I’m reading Dan Kennedy’s book, “No B.S. Business Success in the New Economy.” He talks about the difference between small business owners and entrepreneurs. I understand the difference between the corporate world and entrepreneurs, mid-sized businesses and the SOHO market or WAHMs. But I’m interested in his take on the differences between business owners and entrepreneurs. There is more of a difference than I had considered and that affects your approach if you are one or the other or you’re marketing to them. Kennedy says,
“The terms “business owner” and “entrepreneur” are commonly used as interchangeable synonyms, but they are different people. A business owner can become an entrepreneur. But they are different people.“
The difference, he says is: “Ordinary business owners think in terms of growing sales and businesses, while the entrepreneur thinks in terms of creating value.”
He says the New Economy’s demands favor the entrepreneur more than the business owner. Customers of the New Economy are in control and they know it and they want to be catered to. Kennedy says, “The New Economy mandates a much more willing and creative approach to constant change and evolution and recurring reinvention in order to keep a business very specifically and currently relevant to the customers able and willing to support it.”
So, are you a business owner or and entrepreneur? Kennedy lists 4 Distinctions:
- The true entrepreneur is not married to a specific business. Business owners have narrowly defined limits. Entrepreneurs are more expansive
- Entrepreneurs, first and foremost, make their money with innovative ideas. They are creators or builders much more than managers.
- Usually, entrepreneurs are in many businesses, not one, even when it looks like one.
- Entrepreneurs develop equity differently. Business owners are focused on buildings, real estate, inventory, etc. Entrepreneurs believe the most valuable asset is the customer.
What do you think? Are you a business owner or an entrepreneur? What can you learn from the other?
I will report on the important challenges and opportunities of the New Economy that he identifies in an upcoming review. Have you read this book or any other Dan Kennedy books? Please leave a comment!