You aren’t an Entrepreneur.
Since I started coaching business owners last year, I have heard every business owner refer to himself or herself as an entrepreneur. Regardless of the size of the business or the goals put in place, people who own and run their own business believe they are entrepreneurs by default. I don’t believe they are all right – some are just business owners.
The mindset of an entrepreneur is set apart by a few key thoughts and motivations, the first and most important, is that need to grow something that is remarkable, risky and will have an impact on the future of others. Business owners want to make a stable living being self-employed and often live day to day in their companies. The exact opposite is true with natural entrepreneurs; huge financial freedom often gained at the investment of others with a vision of providing value and making an impact in the market they play in. Business owners are scared of failure while entrepreneurs embrace the risk of failure as part of the parcel in developing their business.
Business owners work hard, spending a large part of their lives working in their organization often limiting its growth to the knowledge of their founder. Business owners look at the net value of their business in terms of assets, often the building they are in or the machinery they own and never look at value in terms of potential value or long-term growth.
Entrepreneurs not only focus on company profits but also invest heavily in innovation and new ideas, which in turn invites high risk for high reward, into their strategy. The predictability of business owners’ companies gives small reliable rewards with small risk. Small business owners measure growth by hiring people while entrepreneurs measure success by installing systems that make the business smarter and sellable. Time is the most valuable thing to an entrepreneur while cash is valued higher by the business owner.
Entrepreneurs are never happy with what they have built, even if it is greatly successful. They are easily bored and are always looking for the next “big thing” they can grapple with and grow. It’s easier to sell these businesses, as entrepreneurs don’t get sentimental about the businesses they start.
Sadly, most successful entrepreneurs eventually become business owners. There is no “right or wrong” being either a small business owner or an entrepreneur, but identifying what you are will help you understand your business methodology better and help you achieve more in the time you spend in your business.
If you are a dreamer who wants to change the world more than once you are an entrepreneur and if you want to earn a honest living working for yourself and are not looking to make billions and the cover of magazines you are a business owner. Again, there is nothing wrong with being either, as long as you can set your path and do your best along the way.