment is a valuable trait for entrepreneurs to develop if they want to succeed. How can you begin to use discernment more in your life and in your business?