Introduction to the series
In the dynamic world of business, entrepreneurs stand out as visionary individuals who not only conceive and organize ventures but also willingly embrace significant risks along the way. However, it is important to note that not all independent business people possess the true essence of entrepreneurship, and the quality of entrepreneurship itself can vary greatly. The intensity of entrepreneurial spirit, leadership abilities, innovative thinking, level of responsibility, and creative prowess play pivotal roles in shaping entrepreneurs as they envision and execute their business plans.
Within the realm of entrepreneurial development, Brad Sugars, a renowned business author and the founder of ActionCOACH, a global business coaching firm operating in nearly 1,000 offices worldwide, identifies five distinct types of entrepreneurial mindsets, thinking patterns, and belief systems. Sugars’ insights shed light on the journey entrepreneurs embark upon, starting from the fundamental stage of being an employee. It’s crucial to understand that while exceptional employees can evolve into remarkable entrepreneurs, the transformation requires adopting a broader perspective and seeking a role that surpasses the boundaries of traditional employment.
From employee to employer?
At the employee level, individuals often set goals primarily to impress others and shield themselves from confronting fears, including the fear of personal freedom and success. They tend to conform to their comfort zones instead of actively pursuing new knowledge and experiences. These self-imposed limitations prevent employees from aspiring to be self-motivated and self-reliant entrepreneurs, as they prefer following someone else’s predetermined game plan.
Employees primarily prioritize personal security, deriving their emotional motivation from a fear of insecurity and a longing for the familiar comfort of a stable situation. However, there are those who yearn for a greater sense of responsibility and control over their lives. Driven by the confidence to experiment with possibilities and explore uncharted territories, these individuals often rise above the employee status and venture into the realm of self-employment, marking their initial foray into entrepreneurship.
While the journey from being an employee to becoming an entrepreneur involves multiple stages, the characteristics that define a successful entrepreneur remain constant throughout. In the upcoming sections, we will delve into the essential traits that distinguish entrepreneurs and enable them to thrive in the ever-evolving business landscape. By exploring these characteristics, aspiring entrepreneurs and even established business owners can gain valuable insights that will contribute to their personal growth and entrepreneurial success. So, let’s embark on this enlightening journey to uncover the twelve indispensable characteristics that shape remarkable entrepreneurs.
Level One: The Self-Employed Mindset
At the core of the self-employed individual lies a driving force that surpasses the pursuit of security—it is the burning desire for greater control over one’s life, career, and destiny. The mere thought of surrendering that control to a boss from nine to five doesn’t align with their idea of true happiness. They firmly believe that they can perform their job just as effectively without an employer, and in some cases, even without the need for additional employees. Autonomy becomes their aspiration, and they yearn to chart their own course. Thus, they embark on a journey where they replicate the same work they did as an employee but with a newfound determination to do it independently and for themselves.
However, amidst their pursuit of autonomy, many newly minted entrepreneurs encounter a series of pitfalls and traps. By choosing to go it alone, they unwittingly put themselves at risk. They unintentionally isolate themselves from valuable talent, intelligence, feedback, and experience that others can offer as a source of assistance. Furthermore, they inadvertently create a scenario where true financial and personal freedom remains elusive.
“Do-It-Yourself” approach
It’s not uncommon for individuals with a strong do-it-yourself attitude in small business ownership to succeed only in creating a new job for themselves, rather than building a thriving career or a profitable company. As solo performers, their work consumes them entirely. There are no days off, work always follows them home, and overtime becomes a regular occurrence without financial compensation. Their motto becomes, “Why rely on someone else when you can do it better yourself?” They often emphasize to customers that dealing directly with them is the only way to engage with their business. However, this relentless pursuit takes its toll, and burnout becomes an inevitable outcome. Consequently, a significant majority of these self-employed individuals find themselves failing in a short span of time, ultimately returning to the employment of others.
Their critical oversight lies in their failure to envision a business that can operate autonomously, free from their constant supervision and guidance. They don’t imagine creating an enterprise that thrives on collaborative teamwork. One of the gravest mistakes made by these self-employed entrepreneurs is attempting to replicate the same job they held before, within the same field of expertise, selling a product or service they are already familiar with. Though it may seem counterintuitive, venturing into different domains and uncharted territories opens doors to learning, embracing an open-minded approach, and relying on the assistance of others. These ingredients form the recipe for entrepreneurial success as they compel individuals to evaluate the entire business system from a fresh and innovative perspective. Additionally, this approach sets the stage for working on the business itself without being consumed by day-to-day operational tasks.
The ultimate goal is to design a business that works for its owner, rather than the owner working for it incessantly. This distinction lies at the heart of transitioning from a self-employed individual to a true entrepreneur. Those who grasp this concept ascend to the next level of entrepreneurship, where the possibilities for growth and achievement expand exponentially.
Recommended reading to follow up
Why not read one of our previous articles on how to work less as a business owner but actually earn more?
A GREAT book that we recommend (and even give!) to all of our clients is “The E-Myth Revisited“. It is a business book but told in narrative form as a coach works with the owner of a pie shop to help her get a grip on her business, rather than it running her life and exhausting her. Well worth a read or a listen.
