Nowadays, many people aspire to become successful entrepreneurs. But do you know what exactly an entrepreneur is or what are the four types of entrepreneurs?
An entrepreneur is someone who invests their time, energy, and most importantly money to set up or create a new business to yield the maximum profits while continuously making strategies and efforts to make that business grow and expand.
An entrepreneur is also someone who’s at the greatest risk that’s involved with the business but also enjoys the most profits and rewards from the business. Entrepreneurs play a very crucial role in the growth and development of any economy because they contribute to the national income and create new employment opportunities for the people.
What do you Need to Become an Entrepreneur?
You need not necessarily be someone who has a lot of money to become an entrepreneur. There are more critical things that play a major role in helping you become an entrepreneur. There’s lots of planning and strategizing that’s required to start your venture and make it a success with the required combination of resources and inputs.
Proper research and analysis regarding the product or service that you’re going to offer, identifying your target audience, finding your niche, and finding out if you have existing competitors in the market or not. Ensure that you have understood the marketing strategies and USPs of your rivals so you can offer something better than the already existing ones in terms of quality or quantity.
What are the Four Types of Entrepreneurs?
Every entrepreneur is not the same. Each of them has its different types of goals, its own set of strategies, and its unique way of handling things based on which they run their businesses. Let us briefly comprehend what are the four types of entrepreneurs.
A builder is a type of entrepreneur that wishes to create highly scalable businesses within a short period. These entrepreneurs aim to cross 5 million dollars plus revenue in a span of two to four years. They don’t stop but continue to cross 100 million dollars and above.
They measure success through an infrastructural lens and push to build the best by hiring the most talented people and bringing in the best investors for their business. They look for rapid growth and strive to succeed more and more. It is believed that such entrepreneurs, because of these traits, generally face difficulties handling their relationships.
As the name suggests, opportunist entrepreneurs are the ones who are constantly looking for the perfect opportunity and grab it when it comes to making the maximum wealth and income out of it. They are concerned with profits and money-making opportunities.
These types of businesses measure their success based on how much residential and residual income they will make from when they’re working and when they aren’t. They grab the opportunity and get in at the right time, ride the wave of growth and success, and take an exit from the business when it reaches its peak. They’re always looking for well-timed opportunities which makes them quite impulsive decision-makers. This trait can turn out to be either a boon or a curse for them!
Specialist entrepreneurs are experts in their fields. They have an analytical approach and a low-risk tolerance. They avoid risks and believe in properly analyzed decision-making. They’re experts or say they specialize in a particular field which they have obtained through education or professional degree.
They measure success based on their income. Their business growth depends mostly on the terms of networking and referrals which comparatively make their business grow slower than builders.
Innovator sounds similar to innovation, right? Yes because that’s where it comes from. An innovator type of entrepreneur brings something new to the market, a new idea, product, or service that’s never been used or produced before. They find operating the business draining. They would much rather be present in the operating and production places of their product to give in new ideas and discover new things for their business.
They measure their success based on how much impact their product or service is creating on people. This kind of entrepreneur would even be ready to provide their services for free, only if they could because their main aim is to provide something better, new, and useful to the people rather than earning more and more money.
Initially, most people used to think that all entrepreneurs are the same kind and function the same way, but that’s not the case, every entrepreneur is distinct from others. Each entrepreneur has their own diverse set of goals and even if their goals are similar, they might not opt for the same approach to fulfill them!
We hope that now you must have understood what are the four types of entrepreneurs and how they are different from one another. So what kind of an entrepreneur are you?
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Entrepreneurship is the process of running a business wherein the person carrying out this process must have the ability to plan, analyze, develop, and run an enterprise while taking on all the possible risks involved with the business to earn profits for the business.
An entrepreneur has many common traits like creativity, knowledge, social skills, great decision-making skills, risk-taking ability, professionalism, confidence, adaptability, team building, leadership qualities, innovation and a sharp mind, persistence, ability to think about the long term, time management, willingness to keep learning new things and much more. An entrepreneur may or may not have all of these character traits but definitely must possess most of these if they want to be a successful entrepreneur.
For an entrepreneur, risks are always wandering over their heads. There are numerous kinds of risks involved for a business, especially for a new one! Bankruptcy, no guarantee of a stable income, financial risks, changes in market trends affecting demand and preferences of the audience, upgradation or change of technology, environmental social, and political factors, the risk from competitors, dependency on business partners, and a small set of employees because it gets difficult to find human capital for a new business and much more!
Of course, there must be some advantages, that’s why most people want to be an entrepreneur rather than going to those usual jobs every day! Some of the perks of being an entrepreneur are:
You don’t have a boss, you are the boss! You get to run the company on your terms in your way.
Flexibility to work when and from where you want to!
There’s no capping for earning/income because once your business gets going, you can earn as much higher as your business succeeds.
Choose who you’ll work with and who will work for you!
Continuous growth and development for both you and your business.
You get to do what you love doing while bossing others around!