Entrepreneurs can turn big ideas into booming businesses. They bridge the unemployment gap and strengthen a country’s economy. Depending on their personality, abilities, surroundings and sector, this article classifies entrepreneurs into six types. Understanding what type you are, or are not, gives you useful insights you can use to take your business to the next level.
Regardless of the type of entrepreneur you are, it takes three major things to be successful in business; grit, passion and good decision-making. Combine this with knowledge on how to advance your business idea, taking into account your propensity for risk and sense of adventure. If you need to brush on any of the skills, attending an entrepreneurship program is a good place to start.
Here are six different types of entrepreneurs:
Type #1: Innovators
For most entrepreneurs, coming up with a new idea is an uphill task. However, innovators find it very easy to do this. They can identify a problem and come up with a new solution to that problem.
Such innovations not only revolutionize how business is carried out but also introduce new perspectives. Innovative entrepreneurs, such as Steve Jobs, tend to be extremely passionate about their ideas. They also have an intrinsic motivation to advance their business idea.
While others try to win the hearts of their competitors’ customers, innovators look for creative “blue ocean” marketing strategies that set them apart from the crowd. They create their own niche, establish new customer segments in uncharted markets.
An innovator makes their own rules and evades competition by creating demand for products that customers don’t even know they need. On the downside, you need to be extra patient since your business may take longer to pick up. The market may also be a bit skeptical about adopting a new product or service; so, get ready to do lots of convincing.
Type #2: Hustlers
These types of entrepreneurs start small. They focus on individual effort, even if it means rolling up their sleeves and getting their hands dirty. A hustler has very tough skin. They see a way out in every challenging situation. Hustlers start small but, with time, they grow their ventures into big businesses.
While they may not have it all figured out, their dream fuels them to work harder until their businesses break through. Sacrificing the comforts of the moment for a successful business is second nature to them.
That’s why they are willing to invest resources into their business, be it time or money, even where the return on investment is not assured. On the downside, hustlers burn out faster and take longer to achieve their dreams as they do just about anything to succeed.
Type #3: Imitators
Unlike innovators, imitators simply improve existing ideas. These types of entrepreneurs leverage upgrading a product to rise above their competition. However, they are also innovators in their own right since the improved product or service could to some extent be considered new.
Being an imitator presents numerous advantages. First, you don’t have to worry about making mistakes since there is already someone you can learn from. Second, you can easily measure the performance of the improved idea against the original idea. While this may be an appealing option for those seeking a less-stressful approach to developing a business, it might not be the best way to go if you want a fresh and exciting business venture.
Type #4: Researchers
Some people simply rely on their gut and intuition to determine if a business will succeed. Others prefer not to start a business without conducting extensive research on all possible outcomes. The latter is what we call researcher entrepreneurs.
They take time to gather information relevant to their business idea and analyze the data from all perspectives. They believe that this allows them to avoid or minimize mistakes, giving the business a better shot at success. A carefully thought-out business and contingency plan are essential for a new venture. However, this process is painstakingly slow and could forestall the business’s progress.
Type #5: Buyer Entrepreneurs
Business buyers have one thing in common: excess money. A buyer entrepreneur targets a promising business, determines its feasibility, and goes out to acquire it. Next, they look for the most qualified person to run it profitably.
If you have the money, you might want to become a buyer entrepreneur. This approach is less risky since you don’t have to start from scratch. The foundation is already in place; so, all you need is to focus on growth.
Type #6: Fabian Entrepreneurs
Have you ever met entrepreneurs who are outright opposed to change? They wait to see if an initiative will succeed and only rally behind it if they are satisfied with the results. They are also less likely to initiate any new ideas.
True, taking up tried-and-tested innovations is a great way to cut your losses. But, how long will you wait for other innovators to come up with proven ideas to implement them in your business? It could take days, months or years.