Thomas J Walter

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The Evolution of an Entrepreneur

September 7, 2014 by Thomas Walter

What is the life cycle of an entrepreneur? Ichak Adizes, PhD, described the Ten Stages of Corporate Life Cycles in his book The Power of Purpose. Having experienced two massive business failures in the companies that I founded or co-founded, I can testify that Dr. Adizes is certainly correct in those Ten Stages of a business’ development.

This blog post aims to adapt the words of Ichak Adizes, focusing on the life cycle of an entrepreneur instead of the business. My life as an entrepreneur—and the time spent with peer entrepreneurs, emerging entrepreneurs and academics in the entrepreneurial arena—make apparent these interesting Four Stages of an Entrepreneur’s Career.

Adrenaline

The beginning cycle of a business is like a freeway, sometimes exceeding the speed limit and sometimes stop and go, but always the engine is churning looking for opportunities. The first person singular pronoun is a major construct of the vocabulary—“I,” “me,” “mine.” Nothing else seems to matter except the entrepreneur’s thoughts. The second person pronoun—“you”—is used as a counter to “I” or “me.” Psychological health and personal relationships suffer. The entrepreneur is all things, but primarily the Chief Operations Officer and Visionary.

Maturation

Business growth in this stage has become manageable. Key employees have been hired to fill vital slots, ensuring sustainable growth.   The use of the plural of the first person pronoun accelerates, transforming to “we,” “us,” and “ours.” This shift of vocabulary indicates the achievement of mutual respect and trust. Employees, clients, advisors, consultants and the entrepreneur form a bond based on mutual values, vision and mission. The fortunate entrepreneurs evolve into the Chief Executive Officer position at this stage.

Work/Life Balance

Command and control in the entrepreneur diminishes during this stage. There emerges a valuation for human relationships. Loved ones now matter. If the entrepreneur can engage in a loving relationship in his or her personal life, the resulting positive impact will be brought to the workplace. The third step of leadership is love, or emotional engagement (after respect and trust). It is during this stage that employee engagement levels soar and self-actualization begins to be realized.

Wisdom

The acquisition of knowledge is critical during the first three steps. That acquired knowledge—coupled with emotional intelligence gained through personal and professional pains and gains—results in wisdom. The entrepreneur becomes a Chief Culture Officer at this stage, realizing that sustainable success is dependent on the organization’s culture and people. The entrepreneur begins the path of sharing wisdom through mentoring, speaking, writing and advisory board participation. Succession plans are made formal, and the inception of those plans begun.

There are many viewpoints as to the stages of an entrepreneur, just like there are many that focus on the life cycle of a business. Perhaps most are correct.   It matters not how accurate the interpretation of those stages are. Rather, what matters is recognizing where you and your organization stand in a particular cycle. All too often we focus on the product and not the business model or leadership model. It is time for that to change.

For more information about the Ten Stages of Corporate Life Cycles, visit Dr. Ichak Adizes’ website here.

Filed Under: Entrepreneurs Tagged With: Evolution of an Entrepreneur, Four Stages of an Entrepreneur, Ichak Adizes, Ten Stages of Corporate Life Cycle

Companies & Organizations

Catering

Tasty Catering is a top Chicago caterer with an award winning culture. Tom is the founder and Chief Culture Officer.

Marketing

nuphoriq specializes in marketing for catering and event planning companies throughout the U.S. Tom is a partner and advisor.

Social Responsibility

That's Caring produces high end gifts for all occasions. With every gift purchased, weekend meals are supplied to a US child in need. Tom is a partner and advisor.

Motorcycles

iMotorsports is an internet based motorcycle dealership with nationwide reach. Tom is an investor and advisor.

Mentorship

True Mentors connects aspiring business professionals with today’s successful leaders. Tom is a mentor.

Manufacturing

T.F. Processors is a wholesale contract manufacturer of baked goods. Tom is a partner and advisor.

Financing

Touhy Capital provides funding for capital investments and employee assistance programs for 80NINE Holdings companies. Tom is President.

Education

The Junto Institute is a leadership and revenue accelerator for growth-stage companies. Tom is an instructor and supporter.

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