When it comes to business vocabulary, businessmen and entrepreneurs are often used as one word, not knowing the ultimate difference that lies in their meanings. So if you are a business owner right now, what does it take for you to be called a businessman or entrepreneur?
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What is a Businessman?
A businessman is captioned after a person who starts a shop with an existing idea that will offer a better service than its competitors with the goal to gain maximum profit from their shop. The upside of this is the risk is low which is perfect for every business startup. However, one thing that is a struggle in this area is countless competition.
What are the Skills a Businessman Should Have?
Having a business setup alone is not enough for it to bring money in an instant! You are the one who will need to move things around until the business can operate without your supervision. This is where your skills come in handy as they will be the thing that will determine how long you will be managing your shop.
Here are some of the characteristics you should have as a businessman.
1. Gather Information on the Business Idea You Want to Start
Since there are other businesses with the same intention that started before you, the internet will practically have a lot of info. Collect all the information you need before you start your shop. You could even go to establishments so that you could observe the things you want to imitate or improve when you begin.
2. Should be Alert to Changes
We did not expect the covid pandemic to hit us big and it sure affected a lot of businesses. From this catastrophe, we learn to always be ready in making adjustments to meet the needs of our business.
3. The Confidence to Make Decisions
Making decisions is difficult; you need to have the wisdom to know if you will grab or let go of an opportunity. Always think out all the possibilities and think if it matches your values and goals.
4. Able to Possess Leader Qualities.
As a leader, you should be able to communicate with your team in an encouraging and kind-hearted way. Since you will be forming your core group in a business. Be on good terms with all the group members to avoid problems later on.
Pros and Cons of a Businessman
The Pros are:
- You are the boss and you will not be tied to the projects needed to do since your employees will be the ones to take over.
- Predicting the business trend.
- You have the freedom to work where and when you want.
- A lot of learning opportunities. No one is perfect.
- A chance to enhance your creativity to create new ideas and services as you need to stand above your competitors.
The Cons are:
- You will spend a huge sum of money to start a business.
- Every business startup will require your full attention which can be stressful and tiring.
- If you can’t afford to hire employees then you will be the one to fill those roles to operate the business.
- If you don’t possess the skills needed to make your business visible, it can be a massive drawback because of the numerous companies in the market.
What is an Entrepreneur?
An entrepreneur starts a business with their own generated idea. For example, you create a new service or product that no one has done yet. This can make you an entrepreneur. They play a huge role as entrepreneurs help solve problems in the market leading to a better economy.
What Defines an Entrepreneur?
An entrepreneur should be able to possess these traits for the business to boom. But don’t worry if you don’t have these characteristics. As long as you have a heart for learning, you will progress in what you are doing.
These are the attributes an entrepreneur must attain.
1. Open to Changes
Remember, starting a new idea for a business will not have good stability. You should be able to feel if your idea is not working, then change or improve your idea and tactics to be able to thrive in the market.
2. Be Able to Read Financial Statements
One thing you can do to be well informed on how your business is doing is by being able to read financial statements. If you can do your bookkeeping, the better! That way you know where the money, you earned from sales, will go resulting in you not spending more than what is allotted.
3. Being able to Communicate.
Communication is one vital trait every leader should have especially if you already have formed a team that will operate your business. Good communication with your workforce can reflect consistent messages to your buyers. This will also show how well organized your business is.
4. Having Confidence in What You Do
Introducing your idea is no easy task. It may even heighten your insecurity which is why being able to identify yourself is the first thing you need to do to gain a positive outlook on yourself. Having confidence lets you create a good stronghold on your business and it allows you to take risks that are necessary for every business progression.
Pros and Cons of an Entrepreneur
The Pros are:
- You become open to changes to accommodate your potential clients.
- Flexibility when it comes to time.
- You learn how to communicate with your team to operate the business.
- You will be able to acquire new skills along the way.
- Lets you gain confidence
- No competition
The Cons are:
- Since you can’t still afford to hire your team, you will be the one who will fill all those roles, which can be stressful and tiring.
- Very time-consuming considering that you will still need to wrap up after office hours.
- Your salary will depend on how well your business is doing. This can sometimes be frustrating because of how much effort you put into your business.
- If you lack experience in the business industry, it may crash your business at the first sign of a problem which is why you need to be able to read at least some financial statements.
Similarities of a Businessman and an Entrepreneur
- Good leadership skills are needed in both industries.
- Decision-making plays a vital part in the business’s success.
- Very fulfilling in the end.
Key Differences Between a Businessman and an Entrepreneur
- A businessman strives to make his/her place in the industry while an entrepreneur starts his/her own.
- An entrepreneur starts a new idea to solve an issue in the market, on the other hand, a businessman establishes a business for profit.
- Businessmen use the conventional method in their market strategy, contrarily, Entrepreneurs adapt new methods to promote their products in the market.
Entrepreneurs start innovative ideas that will shape the market for the better. They often think of creative ways to catch the eyes of the market as people will not be familiar with the new idea they are introducing. Although very risky, it is fulfilling when fully established.
Businessmen, on the other hand, have to start strong to gain their place in the market and often have to find ways to gain maximum profit. The good thing is that it has a low risk of failing and it also lets you gain leadership skills.
The choice that you will make is up to you. Just remember that this is not easy. Different industries have different struggles. Consulting someone who has experience with these things can help you attain wisdom and help you not make the same mistakes they did. Most importantly, have a confident and persevering mindset.