What’s the difference between an entrepreneur and a business owner?

Sure, an entrepreneur is a business owner but are all business owners entrepreneurs?

A natural entrepreneur is a risk taker, someone whose passion is business building. They will notice a gap in the market, take the risk of finding a way to fill it, and create a business around that. Some thrive on building the business as a means to contributing to the social good, others thrive on the challenge of setting up a business and so once it’s established, sell it and start again.

There’s another group of people who have no desire to build a big business, never mind sell it and start again! They are only business owners because that gives them the freedom fulfill their desire to do what they do best – often being of service to others. This group includes many professionals and freelancers pursuing their passion to make the world a better place, and their business is the framework that makes it possible. Unlike an entrepreneur, most of these people don’t start out with the mindset of a business owner and that is why many of them struggle to create a business that thrives.

What are the keys to a business mindset?

To think like an entrepreneur, you must focus on 4 key factors:

1. Money

The key belief to a successful business is the most obvious and yet often the one that causes an internal struggle: the fundamental purpose of a business is to make money, not impact. The money makes the impact possible so the money has to come first. The stronger your desire to make an impact, the more money your business needs to generate. If you are uncomfortable making money, you will not make much impact on the world. Service orientated people often struggle with this idea, so fortunately there are a number of ways to identify and release subconscious limiting beliefs about money.  The one I like to use with my clients is Emotional Freedom Techniques because it is both effective, works quickly, and has many variations so it is adaptable to each person’s needs.

2. Purpose

You need a reason to be making money. The bigger your why and the more passionate you are about it, the greater will be your motivation.  Building a business has its tough times and you need good motivation to sustain you through them. 

Linked to purpose is vision – the picture of the outcome you desire. Without a clear picture, your vision will be vague and easily lost in the busy-ness of running your business. Your vision needs to be inspirational so it also motivates those you work with, including your clients.

The values underlying your purpose and vision are a strong part of what attracts your clients to you and not your competition – this is what some people call ‘resonance’ between you and your clients.

Aligning your values, purpose and vision opens the way to a successful business.

3. Less is more

Working hard and long lowers the quality of your life and relationships, and over time, the quality of energy you have for your business. Growing your business by working long hours actually limits the growth potential as there are only so many hours you can work. This also leads to burnout and in the long-term, possible serious illness. The key is to focus on providing high value to premium clients who pay you for the value of the outcome you give them and the income / benefits they gain from that outcome, not for the number of hours you work with them. The rule of thumb is 51% of your income from 1% of your clients. This means you earn more with less work which frees you to be more creative in your business (working on it instead of in it) plus you have time to build good relationships and enjoy life.

4. Selling

Selling is not about convincing. It is about removing the obstacles that prevent someone from buying. If you show people compelling value, selling will take care of itself because when you offer people with problems solutions that will transform their lives, they will want to buy from you - if you create the desire to buy, your clients will ask to buy from you. To do this you need to believe in the value of your service / product to your client and be able to communicate that value to your clients in a conversation that gets them excited about buying the means to their desired transformation from you. The key to this conversation is that it is client centred, focused on listening to their needs and desires and contributing your solutions in a way that makes buying from you their obvious next step.

Conclusion

Although natural entrepreneurs and ‘accidental’ business owners start their businesses with very different mindsets, the mindset keys required for success are the same.  Each person, whether a natural entrepreneur or not, will be more skilled in some aspects of business development than others. A good coach will be able to guide you through the processes of business development which will bring results more quickly and easily than struggling on your own. They will also help you recognize your own strengths and weaknesses, so you can build a team that complements you, not replicates you. With a balanced skill set your business in more likely to thrive and be more resilient in tough times.

And remember that the foundation of success is a growth mindset, not the number of hours you work!