A business plan is usually
the first thing people think about when talking about becoming an
entrepreneur. If you are getting your
business funded, then it is very important.
But there is something even more important, regardless of funding. That is your mindset.
There is a HUGE difference
between the employee mindset and the entrepreneur mindset. That difference is often a key factor in
success or failure. OK, what does that
mean?
1 - The employee believes
that there is value in activity. Showing
up matters! If he/she works hard and
works late, that means success. And
usually, for an employee, that is correct.
If an employee shows up and does the job and works hard, steady paychecks
come. In addition, (in a good economy)
he/she will keep the job and may even be promoted and/or given a raise. This sounds great.
For the entrepreneur, activity
matters ONLY if you are making sales.
You can work hard 18 hours a day, 7 days a week and if you don’t make
sales, you fail! Activity by itself
means nothing. Success is directly tied
to closing deals and creating more revenue.
Being effective and efficient is critical. Showing up is just nice.
The entrepreneur believes
that hard work is something to be avoided by generating enough revenue to make
hard work unnecessary.
2 – The employee believes
that job skill set is what matters. If
he/she is a great “do-er” then success is coming. And usually, for an employee, this is
correct. If an employee is a great
accountant or graphic artist or analyst or technician, then steady paychecks
will come. In addition, (in a good
economy) he/she will keep the job and may even be promoted and/or given a
raise. This sounds great.
For the entrepreneur, a
great skill set matters ONLY if you have clients. You can be the best at X in the world, but if
you have no clients, you fail! Skill set
by itself means nothing. Success is
directly tied to more clients and more revenue.
The second aspect is that if
your production is the only form of revenue, then your company is severely
limited. In fact, if you are just
working on a per hour basis, then you aren’t really an entrepreneur. You are a contracted worker; still an employee.
The entrepreneur knows that success
can no longer be judged by job skill set, but ONLY by business acumen. The ability to move a company forward with
both sales and operations as a leader is the key to success as an
entrepreneur. Skill at a specific task
is often irrelevant.
3 – The employee sees the
employee or company as the entity that “gives” him/her a job. The business owner/boss is higher and more
powerful and deserving of reverence. And
usually, for an employee, this is correct.
If an employee shows reverence to the boss and makes his/her needs
secondary, then steady paychecks will come.
In addition, (in a good economy) he/she will keep the job and may even
be promoted and/or given a raise. This
sounds great.
For the entrepreneur,
prospects and clients should be seen as equals.
They are experts in their fields and the entrepreneur is an expert in
his/her field. The entrepreneur provides
value (as a product or and/or service) and the client provides revenue. It is a deal between two companies; two
entities; two equals. Showing reverence
for the client will almost always result in lost deals and lower revenue.
Why? As you place yourself on a lower pedestal,
the client/prospect will lose confidence in you and therefore either negotiate
your price down or go with another vendor that they believe in more. In the long run, most clients want experts,
not servants.
If you see yourself not as
expert, but a servant, you will act accordingly. You will simply ask what the client wants and
give it to them directly. That sounds
great, because that what an employee does.
The boss is an expert, we follow his instruction.
The entrepreneur must
understand that the clients are not experts in your field. They are often wrong and the project will
fail to achieve what they really wanted if you just do what they say and not
what YOU KNOW WILL WORK. Then, even
though you followed the client’s direction, they will blame you and never use
you again.
The entrepreneur knows that
each deal is an agreement between two equals.
You must know that the responsibility of an expert is to hear what
prospects want, and then to show them how you can give them what they need to
achieve exactly those goals.
I hope this will assist you
with your decision to be, or not to be, an entrepreneur.
“Entrepreneurs are simply those who understand that
there is little difference between obstacle and opportunity and are able to
turn both to their advantage.”
- Niccolo Machiavelli
Good luck!
Larry
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