Changing the World vs. Making a Profit

There are numerous commonalities that unite entrepreneurs across the globe; the ability to take on risk, the thick skin needed to persevere, the passion associated with your product/service…the balls to start your own business. All of these traits seem to define entrepreneurs not only professionally, but as individuals. It seems like no matter what industry, experience, background, gender, or ethnicity that a given entrepreneur may have, they tend to posses these innate personality traits.

When it comes to entrepreneurial ventures, however, I believe that there is one particular “fork in the road” that distinguishes one entrepreneur from another. It is the decision or strategy each entrepreneur consciously or sub-consciously makes when beginning their business venture. I like to call it the “World Changer vs. Profit Maker” debate. This debate essentially forces the entrepreneur to define their business venture. In other words: Is your business a “world changer” or a “profit maker”?

The “world changer” path forces the entrepreneur to think about (you guessed it!) how they are going to change the world with there unique business model, strategy, and execution. Entrepreneurs in this category think big HUGE and are committed to challenging the status quo. These business ventures are not as concerned with money, atleast initially, as they are with creating a novel, innovative, and meaningful business platform.

On the flipside, the “profit maker” venture operates on a proven business platform where there is opportunity. The entrepreneurs and their businesses must be extremely efficient, in order to operate at a profit. These ventures learn from the mistakes of their predecessors, and utlize a different, more effective revenue model.

You can say that the “world changer” method is rooted in innovation and creativity, while the “profit maker” method relies more on efficiency and opportunity. After reading Guy Kawasaki’s “Art of the Start” and Tim Ferriss’s “4-Hour Workweek” almost in succession, I was left with two opposing thoughts on entrepreneurship. Kawasaki stresses innovation, change, and meaningful business ventures. He urges his readers to “change the world”. Ferriss stresses efficiency, time management, production and execution, cost vs. benefit. Two completely different thought patterns, two completely successful entrepreneurs.

I tend to mirror Guy Kawasaki’s way of thinking in terms of entrepreneurial ventures. I believe that constantly pushing the envelope, creating new platforms and ideas is the way to go. This could be a result of the rapid changing, always innovating technology world that I am so accustomed to. I feel that many entrepreneurs and businesses excel when they create their own path and conquer new territory. I find it so important for entrepreneurs to look beyond the norm and to push their businesses where no one once thought possible. It is through these actions by which businesses will see unprecedented results.

That is not to say that their isn’t room for the “profit maker” structure. Ryan Graves makes a great point in his blog when he writes,

“In a time of leaning business practices and tight funding opportunities it is even more important to focus on businesses that will generate revenue!”

I guess the natural conclusion from this would be to adopt a business model that incorporates some part “world changer” and some part “profit maker”. Without solid profit and an efficient business model, one may not be able to “change the world” for very long. Similarly, without innovation and creativity, the most efficient businessman may not be able to distinguish himself from his competition.