The world of business and entrepreneurship is diverse with many paths to success. But before starting a business, it’s important to ask yourself two big questions: what kind of entrepreneur are you and what kind of business do you want to own?
There is no right or wrong answer–there’s simply the one that’s true to you. After all, entrepreneurs go into business for themselves so they have the flexibility and freedom to choose their own destiny.
Some people aspire to be the technicians–the doers in their businesses. Others want to follow a vision and lead a team that can help them realize it. But in any case, understanding the different types of entrepreneurs and deciding what fits you best is essential to achieving success.
Finding Your Professional Style: Defining the 5 Common Types of Entrepreneurs
The type of entrepreneur you want to be isn’t just impacted by the industry you’ll be operating in. It also comes down to how you wish to operate, your personality traits, and your specific skills and abilities.
1. Startup Entrepreneur
As the name suggests, these types of entrepreneurs are involved in new, innovative start-up businesses or initiatives. They’re often the “disruptors” of the business world, launching new technologies, products, services, or ideas.
Startup entrepreneurs often seek venture capital or angel investors to fund ambitious ventures. They may also gravitate to regions or cities, like Silicon Valley, where there are many other startup entrepreneurs to collaborate with.
Startup entrepreneurship example: Melanie Perkins is the founder and CEO of Canva, an online design platform. Perkins initially had the idea to create something when she was a university student and making income teaching other students design programs. She thought traditional programs like Microsoft and Adobe were difficult and sought to create something new. Today, Canva is the first design platform that’s built on pre-made templates, making it accessible to all users. In this way, Perkins disrupted the industry with an innovative start-up.
2. Visionary Entrepreneur
A visionary entrepreneur is driven by a clear and compelling vision of the future. They understand both market trends and consumer behavior in order to capitalize on emerging opportunities.
These entrepreneurs have big ideas and their primary objective is to see it realized with the support of a talented and capable team of innovators.
Some key characteristics of a visionary entrepreneur are their ability to excel at strategic planning and inspire other people towards a shared goal.
Visionary entrepreneurship example: Steve Jobs, the late CEO and co-founder of Apple, is widely known as a visionary leader. People who worked with Jobs remember his encouragement to always think outside the box and create something new. This quality allowed him to cast the vision of what Apple could be and bring people along for the ride.
3. Solo Entrepreneur
Frequently called “solopreneurs,” this category of entrepreneurs are the ultimate self-starters. They are the technicians in their businesses–the doers. They venture out on their own and take responsibility for all aspects of their business, from sales to IT to customer service. Solopreneurs often work as freelancers or work on a project or contract basis.
While solo entrepreneurs typically do not scale as much as others, this is often by design, and they can still achieve significant success in their business and industry.
Solo entrepreneurship examples: Because of challenges with scaling as a solopreneur, many do not reach household-name-level fame. However solopreneurs can have very successful careers in a variety of industries, and there are now a record-high 17 million full-time independent workers in the US. Some popular areas include online content creation, photography or videography, graphic design, coaching and consulting, and web development.
4. Buyers
Buyer entrepreneurs are experts in identifying successful businesses and acquiring them. They might do this through a franchise model or they may purchase other established businesses through mergers and acquisitions. Buyer entrepreneurs can also be investors who purchase equity in another business.
Buyers excel in managing and optimizing existing operations and prefer to work in this capacity over starting something brand new.
Buyer entrepreneurship examples: Daymond is the founder and CEO of FUBU, but is equally known as an investor on the ABC reality series Shark Tank. The show invites entrepreneurs to pitch their ideas to “sharks” (wealthy investors) to help get them off the ground. Daymond has invested in 60+ deals on the show, making him an example of a buyer entrepreneur—someone who invests in or buys equity in other businesses.
5. Researchers
Research entrepreneurs are those who thrive on data and information, using them as the basis for their business endeavors. They will thoroughly investigate market trends, consumer preferences, and competition before launching their business. Entrepreneurs who rely heavily on researching potential opportunities may straddle a variety of industries, focusing more on where they can find success than staying in a singular industry or field.
Researchers have deep knowledge of their products and services and are motivated to share that with their clients. They may become entrepreneurs after previously working in a specific field or industry (i.e., a fitness instructor who launches a coaching business).
Researcher entrepreneurship example: Sophia Amoruso founded Nasty Gal at just 22 years old. It started as an eBay store full of vintage pieces she found by scouring racks at second-hand stores. From flipping clothing to creating an entire fashion company, Amoruso’s deep knowledge and ability to research the products and market show her success as a researcher entrepreneur.
4 Steps to Determine What Kind of Entrepreneur You Are
Knowing your entrepreneurial style increases self-awareness which, in turn, helps you thrive at work. When you understand how you operate best, you can leverage those insights to make better business decisions.
You may already know your entrepreneurship style from reading the above descriptions. But if you’re struggling to identify it, here are some ways to dig deeper and know what kind of entrepreneur you are.
1. Audit Your Skills
Start with an honest assessment of your skills, abilities, qualifications, strengths, and weaknesses. Look back to previous roles and projects and identify what you were naturally good at, and what needs more work.
This is helpful in identifying what type of entrepreneur you are because it demonstrates natural talents. Here are some examples:
- People person: Visionary entrepreneur
- Specialized skill sets (i.e., design or coding): Solo entrepreneur
- Business knowledge: Buyer entrepreneur
2. List Your Goals
Next, clarify your personal and professional goals. What do you want to achieve as an entrepreneur? This will help you identify what type of entrepreneur you are. Here are some common goals and what they might mean:
- Creating something new: Startup entrepreneur
- Prioritizing work-life balance: Solopreneur
- Deepening knowledge and skills: Research entrepreneur
3. Connect With Other Entrepreneurs
Networking with fellow entrepreneurs can provide valuable insights into your own style. Engaging in conversations with other entrepreneurs with similar aspirations or experiences may help you see similarities and differences in how you operate.
Here are some ways you can connect with others to find out what kind of entrepreneur you are:
- Attend industry events
- Go to entrepreneurship meet-ups
- Join a coworking space
- Participate in online forums
4. Read and Learn About Entrepreneurship
Just as speaking with others helps you grow in self-awareness, you can also learn more about what kind of entrepreneur you are by reading and learning more about entrepreneurship.
Knowledge is a powerful tool in self-discovery. Check out any of the following options to grow in this area:
- Books and biographies of entrepreneurs
- Case studies and articles
- Podcasts
- TV programs or movies
- Courses, programs, and mastermind groups
Identifying your entrepreneurial style is not a one-size-fits-all process. You need to be introspective and self-aware so you can have an accurate picture of what type of entrepreneur you are.
More than that, there needs to be a willingness to adapt. Your entrepreneurial journey may evolve over time, so your identity may shift too. If you continue to know yourself and your entrepreneurial style, you can better tailor your strategies and approaches to align with your goals and strengths.
If you’re looking for a supportive and professional community to flex your entrepreneurial muscle, you’ll find it at Launch. Contact us to book a tour of your local Launch today.
