Entrepreneurship Creativity: How to Turn Your Passion into Profit and Why It's Important
Are you truly passionate about something? Are you a creative person looking to potentially start a creative enterprise? Do you have a great idea that could help people?
If yes, then why don't you turn that passion into profit?
Entrepreneurship creativity is a critical component to business success, and if you are creative enough and have a solid business model, practical skills, and the drive to make it happen, you have the potential to help thousands of people while also financially benefiting.
It may one day allow you to have the freedom to do what you want, when you want, and with whom you want. Just think how that would feel.
Creativity is a vital element in entrepreneurship; however, without an understanding of the core pillars of a business, your enterprise is likely to fall over, and your days as a creative entrepreneur will soon be over.
In this article, we will talk about creativity in entrepreneurship and the four business pillars that you need to know to help turn your passion into a profitable business.
The Key to Turning Your Passion Into Profit
So first, let’s start off by defining the word "passion." If you Google it, it comes up as an adjective meaning "full of enthusiasm or eagerness for something."
But in this context, we're referring to a noun that means intense love or devotion to something.
If you have a strong passion for the creative process and a desire to create things that add value to people's lives, you are likely to be willing to go the extra mile to help more people, which will lead to even greater entrepreneurial success.
You'll put everything you've got into the entrepreneurial process because you believe in it. And that belief will fuel your motivation and determination during the creative process, helping you to keep going.
Entrepreneurship is inherently difficult and will push you harder than you ever believed you would be pushed.
If you're not truly passionate about what you're trying to achieve and why you want to achieve it, you'll find it very difficult to stay at it during the hard times. You simply can't just rely on your creative genius to carry you through!
Now, many people think that they need some sort of special talent or skill to succeed in business, but the truth is, anyone can become successful if they believe in themselves and put in the work that's required to develop themselves, whether that's entrepreneurial creativity, communication skills, lateral thinking, or critical thinking. It can all be learned, developed, and improved if you really want to!
With no further ado, let's jump into what the four pillars of a business are.
The Four Pillars of a Creative Business
There are four basic pillars of a business that, for you to succeed, you really need to know before you start and while you are on your entrepreneurial journey. These consist of product or service, legal systems, communication, and cash flow.
By having a clear understanding of these and what they exactly mean, you will be in a good position to help turn your passion into a profit, from business start-up through scaling and hopefully one day selling it for 6 or 7 figures.
1. Product or service: provide value that you can sell
The core principle of any business is to provide value to a customer or client via a product or service for both.
Creative people in creative industries need to be clear on the value they are providing to their customers and how they will feel when they have worked with them or purchased from them. It's easy for creatives to want to solve multiple problems for multiple people all at once due to the number of great ideas that can come from tapping into their creativity.
However, you need to focus on providing value by focusing on one problem at a time and creating a product or service that meets your customers needs. By understanding your customers needs and delivering solutions that meet those needs, you could turn your passion into profit as a creative entrepreneur.
If you are not providing any value to customers, they simply won't return to you, recommend your products or services to friends, or even buy from you in the first place.
It is therefore imperative that you use your entrepreneurial creativity to work on developing products and services that provide greater value to people in their everyday lives.
Below are some questions to ask yourself to help outline what value you are providing to customers.
- Why would someone not buy your product or service?
- What will they say to her friends after using the product or working with you?
- If someone were to describe your product or service in three words, what would they be?
- What makes your product or service superior to others?
Once you are able to answer these points on adding value with ease and clarity, you'll be one step closer to turning your passion into profit.
2. Legal: protect your assets and yourself
I know what you're most likely thinking—this sounds like the boring bit! If you really want to make it, it can be tedious.
However, having the required legalities in place will ensure both you and your business are protected from uncertainties, and when things go wrong, as they always do, you can sit back and relax a little more than you would if you didn't have them in place.
What's more, you'll save yourself time and a lot of money by not having to spend hours on end dealing with legal issues that could easily be avoided by having your legal affairs in order.
Insurance is for protection against risks. The more risk you take, the higher the premium you pay. Insurance protects you against losses caused by things such as fire, theft, accidents, natural disasters, etc.
When starting out, you should always get insurance coverage for your property, equipment, inventory, stock, and other items that may be lost or damaged.
Intellectual property (IP)
Intellectual property refers to anything created by an individual that has economic value. IP includes patents, trademarks, copyrights, trade secrets, domain names, logos, slogans, brand names, designs, software, websites, apps, songs, books, recipes, inventions, etc.
Patents are granted to inventors who come up with new ideas or processes that could potentially benefit society. Patents protect the inventor's idea and give them exclusive rights to use it.
Trademarks are used to protect the brand name, logo, slogan, or other identifying marks associated with a product or service.
Copyrights are used to protect original works of authorship such as books, music, and artwork.
Trade secrets refer to confidential information that is not generally known and gives the owner an advantage over competitors.
Domain names are used to identify a website and are registered with the Internet Corporation for Assigned Names and Numbers (ICANN).
Having your IP protected is essential if you want to turn your passion into profit. It will help you protect your ideas from being stolen or copied by competitors, as well as give you exclusive rights to use them.
Health and safety
The term "health and safety" is generally used to describe occupational health and safety and relates to the prevention of accidents and ill health for employees and those who may be affected by their work.
Confidentiality and non-disclosure agreements (NDA)
A confidentiality or non-disclosure agreement (NDA) is a legal contract that prevents the disclosure of certain types of confidential information.
Confidential information may include the company's business plan, financial data, product designs, customer lists, and other proprietary information.
Not all of these legal elements might be relevant to your business right now; however, they are something to keep in mind so that they can help iron out some of the bumps in the road.
Systems: automate and scale
If you are looking to grow and scale your business, systems are key. Systems allow you to automate repetitive tasks, manage multiple clients, and streamline operations.
Automation allows you to focus on growing your business rather than doing everything manually. Moreover, entrepreneurial creativity allows you to think of how you could do what you do now differently so that you could automate it.
For example, managing multiple clients can be tough and demanding; however, you could use your entrepreneurial creativity to create a system that manages all of your clients' needs. Streamlining and automating operations results in making every aspect of your business run smoothly and more efficiently.
As a result, you save time and money, allowing you to focus on working on your business rather than in it. And working on your business allows you to focus on what you need to do to scale it.
Outlined below are some examples of what you could automate within your business, along with some highly useful automation tools.
Examples of what you could automate:
- Email marketing
- Lead capturing
- Spend Management
- Customer segmentation
- Social media
- Workflow tasking
Some great automation tools to implement in your business (stop being a busy fool!)
- Hive is a project management platform for hybrid work, shaped by users.
- Hubspot is a CRM platform that’s both powerful and easy to use.
- Mailchimp is the #1 email marketing and automation brand.
- Keap is a powerful CRM, sales, and marketing automation platform.
- Leadsbridge: marketing integrations with CRM software
- Zapier automates your work across 5,000+ apps.
- ActiveCampaign: email marketing, marketing automation, and CRM tools
- Airtable connects your data, workflows, and teams.
- NapoleonCat: engage and support customers on social media.
- Engagebay is one platform for all your marketing, sales, and support teams.
- ClickUp: all of your work in one place: tasks, docs, chat, goals, and more.
- Groupboss: CRM for Facebook group owners and community leaders
- FindThatLead, a B2B sales prospecting tool
- AppFlows: create smarter and more behaviour-driven email automation
- iSmartRecruit: smart AI recruitment software
There are a multitude of automation software platform providers out there, and there is no right or wrong platform to use.
It simply comes down to what works best for your business right now based on the amount you have to spend, the operational requirements, and the future trajectory of where you want the business to go.
3. Communication: improves efficiency and awareness
Communication, both internally and externally, is a vital element of a business. As the old saying goes, "communication is life's biggest failure." If you're not effectively communicating in and out of your creative business, it is highly likely to struggle and fail.
Internal communication is essential for keeping everyone informed about what's going on within your business, what they are all required to do, and when they need help. This is commonly done by having clear goals and objectives, regular meetings, and using technology to make sure everyone knows what's happening.
External communication is important too, as it is essential to regularly communicate with customers, suppliers, investors, and other stakeholders.
Whether that's through the use of a website, social media presence, email list, blog, newsletter, etc., you are essentially communicating with people outside of your business.
Marketing falls under the pillar of communication, as it is how the business communicates with existing and potential customers and clients.
Marketing includes things such as advertising, public relations, branding, sales, lead generation, content creation, etc. Without an effective marketing strategy, your business will drift around in search of sales like a pirate ship looking for gold.
Entrepreneurial creativity is a key element in the creation of marketing collateral as it enables engaging and unique informative content to be produced, which will hopefully result in greater sales.
If you don't have customers, you don't have sales, and if you don't have sales, you don't have a business.
4. Cash flow: Develop your ability to sell
Beautifully rolling on from my last point, "no sales means no business," developing a strong cash flow is one of the most important aspects of running a successful business. You'll want to develop a plan to generate income from day one and remain mindful of your financial circumstances.
It's essential that you lay out your budget ahead of time and always plan for unexpected expenses. Additionally, it's important to take into consideration long-term goals and stay agile to adapt and adjust if needed, depending on the ever-changing environment we are living in today.
A great way to ensure a steady income is to focus on creating multiple streams of revenue, such as by offering new products or services, selling promotional items, renting out space or equipment, etc. This will help build a solid financial foundation and keep your creative business afloat through any rough patches that may arise throughout the lifespan of an entrepreneur.
It's also worth noting that if you are unable to generate enough income to cover your expenses, then you won't be able to grow and then scale your business.
If you are thinking, "Well, I don't have any products to sell yet," then you can use your entrepreneurial creativity to find a way to pay for your initial expenses, such as an office hire cost or that software.
Could you have a part-time job to help bring in a little bit of money? Could you make things that you know how to make and for which there is a need, which would then provide money to fuel the business that you want to set up and run in the long run?
From my entrepreneurial experience over the years, you can have a strong business structure and employ great creative thinkers; however, if you are generating no sales over a period of time longer than you can afford, you will have no business!
Make sure you have a plan for your cash flow, and have fun being creative in how you generate it!
Work for Free to Realise Your Brilliant Vision
Just bear with me on this one; I'm not meaning that you won't make any money or that you don't need to charge your customers or clients for your work or services.
There will be a lot of work that you will need to put in that won't directly generate any money.
Most professional athletes practise for years, many paying for lessons and coaching, and they put in hundreds of hours before they get paid. They had to do their homework before they got their paid jobs as pros.
Let's throw another example into the mix.
Doctors will spend many years studying their craft, paying for their education, gaining degree certification, and passing examinations even before they're allowed to perform their craft on real people.
And even once they're allowed to practise their craft on real people, they still have to take further examinations if they want to specialise in a certain area.
It is only then, when they become experts in their field or particular niche, that they can really start generating a return on their investment.
To be a successful creative entrepreneur, you need to master your craft; you need to put in the work to develop your skillset and mindset to enable you to succeed, and no one is going to pay you to do this!
You will need to put in the extra hours into a wide variety of tasks, whether that's learning about how to develop an operating plan or working out the route to market for your product or service.
Entrepreneurship: Creativity is Too Important
Entrepreneurship creativity is a key element to success in creative industries, as, without creativity, your business will end up being the same as any other business and is unlikely to serve the customer any better.
Entrepreneurial creativity is not just about coming up with new ideas; it's also about a wide range of different perspectives on how we can see the world and how we go about solving problems.
Listed below are some of the things that entrepreneurship and creativity give you:
Entrepreneurial creativity enables you to unlock the highest levels of creativity and come up with creative solutions that others haven't thought of and innovative solutions that wouldn't have been conceivable.
It encourages thinkers to think outside the box, explore different perspectives, take risks, challenge assumptions, and develop their unique ideas.
With this kind of creative thinking, entrepreneurs can create value in their businesses by developing innovative products and services that solve customer needs and make them stand out from the competition.
For successful enterprises, entrepreneurship creativity can give you a unique competitive edge, help increase sales, and boost brand recognition. By thinking outside the box and taking risks, entrepreneurs can develop innovative products and services that meet customer needs and set them apart from their competition.
As an entrepreneur running a business, your everyday life is basically problem-solving on repeat.
Having a creative mindset when solving these endless problems will enable you to create far better solutions than perhaps coming at it from a very rational point of view.
Different perspectives on the world
Being able to look at the world through different lenses enables us to see things differently. It's like having a whole new set of eyes.
For example, when solving a problem, you're likely to be able to see how it could be solved in a variety of different ways and ascertain the pros and cons of each. As a result, you can make an informed decision about which solution is best for your situation.
Similarly, when looking at the world around you, you may notice that some people have certain characteristics or traits that are very similar to yours. This gives you insight into what makes them tick and helps you understand why they behave as they do.
It's not that you don't have the resources; it's simply that you are not resourceful enough!
A true trait of entrepreneurial creativity is making do with what you've got or working out a way to find what you need. An example of this is feeling stuck when you're trying to use your entrepreneurial creativity to identify what to do next when growing your creative business.
You could use YouTube videos, books, podcasts, or simply have a read of our article on "How to Grow a Creative Business in 2023."
There are many different ways in which you can use your imagination to create new opportunities to improve, grow, and make your business better.
It's simply letting go of what might fail and proceeding with what you currently know about the problem and what you deem the best solution. Once your business has grown to the point where you can employ creative workers and the brightest minds, you'll have even more freedom to focus on what matters most to you.
The competitive advantage of entrepreneurial creativity
Creativity leads to the development of new disruptive innovations and different ways of doing things.
Discovering new niches and coming up with new products and services, along with greater business efficiencies, ultimately give entrepreneurs the advantage they need to succeed.
Talking of competitive advantage, a tool that will certainly give you that is the Morning Mindset Journal. It is a journal to be used daily or whenever you feel you need to generate some clarity, reduce stress, and improve your creativity and productivity.
Creatively questioning why
Entrepreneurial innovation and creativity can be a powerful tool for entrepreneurs to gain new insights into how they run their businesses or tackle operational or financial challenges.
By using creative thinking, entrepreneurs can think beyond the usual paradigms and come up with novel solutions that are tailored to their unique needs. Additionally, this type of thinking can help them identify opportunities that would have otherwise gone unnoticed.
Creative problem-solving and questioning why entrepreneurs should be allowed to stay ahead of the competition and develop innovative products that keep customers coming back for more
Creativity doesn't care if something is "usual" or "normal." It merely asks whether something could be done differently. Old ways of doing things are replaced by newer, more efficient, and more innovative alternatives.
You might be inspired by the thought of something totally different!
Unleash your employee's creative potential.
As an entrepreneur, you should encourage creative thinking among your employees, allowing them to be themselves and suggest ideas that would potentially have been previously left undiscovered.
By tapping into your team's creativity, you can reap rewards in the form of profitability, financial strength, and the effective realisation of ideas that would previously have sat dormant.
A key method of increasing the creative capability of an individual is to reduce their stress levels, as when you are stressed, it kills off the ability to creatively think. We recommend having a look at The Morning Mindset Journal and The Priority Pad as ways to help your employees reduce their stress levels, increase productivity, and be as creative as they never have been before.
Frequently Asked Questions
Here are the top questions on the topic of entrepreneurial creativity:
Why is creativity so crucial for entrepreneurs?
Creativity is so crucial for entrepreneurs because it allows them to think outside the box and come up with unique solutions to problems that a non-creative person wouldn’t even consider.
When you are creative, you can use your creative critical thinking to work on idea generation to identify solutions to problems that no one else has ever considered before. You can also discover new innovative ways of doing things that will save time and money.
Furthermore, when you are creative, you have a better chance of coming up with innovative ideas that people want to buy. Without creativity in entrepreneurship, there would be no innovation, no growth, and arguably no success.
To investigate how important creativity really is for entrepreneurs, consider for a moment your five favourite products or items.
You first bought or wanted the product because it was creatively marketed to you, making you feel that you needed that certain product in your life for whatever reason. You will have managed to survive in life prior to owning the product, so it was the power of creative marketing that made you feel as though life couldn't go on without it.
Additionally, someone, somewhere in the world, sold those items from their business, and someone within that business will have spent hours using their creative thinking to develop it to best solve the problem.
If we go even further than that, someone will have used their creativity to first see the problem and then again think, "Hang on a minute, we can do this in a better way" and sell it to people to help them and make us some money.
If an entrepreneur can't be creative, it is questionable whether they can be a successful entrepreneur.
What is creativity, and what role does it play in entrepreneurship?
Creativity is the ability to generate novel ideas, concepts, designs, and solutions. It is the process of generating ideas from within yourself. Creativity can be defined as a way of thinking that allows you to see things in new ways.
To be successful as an entrepreneur, you must be able to come up with creative and innovative ideas that are unique and original. This could involve finding better solutions to existing problems, creating greater business efficiencies, or developing products that solve the needs of the target audience more effectively than before.
To do this requires a deep understanding of your market and customers and an open-minded attitude to explore new possibilities. It also requires dedicating time and effort to brainstorming ideas until you find one that is viable and has potential for success.
Without creativity in entrepreneurship, businesses can become stagnant and cannot evolve to stay relevant.
How can creativity be used in business?
The most important thing about using creativity in business is that it helps you come up with different ideas and solutions that otherwise might not have been thought of.
For example, if you have an overload of work in your business, one way to overcome it would be to simply employ more people to get the job done quicker, resulting in higher wage costs and office costs.
However, if you were to think of the problem with a more creative mindset, you might consider reducing the number of clients and increasing fees or hiring more freelancers to handle the influx in workload as a shorter fix.
One other benefit of using your creative mind in business is that you are able to make your products, services, and client proposals stand out from the crowd with greater effect. Whether it's your branding, customer experience, customer service, etc., they all greatly help make your business more memorable than the rest, whether it's in the creative sector or not.
What's a creative entrepreneur?
A creative entrepreneur or business owner is a creative person who sells products or services to others in exchange for money. They do this by creating a product or service that they believe will be of value in people's lives, whether that's making their lives easier, improving their standard of living, or simply making them happier.
They are someone who takes calculated risks and makes decisions based on their own judgement and research. They are likely to be someone who has either achieved their career ambitions or who simply wants to have more control over their life.
In other words, they don't particularly like to follow rules or guidelines. Instead, they take calculated risks and try to predict how customers will react to their ideas and their solution to solving a particular problem.
To then add "creative" into the mix results in an even more dynamic entrepreneur who has an innate ability to solve problems that others simply can't or find hard to see a way around.
Creative entrepreneurs are often highly innovative and tend to be much more flexible when it comes to working practises. They are also very good at spotting trends and changes in society and adapting accordingly.
This means that they are usually ahead of the curve when it comes to technology and are able to use these tools to create new and innovative ways of doing things.
In conclusion, entrepreneurship and creativity in the creative sector can largely help to turn your passion into a profit-making business venture, enabling you to have greater levels of freedom and lead an overall happier life.
Having read the article in its entirety, you now understand the importance of identifying your passion and how much work it's going to be.
You know the four pillars of a business and how they can be implemented to help you grow and scale your business so that you can one day live the life you have always dreamed of. And you've also learned why creativity is so crucial for successful entrepreneurs.
We hope you thoroughly enjoyed this article, and if you have any questions, please comment below and we will be in touch.