While the idea of a business owner might seem like a simple one, it can actually be quite difficult to understand exactly what a business owner is and how they differ from other business people who may own a business, such as an entrepreneur or a solopreneur.
Owner or Entrepreneur?
Therefore, a business owner is an individual who owns a business entity and therefore often has the power to make decision and the first right to any profits the business makes.
This is often the case for smaller businesses, but for many larger businesses while an individual or group of individuals might own a business they may have little control or input into the decision making process within the firm.
Largely due to firms hiring a team of senior leadership and appointing people on the board who will collate ideas and decide upon the major decisions within the firm. Thus, the size and structure of a business often impacts the role that the business owner plays.
Another key element that impacts if the owner of the business is a business owner or not is the level of innovation. It is argued that small business owners usually deal with known and established products, services and experiences, such as a marketing agency or bike salesman. Whereas an entrepreneurs ventures are new innovative goods and services which they conceive and aim to be the first to the market.
This is a clear distinction, and also impacts largely on the way in which they aim to grow the business, as small business owners aim to grow gradually and build upon improved profits year by year.
Whereas entrepreneurs aim for rapid growth and large profits, often leading to them selling the company after a few years and moving onto their next creative and innovative concept. Therefore, while a business owner and an entrepreneur might seem very similar, they are actually very different entities and understanding which you are dealing with in business is extremely important.
This is because they will have different expectations, with entrepreneurs being more demanding and time sensitive as they are aiming to introduce their innovative product as quickly as possible before others catch onto the idea.
While a business owner might be less demanding and time sensitive as they will have been planning this venture for years, and therefore will be happier to take their time and make sure the venture is as close to their expectations as possible.
Furthermore, business owners could be more interested in developing long-lasing and meaningful business relationships as they expect to be the owner of this business for a long time, whereas entrepreneurs are likely to be less concern with these factors as they often sell businesses and start new ones in different sectors or locations.
Consequently, while a business owner is someone who owns a business entity, it is key for all business people to understand the type of business owner their clients are and who the decision maker is before they enter into business together. This ensures there is no confusion over how decisions are made within the firm and the expectations that will be demanded during the project.
So, ask yourself, are your current clients business owners or entrepreneurs?
If you wish to discuss these issues further feel free to book in for a 30 minute FREE consultation today!