More and more people are calling themselves entrepreneurs lately because it is the latest buzzword for a successful businessperson or business owner.
So what is really behind the mindset of what a business person does and what an entrepreneur does?
The reason I find it important to distinguish the difference is that the label doesn’t make the person, its what they do in business that defines them. I have seen many people trying to become something by just call themselves that.
So here I go with my thoughts on what defines them from my observations and interactions with both types of people.
The Businessperson knows how to run a business to make profit has a handle on the basic business principles expenses out, sales in and earns a margin for profit.
They sell a product that is made for the market and an audience that knows what they are buying, it could be called a commodity as it can be purchased from many different businesses that make the same type of product or service. They sell this product or a service through the current distribution networks that the market currently uses.
There is no innovation or out of the box thinking within their business and the market they are serving. The person may be stretching himself or herself to think outside of the box
The Entrepreneur creates a product or service that the market needs to be filled; there has been a gap in the technology, distribution or way of thinking that has not been fulfilled in the past.
The market can’t find this anywhere else because no businesses have thought how to fill the need before.
They usually solve a desperate need that people have been searching for. People are willing to pay more for this because it will solve a problem that has been causing them to waste copious amounts of time and frustration working around the issue.
This solution will move the customer further than they ever have before. The first customers to use the service or buy the product may be l than a large market, but they will grow the market considerable because the customer can see the benefits of what’s on offer and use it to improve their productivity or get information faster thereby learning faster with this new method.
Because of this way of thinking and creativity in the market this type person (entrepreneurs) their business can grow exponentially based on the value the market places on the solution, instead of what price they can get the product or service for.
“Value is based on perception”
The reason for writing this is showing that you need to have a profitable business to start with and this takes the successful businessperson thinking to ensure you have a base to work from.
Once this is achieved and you want to have a larger business that is growing above the standard growth than you need to change your thinking be more entrepreneurial and find a niche in what you are creating, whether that is a technological advance, a significant improvement in how the service is delivered or an innovative way of delivering the product or service to the market.
Take a moment to think about the companies and successful people that have been able to achieve this and you will find this is the formula they use. Knowing your customers is vitally important.