What’s your role inside your business?
There is often a common misunderstanding surrounding the definitions of various business owner roles. Entrepreneurs tend to label themselves differently based on their individual understanding, rarely taking the time to examine the actual definitions of these terms. Why bother questioning if you believe you already have the answer, right? However, let's take a deep dive into the subject and explore the roles in detail. It's important to assess your current role within your business and consider where you ideally want to be. Keep in mind that everyone's journey is unique and what works for one person may not work for another. So, let’s dive into it! Examine what your role is currently in your business and where you would like to be ideally. It isn’t the same for everyone!
The roles of CEO, entrepreneur, founder, and business owner can overlap in certain situations, they typically represent different aspects of business leadership (aka roles)…
CEO (Chief Executive Officer): The CEO is the top executive in a company who is responsible for strategic decision-making, setting goals, managing operations, and leading the organization. They are often appointed by the board of directors and oversee the company's overall performance and direction. Does this mean you have to have a board of directors in order to be the CEO of your company? Nope! It means you are the driver in the car. You are the one looking over the map (big picture) and making sure everyone is going in the correct direction
Entrepreneur: An entrepreneur is an individual who starts and builds a new business. Entrepreneurs are driven by innovation, identify opportunities, take (financial) risks, and create something new in the marketplace. They often develop an idea, gather resources, and take on the role of a business owner or founder to bring their vision to life. An entrepreneur starts businesses.
Founder: A founder is a person who starts and establishes a company. Founders are typically the individuals who conceive the business idea, bring it to fruition, and lay the foundation for the company's operations. They may also take on the role of CEO. Many big founders are off on some beach sipping a cocktail. They are not involved in the daily oversight of their businesses. Often they appoint a CEO to drive the company forward. Many will also take on the role themselves as the CEO and create a team that allows them to not be involved in the day-to-day operations. Rather gives them the capacity and space to oversee. Which is where entrepreneurs shine! They are the ideas people! Many just don’t know how to get that done exactly so they appoint someone who does/can.
Business owner: A business owner is an individual or entity (think LLC, corps) that owns and controls a business. Business owners can include entrepreneurs who started their own ventures, founders who establish companies, or individuals who acquired an existing business. As an owner, they have legal and financial responsibility for the business and make decisions regarding its management, growth, and overall direction. Once again, ideally, they are not in the day-to-day operations. They are driving the car.
Many who start a business won’t move on to being a CEO or founder within their companies. They fall short of building a business vs. creating themselves a job. In saying that, some people don’t want to build a large company. Some simply want to just have a job they love so they create one. Whether that is you or you want to build an empire, it is OK! Do what is best for you!
In summary, the CEO is a position within a company's leadership structure, while an entrepreneur is someone who starts a new business venture and takes on financial risk. The founder refers to the person who initiates and establishes a company, and the business owner has ownership and control over the business entity, which can encompass the roles of CEO, entrepreneur, or founder. They absolutely cross over!
If you find yourself stuck in one of these roles and not sure how to move into being the CEO, owner, founder, or entrepreneur, let’s chat! Send me an email and we will discuss how to take your company from surviving to freedom! Life is amazing and your business shouldn’t be your anchor. It should be the tool that allows you to do the things you want to do in life! Often we are too close to our businesses that we can’t see the holes. We don’t know what we don’t know.
xoxo
Deb
About Deb
Deb is America’s business coach for career-driven ambitious moms and brand photographer who helps women build their dream businesses to live their best lives.
Deb’s clients know they can be involved with their kids, do everything, and have a successful business that runs without them being chained to it. She tells them to work backward—their business should be a tool that provides them with the life of their dreams. You can be both an involved mom and build your empire!
Every day is an opportunity to turn your dreams into reality!
hello@femprosociety.com
