In today’s economic climate, where most people are worried about protecting the status-quo, this may be the perfect time to start your own business. First, let’s discuss the two basic kinds of business owners: Shop Keepers and Entrepreneurs. The differences between them, although vast, come down to attitude, drive and focus.
The shop keeper mind-set can best be visualized as the owner of a brick and mortar storefront (a physical location), who:
- Will open the store every day at 9 am and close it at 6 pm.
- Will run the store during business hours and then leave, not just the “store” but the “business” as well at the end of the day.
The shopkeeper has created a job, pays herself a salary and treats her “business” like an employer. On April 15th she’ll ask her accountant if she made or lost money the previous year. Profit, if not accidental, is at least unintentional and if there is a profit, it is a welcome surprise. Although there’s nothing wrong with being a shop keeper, true success in business requires a whole different attitude. An entrepreneur is defined as, “A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.”
The entrepreneur, on the other hand, may also own a brick and mortar storefront but the difference lies in how they think:
- They have a pro-active plan for their business.
- They know exactly what their numbers are.
- They track profitability and cash flow daily and with a passion.
- They are deeply involved in growing their business.
- They are driven to succeed.
This drive is the central differentiator between the shop keeper and the entrepreneur. When we look at the success statistics for small business start-ups we see a picture that is, at best, bleak. 80-85% of all new businesses will fail in their first 5 years. In spite of these statistics 750,000 new businesses will be launched this year. If you want to improve your odds of success then you need to cultivate the attitude of entrepreneur.
