Ask any successful entrepreneur and they’ll probably tell you that running a business was a dream long before it became a reality. For many, the biggest hurdle was taking the plunge– giving up the regular paycheck and going it alone. However, this all or nothing approach is not the only option, with more and more entrepreneurs launching businesses while still in full-time employment. Getting your startup off the ground “on the side” allows you to test the market with your business without giving up the security of a regular income. And it is more common than you may have thought, with over a third of freelancers getting started while still employed. To be a successful entrepreneur you have to think differently and make the right decisions like knowing when and how to find business mentors, sell products online, train your staff and communicate effectively. Understanding which type of entrepreneurship suits you can often lend insight into the things you will be good at, not good at and how to bring your idea to life.
Let’s take a look at some different types of entrepreneurs, their roles, and how each type affects the success of the business:
This is the type of entrepreneurship where owners come up with completely new ideas and turn them into viable businesses. In most cases, these entrepreneurs change the way people think about and do things. Such entrepreneurs tend to be extremely passionate and obsessive, deriving their motivation from the unique nature of their business idea. Innovative entrepreneurs also find new ways to market their products by choosing product differentiation strategies that make their company stand out from the crowd. And sometimes it is not just standing out from the crowd but actually creating a new crowd. To say that innovators like Steve Jobs, Larry Page of Google and Microsoft founder Bill Gates were obsessed with their business would be an understatement. The ability of an innovative entrepreneur to envision a new way of thinking makes them stand out from the crowd and wildly successful in many cases however it takes significant capital, patience and commitment to bring true innovation to life.
Unlike innovators whose vision is the gas in their engine, hustlers just work harder and are willing to get their hands dirty. Hustlers often start small and think about effort – as opposed to raising capital to grow their businesses. These types of entrepreneurs focus on starting small with the goal of becoming bigger in the future. Hustlers are motivated by their dreams and will work extremely hard to achieve them. They tend to be very focused and will get rid of all forms of distractions, favoring risks over short-term comfort.
A perfect example of a hustler is Mark Cuban. He started in business very young selling trash bags, newspapers and even postage stamps and this hustle later created a goldmine which was acquired by internet giant Yahoo! Even though many hustlers never give up, a lot of them are willing to try anything to succeed which unfortunately means that they have a lot of hits and misses. Achieving their dreams takes a lot longer than most other types of entrepreneurs.
This is the type of entrepreneurship where owners copy certain business ideas and improve upon them. They are always looking for ways to make a particular product better so as to gain an upper hand in the market. Imitators are part innovators and part hustlers who don’t stick to the terms set by other people and have a lot of self-confidence. Taking an existing idea and refining and improving it can be a great way to develop a business. It certainly does not have as much risk as the innovator but it might just not be as enticing.
Even after having an idea, researchers will take their time to gather all the relevant information about it. In this type of entrepreneurship, failure is not an option because they have analyzed the idea from all angles. Researcher entrepreneurs usually believe in starting a business that has high chances of succeeding because they have put in detailed work to understand all aspects. As a result, these types of entrepreneurs usually take a lot of time to launch products to make decisions because they need the foundation of deep understanding.These entrepreneurs rely much more on data and facts than instincts and intuition. For a researcher, there should be no room for making mistakes. Even though these types of entrepreneurs spend a lot of time researching and digging into the data to ensure the success of their business, they can fall into the habit of obsessing over the numbers and focusing less on the running of the business.
One thing that defines buyers is their wealth. These types of entrepreneurs have the money and specialize in buying promising businesses. Buyer entrepreneurs will identify a business and assess its viability, proceed to acquire it and find the most suitable person to run and grow it.
From the above list, can you tell which type of entrepreneur you are or want to be? It is possible to succeed regardless of the category that you belong to but you should not expect to experience success overnight as it takes time before you reach where you want.