In This Section

Share

Making the Transition From Entrepreneur to Operating Manager

The term "entrepreneur" describes many small business operators who fill an extremely important role in the country's economy. According to the Small Business Administration, small businesses:

  • comprise more than 99% of employers;
  • employ more than half of all private-sector workers; and
  • account for about three-fourths of all new jobs.

The entrepreneur is a creator, innovator and dreamer -- an individual who believes strongly enough in something to risk almost anything in pursuit of success. It may not be possible to say with certainty what makes a true entrepreneur, but we can say that there's a side of the entrepreneur's behavior that suggests a talent. It may be something that can be brought out and developed through the right kind of education, but it's likely that the spark of entrepreneurship -- some critical combination of talent and desire -- has to be there to begin with. 

The entrepreneurial environment and the operating environment are often quite different, and the person who flourishes in one may not survive in the other. Consider:

  • The entrepreneur is innovative, risk-taking and imaginative, while the operating manager is people-and output-oriented.
  • Creating and launching a new enterprise requires different skills than operating a business day-to-day.
  • The entrepreneur may dream big, while the operating manager translates dreams into practical reality.
  • The entrepreneur usually knows the inner workings of a specific business in detail, can see new opportunities, and is capable of balancing risk with responsibility; the operating manager prevails when a business grows and there is an ever-expanding bundle of tasks necessary to keep producing to meet increasing customer demands. 

The nuts-and-bolts of running a business take time and attention away from what the entrepreneur is passionate about. Drive, intensity and singleness of purpose fuel initial entrepreneurial success.

As they grow, most companies tend to become more conservative and less willing to take risks. It requires the passion and drive of the entrepreneur to get an enterprise initially organized and up and running, but it takes the steady hand of knowledgeable operating management to ensure the success of the business.

The way to moderate the entrepreneur's natural tendencies and to compensate for potential shortcomings is to hire people who are different from the entrepreneur. Any new business needs a solid management team to build and operate the company, but the entrepreneur is the cornerstone and may remain such for some time to come. 

In considering whether you believe you can make the transition from entrepreneur to operating manager, you first need to ask the question: Would I want to make this transition? Many entrepreneurs have chosen to get an enterprise up and running only to sell out and move on to the next appealing idea. 

Making the transition from entrepreneur to operating management means:

  • Much of the passion that drove the entrepreneur's creativity must be replaced by an equally strong desire to guide the enterprise day-to-day.
  • The dream of creation or innovation must give way to the reality of organizational survival and success.
  • The challenge of invention or innovation must bow to the challenges of everyday operations.

The entrepreneur who is unwilling unable to make the transition to operating management might better chase the next dream while those of different temperament run the business.