November 30, 2007

Corporate People vs. Entrepreneurs

People frequently ask me about the differences of corporate people compared to entrepreneurs. In this blog entry, I thought that it would be interesting to share some insight on this topic. My comments are not intended to be critical but mostly to help those on each side of the table to understand the other so that they can work more effectively together.

Corporate people often tend to move very slowly because they don't have much incentive to move fast. Working with a big company is one of the greatest things that can happen to a small business because big companies can buy so much volume in products and services from them, but it can also be the greatest curse. Waiting for a big company to get up and running to make things happen can be one of the most painful experiences that an entrepreneurial business can ever face.

In large companies there are many different people who are making things happen at all times. Getting many people to be coordinated is a super human feat that is very difficult to master. The other challenge in dealing with large entities is that because there is often a lack of hunger on the part of the individuals who work at these companies, they don't dig deep and look for every single possibility to make something come to fruition. They frequently don't have an attitude of "whatever it takes" because on Friday the corporate person is getting a pay check whether they perform or not. If there is going to be a delay from a supplier or if there is going to be a delay by a customer, it doesn't matter that much because they still get their paycheck on Friday.

But for an entrepreneur this is not the case. They don't get their paycheck unless they perform. One of the things that many entrepreneurs love about entrepreneurship is that their day is their own - they have great flexibility. The reason that they have great flexibility is because they have so much responsibility for producing whatever it is that they're responsible for. Along with that responsibility comes the flexibility of being able to arrange your day however you want.

There are pros and cons to being in the entrepreneur business. I believe that the pros far outweigh the cons, and I love working with large companies because they have the ability to get so much done. You just have to remember when working with a large company that your success is related to the extent that you can assume responsibility for promotion and for moving the products that you're selling to that company through their distribution chain. If you can be in anyway involved in the promotion through the channel, then you'll be a hero at that company. In other words, if you help them "pull the product through," they'll buy more from you and you'll be known as one of the vendors that goes the extra mile all the time.

About Joel G. Block

Well known in the business community, Joel Block is a best selling author, speaker, and business strategist. Frequently a principal in his transactions, Joel has raised tens of millions of equity dollars for his ventures, which have included real estate syndications and privately held businesses.

Joel’s career is highlighted by the launch of a financial publishing company which he grew nationwide and later sold to the Los Angeles Times. More recently, Joel works with scientists, engineers, technologists and others to help them optimize their entrepreneurial opportunities. Would you like to get a private phone consultation with Joel? Visit www.joelblock.com/capital for details.

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