There are two central ingredients to success: Risk and Persistence. I refer to them as “The Catalyst of Success.”

There are thousands and thousands of great entrepreneurial ideas out there. Millions of people have big financial hopes and dreams. There are a lot of people who can talk about their concept or idea with great conviction and flair—or about how they could improve an entire industry with their unique insight and experience.

But for all of the millions of ideas, concepts and plans only a very, very small number of them ever come to fruition.

I’d like to point out two of the most overlooked principles of making any business endeavor a success—in fact these principles apply to any worthwhile endeavor that we might choose to pursue.

The first is RISK and the second is PERSISTENCE. These two principles are absolutely necessary ingredients for success.

When I was a teenager I shaped and glassed my own surfboards. I became very familiar with the process of solidifying fiberglass using a mixture of resin and catalyst. In order to create a bucket full of solution that would cover the entire surfboard, I would add three or four cups of marine resin and just about a tablespoon of catalyst—that tablespoon made all the difference—it was the key ingredient that caused the entire mixture to eventually solidify into a hard fiberglass finish.

In my opinion, Risk and Persistence are like the catalyst that will complete the business plan, or any plan for that matter. It’s what takes a project through to the finish line.

The trouble though, is that many people are either paralyzed by the potential costs of taking risks and choose to avoid something potentially great altogether, OR after taking a risk; lack the patience and tenacity, aka: Persistence that’s required to see something to the finish line. In a sense, they throw in the towel prematurely.

I think you can start to recognize the importance of these two principles.

Do you have some insight and experience about how the principles of Risk and Persistence have affected your life? Or do you have a comment or point in regard to these principles from which the readers can benefit?

Leave a comment and I’ll follow up with a reply as soon as I can…

I’ve had some recent opportunities to appear as a guest analyst on The Big Idea with Donny Deutsch.

As always, I’d love to hear back on your thoughts, advice and other feedback about these episodes…

Here are two recent appearances:

I have been fortunate enough to be asked by the producers of CNBC’s “The Big Idea with Donny Deutsch” to come on the show as a expert business coach and offer advise to some struggling entrepreneurs.

Here are the two most recent appearances on “The Big Idea.”

Check out these great blog posts for more information about this topic:

Finding a Niche

Are You Prepared for the Next Disaster

Do You Need Success Intervention?

Earlier this year I touched on what I call the “instincts of entrepreneurship“. I’ve continued to research the way true entrepreneurs think and act; and the list of instincts has grown to become “The 11 Killer Instincts of Entrepreneurship”.

At a recent speaking event I talked about these 11 Killer Instincts. I promised the attendees that I would summarize what they heard on my blog, so here’s a bullet point style summary of what we discussed together that night.

Hopefully, you’ll capture the essence here and over time I’ll perhaps expand on each topic in ongoing blog posts. In the meantime, I’d appreciate your comments, insight, and opinion about this discussion:

The entrepreneurial mindset is a distinct way of thinking, like an genetic mindset, that produces extraordinary results. That’s why I say that an entrepreneur is a different type of “species”, if you will. The mindset I am talking about is instinctual and in my opinion has more impact on professional success than education, connections, good looks, or money.

Instinct is, by definition, “An inborn pattern of behavior that is characteristic of a specific species.”

However you define it, most agree that there’s something “different” about the classic entrepreneur. My intention is to help people everywhere understand these unique characteristics, and develop them. They’re valuable for anyone; business owner, employee or manager. In fact, Jack Welch commented recently in Business Week, “In the end, pedigree is less important than the entrepreneurial nerve…that’s needed to succeed.”

Here’s a quick look at the 11 Killer Instincts of Entrepreneurship:

1. The Solution Instinct: This is about ideas and always seeing them. It’s about seeing new opportunities while traveling, shopping, or working. Seeing problems and potential solutions to those problems is at the heart of valuable ideas and business models.

2. The Detective Instinct: This is about fact-finding and due-diligence. It’s about letting go of the emotion and excitement of a good idea and taking a venture-capitalist approach. This instinct is something that keeps one constantly assessing how a business model will work, scale, and succeed… without personal bias.

3. The Great Communicator Instinct: This is about connecting and constantly selling. It’s a constant awareness that every point of communication matters. Whether communicating with partners, investors, vendors, employees, or competitors; every communication is an opportunity to strengthen your company.

4. The Youthful Genius Instinct: This is about doing what you love. When we were young, we dreamed big dreams and showed glimmers of what we might become. Tapping into the expectation of our youth is central to successful entrepreneurship.

5. The Entrepreneurial Heritage Instinct: This is about how our heritage can reveal some or our natural gifts. What has your family and ancestors been successful at already? Exploring your roots can help one tap into opportunity. There is a reason why many families pass along entrepreneurial success and create “dynasties” of their own.

6. The Risk-Taker Instinct: This is about going out on a ledge. No risk, no reward. It’s a fundamental factor of business building or almost any major endeavor. Finding the calculated balance of risk and opportunity is key.

7. The Work-Horse Instinct: This is about paying the price. Doing whatever it takes. Those “overnight successes” usually require at least 5 years of hard work and incredible sacrifice to get there.

8. The Thick-Skinned Instinct: This is about being tough. Resilience, optimism and a positive mindset reside in every great entrepreneur. The fundamental key to success in attaining goals? Never give up.

9. The Flexibility Instinct: This is about being willing to change. Emotion and pride must be removed from the process while building a business and paying attention to the best route to take. The right path naturally eventuates; if you’re willing to recognize it and take it.

10. The Human Instinct: This is about people. Attracting the best people is more important than the business model itself. Treating people well, leading well, and serving with care is a fundamental reason why anything worthwhile should be built in the first place.

11. The Knowledge-Quest Instinct: This is about constantly learning. Reading, thinking, listening, observing, absorbing, and applying is a hallmark trait of a great entrepreneur.

These are unique instincts and in my experience, everyone possesses at least a touch of each of them. And it’s my observation that every natural instinct can be discovered, uncovered, and developed by anyone interested in doing so.

Look within and uncover your entrepreneurial instincts. You’ll find that your personal ambitions and goals will rapidly progress, improve, and materialize.

There are good reasons why over 30 million Americans have chosen the path of entrepreneurship. But some of the most important reasons are often overlooked.

Entrepreneurs are responsible for starting and running the small businesses throughout our cities. These people include the local dry cleaner, auto dealer, restaurateur, franchisee, personal trainer, and grocer. They’re responsible for the technology we rely on every day—cell phones, Internet access, hardware, and digital entertainment.

An entrepreneur is a visionary and a builder of businesses. They build profitable companies that sustain our nation’s financial foundation. While their initial reasons for venturing into startup-world might go no further than the pursuit of personal wealth, they ultimately play a significant role in our society. As articulated by Peter Drucker, “Business isn’t just business. It’s the economic engine of democracy.”

The personal reasons for following the path of entrepreneurship vary. Typically, the greatest motivations come from the prospect of wealth, security, being the boss, freedom, and a passion for a product or service. All good reasons. Fifteen years ago, my main reasons for going solo were basically the same. I suspect your reasons might be similar.

It’s taken me 15 years to realize, though, that entrepreneurship is about more than achieving the obvious objectives—much more. The fact is, those who pursue entrepreneurial success meet unexpected tests and trials that shape them for good.

Here are five reasons why starting your own business will mean more to your life than you think:

1. You’re going to be tested. Hammered, actually. When I started my journey as an entrepreneur, my vision was fixed on the financial rewards of growing a business. I had no way of knowing how many great personal tests I would face along the way. I was too inexperienced to anticipate how market factors, competitive pressures, cash constraints, and managing employees would create an environment of nearly constant pressure. New twists, turns, and surprises surface with exhausting frequency. There’s a wise saying that “…hammering hardens steel and plays havoc on putty.” It’s the opportunity for you to become strengthened and refined under the heat and hammering of business challenges. Sadly, many wilt, falter, or fail under these circumstances. So be prepared to face and conquer real-life tests as an entrepreneur and to be better for it.

2. You’re going to fail. That’s a good thing. Think of failure as the toll paid for future success. Every great success story includes painful chapters of failure and misstep. It’s a fact that through failure, questions are answered and solutions are discovered. Og Mandino said, “Failure is the highway to success, as every discovery we make of what is false leads us to earnestly seek after what is true and points out some error which we shall afterward carefully avoid.” And it’s the experience of failure that breeds the ability to be flexible, humble, and thoughtful—qualities required to create a company that can stand the test of time. Flexibility, humility, and thoughtfulness go a long way in life, too.

3. You’re going to learn patience. It develops as a natural result of the hammering and the failures that you’re sure to experience. Patience is the trait that truly separates inexperienced entrepreneurs from the seasoned and successful. Patience earned through experience is what allows a business operator to get beyond idealistic dreams and deal in the world of sound, realistic expectations. Pray that it develops within you as soon as possible.

4. You’re going to have a major impact on people. It’s inevitable. People—perhaps many people—are going to give a portion of their lives to your cause. This isn’t a small thing. Your actions toward your customers, vendors, and especially your employees will have a positive or negative impact on their lives. You will learn that managing people is really about leadership, and leadership is about inspiring people to reach their full potential. In The 8^th Habit, Stephen Covey explains that it is absolutely crucial that we “…find our voice and inspire others to find theirs.” And again, from Drucker, “Management is about human beings. Its task is to make their strengths effective and their weaknesses irrelevant.” I hope that as you build your company, you will find that it is an ideal platform for doing much more than selling widgets—the opportunity is there to change many lives for good.

5. You’re going to develop character. Sure, you might get rich, retire young, and travel the world, too. But realize that this isn’t really the end game. In time (sooner rather than later, with any luck), you’ll recognize that building a business is much different than what you might have initially envisioned. If you choose to pay the price for success, you’ll find that it’s actually much harder than most accounts of business success would suggest. But through that hardship, great rewards are available. While there is no guarantee of riches, through the pursuit, you will obtain rewards of character. And the development of sound character is perhaps the most important perk of entrepreneurship. At the end of the day, no one really cares how much money you made. They care about who you are.

We all have perceptions of what it will be like to reach a certain goal. And when we finally get there, we usually find a completely different reality than what sparked our action toward the goal. As an entrepreneur, that has been my experience. I have been pleasantly surprised by the lasting benefits uncovered through the lessons of my business experience.

Entrepreneurship is one of those things that can provide greater results, greater benefits than you might have initially expected. You’ll develop deep life experience and a level of humility as a result. You’ll gain patience and have a great impact for good on many people. And ultimately, that is the most important benefit of your pursuit.