That’s right, you read it correctly. It is you who will decide which type of entrepreneur you want to become, not the other way around. Before diving into the 4 types of entrepreneurial people, lets take a moment to find out what is an entrepreneur and what does he/she do.
What Is an Entrepreneur and What Does He/She Do?
There plenty of definitions out there, but to keep it shortly and on the point, an entrepreneur is a person that:
- Sells existing products or services to an existing market
- Develops a new market for existing products or services
- Innovates new products or services for existing markets
- Innovates new products or services and creates new markets.
- Buys existing businesses and focus on their growth
What Are the 4 Types of Entrepreneurs?
There are many classifications of entrepreneurs available, however, in this article, we will be focusing on Landau’s classification, which differentiates between 4 types of entrepreneurs based on their willingness for risk taking and the innovation level of their business.
- GAMBLER – the person that is not afraid to take high risk, with low innovativeness.
- CONSOLIDATOR – the person that takes low risk, with low levels of innovation in his or hers business. They play safe.
- ENTREPRENEUR – the person that takes high risk with high innovation level. Very creative, going all in.
- DREAMER – the person that takes low risk, with high levels of innovation.
Outside of Landau’s classification, there has emerged a new type of entrepreneur, that it the BUYER – the person that has a lot of money and buys already created and hopefully successful businesses and focuses on their growth.
What Is the Best Type of Entrepreneur?
Deciding on which type of entrepreneur you want to become, is mostly up to you, and it depends a lot on your personality type, as well as your readiness of taking risks (how much money do you have available or not to invest). The money you are willing to invest in your business, should be the money that you can afford to lose. While there is not such thing as the best type of entrepreneur (in mind opinion), I strongly believe that there are certain skills that differentiate between the successful entrepreneurs and those who will not succeed. So, while you should spend time deciding on which type of business you want to create (hence, what type of entrepreneur you want to become), spend more time on finding out which skills are required for your success. And don’t be afraid to fail. You will fail here and there, and you are supposed to do so, in order to learn from experiences and advance.
If you need help with figuring out which are the skills that you personally need to work on, join our Facebook community and ask for help. https://www.facebook.com/QuantumLeapGrow
What Are the 7 Skills of Entrepreneurs?
As previously mentioned, there are some skills that will influence your success in your entrepreneurial career path, and here comes a list with some of the most important ones:
- Communication – a successful entrepreneur needs to be able to clear communicate his or her vision/mission/goals to their employees, board members, investors, and customers. Communication is key for customers satisfaction. Customers don’t buy products, they buy experiences. And a good experience often starts with the right communication.
- Curiosity – an entrepreneur should always be curios. Curios to find out what his or her customers are looking for, what they think about his/her products/services, what is new on the market, what are the competitors doing, what are they not doing. Curios and always ready to learn more and explore more.
- The ability to inspire others – this skill is extremely important when you have employees. Being able to inspire and motivate them, will lead to employee satisfaction and retention. This, in return will lead to great products and amazing customer experience. Always remember, that the most important resources of a company are not the products or services provided, but the employees.
- Stress management – Not being able to manage stress will lead to burn out and in the end to giving up. The good news is that this is a teachable skill, so start early on owning it.
- Customer focus – always focus on the customers. They are the one you are serving. They are the reason your business exists. As long as you focus on their needs and how to fulfill them, you are on the right track.
- Flexibility – the market is a dynamic place, always changing. Being ready to adapt to the new technologies, products and services is part of being an entrepreneur.
- Have a Vision – Always have a vision. Why? So that in the moments when you feel down, and almost giving up (and those will come), it will remind you why you started in the first place. Where you want to go. Vision will motivate not only you, but your employees as well. And remember, customers don’t buy what you are selling, but WHY you are selling. Make sure you have a clear vision that speaks to your customers.
Are you ready to get on board of the entrepreneurial train? If yes, join our Facebook community to learn more and meet people like you. If NO, join us anyway to find out what is the right path for you.
Thanks for the article!