Obtaining wealth may not be an entrepreneur’s primary goal when embarking on a business startup. Many entrepreneurs choose to go into business because they are deeply passionate about an idea, product or service, and hope to become wealthy as a bi-product of their ingenuity.
Passion for an idea can lead to total involvement in the startup business; however, wealth can be compromised when a founder can’t step away, or when he/she is not able to relinquish control.
According to The Journal of Business Venturing on ScienceDirect.com, “Given the uncertain success of launching new products and services and the challenges of developing new organizations with limited resources, passion can become a key driver of entrepreneurial action.”
When analyzing whether passion influences an entrepreneur’s need for maintaining control, due to being invested in the business idea, it’s also important to note passion for the idea can also fuel the need to fulfill long-term goals that impact future wealth.
There are different levels of entrepreneurship and one would assume that if a person is deeply passionate about their idea, then they would be less likely to let others make the “big decisions.” However, a high level of passion could lead someone to want to expand the business, create a franchise, or to get involved in founding a new venture.
There are decisions to be made with a new start up business. Who will be the Chief Executive Officer (CEO) and what is the approach to organizational decision-making? How far and fast should the company expand?
Psychology Today confirms, “entrepreneurs make huge emotional investments in their ideas….their business becomes their identity. Any loss or failure is no longer just about time and money. It is about their self-worth.”
It’s easy to understand how an entrepreneur may never want to step away from a business where they have invested so much or their time, money and a significant part of their core identity; however, this level of passion can lead a forward-thinking entrepreneur to even more success. More wealth can be obtained by what the The Journal of Business Venturing refrences “The Corridor Principal,” indicating “a long-term view should be taken, one that includes the likely possibility of multiple ventures.”
The movie The Founder is a perfect example of how the founder of McDonald’s Corporation, Ray Kroc, followed the Corridor Principal toward achieving a higher level of success by opening several restaurant franchises.
His vision for creating something much larger lead to growth and opportunity for the company.
In contrast, the original founders remained intimately involved in the day-to-day operation of the first McDonald’s restaurant, and they consequently sacrificed a significant gain in personal wealth.
Ray Kroc, as seen in the below Youtube movie trailer, is clearly operating out of a passion for the business on an entirely different level; focusing on wealth rather than control.
A passionate entrepreneur may want to maintain control like the original founders of the first McDonald’s restaurant; however, an equally passionate founder with a long-term focus can relinquish control, like Ray Kroc, in an effort to expand the business, gain more wealth or move on to something larger.