Why entrepreneurs should be wary of calling themselves 'creators'

In a content-driven world we are all creators to an extent. But entrepreneurs who see themselves first and foremost as a 'creator' could have it the wrong way round. Here's why.

In my work as a business coach I’ve noticed people using the terms ‘creator’ and ‘entrepreneur’ to describe what they do interchangeably.

Many entrepreneurs create content and many creators go on to build businesses from their content and so it makes sense that this happens.

But whether you decide you are on the creator path or the entrepreneur path matters in order to make strategic decisions about where to invest your time, money and energy in your business.

I know for many of my clients and for myself too, we can describe ourselves as business owners whose content drives demand for our business. Or perhaps as an entrepreneur with a publicly facing persona. When these things are true, being an entrepreneur who calls themselves a creator seems natural.

Yet I have written today’s post to offer a clear cut explanation on how the two differ. Which, as it turns out, it is not purely semantics. I needed this as much for myself as anything as I both run a coaching business and this newsletter; which takes up a lot of my time often at the expense of other business projects. I get confused, too.

Read on if you are new to the entrepreneurial journey and are deciding which fork in the road to follow, or if you too exist in the grey area between creator / entrepreneur and crave clarification.

And if you’ve just discovered this newsletter, I write advice for high-achieving professionals who want to ensure their new business is a success.

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The worlds of ‘creator’ and traditional ‘entrepreneur’ collide

Let’s make this clear: we’ve witnessed many multi-million dollar businesses start out as a blog/podcast/YouTube channel. In these instances, it is clear that the individual at the helm of the business is a highly talented content creator who went on to build systems, teams and brand equity. What started out as content spun off into other products and services.

For example:

Goop, Gwyneth Paltrow’s lifestyle brand, began as a weekly newsletter and grew into an eCommerce, media and events in 2018 valued at $250 million

Jimmy Donaldson aka MrBeast started his YouTube channel in 2012 and today earns $54m+ (supposedly more than Jay-Z, for reference) including running a fast-food restaurant chain MrBeastBurger which saw $15M+ in revenue in its first 48 hours of launch.

It is also clear how the ‘entrepreneur’ and ‘creator’ worlds are blurring due to the influx of investment from VCs in Silicon Valley and beyond. The Information estimates that VCs invested $2 billion into 50 creator-focused start-ups in 2021 alone.

Not without some skepticism however, as this same NY Times post explores:

Source: nytimes.com/2021/07/12/technology/content-creators-venture-capital.html

This trend also requires that we acknowledge the inherent challenges that creators beholden to the platforms and algorithms experience. Relying on unpredictable third-party apps for your livelihood is a dangerous pastime. Backlash about the injustices creators face at the hands of these giant tech companies is not hard to come by.

Headlines like When TikTok makes more, its creators make less, Adult Content Creators In The Lurch As OnlyFans Bans Porn and Four Black Creators File Suit Against YouTube, Alleging Racial Discrimination In Algorithm reveal some of the story.

Being a ‘creator’ is a unique experience, largely defined by building an audience on platforms where audiences can be found. But is an experience that many actively seek out thanks to the rewards it can bring in a world that profits from clicks, impressions and attention online.

But for you readers let’s consider question at hand: i) should an entrepreneur consider themselves a creator ii) does it even matter? I would argue i) no and ii) yes.

That is because entrepreneurs who identify too much with being a creator first and foremost may well be spending their energy on the wrong things.

Content creation is not always the best use of an entrepreneurs’ time

As digital natives living in a content-driven world, many younger entrepreneurs I coach especially, assume that their business will grow if they have a bigger audience. An audience either for themselves as the face of the company, or for the business itself.

But having a bigger audience does not mean your business is automatically going to be successful. What creates success in business is both an art and a science.

It is a combination of strategy, a stellar product, decisive leadership, flawless execution, demand that outstrips supply and so many factors which account for the fact that the entrepreneurs’ role is such a demanding one.

At its core, however, the role of the entrepreneur is to keep their business alive. Therefore entrepreneurs should prioritise building a product or service that people actually want to buy.

Once they have something that people want to buy then sales and/or marketing becomes the machine by which more people become aware of the offer, and continue to buy and so the cycle continues.

Content is one part of the machine that will drive demand for your product/service but it is not the only one. Others include partnerships, affiliates, relationship based sales, adverts and sponsors, network marketing etc.

In my conversation with John Bardos (I interviewed John on what it means to be a creator and play the creator game) we also discussed how, for many business owners, social media and content creation is not the best use of their time.

John gave the example of his marketing agency that sold retainer projects, and to make this sale he would directly approach target clients and share client testimonials. Perhaps even offer free or discounted work in the early days to build sufficient case studies.

No online content like being on Twitter, is needed in such example.

John said if he ran an SEO agency today there is no way he’d write blogs on SEO given how much is already written on this, because his chances of standing out would be so slim. Instead, he would approach companies directly to offer services.

But that is often the opposite of what we want to do as entrepreneurs. Many, myself included, would prefer that our clients come to them. It feels less icky or vulnerable than approaching someone cold asking for their business.

Creating beautiful graphics on Instagram, threads on Twitter, or reels on TikTok might feel easier and safer but, in isolation, it is unlikely to move your business forward. You may succeed in entertaining your target client, but you may not convince them your business will solve their problem.

Entrepreneurs often hide behind content creation as a means of feeling productive, when it is rarely what their business needs them to be doing.

“I feel like I have a ticking money clock above my head” I told my own business coach in a session yesterday. With two team members and travel plans this year the costs are racking up. I know that the only person responsible for bringing in business is me.

Often what I need to do is the thing I want to do the least: ask for the sale.

For my clients the story is the same. Two of my current clients in the product space have ordered vast quantities of stock for something they have created from scratch. Beautifully designed, unique and game changing products that have huge potential.

They want to tell the story around their product and why it needs to exist in the world. And they can and should.

But until they have sold all of their stock or paid back what they have spent from their personal savings, my feeling is that they will not feel successful. Even if they get millions of followers in the process.

So dear readers. Some hard truths here but let’s be real. Creating content is often fun, and can feel good when we get likes and comments. But creating demand and ultimately selling what you have built is your number one job.

If you’re spending a lot of time updating your bios and monitoring your follow count please check yourself.

So for the entrepreneurs reading this feeling relieved that creating content doesn’t have to dictate their founder journey, then I am glad to be of service. Keep doing your thing.

But for those left feeling somewhat unsure, either because they have seen their companies grow as a result of their content, or because they don’t just want to be an operator but also want to be a thought-leader or public figure. To you I would say that you are probably an entrepreneur with a strength in being a creator. So continue to do content creation if it is driving demand for your business and then use the sales to pay for team to support you run the other parts of your business.

Or if it is thought-leadership credentials you seek because you want your business to stand for something in the world — know that having a successful business first is what will draw attention to you and what you have to say thereafter. Build your business, then share your story.

You get to choose if you are on the creator path or not.

Entrepreneurs don’t always get to choose what to spend their time on since their business operations (or shortfalls) will dictate that for them. Creators — on the other hand — do get a choice.

For the creator, the stakes are lower. You can be a content creator and do it alongside a job, or even as your job inside of a company that needs content, and leave the other parts of running a business behind in the process.

If you want to focus purely on creating, you can and may find yourself happier for doing so. But if you choose to build a business around your content you will find that in the process of doing so you will move away from the role of content creator and with a whole new set of responsibilities.

A creator gets to play around in the phases before they make money from their content.

Being a creator should be fun. It should be about discovering what you enjoy, what is creative and unique and in the process figuring out what other people find valuable along the way. This comes from following your curiosity because if you are interested in it, you’ll find others who are interested along the way .

Don’t force yourself to be a creator if you aren’t a natural creator. To cite John Bardos again, he said he often hears people complain of creator burnout and describe the creator economy as being like the gig economy in its exploration of people.

People who consider that the ‘algorithm is rigged against them’ and don’t get as many views as they would hope to may consider themselves on the wrong path if they are not enjoying the content creation process.

However, if you have already started down the path as a creator and believe that your next steps are to build a business that is bigger than your creations alone then know that your energy and time should soon be directed towards new, and perhaps uncomfortable, new directions.

To run a successful business requires no longer just doing the fun stuff but whatever your business needs you to do to be successful.

Don’t just take it from me. Josh Spector, the expert on creators who can profit from their creations couldn’t have said it better:

Success in the creator economy requires an entire skill set beyond creating cool stuff

— Josh Spector

This is best explained by Josh himself as you read this thread:

Josh Spector @jspector

Creators are not the future. Creative entrepreneurs are. Here’s why…

In reading the thread you’ll Josh’s take on how key it is for creators who want to be successful business owners to learn the other business skills that go alongside their creations.

So thank you for indulging me as I explored this distinction. I would love to hear your take in the comments below — perhaps you see this differently?

And if you are you on the entrepreneur path and feel that you may be spending too much time on content creation and not seeing results in your business, or you are a creator with appetite to take on the wider remit of business operations and feeling somewhat lost or confused, I can help. My availability for new clients is opening up again at the end of March and I would love to connect with anyone who is ready to invest in working with a coach so that they can ensure their new business is a success and find the clarity, confidence and a structured plan they need. Book a free no obligation consultation here.

If you’ve enjoyed todays’ post might I recommend reading some of the posts that have influenced my thinking:

• Nathan Barry, The Billion Dollar Creator — charts the path from being a blogger to create a multi million dollar SaaS company and talks about the other big name creator who are actually running empires.

• Will Joe Rogan ever IPO? How personality businesses could be the next set of unicorns.

• From last week’s post for those just reading today: The Great Online Game by Packy McCormick again and Succeeding in the Creator Game by John Bardos

• The Minimalist Entrepreneur — book by Sahil Lavingia

• One of my own earlier posts:

  How the desire to maintain a personal brand may be harming your business.

Thank you for reading as always!

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Ellen Donnelly, Founder + Chief Coach, The Ask

I help ambitious, entrepreneurial professionals decide and plan their next career pivot or business idea so they can feel clear and excited about their future. Apply for coaching.