How Are Entrepreneurial Resources Different From Labor Resources
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One of the things we like to focus on at Framebridge is being employee focused. Our employee community has created a culture of compassion and understanding around the state of business today.
We know that if we aren't doing our best to be there for the employees, they're not going to be our best employees.
So what's the difference between labor and entrepreneurial resources? Entrepreneurial resources can be in the form of people or processes.
Labor is people. A good worker will always want to do more for a company.
A good worker knows that if they go above and beyond their scope of responsibility, their boss will give them the next opportunity. At the end of the day, employees know that if they're doing a good job, their managers will give them opportunities to do even more.
Empathy is the lack of ego. A good entrepreneur wants to invest in everyone who touches their company.
He's not out to destroy the competition. He's there to create value and build relationships with people.
Happiness is what you do when no one is looking. We don't measure ourselves by what we do, but rather by the impact we're making on our customers, communities, and team.
Distribution is economics. A good entrepreneur is a smart and creative businessman.
But in addition to creativity and smarts, he's also got to have good judgment and make decisions with a customer's or team's best interest in mind.
Why are labor resources different from entrepreneurial resources?
The three biggest differences between labor and entrepreneurial resources are as follows:
1. Relation to customers:
At Framebridge, we have a clear definition of who our customer is. We have to get the customer experience right.
In other words, we have to love what we do to make customers love us. In the workforce, the people who are in the trenches are typically those that most directly benefit from the work they do.
In other words, they are in it for the benefit of the company. Our position of higher up the organization leads us to question why a customer would be there, if they were in it for the business, and so on.
This is how businesses are built: People ask for a product, so they build it. They buy it, so they get to keep doing it.
They become managers and hire people to do it. But who gets the business? This doesn't translate to entrepreneurship.
In entrepreneurship, the customers become the creators. They are also the ones who create jobs.
And the employees themselves are sometimes more invested in the success of their company. In other words, they are in it for the company, too.
The difference is quite clear. At a company like Framebridge, we have thousands of satisfied customers, so we know that the customer experience is not only great, but because of it, our employees are also seeing great results.
If we create the best experience for customers, they in turn will also be creating great experiences for our employees. And when our employees are creating great experiences for our customers, they in turn will create amazing experiences for our customers and will be providing us with new opportunities to grow our business.
How does this translate to Framebridge? With many of our products, we are developing a new relationship with the customer, and with each experience, we are learning more about what that customer wants, and what it takes for them to get what they want.
As a result, we are developing new ideas, and we will be creating a solid reputation of quality.
Our employees also see that we are building a new relationship with our customers, so they in turn feel a strong sense of pride in the business, and they want to grow with us. The experience itself is creating that growth.
2. Relation to equity:
When you sell equity, you still pay the bills, but not from the operating profit generated by your company. This is because the owners of the company are still responsible for making the capital allocation decisions and for allocating the available cash.
The day-to-day decision making is left with the owner of the company, and in the early days, he or she is likely to be a family member of the owner of the business. And those are very high stakes for a family member to take on.
In an entrepreneurial environment, owners of a company are required to constantly generate new value for the business.
The equity owners do not have to do that. Instead, they are paid a dividend, which they use to reinvest in the business, which allows them to generate more value for the business.
When I sold company B, it wasn't that I wanted to get out of business. I wanted to create a business that would create more value for myself and my family.
Doing so required me to get out of business. When we couldn't find a buyer, we used the equity we received to go to market.
In doing so, we became investors in Framebridge and held the opportunity for shareholders, rather than owners. The original founders of the company also invested in us.
3. Relationship to government:
When you sell equity, you have an expectation that you will still be working for your company after you sell it. You will make no money off of it.
But when you sell equity to shareholders, you still want to be involved in the company.
Why? Because by being part of the company, you help it grow. You get a share of the profits in the form of the dividend, but you are still responsible for making sure that the company grows.
And if the company grows, you will participate in the upside. And when the company grows, that allows you to realize that you made money and that the company grew.
So, there is more upside and more potential for upside with our ownership.
4. Relation to people:
There is no better way to build lasting relationships than with people.
When you have your employees working for you, they will always have a relationship with the business. They will be engaged with it, and will always have a stake in the business.
This provides them with a sense of pride in the company and a sense of ownership.
For many employees, it provides a stable career, so if they get a promotion to another position, they are going to know exactly what they are.