“Man cannot discover new oceans unless he dares to lose sight of the shore.”
We all find the world is cluttered with “me too’ products. Marketing calls it “Consumer Choice,” but then, there is this one well-executed idea that changes the world! We all wonder, why we never saw it coming. Right?
However much you hype startups, entrepreneurship is a high-risk venture, and failure is a real possibility. Many entrepreneurs experience setbacks, rejections, and failures, which can be demotivating and discouraging. Entrepreneurship is hard because it requires a unique combination of skills, traits, and experiences. Hunters and farmers or company builders and operators are two distinct roles that are often confused or misunderstood. If you are curious to know more, come along on the journey to learn more about it.
Builders are typically entrepreneurs, founders, or visionaries who create a company from scratch. They are responsible for developing the initial concept, creating the business plan, and securing funding. Builders are often passionate about the idea and are driven to bring it to life. They are responsible for setting the overall direction and strategy for the company.
Operators, on the other hand, are responsible for running the day-to-day operations of the company. They are often experienced professionals who have a deep understanding of the industry and have a track record of success. Operators are responsible for executing the strategy set forth by the builders, managing employees, and ensuring the company’s daily operations run smoothly.
Company builders and operators both play crucial roles in the business world, but they approach their work with different mindsets and skill sets.
Vision vs. Execution: Company builders are often visionary leaders who excel at spotting opportunities, conceptualizing new business models, and creating strategies for growth. They are adept at identifying market gaps and envisioning how to fill them with innovative solutions. On the other hand, operators are skilled at executing plans effectively. They focus on implementing strategies, optimizing processes, and ensuring day-to-day operations run smoothly.
Risk Tolerance: Company builders typically have a higher tolerance for risk. They are willing to take bold steps, disrupt existing markets, and experiment with unconventional ideas to drive growth. Operators, on the other hand, tend to be more risk-averse, preferring stability and predictability in their approach to managing business operations.
Adaptability: Company builders thrive in environments of uncertainty and change. They are adaptable and agile, able to pivot quickly in response to shifting market dynamics or emerging opportunities. Operators, while also capable of adaptation, often excel in more stable environments where they can focus on optimizing existing processes and maximizing efficiency.
Innovation vs. Optimization: Company builders are often the driving force behind innovation within an organization. They are constantly seeking new ways to disrupt industries, introduce groundbreaking products or services, and stay ahead of the competition. Operators, on the other hand, excel at optimizing existing systems and processes to improve productivity, reduce costs, and enhance profitability.
Long-term vs. Short-term Focus: Company builders tend to have a long-term perspective, focusing on building sustainable businesses that can withstand market fluctuations and evolve over time. They are willing to make short-term sacrifices for the sake of long-term success. Operators, meanwhile, often have a more short-term focus, prioritizing immediate results and efficiency gains.
Leadership Style: Company builders often exhibit charismatic leadership styles, inspiring teams with their vision and passion for the business. They excel at rallying people around a common goal and motivating them to achieve greatness. Operators, while also capable leaders, may have a more hands-on approach, focusing on the practical aspects of managing teams and achieving operational goals.
Transitioning from a company builder to an operator requires a shift in mindset and focus, as well as the development of new skills. Developing empathy for the two roles is where you begin to learn how to cross the chasm of transformation.
Understand the Differences: Reflect on the differences between the roles of a company builder and an operator. Recognize that as an operator, your focus will be more on executing existing strategies and optimizing processes rather than generating new ideas and innovations.
Develop Operational Skills: Identify the specific skills needed to excel as an operator, such as project management, process optimization, resource allocation, and performance measurement. Seek out opportunities to develop these skills through training programs, workshops, or hands-on experience.
Build Industry Knowledge: Deepen your understanding of the industry or market in which your company operates. Stay updated on industry trends, best practices, and emerging technologies that can impact your business operations.
Embrace Stability: Shift your mindset from embracing risk and uncertainty to valuing stability and predictability. Focus on creating systems and processes that ensure consistency and reliability in your operations.
As a company grows and matures, the roles of builder and operator evolve from creating the company to scaling and expanding it, while the operator’s role evolves from running day-to-day operations to managing and optimizing processes and teams.