For many years, and probably even today, these two terms—entrepreneur and business owner, have been interchangeable. The truth is that the two terms are vastly different. I know that is probably abrasive to what you believe to be true, but give me a moment.
An entrepreneur is defined as a person who sets up a business with the aim to generate a profit. This is an awesome feat, especially if you come from a family where this hasn’t been done before. Based on this definition, someone who starts a side hustle is considered an entrepreneur. He or she is the focal point of that business.
A business owner is one who sets up a business with the aim to generate a profit as well, but a business owner takes it a step further. The business owner employs others and creates systems that will allow them time freedom. These systems cause the business owner not to be the focal point of the business.
Am I casting shade on an entrepreneur? Absolutely not. What I am saying is entrepreneurship is only the first step, because it doesn’t allow you true time freedom. The next step of entrepreneurship is being a business owner. Business owners employ others to carry the workload, freeing them to do other things.
The danger of continuing as an entrepreneur is the success of the business depends on one person. If that person were no longer be able to perform the task, no revenue would be generated. Entrepreneurs should look to move into business ownership. I know that sounds crazy, but based on the above concept, it isn’t so crazy.
When you become a business owner, the business’s success isn’t dependent on your efforts, in fact a true business owner is only needed to give direction to the organization. The business’s success is not dependent on the business owner. Think about the late Steve Jobs and how well Apple is doing now!
If you are an entrepreneur, I salute you, but I also encourage you to graduate to being a business owner!