In my view, there is a common misconception that most financial advisors are also entrepreneurs. I do not see the advisory business as being statistically different from any other industry in terms of the mix between business owners/operators and entrepreneurs.
When I distinguish between business owners and entrepreneurs, please don’t misunderstand me. I’m not stating that one is superior, but merely pointing out that they’re not inherently the same, as so many assume they are.
I think anyone who chooses to be a business owner is making a brave, potentially life-altering decision. In fact, I believe that few endeavors are more noble than launching or buying a business. I’m a business owner myself. I’m acutely aware of the tradeoff between the consistent personal sacrifice of time, talent, and treasure all for the occasional triumphs that accompany such a decision.
However, while business owners can be seen as being entrepreneurial in spirit, in today’s new operating environment of accelerating change, there is a major distinction that needs to be recognized between “business owner” and “entrepreneur.” There is a very different mindset and set of behaviors between the two. In fact, the difference goes right to the heart of the challenges facing the financial services industry.
I recently had the opportunity to discuss these differences and how they apply to financial advisors with Bill Hortz, a financial services innovation writer, speaker, and consultant.
We explored this topic, as well as our firm’s thinking and experience behind developing The Elite Advisor Playbook and promoting the Entrepreneurial Operating System® as a tool for creating focus in an advisory practice.
You can find the full interview in Financial Advisor Magazine.