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    Types of Etrepreneurs

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    Vaghdevi Cherukuri

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    Types of Etrepreneurs

    Uploaded by

    Vaghdevi Cherukuri
    97 views10 pages

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    © © All Rights Reserved

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    Copyright:

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    97 views10 pages

    Types of Etrepreneurs

    Uploaded by

    Vaghdevi Cherukuri

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    2 0 2 0 S U R VI VA L G U I D E OUR SERVICES LEARN

    BLOG NEWS ABOUT US LO G I N

    5 Types of Entrepreneurs: Understanding


    The Unique Differences
    Entrepreneurs turn bold ideas into reality. They
    create jobs and contribute to the economy but there
    are different types of entrepreneurs and each type
    tends to choose their own path based on their
    personality, abilities and surroundings.

    The types of entrepreneurs vary depending on


    background, country and even sector but the 5 most
    common types are:

    • Innovators
    • Hustlers
    • Imitators
    • Researchers
    • Buyers

    Each of these different types of entrepreneurs has


    their own rules for success in business but most
    entrepreneurs go through very similar struggles in
    terms of finance, marketing, people and even
    managing themselves. Because of this, we have
    created the Lonely Entrepreneur community to guide
    you with the coaching, knowledge, community,
    support, and tools you need to thrive. Start a free
    trial here.
    If you ever wondered which qualities an
    entrepreneur needs in order to be successful we
    break down all the types and explain potentially
    which category you may fall into.

    What Type of
    Entrepreneur Are You?

    When we talked about entrepreneur characteristics


    in our previous post, we highlighted how
    entrepreneurs need passion, grit and a lot of self-
    confidence to be successful in business.

    To be a successful entrepreneur you also have to


    think differently and make the right decisions like
    knowing when and how to find business mentors, sell
    their products online, train your staff and
    communicate effectively.

    Understanding which type of entrepreneur you are –


    and are not – can often lend insight into the things
    you will be good at, not good at and how to bring
    your idea to life.
    The 5 Types of
    Entrepreneurs

    Let’s take a look at some different types of


    entrepreneurs, their roles, and how each type affects
    the success of the business:

    1. Innovators

    Innovators are the types of entrepreneurs who 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.
    Advantages of Being An Innovate
    Entrepreneur:

    • Get all the glory for the success of the business


    (and take all the arrows)
    • Create the rules
    • Face minimal competition during the initial days

    Disadvantages of Being An Innovate


    Entrepreneur:

    • You will need a lot of capital to bring a new idea


    to life
    • Often face resistance from shareholders
    • The timeframe for success is longer

    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.

    2. The Hustler Entrepreneur

    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!

    Advantages of Being A Hustler

    • They will outwork most


    • Tend to have thick skin – they don’t give up
    easily
    • See disappointment and rejection as just a step
    in the process

    Disadvantages of Being A Hustler

    • Usually prone to burn out


    • Wear out their team members who don’t have
    the same work ethic
    • Often don’t see the value of raising capital as
    opposed to just working harder

    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.

    3. Imitators

    Imitators are the types of entrepreneurs who 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.

    Advantages of Imitators

    • Refining a business idea is easier and less


    stressful
    • You can easily benchmark your performance
    with the original idea
    • Can learn and avoid mistakes that were made
    by the originator

    Disadvantages of Imitators

    • Their ideas are always compared to the original


    idea
    • Always have to play catch-up

    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 sexy.

    4. Researcher

    Even after having an idea, researchers will take their


    time to gather all the relevant information about it.
    To them, 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.

    Advantages of Being a Researcher


    Entrepreneur

    • Plan for as many contingencies as possible


    • Write detailed, well-thought-out business and
    financial plans
    • Focus on data and information rather than gut
    feeling
    • Won’t start unless they feel like they know the
    market
    • Will minimize the chances of failing in the
    business

    Disadvantages of Being a Researcher


    Entrepreneur

    • Typically moves slow


    • Doesn’t like risk and that can hamper progress
    in a new venture

    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.

    Jeff Bezos has spoken against this in a recent letter to


    shareholders where he asserted that “Most decisions
    should probably be made with somewhere around
    70% of the information you wish you had”.

    5. Buyers

    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.

    Advantages of being a Buyer

    • Buying an already established venture is less


    risky
    • Doesn’t have to worry so much about
    innovation
    • Can focus on building on something that has
    already gone through building a foundation
    • Already has a market for your products

    Disadvantages of being a Buyer

    • Usually pays a high price for good businesses


    • Will face the risk of buying businesses that have
    problems that you think you can turn around
    Click here to get access to our exclusive
    daily perspective to help you become a
    better entrepreneur.

    The 5 Different Types of


    Entrepreneurs

    That’s our list of the different types of entrepreneurs.


    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.

    It takes time before you reach where you want. We


    have developed the Lonely Entrepreneur training
    program to try to give you a better chance of success
    in this journey as an entrepreneur.

    By The Lonely Entrepreneur | August 13th, 2018 | Blog Post | 0 Comments

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