How to Run Your Small Business like an Entrepreneur
When starting your business there are two kinds of people: those who run a small business and those who are entrepreneurs running a small business. While the differences are subtle, there are several big differences.
The problem is that not that many people realize that there exists a thin line between both.
If you are looking to start running your small business as an entrepreneur, you need to know this line. Because knowing these differences is the difference between crushing the boundaries and running your company as usual. So, before going any further and discussing how to operate as an entrepreneur, let’s go over these differences.
Differences Between Entrepreneur And Small Business Owner
- Entrepreneurs rarely leave things to stay as these are. They tend to make changes in every aspect of their operation. They alter their business environment through innovation, new concepts, latest technology and more. This is different to the owners of small businesses who prefer traditional boundaries. They rely on comfort by sticking to set business environments.
- Entrepreneurs use their technical excellence to take different approaches, be innovative, and do things differently. Small business owners do things in a way others do; like retailing a product or providing a service already available in that area.
- Entrepreneurs look for the big picture to grow for long-term with expansion plans. Small business owners are sentimental; these people look at their business as a medium to earn enough just to survive the family. Or, if they are unable to do so, they have been found to be more reliant on the small business loans with bad credit by lenders in the UK to manage the relevant expenses and using the earned money for the family.
- Entrepreneurs do many things beyond the mere interest of profit-making or growth; these people want to register their presence by establishing their own brand. Small business owners act just for increasing their earnings with a short-term goal like stocking the particular products in particular season.
- Entrepreneurs have a global vision to grow steady but small business owners have vision limited to earning for living by serving the local community.
Differences Between Small Business Owner & Entrepreneur Summary
|S.n.||Aspects – challenges||Small business owner||Entrepreneur|
|1.||Financial commitment||Less||High for long-term|
|2.||Risk||Doesn’t take high risk||Tend to take risk|
|4.||Prestige||Limited to local community||Known by wider community|
|5.||Independence||Bound to serve locals||More freedom|
Six Smart Ways to Run A Small Business Like An Entrepreneur
Work On Your Business Over Working In Your Business
Yes, it means. Working over a business means an approach to grow by accumulating all the worthy knowledge; while working in business means working within boundaries. While working in business, you can’t see bigger picture of growth opportunities; and, unless you know the road to success, you wouldn’t invest efforts.
Hire People For Growth Not Just For Need
Small business owners hire the people just for the day to day need with prime intention to carry on the daily task smoothly. These people minimize the hiring requirement even at the cost of involving themselves for the low profile tasks. To work as an entrepreneur with small business ownership, you need to hire the workforce, not just for the regular daily task but also to get more time to focus on planning, performance reviewing, profitability, learning, opportunities exploring etc.
Seek New Opportunities
OK, as a small business owner you are serving a particular community by providing the products or services in regular demand. If some else starts providing similar products or services in the same community, your turnover will come down and hence the profitability. Nobody is there to be blamed. If you work as an entrepreneur, you focus on expansion opportunities and you get rewarded with high profitability and steady growth rate because of introducing innovative products and services.
Make Learning a Consistent Process
Learning is a consistent process that never comes to halt. When you keep on learning and exploring the new opportunities to introduce something new with grass route level trade knowledge, the growth potential brightens. Learning is not confined to products or services to be provided but you must know the latest in all the verticals like funds raising, new marketing practices, advertising tactics, competitors’ activities, up or down trend in trade, changing buying behaviour of target buyers’ segment etc.
Build Up Relationships
An entrepreneur gets multiple benefits of having a wide network. If you want to start running your business as an entrepreneur, you need to have a social presence. This is where building relationships is key because many doors open when you get to know others.
To an entrepreneur, they understand this and also see relationship building as a crucial part of business marketing. Why do you think many large and successful business show up to events? They do this because it draws the attention of new retailers, buyers and promising channel partners. Relationships make your brand stronger by creating more loyalists who refer your name certifying the quality that you offer. A wider community of people with similar mindset helps to know the latest and to learn from others experiences.
Manage Downtrend As A Professional
Uptrend and downtrends are common in every business. They can’t be avoided, and yet many entrepreneurs thrive because of one skill. They grow in this environment because they have foresight. Foresight to know what must be done in these environments.
So how does one get foresight in the first place?
Well, having foresight depends upon how deep you know the trade. The downtrend period can be managed by managing the product line according to the current need. Another option is reducing operating expenses. Regardless, entrepreneurs take downtrend as an opportunity to earn more. They do this by stocking the goods at a discounted rate for future need.
Taking calculated risks is imperative for working as an entrepreneur but it delivers. As a result of those risks, you can create a financial cushion. It’s from this cushion – paired with your commitment, knowledge, patience and skills – where you can grow tremendously. Think big to grow fast instead of confining your approach just to earning.