In business, people assume that entrepreneurs and businesspeople are the same. Well, there are those that argue differently. One happens to be an entrepreneur, professor and the recipient of an MBA from the University of Michigan. Fernando Trias de Bes, author of THE LITTLE BLACK BOOK OF ENTREPRENEURSHIP, states that the difference between entrepreneurs and businesspeople is an issue of creating vs. managing. Entrepreneurs are creators, while businesspeople manage and grow companies. Bill Gates is celebrated as an entrepreneur, but it was Steve Ballmer and Paul Allen that were the businessmen behind Microsoft’s growth.
Entrepreneurs usually have “creative control” over the product line and services of a company, while businesspeople are in charge of a company’s infrastructure and business model. Now, there are some that can do both, but usually most entrepreneurs either focus on being entrepreneurial or involve themselves in the daily operations of a company.
The one that starts a company may not be the best one that maintains it or even grows it. The great entrepreneurs know who they are and know if and/or when to “leave” and bring in a person or team to operate the business. Part of the decision depends on what your end game is. Do you want to create a business that serves your lifestyle? Or, do you want to create a business that can be ultimately sold to a larger conglomerate?
A perfect example is Col. Sanders. Sanders sold KFC to his first two franchisees for $2,000,000. The owners grew KFC into a publicly traded company and sold it to the Heublein Corporation for approximately $300 million. This is what we would call a high potential business, which requires businesspeople. A lifestyle-oriented business allows an entrepreneur to maintain control of his business without having to relinquish a significant amount of control.
When considering starting a business, know who you are and know what your endgame is. Answering those questions will give you an indicator as to who you are and what you will be in the business world.
