Forums: Discussions for entrepreneurs and small business.

Group hug - process-dependent businesses are a great way for small business folks to get a life.  Thanks for the article Richard.

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Team Nimbus facilitates peer teams who advise each other from their collective business experience to raise profits in less time, so they can focus on the passion that brought them into business in the first place. We help move their business from survival, through profitable success, to significance.

Eli brings up a really interesting point: Is an entrepreneur "born" or "made?"

On this thread, and I think on a lot of others, we`re seeing a sort of split between "small business owners" and "entrepreneurs." At least in how they`re discussed. But now, maybe for the first time, I wonder if there might be a deep and characteristic difference between the two groups?

Could we say that a small business owner more easily gets lost in controlling all their processes, where the entrepreneur has a larger context? I doubt it, but it`s an interesting way to phrase a growing question.

WHY do people get lost working "in" instead of "on" the business? How come so many global enterprises are starting to feel an increasing necessity to "train" their internal employees on "understanding the business" from a larger context?

There`s an old phrase, "marching to the beat of a different drum." It means being a maverick, visionary, and ignoring tradition---the way things usually are done. Where does that personality come from? Even when someone truly believes they want independence, and the freedom to be their own boss, doesn`t that expression itself carry with it the implication of being one`s own employee?

I think there`s an important "something" here, and it points to the very nature of what it means to be an entrepreneur.

I think most entrepreneurs suffer from a terminal case of control - it`s the exception that works "on" their business, not "in" it.   They are missing the one element of a truly successful business owner, what I call (and I`m guessing I didn`t make this up - never had an original thought) "distributive management" skills. 

I see the work world as having three types of workers.

Entrepreneur
Employee
Business Owner (or Distributive Manager)

Entrepreneurs (or Intrepreneurs if they are in a larger company) do think outside the box, test the system, work around beauracracies, do innovative things, work based on their passion not based on their job description, etc.  But that doesn`t make them good managers.  Usually it makes them bad managers.  It`s the rare entrepreneur who has both the innovation and distributive management skills.

True Business Owners  (TBOs) by my definition are great managers.  Some TBOs exist inside large corporations, others own their own small business.  (Great managers inside large corporations are the same to me as a business owner.)    TBOs, whether they are actual legal owners of a business or managers in someone else`s business, are great distributive managers - when tactical work comes at them, they instinctively deflect it to someone else who can do it just as well, because  a) they hire great people who do a better job than they do in the tactical arena (Entrepreneurs/Intrepreneurs are many times threatened by great employees), and b) they are process-oriented and always make sure the systems are in place to make the work flow easily.

Employees are people who love to work tactically, don`t enjoy mucking around in the big picture that much, and are more interested in security than TBOs or Entrepreneurs. 

I think most small business owners are Employees, not TBOs and not Ents.  It was their craft (their passion) that drove them into business, not any great vision of the future (entrepreneur) or a desire to grow something that isn`t dependent on them (TBO/Manager).  They sling sandwiches because a) they are more interested in the short-term security of that extra $50 a day going into their pocket and/or b) because they haven`t put any processes in place to free them up to be TBOs.

And in the end, most Entrepreneurs end up as Employees of themselves (the craftsperson always was an Employee of themselves) - slaves to the business.  Meanwhile the TBOs/Distributive Managers are off playing golf on Wednesday afternoons and taking 3 week vacations to the Bahamas.




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Team Nimbus facilitates peer teams who advise each other from their collective business experience to raise profits in less time, so they can focus on the passion that brought them into business in the first place. We help move their business from survival, through profitable success, to significance.

Uncanny, I read some of yesterday’s posts and thought let me think on this... I came here today to say well what CraigL just said! Lol of course he is more eloquent than I can ever hope to be...

I agree with Blakeman’s analysis as well, except for this part



I believe that would apply to a small business owner but not necessarily to an entrepreneur, the goal of the entrepreneur is creating the business and delegating it’s operations he is to set the company’s direction and supervise those he has enabled and delegated the authority to execute his vision. While it can happen for a variety of reasons the entrepreneur does not seek to end up being an employee of himself but a business owner.

ElidS,

I think we agree for the most part.  The entrepreneurs GOAL is to create and delegate the operations.  I don`t think they seek to end up as their own employee at all, but most of them do because the majority of entrepreneurs have difficulty a) getting out of the limelight and b) letting go of the baby they worked so hard to create.  If you can name me one entrepreneur that made the transition, I can name you 10 that didn`t. 

The landscape is scattered with small and big companies that failed or fizzled or didn`t become all they could have.  The entrepreneur did a fantastic job of creating the initial vision, process, and product, but then couldn`t make the transition to manager and wouldn`t give it over to someone else to grow - nobody hands their dream off to others easily.

The smart entrepreneur creates the company and then gets out of the way and either goes and starts another one, or stays on as the innovator/inventor.  Entrepreneurs are startup guys, just like distributive managers are growth guys.  Managers would do just as badly at starting things up as most entrepreneurs do as managers.




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Team Nimbus facilitates peer teams who advise each other from their collective business experience to raise profits in less time, so they can focus on the passion that brought them into business in the first place. We help move their business from survival, through profitable success, to significance.

I think we are having difficulty defining what an entreprenuer is. There are successful entreprenuers and not so successful ones and they come in all sizes, shapes, and management styles. I don`t think you can pigeon hole an entreprenuer nor put them all in one basket.

Entreprenuer literally means "undertake" or "undertaking." So, any one who strikes off on their own to start a business could correctly be called an entreprenuer. I am not trying to split hairs here, but I think defining an entreprenuer is not that difficult. Nor does it make a difference in this discussion.  

Are they all totally prepared when they decide to actually do this undertaking - new enterprise - become an entreprenuer? No, they are not. I wasn`t 100% prepared when I started my business, although I spent the better part of about 15 years prior to going into business - studying business, preparing to be an entreprenuer - before I made the leap. But a craftsman I was not. A manager I was. A good one? Some would say that is debatable.

I think the difference in a successful entreprenuer and one who is not - one that turns into an employee of the business - is the difference in the definition between manager and leader. Truly great entreprenuers are leaders. And they do not have to be leading a small business to be an entreprenuer - if you agree of the definition of entreprenuer. A CEO who is a great leader and comes in to a company and turns it around can be an entreprenuer.

Craig questioned if an entreprenuer is made or born. I will ask the same question as to leaders. I do believe some people have leadership qualities in their genes. And environment, training, mentors, education, and experience all play a part in shaping our lives and how we interact with others. I do feel leaders rise to the top. Were they born this way? I don`t know. But does it matter?

A truly great business - small or large - needs good leaders, not managers. Employees - the masses - will follow instructions - this is human nature. It is the job of the leaders to provide the instructions. Instructions lead to process-dependent organizations and allowing the leaders to work "on" the business, not "in" it. Don`t lead ... be a people-dependent business, no guidelines and instructions, and the success rate drops. Not my opinion, just the facts.

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

LOL! Eli, you and I are SO on the same page! ;-D Am I more eloquent? I dunno...I just write. :-D

Richard, you`re right that we could ask the same question about leaders being born or made. And in that distinction, I think lies the argument I`d have with Blakeman that "falling into tactical problem solving" (to paraphrase) is almost the default condition.

I`m bothered by the generalization, I think. Yes, plenty of small businesses fail, and it`s true that the general tendancy for people to get lost in "employment" tasks is a reason. But in the three categories listed, I don`t really see one for our entrepreneur-in-the-making.

Blakeman`s post is a superb analysis of the observation. We have people who keep sight of the "big picture," and we have those who get lost in processes. Good, we make that observation. The problem is to uncover the cause of the difference.

I like the True Business Owner (TBO) acronym. Unfortunately, it doesn`t generate a definition, either semantically or psychologically. Why is someone able to "truely" manage, and why does someone else not have this characteristic? It`s important, because the different attribute is fundamental to the success of failure of a small business.

We`re all saying that if the business owner fails to let go, doesn`t set up self-acting SOPs, or otherwise can`t delegate and "let go" of that control, they`re probably going to either fail, or stay very small for the duration. Fine; but is it possible to really train or teach someone how to do this letting go?

Is the entrepreneur or TBO the result of a life-long set of experiences, which come together to create a strong-minded, independent leader, capable of vision and imagination, and solving problems in unorthodox ways? "Life-long experience" being the operative term?

Witness the never-ending money-machine of corporate seminars and workshops designed to teach people in business to be better managers. Nothing really changes as a result. Those who already have the raw skills learn a great deal. Those who can`t (or won`t) think outside the box walk away feeling great for 10 minutes, then forget everything they learned.

I wonder...CAN we teach an "employee" how to develop the mindset of an executive manager?

Craig - I don`t believe you can teach anyone how to develop the mindset of an executive unless they have the desire and commitment to do it. Notice I left out the word "manager." I believe a big part of this discussion lies in the understanding that to be a very successful business owner you do not need to be a good "manager" - you need to be a great leader. I truly wish the term "manager" would be eliminated from business-speak. It is an awful term for employees and companies alike. Most people can`t "manage" their own lives and finances - yet they supposedly "manage" companies and teams and departments and shifts, etc., etc.

You manage tasks, not people. You either lead people or not. If you are not a leader, you should not be in a position of responsibility over other employees. Leading is guiding the vision of the company. Leading is hiring a person not for that position but for 2 ones above. Leading is compassion. Leading is being creative. I could go on, but I won`t.

Leadership can be taught. It is taught in the Boy Scouts. It is taught in the military. It is taught in churches. It is taught in many places. It takes leaders to recognize leaders in the rough. I speak from experience. And when you see a leader born and start to blossom, it is inspiring. Because once they see they are a leader, there is no stopping them.

Leading is not about SOPs or letting go or delegating or seeing the big picture  - it is all of this and more.

We need more leaders. That is what is wrong in our nation`s capital today.  Where have all the leaders gone?

Leadership - that is what makes a great entreprenuer. They get it done.  

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

Hmm...I should`ve been more specific. Yes, it`s true that a newborn has only a very limited set of raw capabilities. And from there, they do indeed learn (they`re taught) how to be leaders during youth. Technically, it`s true, therefore, that leadership can be taught.

My question has much to do with in adult life, say from around age of 25 and upward: Can leadership be taught to an adult?

We all know the story of Harry Truman, or Winston Churchill, where "the times made the man." But I wonder if they didn`t already have the basics in their personalities.

To manage something means to insert guidance into a process. Events are taking place, moving, and the manager influences the movement of those events toward a specific outcome---a goal.

The goal might be set by the manager, by the executive "manager," or by an idea itself. I disagree that we only manage tasks, not people. I think raising a child is a management situation, based on influencing toward a desired outcome. The problem is that if we have NO preconceived goal in mind, THEN we end up "steering the boat," so to speak.

hmmm...there`s an analogy. A captain chooses a course to sail. The crew handles the tasks of setting sails, handling rope, and so forth. But there`s one particular person who`s critical to the operation, yet doesn`t fit into either category---the navigator.

In most cases, the captain already has learned the skills of navigation. But knowing how to set a course is one thing. Knowing WHICH course to take is significantly different.

Craig,

We`ll have to disagree on this "manager" versus "leadership" description. All I can tell you is that I teach my clients to stay away from using the term "manager" in most situations in business. When they do, and start thinking in terms of leaders and leadership, we make progress and they see progress and their companies see progress and they start operating better and making more profit. I`ve been practicing and teaching this business philosophy for over 15 years and it works for me and my clients - maybe it`s not for everyone. The results I see are phenomenal. Just this one little change makes a big, big difference. Finding potential leaders in a company and training them to become real leaders can make a big difference in a company and allows the owners and key leadership team more time to work "on" the business - the original thought of this post.

Leadership can be taught to adults. I see it more times than not. And it is contagious. This is why I preach it so much and try to get my clients to buy into it. It works. People can readily see leadership qualities. The tone of the voice. The desire to hear both sides of a story. The listening skills. The desire to ask lots of questions. The list goes one. The average everyday Joe has a good feel for recognizing leaders. This is because the average everyday Joe WANTS to be led - not managed. Most folks think they can "manage" better than the next guy - especially THEIR manager. But most folks don`t feel they are leaders. Otherwise, the whole world would be a better place.

R@

PS: To learn more on leadership, I highly recommend checking out John Maxwell and his websites and signing up for his eNewsletter called Leadership Wired. Every issue is packed with great info.

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog