Are You An Entrepreneur or a Business Owner?

A lot of people mistake me for a great student simply because I have an impressive academic record.  The truth is, by many standards, I’m an awful student.  While I eventually read the books and articles assigned in my classes, I read few, if any, at the time.  Studying was never an option.  Attendance didn’t rank much higher.

I barely attended the majority of my classes in high school and college. I only got through high school faster than most people because I had little patience to stay (and a big enough mouth to convince the administration to let me go.) I finished college early accidentally, because I was busy applying for credit for every non-traditional activity I could find, trying to avoid “real classes.” My graduate degrees were acquired because of one (very effective) parental guilt trip – and the others as a means to an end. 

As for my grades: I’m not really sure how I passed my classes – but I credit it to strong writing, vocabulary and presentation skills – with a combination of some effective persuasive skills thrown in.  While I enjoy learning, I’m not, nor do I care to be, a perpetual student.

It’s easy to perceive people a certain way, categorize them quickly, because of a title or a degree, or because of something they’ve achieved. In fact, we’re wired to make these assumptions: our brains create pathways to help us process all of the information it takes in regularly. We look for patterns and shortcuts to help us process more effectively.

We’re also subject to psychological principles of cognitive dissonance.  It’s what many charities rely on: if you’ve donated to them before, obviously your previous behavior demonstrates you care about the cause – and therefore, because you care - you’ll want to donate again.  Your historical behavior (and perceived beliefs about that behavior) drives your choices for future behavior.

Maybe this is part of why we still have trouble distinguishing between an entrepreneur and a business owner.  It’s easy to process these personalities and titles in one category – starting, leading, and running a business.    

So what is the difference, exactly? 

Entrepreneurs generate revolutionary ideas and enjoy the process of making them into a reality. They create one idea and move on to the next. Most entrepreneurs enjoy creating things, designing them, starting new organizations, revitalizing mature ones, and capitalizing on opportunities in a unique way. It’s the feeling of momentum generated by what can be and the rush of the risk that must be taken to get there. Often, once things become operational, it is too mundane. Entrepreneurs want to continue to evolve and innovate. They look for change and risk on a large scale rather than making incremental changes to support an outdated system. Think of Apple launching the iTunes Store or the App Store versus the railroads putting their schedules online and allowing you to purchase tickets electronically.

There are a large number of business owners who would consider themselves risk-averse. They don’t appreciate the uncertainty of a new venture. The pit in their stomach generally exceeds the excitement of the unknown and the unlimited opportunity ahead of them. Most business owners enjoy what they did for a living and simply want to keep doing it – for themselves, not for another company. Or, they may have started a business due to circumstance. They go through the hassle of launching a business, but it’s a means to an end.  Business growth is generally spurred by their financial needs or organic growth in their customer base. Or, at times, their financial needs (or regulations) drive them to stay “current” and “competitive” in their industries. However, reinventing themselves or innovating in their fields is not a priority – nor a desire.

We also tend to confuse leaders and managers. It’s easy to see both labels as “in charge” – the person who controls activities, operations, administration – even processes. But, it’s often the managers who work within established systems and oversee operations to accomplish specific tasks and goals.  Managers embrace routine, stability and control. They tend to focus on achieving specific objectives and supervise the tasks necessary to do so. 

Leaders tend to emerge from (and tend to create) chaos. They thrive on creativity and change.  Leaders tend to be visionary, inspiring and dynamic. They motivate rooms, companies – even countries, creating a following, selling an idea – an unknown, a new reality. A leader creates conflict to find a better solution or future.

Why is this worth all of this discussion?  Well, let’s be honest: “entrepreneur” and “leader” are sexier than “business owner” and “manager.” However, it’s important to realize that organizations need both kinds of roles to succeed. 

One of my clients has an incredible vision. She can talk for hours about the concept of her company – and what she hopes to bring to the world. However, she shuts down as soon as someone asks her for something more concrete – her, goals, objectives, how she’s going to accomplish her vision. She recognizes that she’s not the right person to structure and manage the operations – and has brought in other resources to do so.

To make any business successful, you need to be honest with yourself. You may have started a business – but are you the one who should continue to run it? If you’re happier running it, are you the type to take it through tough times and lead the necessary change to stay competitive? Or, are you done with what you’ve created, bored and ready to move on to the next project? 

Make sure that you are the right person for the role you’ve decided to assign yourself.  Forget about your title.  What do you enjoy doing? Where do you excel? How do you add value?  All of these roles, when done well, are just as glamorous, even if the terms are not. Relish who you are and identify complementary skills in others to make sure your business has all of the talent it needs to succeed…and stay successful.