A serial entrepreneur establishes many companies in succession, as opposed to starting one company and remaining based on it for several years, as a more traditional entrepreneur would do.
After achieving a certain degree of success, serial entrepreneurs can sell their businesses. They can maintain ownership while delegating management responsibilities on a day-to-day basis to others.
Alternatively, if the business does not work as anticipated, they will close it down and move on to the next idea. The serial entrepreneur has several extremely influential businesspeople in their network.
Serial entrepreneurs-led startups are commonly viewed as lucrative investment prospects by venture capitalists.
It is not unusual for individuals to establish companies, struggle, and then attempt again. Serial entrepreneurs are widely regarded as a distinct breed due to their track record in founding many profitable businesses.
There is no minimum number of companies required to be called serial entrepreneurs, although three could be a good starting point. Not all companies need to prosper or generate income.
However, most individuals classified as serial entrepreneurs have achieved at least a handful of significant and lasting milestones.
What is a serial entrepreneur?
A serial entrepreneur is someone who is extremely innovative in generating new business ideas and works diligently to implement these ideas to establish a new business.
These are individuals who aren’t afraid to fail and will transform their mistakes into opportunities for greatness.
Not everybody can do something spectacular with their creative innovations, and not everyone is capable of running several companies concurrently.
A serial entrepreneur thrives on creativity and brilliant ideas to create a magical outcome.
How Can Serial Entrepreneurs Organize and Manage so Many Businesses?
Just because a serial entrepreneur generates a business plan does not mean they can carry out the everyday operations of these new ventures.
Once the business plan gains traction, the serial entrepreneur can recruit employees to operate it exclusively. This way, they would be willing to devote more time and attention to each of their business enterprises.
Now we see what you’re saying. Why would a successful businessperson consider beginning something fresh from scratch, particularly when their current endeavor is doing so well?
That, in reality, is what qualifies them as serial entrepreneurs. They want to test all of their novel theories to see how they can transform them into anything extremely profitable.
This allows them to test not only whether the latest product can succeed in the industry, but also to increase their visibility and see how adept they can become at multitasking.
And, of course, who doesn’t like earning a little extra cash?
And becoming a serial entrepreneur should not imply that you are solely responsible for launching a new enterprise.
This may also imply collaborating with another person on a business idea. This may also suggest that you’re launching several brands under the same business name.
A serial entrepreneur is someone who values creativity and enjoys juggling many business ideas concurrently (whether these are new products, new services, or a new subpart of your already existing company).
The Advantages and Disadvantages of Serial Entrepreneurs
Although each company is different, the method of starting a company shares many steps in common. Serial entrepreneurs discover how to get an idea for a company moving and off the ground through experience and also the hard way through errors.
Along with skills development, they establish contacts with partners, skilled workers, and those that can assist them with their next venture.
Due to the importance that experienced startup founders offer, venture capital investors have shown a preference for funding startups created by serial entrepreneurs. This preference is not limited to serial founders with a track record of successful startups.
According to this perspective, failure can be a valuable training tool, and the previous failure can prepare the way for potential success.
Serial entrepreneurship is not without its drawbacks and challenges. For one thing, a serial entrepreneur who creates and sells a business prematurely will miss out on the opportunity to garnish great wealth from it.
Another concern is that a serial entrepreneur would be interrupted shortly after beginning a company with a proposal for a new venture. This will result in the entrepreneur failing to devote sufficient attention to the first company, causing it to collapse.
Also, you may like to read, How to quit a startup you founded
What Are Some Examples of Well-Known Serial Entrepreneur
Several well-known and successful entrepreneurs are simply serial entrepreneurs. With that in mind, here are four serial entrepreneurs that have successfully launched and grown many companies.
1# Elon Musk
Elon Musk is better known for Tesla, but he was a prolific serial entrepreneur before entering the electric car company.
He created and marketed his own video games, co-founded Zip2, a multimedia entertainment business that assisted other newspapers and print media in transitioning to the internet, and entered and extended PayPal.
Though Musk is transforming Tesla, he is still hard at work on his next company, SpaceX.
2# Oprah Winfrey
You’re already familiar with Oprah Winfrey as a tv host, but you might not know that she is a serial entrepreneur. Winfrey created Harpo, her own production house, Oxygen Media, as well as several other print and publishing businesses.
Additionally, she holds ownership of the Oprah Winfrey Network, where she creates and appears in various television shows and films.
3# Sir Richard Branson
Sir Richard Branson, perhaps the most prolific serial entrepreneur of all time, began his entrepreneurial endeavors at a young age.
He started his own student-run print publication and later founded the world’s first mail-order record company, Virgin, which later branched out into a recording studio and record shop.
Branson has also created several businesses in the tourism, beer, and broadcasting industries and continues to be one of the world’s most successful serial entrepreneurs.
4# Wayne Huizenga
Wayne Huizenga was another well-known serial entrepreneur, having created three multibillion-dollar businesses. Huizenga began his career in the late 1960s with Waste Management, followed by Blockbuster in the 1980s and AutoNation in the late 1990s.
Throughout his career, he also owned three separate sporting teams: the Miami Dolphins, the Florida Marlins, and the Florida Panthers. He also established several other businesses.
Also, check out, How much money do I need to quit my job and start a business?
What Is The Difference Between A Conventional Entrepreneur And A Serial Entrepreneur?
The primary difference between the two forms of entrepreneurs is their level of passion.
A typical entrepreneur would not share the serial entrepreneur’s enthusiasm for simultaneously launching many business ventures.
The following traits distinguish a serial entrepreneur from a typical entrepreneur:
# They Are Passionate
Serial entrepreneurs are passionate about their entrepreneurial plans and would go to great lengths to ensure their viability.
For starters, as they come up with a new venture concept, they immediately begin developing the business plans necessary to make it a reality. They launch the new venture by using their wealth, including their capital.
They are ecstatic about their new business idea which motivates them to function diligently in that direction.
Once the latest plan begins to demonstrate signs of success, they often pass on to another project, thus leaving the existing venture in the hands of a team.
# They Are Not Motivated By Money
A serial entrepreneur is motivated by more than just financial gain.
This is not to say they are not interested in gains, but they are not solely concerned with material benefit.
They have so many strategies and have used their marketing proposals on how to increase the chance their business idea succeeds.
It is their motivation to transform their startup into a success. After that, they move on to their next company concept.
# They Are Extremely Effective Connectors
Serial entrepreneurs excel at networking and building relationships with others, as well as connecting with other individuals.
As successful networkers, they agree that we have two ears and one mouth and that we can use each of them proportionately. They are receptive to people’s wishes and worries and look for ways to assist them.
To really create an empire, you must be willing to develop genuine partnerships with influential people and have value to each of them.
# They Fail But Retry
Experimenting with innovative industry ideas is a significant challenge. A typical entrepreneur may be unable to spend their capital and time in a new business plan, fearful of failure.
A serial entrepreneur, on the other hand, is bold and willing to take on the risk of launching a new company and testing it in the business industry.
They are adamant about their concept and their own potential to make their many projects succeed. As a result, this enables them to assess consumer dynamics and make informed strategic choices.
# They Are Successful Team Members
As a serial entrepreneur, you are not required to be the sole leader of the business idea.
It’s beneficial to be a team member and solicit assistance from individuals or investors that can assist you in achieving the aim of making your new company plan into a profitable venture.
For instance, if you have an idea relevant to an industry in which you lack sufficient experience or skills to demonstrate it technically, the best course of action will be to collaborate with someone who is intimately familiar with that industry.
You would not only profit from their experience in that field, but you will also gain a great deal from them, which will aid you in the potential development of your company.
# They Make Efficient Use of Any Resource
Many entrepreneurs aspire to be the sole proprietors of their companies.
They are opposed to including anyone because they will have to compensate them. Serial entrepreneur, on the other hand, takes a gamble to make the most use of the opportunities available to them.
There are a plethora of freelancers available who are willing to take on significant projects for your company. You can contact them for a really low price, and they can really assist you with simplifying the job. And this is precisely what a serial entrepreneur does.
For example, they can employ a freelance social media manager to maintain their Facebook or Instagram accounts, ensuring that the social media profile remains successful and relevant.
# They Are Pioneers
A modern company plan is not necessarily an original one.
However, you will innovate and turn something common and boring into something extraordinary. That is precisely what serial entrepreneurs do when they get an invention and discover that the demand already exists for it.
Serial entrepreneurs strive to innovate to make their concept more original or to contribute to the creation of something that does not yet exist. That is why they are referred to as innovators.
# They Are Sophisticated Strategists
Managing several companies concurrently necessitates developing plans for managing them all. You cannot allow a new company to operate on its own.
You need a vision, a strategic plan that will aid in the growth of your new company.
Serial entrepreneurs, of course, appreciate the value of strategizing their company ideas and recruiting the appropriate employees to assist them in juggling their various business endeavors.
# If they can do it, so can you!
Traditional entrepreneurs believe they can never attain the prosperity they want. However, once you consider all the success stories surrounding you, you would be inspired to emulate them, if not outperform them.
Oprah Winfrey is a prime example of this since she is one of the living icons of Serial Entrepreneurship. She began her career as a television anchor and later established ‘Harpo Productions, Inc.
She is well known for her talk show, ‘The Oprah Winfrey Show,’ and has inspired many serial entrepreneurs. Not only is she a co-founder of the renowned cable network ‘Oxygen,’ she launched her ‘OWN’ Oprah Winfrey Network in 2011.
Nobody is born with the ability to start a profitable company. It takes a great deal of commitment and collaboration to get it to its maximum potential.
If you have a creative business plan and want to test it out, you must be secure in your ability to turn it into a reality. You cannot begin anything if you are uncertain. Therefore, be secure in your business ideas and in yourself. You are capable and can make things happen.
Bijay is an entrepreneur and start-up founder having more than 14 years of IT industry experience. He is the co-founder of TSInfo Technologies, a SharePoint development company.
A dedicated professional and very passionate about public speaking and also wrote thousands of technical blogs in various technologies. He also wrote a lots of blogs on entrepreneurship, investment, startup, business, manage money tips, etc.