Surely you have seen a similar image to this in Linkedin, where a businessman is compared to an entrepreneur. Basically what the businessman does is to sell the same product more expensive, thanks to his commercial skills and / or to his Know-how of the product. The entrepreneur, on the other hand, transforms the product providing an added value detectable at first sight in order to sell it much more expensive.
Remaining in the superficial side, the image is shocking and the entrepreneur comes out very well. It doesn’t happen the same to the businessman, who, if we simply guide ourselves through the image, can almost be considered as a scammer.
In both cases, it does not refer to the costs incurred by acting one way or the other. In case of the businessman we do not know whether he has sold the product elsewhere or whether he sold it in a different moment from when he got it or even to whom he sold it. Of the entrepreneur we don’t know either what he needed to transform the product, if he needs other materials to produce it, how long took the production or if he needed any expert or f maybe he needed some extra knowledge.
The other day, having dinner with some friends, we discussed this issue due to the more classic economic activity of one of them and due to my sector. He trust more in traditional businesses and I defend that we live an exceptional time where every day a new business that is going to change the world comes up. The debate went on a long way and among other things, I thought, that there is another kind of entrepreneur who is presented as a model of success and who we should imitate. I baptized him as: Blowuper. It is, in essence, an entrepreneur who creates a “blow up” company, bloat by a lot Marketing and having as unique KPI the growth of the customer database. Customers who do not necessarily have to pay for the product or, at best, pay a price not higher than the cost (as in the picture below).
We live in an atypical age where the excess of liquidity is lowering the rigor in investment criteria. This situation gives wings to the Blowupers, who can bloat their bogged down businesses through this excess. These businesses, without this blockage and due to their business model, where the operating margin is negative (any financiers get their hair stand on end with this term), are doomed to fail.
In June it closed (less in Brazil) the Hispanic portal par excellence (Terra) and, before Google, the web browser par excellence was Altavista. Probably, when the expected correction in the system will be done, we will say phrases like: do you remember when they brought everything home? Or when a premium services car cheaper than a taxi was waiting for you? Do you remember the Snapchat? What happened to it all? Anything, the tide just went down. And it will be then when we would realize who was an Entrepreneur and who a Blowuper.