Does CEO stand for chief executive officer or chief entrepreneurial officer?
There's a big difference.
I recently had the pleasure of accepting a lunch invitation from a true-blue,
whatever-it-takes entrepreneur. He started his sales career at age 9 and still
lives by the entrepreneurial sword well into his 80s.
The CEO Dilemma
He approached me because he has a dilemma. He and his wife are starting a
bank primarily targeted for and run by women. They are looking for an
experienced CEO who has spent much of her time in the banking world. But they
also require the CEO to have an entrepreneurial spirit.
That's a problem because the banking world is mired in the bureaucratic
mindset. To rise within this system, you have to live the corporate code. And in
most corporate environments I've encountered, the entrepreneurial spirit--if
there is any to begin with--gets crushed under the bus pretty quickly.
In addition, an entrepreneur typically builds her business based on her
passion to make the world a better place. Most entrepreneurs see problems that
need to be fixed and create solutions for them. An entrepreneur's motivation is
to improve the world as she sees it.
I'm sure some employees in the corporate arena are there to change the world.
But I think the main motivator in corporate America--and worldwide--is money.
You see the dilemma this couple face. The entrepreneurial mindset, motivation
and methods are 180 degrees from the corporate way of life. If they can solve
this problem, I think they will have a successful venture.
As a side note, I was amused to learn that this gentleman wanted to hire me
full-time for this new bank. First, I've got quite enough on my plate right now.
Second, his pitch was based on how much money I could make. The high end of the
scale was about $400,000 per year, before taxes. This would be a severe cut in
pay. So I don't need the money . . . and I'm not motivated by money.
However, I am motivated by the mission and the purpose he and his wife are
pursuing. What I told them was that I would love to be involved from an
educational standpoint . . . and I would do that for free.
CEO vs. CEO
The biggest difference between the corporate employee (whether you are
the chief executive or the janitor of the company, you are an employee) and the
entrepreneur is how they think. In my experience, the values most important in
an employee's mind are:
1. If I work, then I expect to get paid.
2. If I do a very good job, then I expect to get promoted.
3. Going "above and beyond" is rewarded. Going too far is
not.
The entrepreneur, on the other hand, knows that no matter how hard she works,
there may be no paycheck. The number-one thing she gets paid for is results. She
often has to go "too far" to get the results. In my opinion, a successful
entrepreneur embodies these three traits:
1. She's driven by a purpose or a mission.
2. Results are what matters. Everything else is just talk.
3. She is constantly learning, and looking for new answers
and new challenges.
Neither way of thinking is right or wrong. They are simply different.
The Investment CEO
The point of all this is: Whether you're an employee or an entrepreneur,
when it comes to investing, which mind-set and way of thinking will bring you
the greatest return on your money?
If you bring an employee mentality to the world of investing, this is what
you will likely do. You will decide that it's better to turn your money over to
someone else and let him or her manage it for you because you don't have time to
learn about investing. You will stay in very safe (or what you think are safe)
and conservative products--such as CDs, mutual funds and 401(k)s--because that's
what most financial planners recommend. You might see some returns on your
money, but this strategy will not bring you financial independence.
To be a successful investor and get returns well beyond the ordinary, you
cannot do what the average person is doing. You have to think differently. And
that takes more of an entrepreneurial mind-set. It's not difficult to adopt an
entrepreneurial way of thinking when it comes to investing. Simply look at the
three traits of an entrepreneur.
- Purpose/mission-driven: What is the purpose or mission for you and your money? What is the bigger reason for you to take an active role in managing and investing your money? One good way to begin answering this question is to ask yourself: "If money were no issue, what would I do with my life?" What is it you truly want from life? Once you've defined the mission for your money, stay true to it.
- Results are what matter: This is easy to measure. You can talk, you can plan, you can be busy all day long with your money. But at the end of the day, how much money did your money make you?
- Learning, new answers, new challenges: The smarter you are with your money, the better your chances of success. And the learning never ends because the markets are always changing. Look at what's happening today: The real estate market went from record appreciation in most cities to record foreclosures. The stock market is up 300 points one day and down 300 points the next. How will rising oil prices affect investment strategies? How will the banking and lending upheaval play into all of this? If you're willing to learn, the answers and the opportunities are out there.
So when it comes to you and your money, are you the chief executive officer or the chief entrepreneurial officer? Two different mind-sets; two different results.