5 Competencies of Entrepreneurs vs. Small Business Owners
I read a great article titled “Is there a difference between entrepreneurs and business owners?” It states what I’ve said for years.
as people throw around the term “entrepreneur” like you wake up one day and decide you’re going to be one! Nothing could be further from the truth.
The problem is many who call themselves entrepreneurs are really are small business owners in disguise. They could become entrepreneurs if they changed their mindset and mastered the competencies of entrepreneurship. But, that means that they must admit that they’re not currently entrepreneurs, and are instead an “entrepreneur in training.”
Entrepreneurs Have a Different Mindset
Once you’ve made this shift in your mindset, you’ll some very specific competencies. Let’s look at what you’ll need to master to call yourself an entrepreneur!
Identify a Need (Problem)
While many will say there are many people that demonstrate this competency, I would agree. Any good manager has this skill. But, it is the entrepreneur that knows how to create a cash flow stream from a problem. It is this innate ability to see opportunity in the marketplace and turn it into revenue that allow entrepreneurs to replicate their success over and over.
Entrepreneurs Create Solutions
Entrepreneurs are natural problem solvers. Again, a skill many others possess, but entrepreneurs have a distinct ability in problem solving. They see the opportunity created by a problem and attack it with abandon. Laser-like focus helps entrepreneurs create something innovative; something that involuntarily attract attention. It creates buzz. And, through this buzz entrepreneurs creates what most inventor struggle in vain to do – make piles of money!
Generate Cash Flow by Selling Their Solution
Generating cash flow is about more than just making money. It’s about maximizing the efficiency through which an order moves through the operational cycle– tuning your revenue engine. If this isn’t your understanding of cash flow I would highly recommend reading the post “Cash Flow: An Entrepreneur’s View.”
Once you’ve mastered the cash flow challenge, then what? How about increasing the horsepower of your revenue engine!
Entrepreneurs Demonstrate Scalability
You increase the horsepower of a business’ revenue engine by increasing sales. But, increasing sales means producing more of what you’re selling. That meaning scaling your entire operation not just getting more sales.
This is a bad situation. It does not allow you to achieve to the next competency entrepreneurs possess. An even sadder fact is that some small business owners work their business for decades and never can turn it into cash. A harsh reality when is what they are counting on to fund their retirement!
Gets Investors to Buy-In to Entrepreneur Solutions
The final competency is the entrepreneurs “exit”. This usually means selling the business for a pile of cash that allows them to retire. For most entrepreneurs, it’s too late. They’ve caught “the bug!” so. they never really retire. They love the thrill of creating a self-sustaining business, so they move on to solve the next problem (opportunity) they can find.
Transitioning from Small Business Owner to Entrepreneur
Here’s the good news! The Business Growth Simplified offers its DIY Membership to help you master these five entrepreneur competencies. Click on the icon to the right to find out more about a DIY Membership.
You can also download our e-book Missing Components to Successful Entrepreneurship. This e-book will help you better understand what most small business owners lack in becoming successful entrepreneurs. Complete the form below to get your FREE copy.