The old saying “it’s lonely at the top” is especially true when you own and run your own business. When you get used to calling shots, having power over others and generating your own income, it’s hard to stay grounded. Your ego can get the best of you and leave you isolated on an island, surrounded by subordinates and devoid of any true peers. At some point in time we all get exposed to someone who runs their own business, reaches a level of success and becomes an ego-driven lunatic. Many employees would never dream of calling out the person who signs their paycheck, no matter how ridiculous or bad their behavior might be. The normal checks and balances that apply to most positions, even in management, do not apply to ownership. At first glance, many people can mistake confidence for arrogance and having a strong self-belief with having an overblown ego. The same mistake can be made when people conflate being self-employed with being an entrepreneur. In reality, the two ideas are very different.
Merriam-Webster’s defines an entrepreneur as “a person who starts a business and is willing to risk loss in order to make money.” Conversely, they define Self-employed as “earning income from your own business or profession rather than by working for someone else.” Sounds very similar, however in my experience they are worlds apart. Just because someone owns their own business does not mean that they are an entrepreneur. A person can have an entrepreneurial spirit that causes them to venture out on their own, but still be self-employed. A person can even create a strong business that has many employees and generates millions of dollars per year, and while they may be referred to as an entrepreneur, the truth is they are merely self-employed. On the other hand, a business person may run a very small business with modest returns but still be an entrepreneur.
So what’s the difference between being self-employed and being an entrepreneur? Is the amount of money made by the business person the defining factor? Does smaller revenue make you self-employed and bigger revenue make you an entrepreneur? The definitive answer is “NO!” I’ve have had the honor of working with many clients who were small businesses owners with small revenue streams, but who had big ideas and were still entrepreneurs! I’ve also had the displeasure of working for business owners who ran big successful businesses with big profits and yet they were small minded, thus making them self-employed.
In my experience the difference between “self-employed” and “entrepreneur” all boils down to ego and emotional intelligence. Self-employed people go into business for themselves because they don’t like taking orders or they are just very good at what they do. My definition of an entrepreneur is someone who believes that they have a higher calling, or that they believe in a better way to do business. They also have a strong sense of responsibility not only to reach their full potential, but to inspire and lead others.
Many times the biggest obstacle I’ve had to help my clients overcome is themselves and their unchecked egos. Many egos are fueled by seeing an impressive title after a name. I was once guilty of that too. A business card that says “CEO” or “Founder” can be ripped up, thrown away or burned. An email signature bearing the title of “”Managing Partner” Or “COO” can be deleted or erased. After all, what weight does a tile have? You must always remember that YOU define the position or role you are in, not your title. When owning a business you cannot make the fatal mistake of being too emotionally involved with the business. Trust me, I know how challenging it may be to not romanticize your business. Yes, you created the company and no doubt you worked your butt off and sacrificed and risked a lot in order to pursue your dreams.
A successful business must be fluid and have the ability to adapt and not be hindered by a “know-it–all “ego. If you want to be a mogul, maverick or a true entrepreneur you need to keep in mind that a business is simply a vehicle to create revenue; nothing more, nothing less.