Last week, subsequent to a meet up
with an ex-business competitor-turned entrepreneur, I wrote an article about “Who Has a
Better Life – Entrepreneur or Salaried Staff?“. One topic raised during our chat was the difference between Entrepreneur
and Business Investor.
with an ex-business competitor-turned entrepreneur, I wrote an article about “Who Has a
Better Life – Entrepreneur or Salaried Staff?“. One topic raised during our chat was the difference between Entrepreneur
and Business Investor.
The topic actually spins off while
talking about my two ex-bosses who are successful and respectable figure in our industry. Just before
the GFC, the two Bosses sold off the company for an estimated fortune exceeding S$100
million.
talking about my two ex-bosses who are successful and respectable figure in our industry. Just before
the GFC, the two Bosses sold off the company for an estimated fortune exceeding S$100
million.
One is an Entrepreneur (Let’s call
him Boss A) who runs his company for more than thirty years. The other is a Business
Investor (Let’s call him Boss B) who injected his funds at the right place and right
time, ballooned the investment ten times within less than five years.
him Boss A) who runs his company for more than thirty years. The other is a Business
Investor (Let’s call him Boss B) who injected his funds at the right place and right
time, ballooned the investment ten times within less than five years.
Having worked for both bosses, I noted some of the differences as follow. Note that the views are purely case specific.
Gratification.
Entrepreneur has longer delayed gratification. Business investor usually has a
shorter investment horizon target.
Entrepreneur has longer delayed gratification. Business investor usually has a
shorter investment horizon target.
Risk. Entrepreneur
usually takes more risk (really have balls at times!), while business investor assumes smaller calculated
risk.
usually takes more risk (really have balls at times!), while business investor assumes smaller calculated
risk.
Devotion. True
Entrepreneur has his soul and mind entirely devoted to the business.
Entrepreneur topics or dialogues are nothing but business, business and business! Investor
talk about profits profits profits!
Entrepreneur has his soul and mind entirely devoted to the business.
Entrepreneur topics or dialogues are nothing but business, business and business! Investor
talk about profits profits profits!
Rational. True
Entrepreneur can be irrational at times. Before the GFC, the company I used to work for was at its
peak (never before since founded). A very attractive buyout offer came but Boss A was not moved.
This is despite his not so perfect health, not so young anymore and children are
too young to take over the company. Moreover everyone know our industry is cyclic. Boss B was rational and insisted the sale
instead of an IPO. Subsequently GFC came, and the industry crashed but they had already cash out.
Entrepreneur can be irrational at times. Before the GFC, the company I used to work for was at its
peak (never before since founded). A very attractive buyout offer came but Boss A was not moved.
This is despite his not so perfect health, not so young anymore and children are
too young to take over the company. Moreover everyone know our industry is cyclic. Boss B was rational and insisted the sale
instead of an IPO. Subsequently GFC came, and the industry crashed but they had already cash out.
Management style. It is more difficult for the employee to know what exactly the Entrepreneur want. But very often it also brings the best out of the employee who will be so inspired. Frequent times, Entrepreneur has more emotions attached to staff who worked for him for a long time. The Business investor has a more corporate but reasonable
management style – reward (or remove) according to performance.
management style – reward (or remove) according to performance.
Time. Entrepreneur
worked non-stop, even crazier during the initial phase. Business investor
normally has more time for hobbies and family. They have things they like to
do, and spend more time to cultivate their kids.
worked non-stop, even crazier during the initial phase. Business investor
normally has more time for hobbies and family. They have things they like to
do, and spend more time to cultivate their kids.
About Boss A
Boss A pocketed a much larger share,
but the sacrifices he made was over 30 years. I had seen how hard-working he was.
Boss A is very emotionally linked to the company with mood swings according to
the company’s performance. But he is very kind-hearted and employees felt it. The stress of sustaining the business of close to
500 employees is enormous. Was told he was on verge of bankruptcy at least
three times before the sale of the company. Debts are inclusive
of personal mortgages. Boss A seldom have
time for his family then. Success also attributes to a dedicated homemaker wife who managed the family well.
but the sacrifices he made was over 30 years. I had seen how hard-working he was.
Boss A is very emotionally linked to the company with mood swings according to
the company’s performance. But he is very kind-hearted and employees felt it. The stress of sustaining the business of close to
500 employees is enormous. Was told he was on verge of bankruptcy at least
three times before the sale of the company. Debts are inclusive
of personal mortgages. Boss A seldom have
time for his family then. Success also attributes to a dedicated homemaker wife who managed the family well.
About Boss B
Boss B used to be a high position corporate salaried staff as well as passive investors of businesses, stocks and
properties. After his corporate career, he invested and worked in the company
Boss A founded. Boss B’s few millions invested ten-folded within two years after
the company was sold. A move that he initiated just before the GFC. Boss B was
less emotional and more pragmatic in decision making and frankly a much better
manager for the employees. But he is second in terms of charisma, the guts to
take risks and lack the dreamer vision that Boss A had. He is also very kind-hearted but many at times people misunderstood his true good intention as only money driven.
properties. After his corporate career, he invested and worked in the company
Boss A founded. Boss B’s few millions invested ten-folded within two years after
the company was sold. A move that he initiated just before the GFC. Boss B was
less emotional and more pragmatic in decision making and frankly a much better
manager for the employees. But he is second in terms of charisma, the guts to
take risks and lack the dreamer vision that Boss A had. He is also very kind-hearted but many at times people misunderstood his true good intention as only money driven.
Rolf’s View
Both bosses are mentors in my life who I am truly grateful of. They will always command utmost respect from me.
This is just one story of an Entrepreneur Vs Business investor! There are many different versions
around.
around.
Nevertheless it serves as a good
reminder to me of the life experiences that both Bosses went through.
reminder to me of the life experiences that both Bosses went through.
Which Bosses do you want to be?
Related Posts:
Rolf,
I am more a Business Investor in nature; and doing it now in practice 😉
Hi SMOL,
….nd a speaker and educator, more importantly a Singapore Man of Leisure. It feels great to see Singaporean doing things they are passionate about and educating the public to think and broaden their mindset for free online.
I just feel that we are slowly marching into a society of "ice cold water" where I do not care about you and you do not care about me, we only care about who is doing better than who.
Its a pity, which instead we should help each other to improve. We are all Singaporeans!
Rolf,
Hold your horses now….
I'm not there to educate or share anything. I'm not a bleeding heart.
I'm just there to entertain myself.
Eh? I think you got potential for politics!
Hi SMOL,
Ok ok.. I Got it..
Btw, better to entertain yourself here than shower room. Haha LOL
You mean potential for Office politics?
Rolf
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