Small business entrepreneurs often wear many hats, but there comes a time when they must decide whether to remain an entrepreneur or step up as a CEO. While both play important roles in the success of a business, there are distinct traits that separate the two. Here are 7 essential traits that distinguish CEOs from entrepreneurs.
Vision
A CEO’s vision for the company is a crucial aspect of their role as a leader. They have a clear and defined idea of where the company is headed and what its future holds. This vision guides all their decisions and actions, helping to steer the company in the right direction. In contrast, entrepreneurs tend to be focused on the present and solving immediate problems, often at the expense of long-term planning.
Strategic Thinking
The ability to think strategically is another key characteristic that separates CEOs from entrepreneurs. While entrepreneurs are often reactive, making decisions based on immediate needs and opportunities, CEOs have a more considered approach. They consider the long-term impact of their choices and make decisions that will benefit the company in the future. This strategic thinking is critical in ensuring the success of a business.
Delegation
Effective delegation is a vital skill for CEOs, and one that many entrepreneurs struggle with. CEOs understand that delegating tasks and responsibilities to others allows them to focus on high-level decision-making, helping to drive the company forward. In contrast, entrepreneurs often prefer to handle tasks themselves, which can lead to burnout and limit the growth of the business.
Risk-Taking
Both CEOs and entrepreneurs are willing to take risks, but the way in which they approach risk-taking is different. CEOs are more calculated in their approach, weighing the potential rewards against the potential consequences before making a move. This measured approach to risk-taking is critical in ensuring the stability and success of a business. Entrepreneurs, on the other hand, may be more impulsive and take risks without fully considering the consequences.
Adaptability
The ability to pivot and adapt to changing circumstances is another essential trait of successful CEOs. They have the flexibility to change course and make decisions that will benefit the company, even if it means deviating from their original plan. In contrast, entrepreneurs may become too attached to their original plan and struggle to make changes, limiting the potential for growth.
Resilience
CEOs possess a strong inner fortitude that enables them to handle criticism and setbacks with poise. As the person in charge of a company, the decisions they make can have a significant impact, which can attract criticism from those who prefer to observe from the sidelines. A CEO’s resilience gives them the confidence to make tough decisions without douting themselves and to handle criticism with an open mind.
Leadership
Finally, the most important trait that sets CEOs apart from entrepreneurs is their ability to lead and inspire others. CEOs have a strong sense of purpose and the ability to communicate their vision to others, inspiring them to work towards a common goal. They are effective leaders who have the respect and trust of their employees, and who are able to motivate and drive their team towards success.
Being a CEO or an entrepreneur requires different skills and characteristics. Small business entrepreneurs wanting to expand operations and grow like a pro, would do well to develop these essential CEO traits.
