Friday, February 17, 2006

Entrepreneurs in Your Small Business

While checking my e-mail this week, I came across one from the GrowThink team regarding hiring like minded entrepreneurs in your small business and would it would it work. On one had an entrepreneur type came bring about new creative was to do business or develop new product lines. On the other hand however, this same person could pose a risk, by learning your model and taking it to start their own. Typically a small business is comprised of three types of people the technician, the manager and the visionary with the entrepreneur holding the visionary title. Technicians perform the work, manager direct the work and the world is suppose to go around…right? Here are some of the reasons this style can and can not work according to the eMyth book writer Michael Gerber and GrowThink:

Gerber's analysis sheds light on the question of whether an entrepreneur should hire an entrepreneur. In some respects, entrepreneurs should only hire technicians and managers. These people will enable the organization to perform the necessary tasks effectively and provide value to customers and shareholders. However, if the employees are not entrepreneurial, will they be able to come up with new ideas and better ways of doing business?

Conversely, entrepreneurs within an organization can be a threat. They may constantly come up with new ideas that prevent them from expertly completing the tasks at hand. These ideas may also cause other employees to lose focus on the current execution strategy. Likewise, the entrepreneur-employee may be prone to start a competing business in the future.

Seems to me that there is really no right or wrong way to operate your small business based on these situations. I guess the key would be to treat everyone (clients, vendors, employees, etc.) with respect and make sure that there is group cohesiveness between you and your employees.

Let me know your thoughts

Brian N. Stovall
Consultant – Accounting & Business Advisory
The Brico Group, Inc.

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