The biggest challenge for entrepreneurs. . .
January 30, 2009
Wikipedia defines an entrepreneur as ‘a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. The term is a loanword from French and was first defined by the Irish economist Richard Cantillon. Entrepreneur in English is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome.’
The kind of person who is willing accept all of the personal, professional and financial risk to pursue their business idea is often the kind of person who likes to be in control. ‘Rugged Individualism’ is a cultural imprint; the essence of Americanism (opposed to the European notion of public-spiritedness) and lies at the heart of most entrepreneurs I have met. Most of us wear blinders as we ignore those who try to tell us what we are trying to do is impossible. Hopefully, at some point, entrepreneurs reach a point where others quit maligning their ideas and offer to help maximize the opportunities we have created.
Entrepreneurs are elated when investors are interested enough in their business to invest capital - it is the ultimate compliment. Ultimately entrepreneurs accept investments and assume they can continue running their company in the same way they have in the past. This makes sense, the investors liked him enough to invest in his business - why would they want him to change? This inflection point is often the beginning of the end for most entrepreneurs (see my post explaining that 50% of founders are fired within the first year).
How can you ensure you are part of the 50% who don’t get fired? First, if you are an unashamed ‘rugged individual’ admit that to yourself and the investors and structure your deal in such a way that you get paid enough so that even if you get fired you are happy. Second, if you are determined to be the next exception (Gates, Jobs or Dell) you need to stop acting like ‘the owner’ and more like ‘a steward’.
Wikipedia defines a steward as someone who takes ‘personal responsibility for taking care of another person’s property or financial affairs.’ Your business is no longer about you, instead it is all about the shareholders (hopefully you are one too). If you can make the transition from ‘owner’ or ‘entrepreneur’ to steward there is a good chance you will make it.
This begs the question, “Who wants to be a steward anyway?” Hell, I don’t. There are thousands of people who have years and years of experience taking care of other people’s property or financial affairs - why not let them take over? Entrepreneurs are supposed to be about risk and creation - as soon as you stop taking risk and stop creating you aren’t really an entrepreneur anymore, are you?
