I have been supporting and coaching professional people a long time. Nearly 25 years. I’ve been building businesses even longer.
In that time I have made a number of observations about the characteristics that distinguish entrepreneurs and small business proprietors. I share them with you in this video:
As you begin the process of finding and developing the best business strategy for your perfect business, understanding the distinction between the entrepreneur and proprietor is vitally important to you.
While you can certainly create astonishing success as either one of them, knowing which appeals to you and aligns best with your goals and what you want to invest your energy doing will help you understand the business systems and processes you will want to plan on implementing.
It’s probably clear to you now that if you design or organize your business strategy with you in the role of “proprietor” when what you really want to do is coordinate the activities of others, you will end up frustrated and unsuccessful, no matter how much money you make.
Likewise, if you are most interested in building your business around yourself and your ‘secret-success-sauce’, then placing yourself in the role of the entrepreneur will be equally dissatisfying.
There are two key distinctions:
- The “entrepreneur” builds value in the market place primarily by leveraging the skills and assets of others, not through his individual technical contribution.
- The small business “proprietor” tends to build his business around himself, his craft, or his expertise and weaves himself into the fabric of the business often to such a degree that the business would not function without him.
Which are you?
Do you think you can be a little of both?
Please share your comments and any questions you might have here on this blog.
Just making this one simple decision will help you make serious forward progress with you business or business concept.
Stay tuned for the next lesson where I’ll reveal another important distinction that will make a world of difference for you.
Be sure to click the “Like” or “Tweet” buttons above or sharing it with one of the “Share The Wealth” links below.
I’m standing for all that is possible for you in life and business.
Sincerely,
Steve
PS- Have you ever heard the expression ‘success leave clues’? It’s true. For some crazy reason many people believe that they are supposed to automatically ‘know’ what they need to know about succeeding in life and business. But when you think of the number of variables and limitless complexity let alone the all the complex beliefs and psychological belief factors involved, its clear that this is just plain wrong thinking.
No matter how much (or little) experience you have, you need a step-by-step system to guide you from where you are to where you want to go. This is just the first of many simple yet critically important distinctions you need to make as you begin and grow your business.
Keep your eye out for my next email which will contain a link to the next FREE Entrepreneurial Success Lesson.
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Steve,
Your blog is so appropriate for the time in my life. I have had the visionof becoming an entrepreneur for some time now. You ask the question, would I be a Proprietor or Entrepreneur. I would say both in the start up phase and then my hope would be to have a management company come in and pretty much run everything. This would allow me the freedom that I am seeking. I tend to be a very balanced person, so could do both easily.
I would like to say “wow” what a inspiring post. This is really great. Keep doing what you’re doing!!
Hi Steve,
I’m still in the learning curve figuring out what suites me best. Although I must be capable to manage others, it’s not what I want to do. I want to be the conductor of everything myself.
I recognized a lot in the results of the survey. There are things too that surprised me. Maybe just hidden sides which didn’t come upfront yet.
Thanks for this first lesson. I like the way you’re presenting it.
Wilma
Hi Steve,
This is truly an amazing insight b/w Entrepreneur & Proprietor. I am kind of both. I had a retail store of silks & saris and at the same time have been an avid investor on Equity Markets. I have ben in business for 19 years now. This April I decided to let go of my Silk business and concentrate on the markets on a full time basis. The markets in India, that is where I am from, have been very rewarding unlike most markets elsewhere across the globe. So I quit one to start another and it is absolutely not what I had in mind. I intend to get into investing activities for a group of clients and also offer financial advisory services and am figuring out the best possible way to offer my services. I intend to institutionalize the financial advisory business and am trying to figure the way out. I think I am more of an Entrepreneur rather than a Proprietor. But the business model is kind of proprietary, coz clients rely on my wisdom to allocate money and generate better returns. How do I go from here??
I appreciated your distinction between proprietor and entrepreneur. I am both. I have had a small business, run from my home, since the mid nineties which I maintain on my own with no real employees except for my partner, and colleagues that are hardware and software engineers. We invented a unique musical instrument and have sold only about 50 units. The instrument was my dream, since the 1970′s, and I have been doing all the research and development of the instrument, and have published many papers, given workshops and lectures internationally to have people experience the therapeutic benefits of the audible sounds. I realize that I need to have an employee that will help with the marketing, and details of billing, organizing, etc. Right now I would like to have more individuals, schools, hospitals, etc. benefit from the sounds from the Keyboard. So I feel that I am now more a proprietor than an entrepreneur. How do I get the word out there?
Hi Steve,
I very much like your approach to helping potential entrepreneurs find the right business. I have some thoughts on how this could help returning Vets. Let’s make contact. Tell me the best way. My skype id is: stevengans7777, Please add me.
All the best,
Steve
Hi Steve,
Thanks for your straightforward explanation of the romantic characterization of entrepreneurship, and showing how this popular misconception has created some confusion among would-be business owners. I appreciate your insight. I’m sure your video is helping people be more realistic in choosing a business model that will work for them.
I also enjoyed seeing the results of the survey. I’m at a point where I’m re-evaluating my talents and deciding on a business model that will be both FUN and profitable. At first, the results of the survey seemed contradictory (I’m a big-picture person, but I’m also detail-oriented and technical?) Then, after I slept on it and came back to the results the next day, I realized the survey was helpful as it reminded me that I’m good at technical training AND I love getting positive feedback when I’ve helped others understand what once seemed complicated to them – but don’t ask me to do the nitty-gritty tech stuff on a daily basis – it would drive me bonkers!
Thanks for helping me view my talents from a new perspective. I’m thinking of some fun ways to help business owners get more customers while building a very lucrative business for myself at the same time. I appreciate your help!
As for me . . . I’d better get started writing that book to use as a credibility-booster first . . . I expect I’ll have it up on Amazon in about a week and then . . . look out world. I’m gonna be having fun and making money too. Whoo! hoo!!
Hi Steve.
I did the survey and was quite shocked to find that the “technical” competency only came up with 14 points, especially as I have been involved in technical hands-on type of work most of my life. The areas that came up most favourable for me were Manager with 26 points, and counselling and training with 24 each. I am investigating the possibility of becoming a life coach, which would fit well with either one of those, and in the light of this video, I guess entrepreneur would be a better fit, as I would not need staff or material resources to do that kind of business.
Hello Steve … So far, you’ve peeked my interest with your videos and Perfect Biz Finder Survey. Still digging through the survey; it’s pretty much right on target for me with good insights. Don’t know if I agree with your definition of entrepreneur and proprietor in the lastest video. The entrprenuer’s I know are concept guys who can create the next great business, but are useless when it comes to every day management. They have no respect for any other individuals in the organization. The small business owner can be alone or have a group of employees which seems to be what your talking about. Anyway … if you didn’t guess I’m a propreitor. On a side note, you should find a different way of changing you cue cards other than using the mouse … distracting.
You have good speaking voice and I like to listen to what you say but your program on finding the perfect business is not something I think you should be doing. I say this with 15 years of experience instructing leadership courses. I think you should instructing leadership courses rather than busniess or entrepreneur skills but thats my opinion. Good luck to your perfect business finder, I’m sure it will be successful.
Thank you, Steve. Your differentiation between entrepreneur and business owner and how both can achieve financial freedome was enlightening. I would prefer to become very good at what I do and be appreciated for this skill. However I have none of such. Am now in network marketing and trying to figure out if this is the career for me. I like the time and money freedom I can ultimately achieve and I do enjoy meeting new people but its more than that and I am not sure if I have got what it takes to be an entrepreneur.
Hi Steve
Interesting, I never thought about it in that way.
Probably my route will, be small business and moving steadily towards Entepreneur
Thank you for the distinction and your pleasant delivery of it.
Good lesson all the way around.
Am I the only one who finds the survey results depressing?
Even though I agree with the results…I want it to be another way.
Some of my traits include ‘introvert’ and ‘conforming’ and I am present to the fact that I’ve been de-evolving and “settling for”…basically a square peg trying to fit into round holes.
Looking forward to a breakthrough.
Hi Victoria,
Thank you for your comment.
I understand and appreciate your concern. The thing to remember is that the survey is NOT classifying you. It is merely indicating areas of strength and areas where you’ll tend to be more challenged. Rather than seeing limitations’, consider how empowering this actually is.
With this information you ‘get to’ build a business that leverages your natural strengths and allows you to experience success ‘effortlessly’.
Your subconscious will ‘argue’ with you about this because you may have some unconscious beliefs about how success in business has to show up for you. Learning to eliminate these will allow to see the exciting opportunities revealed by your survey results.
ThePerfectBizFinder Program shows you how to master these and other techniques that empower you to create the success you seek.
I hope this helps.
Steve
Am I the only one who finds the survey results depressing?
Even though I recognize myself in the results I want it to be some other way.
Some of my traits which include ‘introvert’ and ‘conforming’ have led me down a path where I’ve de-evolved into ‘settling for’.
This opens up for me that I have forcing myself to do things that ” I think I should be doing”…”I been pressured into doing”…or that “I have some mastery at even though it’s not joyful”. Basically a square peg trying to fit into a round hole.
Looking forward to a breakthrough.
Steve,
I liked this video. It cleared up a lot of misconceptions I had surrounding these two areas. It also makes me feel better about pursuing one of the other knowing that it is possible to transition. It fits well into my overall vision.
THnaks,
Henry
This video has helped me to recognize my business style. Really helpful. Thanks
Thanks Steve! You put into words what I have been struggling with for some time. I work with my father and I have the opportunity to step in and run my father’s business when he eventually retires someday which I feel both blessed and cursed. Looking at my father and the 30 years he has been running his business, he has not structured the business to where it will continue to run should he not be around, and that scares me! While yes, he owns the business, he’s really nothing more than a glorified commission junkie, always looking for the next sale. Every year he basically starts from scratch however the overhead (office, staff, marketing…) is constantly there staring you down. He is definitely the proprieter and it scares the heck out of me to find myself in that same situation someday in the future. I’ve been searching for strategies to begin implementing into the business that would bring in recurring revenue (I’m more the entrepreneur) but I’m finding it’s tough to teach an old dog new tricks. Yes, I just called my father an “old dog.”
Anyway, just wanted to thank you for what you are doing. I’m sure there are many other people out there like me, who might like the business they are in but not happy with either the direction they’re headed or the role they are playing in it. I’m happy I stumbled upon you and look forward to the discovery process.
Hi Steve
Taking your personality test, I was surprised how exact it described two distinct aspects of my personality, one, very independent, wanting very much to be in control, managing others and being brutally straight in my approach, on the other hand, very emotional, while very capable in detecting people’s motives and intentions, it is somewhat hindering me from doing so much more,better and faster if my emotions were not involved as much! I can see a huge potential in me somewhere,where the combination of my emotional personality and ability to manage very effectively can be powerfully useful in a business/career, and I know I will find out where I fit in life soon. Thank you sincerely, for allowing me to find myself through your test.
Wishing everyone to find their true path in life,
sincerely,phil
Hi Steve,
Thanks for the explaination in your video. I hadn’t really given it much thought, although I know that it is definatly an entrepreneur for me. I love the thought of the extra freedom to be able to do more of what I like and have plans for a community agency. Your survey is a great tool and used as a guide is very beneficial at confirming strengths and weaknesses.
I have also in the past joined a few MLMs and had sold a private line of women’s clothing. I loved the interaction with the clients as these were mainly home shows. They did seem to provide a good extra source of income although the companies eventually closed. Of course there was a lot of inventory also and at the time my three children were very small.
After being a single parent for the last ten years, I am more than ready to start a new venture (lots of bills and my kids are grown up). I agree completely that working for someone else will never give me the lifestyle I would love. (I was on the call with Eben the other night. Great info and I’m working on the exercises right now).
I am greatful for the opportunity to get some insight as to what area to go into. I’m kind of like a Jacklyn of all trades but professional at none. I’m hoping that by following your exercises and your videos I will be able to get some clearity and the AHH HAA moment I’ve been looking for for the last six months. I know that is what has been holding me back, I haven’t been able to pinpoint my true passion, I enjoy a variey.
Thanks again for your generosity and I’m looking forward to the next video.
Hi Steve,
do you use Powerpoint to read your script? I find it a little bit distractive when you click to the next slide.
I would suggest you use this amazing free teleprompter.
http://www.easyprompter.com/portable.php
Best regards, Philipp
Thank you for your comment and the excellent recommendation Philipp.
I’ll certainly look into it. I’ve been thinking about recreating some of the lessons anyway.
In the mean time, thank you for your indulgence.
Steve
Steve, what a godsend your survey and these lessons are. I’ve struggled with trying to be an entreprenuer for several years (mainly online), but have only succeeded in spending huge amounts of money without getting any results…at least that’s what I thought until I took the survey (and found another path). It would appear that I’m much better suited to proprietorship and running businesses for other people — the natural entrepreneurs among us.
I assumed that to reach the level of success that I wanted and to live the lifestyle I envisioned, I had to be an entreprenuer, but I’m just not very suited to that work and I’ve been more than a little miserable trying to make that fit me. It is reassuring that I can still be successful and have the lifestyle and be the proprietor that I appear to be suited for.
Many thanks for the time you’ve put into giving a different look at the marketplace and how I can make a contribution to it –
Much success for all!
Hi Steve,
I honestly believe that am the small business proprieter … well to start off with any way. Who knows what will happen eventyally.
Thank you so much for the clarification
Much love
Debbie
Hi Steve,
I’ve been stdying the IM business for quite a while now. What I need to do is apply the knowledge gained so far. I’ve already experienced trial and error in this phase and was surprised to submle on the perfect biz builder.
Hi Steve. I came across your site and survey through an email from Eben Pagan who I have been following for a little while now. I thought my dream was to be an entrepreneur but I realise I should be a proprietor with entrepreneurial capabilities. I have just left full time employment to start my own life coaching business and the results of the survey were very informative. Regards Deborah
Steve I’m definately an entrepenur, I tried the sole proprieter thing years ago as a Painting contractor, trying to find good help was almost immpossible for me due to the large pool of qualified but drug and alcohol abusing employee pool. I made great money and was very much an extrovert with my sales and marketing unfortunately I couldn’t keep up with the demand for my services and still to this day get asked for my work. I’m in the information business now and love it, it allows me to be not only an introvert, but also an extrovert with the coaching and training I provide others, things are really looking up for me.
Hmmm… I have always considered both Entrepreneureship and Propriatorship one in the same or going hand-in-hand. I always think of starting as a (Sole) Propriator and working toward a Corporation as the venture grows. I appreciate your distinction and it gives me a new prospective. Thanks!
Very basic information, looking forward to see what follows.
Thanks for the video Steve. I am an Entrepreneur and have even acted that role when working as an employee. I had a successful business for about 5 years in the 80s, but it was all centered around only me being available to my clients and I got burned out. I was not successful at having employees or subcontractors then, I am more mature now and could handle it. As my husband and I are in the process of leaving the corporate world and managing a business on our own, your video is helpful in determining what role to play. I’m grateful for your help.
~ catherine
Hi Steve,
Thanks for the insight. I ran a small medical transcription service for 10 years. It seems that I worked nearly 24/7 without much of a life away from the grind and deadlines. As sole proprietor, I did it all. Chief cook and bottle washer, as they say. I tried hiring people on several occasions to pick up some of the slack. Unfortunately, my business always slowed down when I hired any help. These folks were very well qualified, I always chose people who already knew the business and what is required and expected of those in our profession. Still, it seems that business slowed down severely when I did not do the work myself. I hated to have to lay anyone off, but I had no choice. Eventually, I closed up shop. The work load and stress was not worth the earnings. I still want to have my own business, but I want to find the right niche for me. Success for me is having enough income to meet my financial obligations, save a little, and to have enough to share with family and friends. It makes me happy to be able to give to others. I want NO sustained stress in my future endeavors. I am currently trying my hand at affiliate marketing. We’ll see how that goes. In the meantime, I hope you can help me figure out whether I am going in the right direction.
Thanks again,
Kathy
Dear Steve:
This is the first time I’ve heard proprieter and entrepreneur distinguisehd in this manner. However, I find that I am both. My business does center around me as I am the highly skilled technician, but I create opportunities and mobilize the incredible skills and allied resources of my people to solve problems they see and have a passion address. In the process, I am increasing the value of what we offer through walking our clients through the education process.
Thanks steve for your video it was so useful for me …
Hello steve:-
Your video is very useful, i am under graduated student. in the summer time make workshop about marketing then i find the entrepreneur issue very important to talk about in my sessions ,all the luck with your business&videos
i take the survey and my results was good eager to be entrepreneur in different fields,
thanks,
N.O.
The first video has reveled to me such precious basic information about that fascinating business world. I hope I will find myself successful into it one day. That is why I am eager to learn more. Thank you Steve. Milica
Hello Steve,
I enjoyed listening to your first lesson, so now I know the difference between a Entrepreneur and a Proprieter.. However since I haven’t been able to open The Survey Results as it was not highlighted in blue when it came through to me, I have no idea what Iam suited or not suited for?? Do you think you could please send it to me again highlighted in blue so I can read it thank you..I must also say that Iam not computer literate, and Iam not sure of the computer jargon so don’t know how to open the Survey results hope you can HELP ASAP!! thanks again. Regards Jean
Hi Steve-
After the bombardment of offers ove rthe years, I’ve now taken to the old theory of Zig Ziglar… Take a mentor to lunch.
So if you’re serious about a desire to mentor me I will be happy to Drive to Northern Cal from L.A. and we can talk.
If not thanx for sharing y0ur info.
Tim
Steve,
Found your lesson most enlightening. I have never had the distinction described more clearly. I realize now that I have been a proprietor for most of my life and am now trying to move over into the entrepreneurial sector. I realize that I need to delegate in order stay afloat and even more so in order to grow.
Thank you Steve for your survey and informative videos. You are greatly appreciated for your time and energy and sharing your wealth of information. I find myself in a conumdrum as to which category I fit. I have 2 small business that require my personal talents that are specialized and also apply myself to a MLM company. My personal and professional growth has benefited in both but I’m now thinking of how to raise the bar in both endeavors. I’m looking forward to progressing with through your knowlege. Love and Gratitude, Jan.
Thanks Steve. Your observations and insights are helpful. I have learned through my years in the corporate and non-profit world that I definitely do not want to be a maintenance person (building something and keeping it going). Resource management is certainly something I enjoy and am skilled at (starting with managing resources as a part-time working mom living below the poverty line) through my various jobs (though in corporations I have often done it under the constrictions of a bureaucracy that works against good resource management). But when I took the first test (personality/skills, etc.) I noticed that any inclination towards collaboration lowered the entrepreneurial score. I’m a visionary and enjoy the think-tank approach to problem solving (even if it is just myself with myself – i.e., coming up with possibilities and see which work best for the “problem” presented) – I love dancing in the field of possibilities and coming up with something new that works in ways previously no one would think or expect. That’s definitely not a proprietor approach, but it’s not clear that it qualifies me as an entrepreneur.
Steve,
Looking at myself, I feel that I would like to be in a dual role, and do both roles.
Mike
Hi Steve,
My name is Bryant, and I was curious if you believe in the combinatin of both just for fun ?
Hi steve,
I have my own electrical buisness,but need to hire employees to do the work,
and grow my buisness
I will start as a proprietor to get hands-on understanding, but I don’t want to stay there. I would eventually migrate to entrepreneur. Thanks for making the distinction, Steve.
I am Sole Proprieter
As I go back through all the information you have shred to this point, I now see so clearly why I am typed as an entrepreneur. I love managing resources. I love the management process and all that it fulfills in me as I help others find their strengths. I am more excited than ever about my future.
I like your explanations, I used to be a Proprieter, a one man printer repair shop. But I worked 14 hour days most of the time. I am so picky, I don’t believe I could have someone work with me.
Dear Steve,
I had business for 13 years. Nov. 2009 after fire and water, everything was gone. Insurance still not pay me yet! I’m out the money and I don’t how to do? Please help me! Tks!
Hi Steve, I just started out in my own business, things are good so far but i guess time is what i need to find out if i am an entrepenuer or proprieter. Keep talkoing because i am listening. John
Hi Steve,
Many thanks for the great insight. I am a Skin Therapist and can only do so many treatments in the hours in the day and so dearly want to become an entrepreneur, but am a perfectionist and control freak and just cannot think of having someone representing my salon and not doing the work as I expect it to be carried. I have a very respected name in the “skin” game and do not at any cost want to put this at risk as there are so many salons in my area with crummy names and this is why I make money and am respected. Please I am open to any suggestions. Thanks a ton for your help. Wendy
Steve,
My husband and I have considered ourselves Entrepreneurs for the last 15 years. We both started with doing Network Marketing businesses part-time on the side while working a job. We both took our part time businesses and made them into full-time businesses and we became completely self employed.
Later those 2 businesses evolved into our own concepts and we each became self employed, my husband doing retail and myself running a service business, not tied to another company.
Eventually we expanded our family enough that I became a full-time mom and my husband and I bought into a Franchise (HUGE, HUGE mistake) and made that our full-time business and put my husband’s other business on the side.
Anyway, we have been completely self employed for the last 13 years and haven’t worked jobs in a long time. I think after watching this video, I would say that I am an Entrepreneur and my husband is a Proprietor. My husband has been much more successful, but I think I have never really developed my potential.
I appreciate the info in the video and the Survey as it has given me new insight that will be helpful as we are in the process of developing a new business. Because the life of a franchisee is really indentured servitude and not proprietorship, entrepreneurship or even true self employment.
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