LETTER FROM THE EDITOR
“ Risk comes from not knowing what you ’ re doing .” – Warren Buffett
What does it mean to be entrepreneurial ?
A whole lot of answers can be attributed to that question , but there is really one true answer . Most definitions provided by academic sources associate being an entrepreneur with taking risks . The dictionary describes an entrepreneur as “ a person who organizes and operates a business , taking on greater than normal financial risk .” That ’ s not entirely true . Yes , entrepreneurs take risks , but they are calculated ones . The other point that ’ s grossly overlooked is the risk in playing things safe .
When I decide to hold a five-city roadshow — an event that costs roughly $ 600,000 or more to market and host , not to mention hours of prep and management to pull off — I ’ m certainly taking a risk . The risk is that people won ’ t register , and even if they do register , what if they don ’ t show up , don ’ t buy , or aren ’ t happy with the content . There is also the risk that sponsors won ’ t invest , the risk that I ’ ll get sick or somehow be prevented from getting onstage , or the risk that something totally unforeseen and out of our control ( COVID-19 , anyone ?) could prevent the event from happening or cause it to be a total failure . There ’ s the risk of doing an enormous amount of work without any profit to show for it .
But it ’ s not as high a risk for me as it would be for someone else because I made sure I knew what I was doing ( to Buffett ’ s point ), which is why that single event generates $ 2.5-plus million in new sales every year , as well as helps to secure new clients , increase engagement with existing clients , and ferret out additional connections and opportunities . It brings future yield and present harvest . The bigger risk for me is to not do the event .
Some people think being an entrepreneur is about owning a business . I would argue that this is also not entirely true . We tend to sloppily interchange “ business owner ” with “ entrepreneur ,” but they are two different animals . Based on our own research , roughly 45 % of all MSPs and “ computer ” services firms generate under $ 250,000 , and roughly 75 %– 80 % generate less than $ 1 million . Most of the owners take home only $ 70,000 –$ 100,000 a year for doing a job they could get paid more for if they were the IT manager of a larger company ( and get PTO and other benefits ). Unless they are just starting out ( in their first three years ), they ’ re a tech with helpers , not an entrepreneur . No true entrepreneur would have a “ 20 years to a million ” plan . That ’ s not to say they ’ re bad people . Staying small may very well be exactly the right choice for them . But , they are certainly not entrepreneurs .
So back to the opening question : What DOES it mean to be an “ entrepreneur ”?
It means many things . Entrepreneurs are innovators and rule breakers . They look around at what everyone else is doing , not to copy them but to find a better way . Entrepreneurs are obsessed with growth : growing revenue , growing profits , growing their client base , growing the operational stability of the company , and growing their service offering and market share . Entrepreneurs are constantly embracing chaos and making order out of it — biting off more than they can chew and chewing like hell . Entrepreneurs are constantly building systems , people , and processes to do the work consistently and profitably . Entrepreneurs constantly innovate and test new ideas and approaches , price points , marketing methods , products and services , and target markets . A true
Founder and CEO , Technology Marketing Toolkit , Inc .
entrepreneur never leaves well enough alone ; they ’ re constantly pushing the envelope and never satisfied with where they are .
That ’ s why entrepreneurial thinking is what solves the world ’ s biggest problems and provides solutions and breakthroughs that make the world a better place for everyone .
Years ago , there was a definition on Wikipedia that answered the question “ What is an entrepreneur ?” It has since been changed . The definition back then was “ A person that acts as an intermediary between labor and capital for profit .” Not one who labors for capital — that ’ s an employee . Not someone who takes risk for profit . The bottom line is that being an entrepreneur is a MINDSET . It ’ s a way of approaching every problem and every opportunity — a way of thinking about money , clients , employees , and the purpose of your business . Many call themselves “ entrepreneurs ,” but they are timid and fearful , overly cautious about innovating and trying anything new , and focused on doing the work instead of growing the business . Therefore , they constantly choose to “ labor for capital ” instead of being the intermediary for profit .
That approach is based on either a complete lack of ambition or fear , uncertainty , and self-doubt . Everyone wants to be financially free , but not too many are willing to do what it takes to get there . Taking huge risks is not the way . It is better to take an educated , strategic , and systematic approach , just like an entrepreneur . n
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