There are 4 types of entrepreneurs.
- Those who have started a company for the primary purpose of going public – getting to an IPO and getting rich “overnight”
- Those who have a passion for something or just don’t want to work for anyone else and start a business with little to no thought of ever going public
- Those who find themselves unemployed or under-employed and simply have no choice
- Those whose primary mission is to help solve social ills or create social opportunity and change – social entrepreneurs
Every kind of people
As a business consultant, I tend to work with the latter 3 types and not the IPO seeker. None of the above types are better or more special than the other. Diversity among entrepreneur types, as defined above, is as important as diversity among business types and actual diversity as we generally refer to it – race, religion, gender, etc.
The old Robert Palmer song says, “It Takes Every Kind of People [to make the world go ‘round]”, and the same is true in terms of entrepreneurs.
But there are some significant differences in how businesses for each type of entrepreneur may be managed. What makes sense for one type, may not make sense for another. It may even seem to defy logic at times.
For example, when building a business with the express intent of going public (Type 1), little things like, ohhhh, say profit, product quality and even whether a product actually exists yet may not matter. What matters is how the company is valued, which is entirely in the eyes of the investor or potential investor.
A business built out of passion (Type 2) may not be concerned with growth and the bottom line, particularly at startup. This type of entrepreneur may be more prone to investing heavily upfront and may not feel bigger is necessarily better.
A business built out of necessity (Type 3) probably needs to make money right away because the entrepreneur has no other (or limited) source of income and may not have planned ahead of time to start a business. Entrepreneurs in this scenario are under tremendous pressure to make sales almost immediately.
A business created to address social issues (Type 4) is a lot like the one built out of passion with one major exception. The bigger the business can grow, the more it can tackle its social mission.
You Can Do This
One of the common things across these diverse types of businesses and entrepreneurs is that good, meaningful and actionable business planning increases the likelihood of success. The challenge is doing it in a way that is simple, yet effective and doesn’t dominate the entrepreneur’s time.
Business is ART does just that. Check out my online training videos to find out how. To sit down with a consultant to learn what these videos teach you would easily cost $300 to $500. For just $45 you get 1 hour and 50 minutes of training divided into 25 short, easy to follow videos, as well as the simplified templates you’ll need to succeed.
It’s all based on the Business is ART book, available at Amazon.