Are You an Entrepreneur?

Posted in Executive Direction by Brent Butler

Are you an entrepreneur?

Asking this question may sound a bit condescending; I don’t mean it to be. But it’s a really important question to ask, if only of yourself. Too many books, websites, infomercials, and magazines focus on the glory of owning a business without first delving into the most important question: “Is it right for you?”

An entrepreneur can go from dominating a space to being irrelevant overnight. Powers out of your control (can anyone say "2008 financial crisis"?) can pummel your business, lead to heartbreaking layoffs, and bring into question your entire belief structure. The uninitiated might not even be able to fathom the long-term and profound consequences of bad business partners or strategic alliances. And no matter how good things are, sometimes it's just a lonely journey after you work an 80-hour week and retire to the captain’s quarters.

However, it’s not all doom and gloom. Otherwise, we wouldn’t do it. There’s nothing more satisfying than seeing a client take your product or use your service and love it, stand by it, adore it, and brag about it. Or when you realize that a decade or more has gone by and people you hired back in the day are now your trusted confidants, allies, and managers, ready to bleed for their team. And sometimes, just sometimes, you’ll turn a profit, go on vacation, tune out the world, and revel in the fact that your toes are in the sand, your face is in the sun, and you're sipping that margarita because of the risk you took years ago.

I personally don’t think entrepreneurialism is right for everyone. Nor do I think every business is right for every entrepreneur. Most people I know and love are not entrepreneurs, and I know great entrepreneurs that have failed because they dove headlong into the wrong business. Entrepreneurism is a discovery of self and a thirst for adventure in a field that impassions you.

So, I’ve worked up this list of questions to ask yourself if you are on the fence.

First, rate your risk tolerance:

  1. I don’t like risk, it scares me. Let me cuddle my cat.

  2. A little risk is okay, if I’m fairly certain there’s an upside. What’s the 30-year average rate of return?  

  3. Risk is fine. The world’s a pretty risky place, anyway. This comes with an insurance policy, right?

  4. I like some risk. I’d try my hand at slaying a fire-breathing dragon, as long as my sword is sharp, I’ve been working out, and I have some inside knowledge on where the dragon’s weak spot is. Afterward, I’d skin the beast, sell its hide on eBay, and I’m pretty sure there is a market for Smoked Dragon Jerky.

  5. I love risk. It’s like a drug. I BBQ on the weekend wearing a gasoline-soaked bathrobe.

Congratulations: If you answered #4, you have the risk tolerance of an entrepreneur. Contrary to popular belief, entrepreneurs don’t throw caution to the wind unless they are prepared, and even then, they only take on risk when there is a potential for upside.

How do you identify with money? 

  1. Money is not important. It’s all about my yurt and my spirit animals. The universe will provide.

  2. Money is OK, but you shouldn’t focus on it. Mom, do you have five dollars?

  3. Money is a tool. Like a carpenter with a hammer, give me a bit of cash and I’ll use it to build. I can always beat the market by investing back into my product, my people, and myself.

  4. I like to save. In fact, I love to save. Don’t mind the jars of pennies; they’re decorations.

  5. Smoke’m while you got’m. Life is short. Get as much as you can, however you can.

Congratulations: If you answered #3, you understand that money is just another thing in your bucket. Money should always be used to support your stakeholders (clients, employees, shareholders, and community). Too greedy, you run the risk of not reinvesting in your company. Too frugal, you don’t use money to innovate, excite, reward, and grow. Too much of a spender, you don’t leave enough cash in the bank to survive crummy seasons and economic downturns.

How do you identify with people?

  1. There’s one person I enjoy: me.

  2. I share space with people and have been known to even talk to one or two…a month. My cats are better than most people.

  3. People are customers and figuring out how to get them to buy what I’m selling is the ultimate goal. Why, are you in the market for a timeshare?

  4. I love people. Solid relationships are the fundamental foundation of everything. I’m not too worried in life because I know the deposits I make into my relationships with others will always yield a net positive.

  5. People exist and they are destroying everything. I can’t wait until we evolve to whatever’s next. Until then, can I get a half-caf, triple soy macchiato with extra foam?

Congratulations: If you answered #4, you’ll make a great entrepreneur. At the core of every entrepreneur is a people person. You can’t design a product or give great service without first being empathetic. This requires that you understand others and truly want to make their day better.

Finally, what is a business plan?

  1. It’s a back-of-the-napkin diagram of how you’re going to take over the world. Can I get another rum & coke, please?

  2. I think I remember doing a business plan in college. It was boring.

  3. A business plan is an informed document and fundamental exercise for developing a company’s intent. It should include the best research available, allowing the management team to understand the industry, competitors, and target customers. This information influences a well-thought-out strategy and helps to inform the management team of threats. The best business plans help entrepreneurs shore up weaknesses, understand revenue scenarios, and ultimately help the company set a healthy course. Most importantly, a business plan should be a living document, adapted with the times and realities of commerce. A side benefit of a business plan is its external uses, such as fundraising, bringing on working capital, developing strategic partnerships, or outlining a healthy merger and acquisition scenario.

  4. A hoop I have to jump through to get my money from the bank. These things are $500, right?

  5. This blog is making my head hurt. I’m going back to my cubicle now.

It’s no surprise that #3 is the best answer. A solid business plan is the foundation document of your company, making it an invaluable long-term asset. Whether you develop your business plan yourself or hire Masterplans, the Business Planning Experts, it is essential to invest time and resources in this document and continue to revisit it on a regular basis. (Or you can always become a nasty statistic.)

If you answered all these questions right, are you an entrepreneur? My answer would be no. Entrepreneurship is a lifelong endeavor. It’s maintaining a childlike curiosity about people and the things we need and use in our everyday lives. It’s marrying that childlike curiosity with a warrior’s spirit. Never retreat, never surrender. And it helps if you can remain empathetic to the needs of your clients, employees, and community.

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Brent Butler is Masterplans' CEO. Connect with him on LinkedIn.

 

Tagged: Advice, Bank-Loans, Strategic, Investors
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