Types of Entrepreneurs

Different people operate in different ways. How do you operate? What does your business model look like?

Your business model is your approach to doing business.  It is the way you do business, the whole integrated master plan you are executing.  At its most basic level, there are two types of models:

Consider this example from the entertainment industry:

• On the one hand, the first business model, is focused on personal service. 
  • For example; Siegfried and Roy.  When people went to their shows, they wanted to see Siegfried and Roy.  Both Siegfried and Roy had to perform (themselves) in order to get paid.  There was no substitution, no alternative, no delegation.  They traded their time for money.  They were business operators.  
    • Operators are doers. They think in terms of time and effort, in terms of control. Their motto: ‘If it is going to get done, then I guess I am just going to have to do it.’  Nothing is ever good enough when it is done by someone else.  This is usually because they did not know how to hire or delegate.  Most operators abhor structure – it is one of the reasons they started their own business, they did not want to work for the man, have a job, and all that structure.
• On the other hand, the second business model, is focused on leverage. 
  • For example; The Blue Man Group.  When people go to their shows, they want to be entertained by blue people.  Chris Wink, Matt Goldman and Phil Stanton can hire virtually anyone to perform in their place, and still get paid.  There is leverage in this scenario.  They are business owners.  
    • Owners have leverage.  Leverage comes from things like having A players, from measurement and accountability.  A players have no need for you to train or inspire them.  They allow dashboards to control and alert people when there are hits, wins, losses and misses in their performance.  Owners create a structure, a machine, processes and tools.  They think in design, they plan.

As you reflect on your business, you are invariably looking at how, and how often, you are generating sales.  You are looking at both front end and back end, respectively, the initial sale and all the subsequent sales and business generated from that client. 

There are four ways to engage in your business: Tony Robbins I believe mentions four types of business owner:

• Artist:  Artists are all about passion and love of their product.  They are in love with their “baby.”
• Operator:  Operators are “doers.”  If something must get done, by default, they are going to have to do it themselves.  The problem is that they are good at their profession, but no one has taught them the skills and tools to become business owners.
• Owner:  Owners run the business but do not operate it.  Owners will set priorities, figure out the obstacles in the way that are preventing the business from getting here to there.  They make sure the team is full of A players.  They get the right people, doing the right thing, at the right time.  Owners think about this, operators do not.  Owners are the thinkers, coaches, they are the people who manage the organization.
• Investors:  Investors are more concerned about risk and what could go wrong.  They are all about protecting the asset.

In The E-Myth Revisited, Michael Gerber describes three types of business owners (or roles within a business). To succeed long-term, you need a balance of all three:

1. The Technician – “The Doer”

• Focuses on doing the work rather than growing the business.
• Skilled at their craft but may struggle with scaling or delegating.
• Example: A great baker who opens a bakery but spends all their time baking instead of managing the business.

2. The Manager – “The Organizer”

• Good at creating systems, managing people, and maintaining order.
• Ensures smooth operations but may struggle with vision and innovation.
• Example: A restaurant owner who focuses on schedules, efficiency, and operations but doesn’t innovate new menu items or growth strategies.

3. The Entrepreneur – “The Visionary”

• Focuses on growth, strategy, and innovation.
• Delegates tasks to Managers and Technicians.
• Example: A founder who builds a scalable system so the business runs without them.

Jay Abraham describes 24 characteristics different people have. I cannot say enough about his Maven Matrix Manifesto. More about this in another post…

Business owners come in different types, based on their mindset, approach, and business model. Here are some common types:

1. The Visionary Entrepreneur

• Big-picture thinker, focused on innovation and disruption.
• Often starts businesses to change industries or solve major problems.
• Think: Elon Musk, Steve Jobs.

2. The Small Business Owner

• Runs a local or niche business, often self-funded.
• Prioritizes stability and consistent income over rapid growth.
• Think: Family-owned restaurants, local consultants, boutique firms.

3. The Franchise Owner

• Buys into an established brand (e.g., McDonald’s, Subway).
• Follows a proven business model instead of creating one from scratch.
• Focuses on execution and management rather than innovation.

4. The Solopreneur

• Operates alone, handling everything from marketing to customer service.
• Often in consulting, freelancing, or online businesses.
• Prioritizes flexibility and low overhead.
• Think: Coaches, freelancers, independent consultants.

5. The Scalable Startup Founder

• Focuses on rapid growth and scalability (often tech-based).
• Seeks investors, venture capital, or external funding.
• Goal: Market dominance and possibly an IPO or acquisition.
• Think: Mark Zuckerberg (Facebook), Brian Chesky (Airbnb).

6. The Serial Entrepreneur

• Loves starting businesses but doesn’t always stay to run them.
• May sell businesses or hand them off to managers.
• Always looking for the next big opportunity.

7. The Lifestyle Entrepreneur

• Builds a business to support a desired lifestyle, rather than maximizing profits.
• Focuses on freedom, remote work, and work-life balance.
• Think: Digital nomads, online course creators, passive income seekers.

8. The Corporate Entrepreneur (Intrapreneur)

• Works within a company to create new business opportunities.
• Innovates without personal financial risk.
• Think: Product managers, R&D leaders in big firms.

9. The Investor-Owner

• Owns businesses but doesn’t manage them directly.
• May buy, hold, or sell companies for profit and equity growth.
• Think: Warren Buffett, private equity firms.

10. The Opportunist Business Owner

• Driven by short-term gains and market trends.
• Often involved in flipping businesses, dropshipping, or reselling.
• Moves quickly to take advantage of temporary opportunities.

Types of Business Models:

Business models define how a company creates, delivers, and captures value. Here are the most common types, categorized by structure and revenue generation:

1. Product-Based Models

These models revolve around selling physical or digital products.

🔹 Retail & E-commerce

• Selling goods directly to consumers online or in physical stores.
• Example: Amazon, Walmart, Shopify stores.

🔹 Manufacturing

• Producing and selling physical products, either B2B or B2C.
• Example: Tesla (cars), Apple (electronics).

🔹 Dropshipping

• Selling products without holding inventory; supplier ships directly.
• Example: Many Shopify and AliExpress businesses.

🔹 Subscription Box

• Customers receive curated products on a recurring basis.
• Example: Dollar Shave Club, HelloFresh.

2. Service-Based Models

These models involve offering expertise, labor, or solutions to clients.

🔹 Consulting & Coaching

• Selling knowledge and expertise.
• Example: McKinsey (business consulting), Tony Robbins (coaching).

🔹 Freelancing & Agencies

• Providing specialized services (e.g., marketing, design, development).
• Example: Fiverr, marketing agencies.

🔹 On-Demand Services

• Connecting consumers with services when they need them.
• Example: Uber, DoorDash, TaskRabbit.

3. Subscription & Recurring Revenue Models

Businesses charge ongoing fees rather than one-time purchases.

🔹 Software as a Service (SaaS)

• Cloud-based software with monthly or annual payments.
• Example: Netflix, Salesforce, Adobe Creative Cloud.

🔹 Membership & Community

• Paid access to exclusive content, courses, or networks.
• Example: Patreon, LinkedIn Premium.

4. Platform & Marketplace Models

Connecting buyers and sellers without owning inventory.

🔹 Two-Sided Marketplace

• The business earns fees from facilitating transactions.
• Example: eBay, Airbnb, Uber.

🔹 Affiliate & Commission-Based

• Earns revenue by promoting third-party products/services.
• Example: Amazon Associates, influencer marketing.

5. Advertising & Attention-Based Models

Revenue comes from ads, sponsorships, or data monetization.

🔹 Media & Content-Based

• Monetizing through views, clicks, or sponsorships.
• Example: YouTube (ads), blogs with display ads.

🔹 Data Monetization

• Offering free services while monetizing user data.
• Example: Google, Facebook.

6. Licensing, Franchising, & Intellectual Property

Selling rights instead of products or services.

🔹 Licensing Model

• Companies pay to use your brand, patents, or intellectual property.
• Example: Disney (licensing characters for merchandise).

🔹 Franchise Model

• Selling business systems and branding to franchisees.
• Example: McDonald’s, Subway.

7. Hybrid Models

Combining multiple revenue streams into one business.

• Apple: Sells hardware (products) + subscriptions (Apple Music) + App Store fees (platform).
• Amazon: E-commerce (retail) + AWS (SaaS) + Prime (subscription).