Overview Difference between Entrepreneur and Employee
If you have the desire to start a business, then you can now think of yourself as an entrepreneur. The difference between an entrepreneur and an Employee lies in one simple thing: mindset. Not to mention, this mindset will be the key deciding factor whether or not your business will be successful.
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Mindset of an Entrepreneur vs an Employee
There are key elements that differentiate between an entrepreneur and an employee. In this post you will learn and understand those key elements. Before you read this article and think to yourself, "Oh shoot! That's not me! I'll never be a successful entrepreneur or business owner!" Understand that many of these mindset shifts come over time. With time you, with continual pursuit of your goal, you will naturally begin to adopt these paradigm shifts. Let's dive in and see the difference between an entrepreneur and an employee!
When it comes to an entrepreneur they will take much more risks than an employee will. This is because entrepreneurs have learned that even to get 'lucky" you must take a chance. Put simply, think of someone who has won the lottery... In order for them to have gotten that lucky they must have first taken a risk and gotten the ticket. Because of this realization, entrepreneurs are not afraid to take risks. If one cannot risk something, they can never grow. To grow is to face uncertainty and discomfort. To face discomfort willingly is to risk that discomfort being for nothing.
This leads us to our first difference:
#1 Entrepreneurs take the risks employees are too afraid to take
One very notable difference between an entrepreneur and employee is that employees execute tasks, where entrepreneurs plan tasks. It's important to note, this does not mean entrepreneurs don't also execute tasks. An entrepreneur has learned one of the most important tasks is learning how to manage yourself.
Learning how to manage yourself is actually the first step in becoming a successful entrepreneur. If you can't operate without a boss telling you what to do, what makes you think you can be your own boss? Learning how to manage yourself leads to much more efficient time management, project completion rates, and direction for your business.
This leads us to our second difference:
#2 Entrepreneurs plan tasks, where as employees execute tasks.
Another key difference between entrepreneurs and employees is how they go about getting paid. Employees get paid for their time, where an entrepreneur gets paid for their results. To be an entrepreneur requires the sacrifice of a salary. Yes, I know this can be very intimidating! However, you have to realize that you cannot scale yourself as an employee. Time is a finite resource, and every person is given the same amount of it. As an entrepreneur you have the ability to scale your results, why? Because value is seemingly infinite. To get more results, simply find a way to add more value into the world.
This is why the wealthiest people in the world are entrepreneurs, because they can scale what they create. And this is a healthy mindset too right? To be a successful entrepreneur you have to help people, and get really good at doing so. And helping people is always good!
This leads us to our third difference:
#3 Entrepreneurs get paid for the results they produce, where employees get paid for the time they put in
Similarly, entrepreneurs will spend money to earn time, where employees will spend time to earn money. An employee, like we just discussed, will give away their time to earn a paycheck. An entrepreneur on the other hand will find ways they can pay people to do their work, so that they can get more time to do other things. This is called outsourcing.
Successful entrepreneurs learn to become fantastic outsourcers. They realize the immense value in time and will do what it takes to get more of it to themselves.
This leads us to our fourth difference between an entrepreneur and employee:
#4 Employees will spend their time to earn money. Entrepreneurs will spend their money to earn time.
Likewise, an entrepreneur will start something without thinking about it. An employee will think about something, but never start it. It's really easy to become the "eternal learner" which is the person that needs to know everything before taking action on it. This is a trap! You can never know everything about anything... And you have to accept that.
Entrepreneurs have learned, many by looking at their own past, that to reach your goals, you have to go at them with uncertainty in your actions. Entrepreneurs have learned to have confidence in their ability to learn from their mistakes. There is this popular phrase that describes the actions of an entrepreneur: "Ready shoot aim".
The idea is that you know just enough to get started, and then you start knowing that you will make mistakes along the way. Once you make a mistake, you learn from your mistake, re-center, and shoot again. It's funny, because mistakes actually happen to be one of the best ways to learn. Let the terrible feeling of failing motivate you to do better.
This leads us to our fifth difference between an entrepreneur and employee:
#5 Entrepreneurs start without thinking, where employees think without starting.
Very related to the last point is the idea that employees dream their plans, where entrepreneurs plan their dreams. For an employee, getting to their dream is always a tomorrow thing. An entrepreneur realizes they will never get their dream if intentional, directed action is taken. Hence why they plan. Below is a snippet from one of my favorite movies that talks directly to this:
An entrepreneur isn't going to allow their dream to happen by chance, yet they will make an intense plan on how to make their dream a reality. And this plan always includes a lot of hard work, over a consistent time, to reach a goal that leads to freedom. Time freedom. Work freedom. Financial freedom.
This leads us to our sixth difference between an entrepreneur and employee:
#6 Entrepreneurs plan their dreams, where as employees dream their plans.
As an employee, it's really easy to think about competition being a necessity. If you need a raise, you have to be performing better than others. Those who perform the worst are the first to be fired or let go. Your performance is judged based upon how you compare to those around you. As an entrepreneur this is different. Competition isn't the same.
Your goal as an entrepreneur is to add value into the world. So to do this, you "grow the pie" by creating more value than there previously was. As an employee you are competing for a "slice of the pie." This is because the employee mindset is to focus on getting money, where the entrepreneur mindset is to focus on creating value.
This leads us to our seventh difference between an entrepreneur and employee:
#7 Entrepreneurs grow the pie, where as employees compete for a slice of the pie
To continue this list, the next key difference between an entrepreneur and an employee is how they view self-promotion. As an employee self-promotion is looked down upon. Where as an entrepreneur realizes the better they promote themselves, the better the can give the world what they have to offer. The better they can promote themselves, the better they can "grow the pie".
To be an entrepreneur is to recognize that to create a difference and produce something of value, you have to be known. If you are not known, then no one will even realize what you have created. This is not a self-conceited mindset either. If anything this should lead to behavior of humbleness. Your role as an entrepreneur is to serve those around you. That is how value is created.
This leads us to our eighth difference between an entrepreneur and employee:
#8 Employees see self-promotion negatively, where as an entrepreneur is willing to promote themselves.
Lastly, employees fill job openings entrepreneurs create. Filling a job opening is actually a great thing, however entrepreneurs have learned and seen the joy in creating jobs for others.
Imagine a time when you've generously donated something to someone. Maybe you gave money to a homeless person, or what have you. Now imagine instead of giving that person money, you gave them a job. You see the power in that? Employees don't get to partake in that unique joy of creating jobs for other people.
Every person is a complex human with their own life, family, friends, struggles and problems. As an entrepreneur you get to offer people something that feeds into and impacts all those things: a job. As an entrepreneur you get to witness people aligning with you on a common goal.
This brings us to our ninth difference between an entrepreneur and employee:
#9 Employees fill job openings entrepreneurs create.
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P.S. If you are wanting to, or have ever wanted to start a business, but are lost on where to start, click here and check this out