A business owner is someone who starts a business doing something they are good at (technical skills), or something they are passionate about, with the hope of making a profit.
The motives for starting a business are many, such as wanting to do things your way and not wanting to answer to anyone else. You want your slice of the action and then go home at the end of the day, unchallenged and oblivious to what could be.
An entrepreneur is a person who starts a business with a clear intent of making a significant profit based on seeing a market opportunity. It’s a person who is looking to grow and better their situation.
An entrepreneur is a person who gets into business because they see wealth generation as leading them to a life of independence, financial freedom, and success.
Who do you want to be? Are you a business owner or an entrepreneur?
It All Starts With Profit
Profit is not a dirty word.
It can sound a little strange to put it in these terms, but it usually catches people’s attention.
The majority of people who own a business, or want to make a career in business, include the goal to achieve financial freedom or wealth generation. You cannot achieve financial freedom or wealth generation without making significant profits.
It’s that simple. You are in business to have more money coming in through the door than going out. A company can make money, in spite of ownership, but no company can stick around long-term that is not making money.
Profit is not profit until it winds up in the bank.
Almost as importantly, if you’re not turning a decent profit and are just treading water, who is ever going to want your business? If you’re not a profit-generating entity, your business is not saleable.
I’ve met a lot of business owners who are doing okay, but they’re banking on their retirement being tied to selling their business. I’ve had to burst that bubble on more than one occasion.
The data doesn’t lie. The Australian Bureau of Statistics reported to The Huffington Post in November 2016 that 70% of startup businesses fail within three years and 90% within five.
It’s simple. It’s fundamental. And it’s lost on so many people. Your business does not exist to simply solve a person’s problem, wants, or needs. It exists to solve a person’s problems, wants, or needs…AT A PROFIT!
When you’re making business development decisions, the goal must be profit. Profit has to be your reason for being in business because, without it, there would soon be no business. And giving profit its due place means not only operating at a profit but also making a significant profit on sale.