The Critical Difference Between an Innovator and an EntrepreneurMichael Chen New Canaan

The Critical Difference Between an Innovator and an Entrepreneur

A resident of New Canaan, Connecticut, Michael Chen serves as a general partner with Chen & Associates, a firm also based in New Canaan. A prominent media investor, Michael Chen often works closely with budding entrepreneurs seeking investment capital. One of the most important lessons that these individuals must learn is the difference between innovation and entrepreneurship. Innovators create new ideas, while entrepreneurs understand how to commercialize these ideas.

The Critical Difference Between an Innovator and an Entrepreneur

To catch the attention of an investor, entrepreneurs must demonstrate not only a great, novel idea, but also how that idea will translate directly into profits. The business plan that an entrepreneur creates must reflect a great deal of thought on basic business processes. This level of detail will distinguish someone as not just an innovator, but a true entrepreneur.

The Critical Difference Between an Innovator and an Entrepreneur

A business plan should point to existing clients and the potential for developing new relationships, provide for real-time monitoring of the supplier-client relationship, and anticipate problems that the business will face in terms of regulations, competition, and industry shifts. In addition, entrepreneurs should show ways of diversifying their idea across a range of products and geographic locations.