Are You An Entrepreneur? Uncovering Your Innovative Self
Entrepreneur Defined
When you think of an entrepreneur, you may immediately visualize someone outgoing, high energy, confident—a salesperson. But the truth is the quiet one sitting next to you on the bus could very well be a successful entrepreneur; he or she just looks different than you thought. That’s because entrepreneurs rarely fit into neat little boxes.
According to Wikipedia, an entrepreneur is, “a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. It is an ambitious leader who combines land, labor and capital to often create and market new goods or services.” From a practical business perspective, I segment entrepreneurship into two categories or types: “intrapreneurs” and “entrepreneurs.” In other words, there are internal and external innovators. So the question is: What type of innovator are you?
An external innovator, or “entrepreneur,” is someone who launches his or her own company into a given marketplace. This is the person who takes the greatest risks and creates a start-up venture.
An internal innovator, or “intrapreneur,” has the same attributes as someone who starts, owns and operates his or her own business, but who works within the framework of a larger company
Which type of innovator is better?
The world needs all kinds of innovation. And the good news is that innovation is highly valued in today’s workforce, no matter what form it takes. What you need to know is which type of innovation suits you best, and your individual strengths and motivations will determine the path that’s right for you. To figure it out, ask yourself questions such as, Am I comfortable taking risks? In what types of environments am I most productive—alone? Within a team? Am I a self-starter or do I need direction to get going on projects? A little self-reflection will go a long way in helping you choose the right path.
So let’s say that you’ve determined that you’re a self-starter who doesn’t mind working alone, someone with an appetite for risk who has a great idea that you can’t let go of—an idea that you’re convinced you can pull together a team around and execute better than anyone else out there. Well, it sounds like you just might be an entrepreneur.
But is there ever a reason not to become an entrepreneur? Even if you can say “yes” to all those traits I just listed?
The Top Five Reasons NOT to Become an Entrepreneur
It’s popular in the current economic environment to become an entrepreneur, but too often it happens for all the wrong reasons. It’s best not to make the move unless you know what works well for you.
Here’s a quick litmus test for you. Think about the following five motivations for becoming an entrepreneur and decide if one of these is a strong factor in your decision. If any one of these in isolation is the reason you are considering entrepreneurial ventures, take some seasoned advice and rethink that plan …
You live for vacation.
Get over it. If you’re really an entrepreneur, you’re not taking a vacation for a very long time. You may physically be on a tropical island, but put the umbrella drink down. Because surprise! Your Blackberry and computer still work and so will you, when the fate of a company rests entirely on your shoulders. If you’re not up for that scenario, you’d better reconsider.
You want to make money fast.
Sure, this would be great. And I’m not saying it can’t happen. I’m saying it’s unlikely and, if this is the only reason for taking the start-up leap, you may want to think of other options. According to the Small Business Administration, while seven out of 10 new employer firms survive at least two years, only about half make it to five years. If you make it, it may take a long time to meet your financial goals—and, sadly, the statistics are against your business even surviving long-term.
You always know what’s best.
If you are often the smartest person in the room, leave the room. Successful entrepreneurs surround themselves with bright people. Take the 43rd president, for example. He wasn’t known to be the sharpest knife in the drawer, but his Cabinet pulled him and his country through the most challenging of times. That’s what you need. Your “Cabinet” should have the depth and breadth to help you grow, all while overcoming adversities. You’re headed for trouble if you are your only sounding board.
You really dislike your current job.
That’s too bad. Guess what? You’ll probably have daydreams about how great your former job was once you become an entrepreneur. I’m not going to lie, the days are long and the work is hard. Take time to determine why you’re dissatisfied with your current position. If you leave those issues unaddressed, you run the risk of taking those problems with you wherever you go.
You Are Finished Working for Someone Else.
This is one of the biggest misnomers of entrepreneurship. You ALWAYS have a boss. As an entrepreneur, your client or customer is your boss. You cannot escape this. The best part is, if you have multiple clients, that means multiple bosses with varying needs. So yes, you have more latitude in how and when you do your work, but in the end you ALWAYS have someone to answer to.
Steps to Determining Your Path
So now you think you’re cut out for this gig of little sleep, rough days and someone to answer to. Here are a few tips to assist you in paving the way to choosing your path:
Define What Motivates You
What makes you “tick”? Now is the time to really understand what motivates you to be productive. At first blush, many automatically answer with “money.” However, when they take into consideration the cost of that money—working until midnight everyday, for instance—the money isn’t worth it to them. Evaluate what you find rewarding (e.g., notoriety, doing “good,” financial rewards, a pat on the back from people you respect) and structure your business to go after it. This exercise will help you determine which type of innovation best suits you intra- or entrepreneurialism.
Tap Into Your Personal Excellence
Deciding what field to make your profession can be a daunting task. The best rule of thumb is to follow your passion and delve into something that not only energizes you, but is also something at which you excel. You will have a competitive advantage right out of the gate by tapping into your natural abilities. That’s not to say you can avoid tasks that you do not like or where you lack expertise. Instead, hire or consult with people who have substantially better skills in the areas you are lacking. Just because I wasn’t a finance major in college, doesn’t mean I can ignore my companies’ books, for instance. Rather, I have hired a bookkeeper and an accountant to assist and advise me. I am 100% aware of where I stand financially, but I am not bogged down on a daily basis with this piece, which is not my core competency. Focus your time and energy on areas in which you excel and develop your personal excellence.
Business Planning 201
Yes, you have to have a business plan. It’s not as hard as you think to write one. They have “books for dummies” and guides for seasoned professionals alike, to make it even easier. But what they forget to tell you in business school is that after you write the plan, you should use it, refer to it and update it. It makes sense, really—customers, technology and the economy all change rapidly, so why shouldn’t your plan keep up? It is critical to stick with the old adage to “plan your work and work your plan.”
The amazing part about entrepreneurship is that no day is ever the same. The learning continues if only you are open to it. Take your strengths and develop them—soar with them—and enjoy the journey.
Mary Adams is a speaker on the subject of entrepreneurship, marketing and meeting planning. To contact Mary, send an email to mary@eventgrp.com.
