Have you always wondered what the meaning of a serial entrepreneur is in business? Every day, we hear the phrase “entrepreneur” a lot. However, few people understand the meaning, and even if they do, they frequently mix it with businesspeople.
An entrepreneur is someone who turns prospects into financially viable companies while taking on additional risks.
However, not all entrepreneurs are created equal. Meet serial entrepreneurs, business owners who launch many enterprises while taking significantly more risks than typical entrepreneurs. While most entrepreneurs only create one business in their lifetime, there is a subset of persons who are distinct from the world’s 580 million entrepreneurs.
What is the Meaning of a Serial Entrepreneur?
When it comes to the meaning, a serial entrepreneur is someone who consistently takes the initiative to turn chances into several new businesses during their career or business, taking on more than average financial risks in the process.
In layman’s terms, a serial entrepreneur acts on several opportunities and launches multiple businesses throughout their lifetime.
Characteristics of Serial Entrepreneurs
Personal and professional, serial entrepreneurs stand out. They enjoy taking risks, are extremely optimistic, and have a long-term vision. Here are a few traits of a serial entrepreneur.
#1. Risk Takers
Serial entrepreneurs incur enormous risks. By launching many businesses, they expose themselves to a greater financial risk. Existing projects may also conflict with new ones in specific instances.
#2. Great Managers
Setting defined goals and practicing strong time management help serial entrepreneurs avoid the risk of managing many ventures. They take their time to prioritize and work on the most critical aspects first, followed by the less crucial ones.
#3. Visionaries
Serial entrepreneurs are walking think tanks. They are frequently on the cutting edge of things, assisting in the production of successful ideas and initiatives one after the other. Serial entrepreneurs rarely dwell on the past, preferring to focus on what they may accomplish in the future. They are continually looking for fresh ways to launch their new business and ideas that will help them identify the next new item to focus on.
#4. Multi-Taskers
Most serial entrepreneurs are innovative multi-taskers who can juggle multiple operations, projects, and goals at once or on short notice. Aside from that, serial entrepreneurs have good discipline to not let their multitasking have a detrimental impact on the condition of affairs. They want to get their ideas off the whiteboards and into the real world, thus they are willing to go to any length.
#5. Team Players
Many serial entrepreneurs work alone or in collaboration with one other individual. However, in the end, they are all good at bringing people together and managing them (if not at first, they quickly become good leaders). You can’t grow several enterprises if you can’t lead and manage yourself and a group of others. Serial entrepreneurs can find, lead, and assign the proper positions to the right people in every new venture they start. Failure to do so directly results in the demise of the company that they founded.
#6. Disinterested In Making Money
Serial entrepreneurs are more concerned with inventing fresh ideas and seeing them through to completion than with monetary objectives. While financial success is essential for any business, serial entrepreneurs do not prioritize it. Instead, they are more concerned with assembling a functional team and bringing their ideas and projects to fruition.
Difference Between Serial Entrepreneur And Portfolio Entrepreneur
Entrepreneurs, as a social segment, must be divided into more than one homogeneous category. Even within the same sort of entrepreneurship, each one is distinct from the others due to differences in styles, business models, and other aspects. They are a diverse group of people.
Let us first distinguish between two of the most sought-after types of entrepreneurship: serial entrepreneurs and portfolio entrepreneurs. Despite the fact that they run many enterprises at the same time, their principles are very similar. Let us look at some of the differences:
Serial Entrepreneur:
- The serial entrepreneur business model entails starting several firms over a long period of time.
- They run or manage a certain business and then sell it or step down from key roles before moving on to the next.
- Businesses may be in the same industry or in other ones.
- They face much greater risks than their rivals because the risk of uncertainty in their operations is critical.
- An entrepreneur of this type creates a business until it is self-sufficient, then moves on to a different idea or enterprise to establish from the ground up.
- Their motivation is based on curiosity and passion rather than financial gain.
Portfolio Entrepreneur:
- Portfolio entrepreneurs keep their original or first business while acquiring, inheriting, or founding several enterprises. They then run these enterprises concurrently.
- They are a subset of the habitual entrepreneur.
- They also run multiple businesses at the same time.
- They have far more experience than inexperienced entrepreneurs.
- They spread their risks among firms, yet they nonetheless face far larger risks than their competitors.
- During the early phases of their careers, monetary motivation is considerable. With time, however, financial motivation is essentially non-existent, although satisfaction levels remain high.
Examples of a Practical Serial Entrepreneur
Entrepreneurs make up 16% of the adult workforce in the United States or around 31 million people. Serial entrepreneurs constitute a subset of this workforce. Let us examine the distinction using the following examples:
Example #1:
Samuel is a driven individual with a natural talent for selling stuff. He established his first business when he was 12 years old, reselling his previous year’s books online. He quickly persuaded his friends and neighbors to sell him their secondhand books at a discount. By the time he was ready to start college, he had sold his business to ABC Investors, a large firm, and moved on.
After a few months of college, he discovered that students found it difficult to acquire refreshments when working late at night. So he decided to spend the proceeds from the sale of his first business on the installation of vending machines in student-heavy regions.
The concept immediately gained traction, and he sold the company to a local businessman at the end of his undergraduate career. He progressed to making nutritious snacks after noticing that harmful ones were causing long-term health problems.
Example #2:
Oprah Winfrey, the talk-show host, and philanthropist known for her show “The Oprah Winfrey Show,” which aired for two and a half decades, is a serial entrepreneur who people from all walks of life look up to for inspiration.
She established Harpo Productions Inc., which acquired the rights to her show. This was her first effort as an entrepreneur. She went on to become a creator and co-founder of companies such as OWN (Oprah Winfrey Network) and Oxygen, as well as the author of several books.
How to Become a Serial Entrepreneur
You may hear about successful entrepreneurs and think their accomplishments are exceptional and out of reach, but serial entrepreneurs account for 30% of self-employed persons. Here are a few pointers to help you join their ranks:
#1. Picking an industry
You must continue to pursue ventures in industries that you know and understand well. The goal is to fill in the blanks. There will always be people with more experience than you. The trick is to imagine something intriguing enough to entice talent to join you on your trip.
#2. Evaluating the idea
While some people prefer comprehensive market research, others prefer “socializing” business ideas by informing friends, relatives, and anybody else who might be in your target market about them and listening to their input.
It is also critical, to begin with the appropriate questions. “Inexperienced entrepreneurs inquire, ‘Can it be done?’ and ‘How do you make money with it?'” They should be asking, “Who needs this?” I have a strong customer-first mentality… It removes a lot of the risk because you start with the consumer and if they say there’s no need for this, you go on.
#3. Start trying
Some enterprises can be launched with little or no capital. Thomson and her husband created a mock-up of their first product to attract their first paying clients. Moleli began with simply his laptop and a few relevant network connections. Other firms may need to seek out investors sooner rather than later.
The key, though, is to get started because the early phases will be packed with trial and error. Take some action. Then reflect, consider what is and isn’t working, and take action once more.
A good serial entrepreneur must be patient because things sometimes take time to come to fruition.
#4. Balancing the plates
When asked how they manage so much on the go, all three of the entrepreneurs The Hustle spoke with underlined the need for delegation and establishing a solid team around them. The key term is “team.”
You must be able to multitask, but today’s buzzword is teamwork. I seek partners I can rely on, people that share my vision and understand how I operate.
How Much Do Serial Entrepreneurs Earn?
The average yearly base wage for a US serial entrepreneur is $64,686, according to salary.com, with most serial entrepreneurs earning between $54k and $76/year. In actuality, serial entrepreneurs’ incomes might range from $0 to millions of dollars.
One reason is that serial entrepreneurs can run a wide range of businesses, from tiny delis and laundromats to multibillion-dollar technology enterprises employing tens of thousands of people.
Many entrepreneurs would reinvest revenues back into the business rather than take a salary in the early stages. From 1997 to 2011, Steve Jobs, the founder of Apple and Pixar, was paid $1 per year as CEO of Apple. Suffice it to say, his strategy was successful.
In other circumstances, entrepreneurs are not paid because they are reimbursed in other ways. Thomson, for example, receives dividends and profits from her company stock.
How is a Serial Entrepreneur Different than a Social Entrepreneur?
While serial entrepreneurs start and expand several firms over time with an economic purpose in mind, social entrepreneurs try to improve the quality of services and goods to give back to society. Profits are not what motivates them. Instead, they actively work to improve education, the environment, and social situations.
Is Elon Musk a Serial Entrepreneur?
Yes, Elon Musk is a well-known entrepreneur of this type. Zip2, his first business, was created in 1995 by him and his brother. Mr. Musk later sold it for $341 million to Compaq Computer. He later founded firms such as X.com, PayPal, Tesla, SpaceX, and The Boring Company. In 2022, he also acquired the social media behemoth Twitter.
How Do Serial Entrepreneurs Work?
They are constantly on the lookout for market trends and needs. Their inherent ability to innovate to meet the most recent market demands keeps them ahead of the competition. They are inquisitive people who find their motivation in solving the world’s problems.
What are the Skills Needed to be an Entrepreneur?
To be a successful entrepreneur (whether serial or conventional), you must develop certain important talents. These abilities include:
- Strong leadership abilities, especially if you intend to hire a large number of people.
- Excellent communication skills are required to sell successfully and drive your company to success.
- Excellent market knowledge. You must understand what market gaps currently exist and how you may profit from them.
- A lot of determination. To be a successful entrepreneur, you must be willing to put in long hours, typically working more than 12 hours per day.
Can Anyone Become a Serial Entrepreneur?
Yes! With the appropriate concept and desire, anyone can become a serial entrepreneur. However, it may be wiser to begin as a typical entrepreneur. Start one business, see if it succeeds, and then move on to a new enterprise when you have a brilliant concept and your present business is valued enough to sell for a profit.
Bottom Line
Serial entrepreneurs move from one fresh business idea to the next, founding companies and then selling, closing them, or transferring management to others. While their track record may not be one of perfect repeat success, serial entrepreneurs’ hard-won experience and shown diligence make them appealing to some new venture investors.
Related Articles
- EQUIPMENT BILL OF SALE: Form, Template & Free Tips
- 41+ BUSINESS TIPS FOR ENTREPRENEURS in 2023 (For Beginners & Pros)
- HOW TO BE AN ENTREPRENEUR: The Ultimate Guide
- 11 Ways to Improve Your Odds as an Entrepreneur
- Who is an Entrepreneur in Nigeria? Best Easy Guides to Get Started
References
