Entrepreneurial and management consultancy are concepts class apart. They may appear to be similar in many ways, but when analyzing both roles individually, one may easily spot the difference. Do you believe you have what it takes to be a successful entrepreneur? Does your mind create remarkable ideas and help you find ways to increase your earnings? Is it capable of seeing the big picture? What makes your mind unique & enables you to progress in a way that you turn out to be a success story?
Is your mind more capable of managing & operating teams efficiently? Does it know how to organize teams and ensure that you get maximum profit returns and high-end productivity?
If you don’t know whether you’re more of an entrepreneur or a management consultant, then here’s an article to help you understand the concepts. Without further ado, let’s dig into the details.
Entrepreneurship vs Management Consultant – A Brief Introduction
Introduction to Entrepreneurship
In the simplest of terms, an entrepreneur is a person who manages his/her enterprise and is responsible for making tough decisions. They are more resilient with risk-taking and can spend fortunes on ideas that may appear to them as profitable. An entrepreneur has multiple responsibilities. Some of them are hiring individuals, allocating resources, finding revenue sources, budgeting, and creating ideas. Most entrepreneurs invest their time & budget in ideas & businesses where their passion exists. For instance, if you are fond of fast cars, then being an entrepreneur, your idea should stem from the vehicle industry.
Charisma comes naturally within an entrepreneur. It’s one of the reasons why entrepreneurs are experts in sales & marketing. They are also very keen observers and researchers. Know how to stay connected with the developing technologies around the world and stay attuned with what’s happening and are also well connected with the developing technologies.
These are necessary traits for an entrepreneur to adjust themselves along with the changing environment readily. For an entrepreneur, life is always on the challenging scale of the competition.
Introduction to Managing Consultancy
On the other hand, management consultancy is a branch of management where a person has a specific responsibility. It usually involves improving the existing processes or introducing new ones to improve the overall business. Management consultants mostly focus on analyzing the problems. They work as the advisory council for the entrepreneurs. More or less, they are the helping hand within the organization. Their responsibilities include:
- Managing human resources
- Optimizing marketing channels
- Setting the payroll & budgeting for the enterprise
- Introducing noteworthy technology
If an entrepreneur has a vision and finances to turn that vision into existence, a management consultant helps the entrepreneur mold that vision into reality.
Entrepreneurship vs Management Consultant – How Do They Both Differ From Each Other?
Entrepreneurs and management consultants often share similar responsibilities, and therefore, people can often confuse both. However, careful speculation shows how they both greatly differ from one another.
To give you a brief insight on how they differ from one another, here are a few differences:
One Takes Action While Other Advises
The only major difference between the two involves their decision-making capability. While an entrepreneur is responsible for making the tough decisions & takes the entire responsibility, a management consultant only assists the entrepreneur by making suggestions to achieve their business goals. Entrepreneurs are the actual bodies who make things happen, whereas a consultant is just an advisor sitting on the advisory council.
One is Street Smart While the Other is Theoretical
Another great difference between an entrepreneur and a management consultant lies in their approach to accomplishing tasks. A management consultant is all about theoretical stuff. He’s the one who makes all the necessary decisions based on the previously learned theoretical knowledge from business schools & colleges. They are the artisans who have completed a particular degree in a respective field. In contrast, an entrepreneur is more street-smart and has seen the ups and downs of the industry. They have more market exposure and do not rely on academics for decision making. They make decisions based on experiences.
One is a Risk Taker the Other is Not
Entrepreneurs have what it takes to be a risk-taker. They have mentally strengthened their mindsets to take actual risks in business. In contrast, a management consultant is not capable of doing the same. It’s because they are just consultants making advice. Hence not their own money they are investing in, and therefore, their risk-taking threshold is practically low. Also one of the reasons why management consultants are less dubious in comparison to an entrepreneur. Entrepreneurs, by nature, might appear charismatic but are also equally skeptical.
Who is the Multitasker?
Well, the answer is pretty evident. An entrepreneur has the responsibility of managing the entire organization, which means juggling multiple tasks. Whereas a management consultant has a more specific responsibility, he/she is responsible for performing only a single task at an instance. In short, the role of a consultant is more specified & restricted.
Does Management Consultancy Prepare you for Entrepreneurship?
The answer is no.
Even though the role both perform within an organization is similar, it does not mean they are relative. While management consultancy does equip you with various skills, it does not educate you on multitasking & risk-taking. These are the two areas in which an entrepreneur excels. Simultaneously, an entrepreneur comes with an innate trait to develop profit-generating ideas and bring them to life. Here’s something a management consultant can’t easily achieve. Entrepreneurship isn’t a skill that can be developed over time; it’s a mindset.
What are the Steps of Becoming an Entrepreneur?
Just in case, if you have what it takes to be an entrepreneur, then you need to pass three different stages.
Stage 1 – Idea Generation
Idea generation is a stage where two of your abilities are tested.
- The first one is your ability to innovate.
- The second one involves your ability to take the initiative.
An entrepreneur should be able to think, research and discuss their ideas in the most effective way. They need to be very proactive and charismatic to express whatever they have as a belief.
Stage 2 – Prototyping & Development
In this stage, an entrepreneur should possess the following two capabilities, which include:
- The ability to plan up and foresee the results.
- The ability to learn & perform effective networking.
Planning is the core part of any entrepreneur’s skill set. Without sufficient planning, no entrepreneur can generate results. They should also be able to set realistic deadlines & organize teams to achieve it.
Stage 3 – The Entrepreneur Growth Hack
The last & final stage of entrepreneurs is all about
- Setting up a focus on profit generation
- Having the capability of analytical thinking.
These two areas will enable an entrepreneur to growth hack and earn remarkable success in his venture.
So there you go.
That’s just about everything you need to know about how an entrepreneur is different from a management consultant. Do you have any questions or would like to share your feedback? Please share it with us.