Which Of The 3 Types Of Entrepreneur Are You?
By Anna Johnson on December 18th, 2008In my mind, there are three kinds of entrepreneur: inventors, modelers and marketers. All can be successful, but in my mind, only one kind of entrepreneur is on the surest path to building a business that survives… and thrives.
So what’s the difference between the three? Well, keep in mind that the three terms ‘innovators’, ‘modelers’ and ‘marketers’ are just labels. I think, though, that as you read my definitions, you’ll get the distinction between each entrepreneurial type. And, sure, I’m generalizing – there are probably people who fit into each category in different situations.
‘Innovators’ tend to come up with solutions to problems people don’t know they have, or for things people don’t know they want. They have a great idea for what they think people will love and want, and then, without any evidence that people WILL love and want what they have to offer, go ahead and build it.
A classic example of a group of inventors were the creators of 3M’s Post-It Note. The legend goes that the humble Post-It Note failed consumer research tests because no-one thought they would ever use it. But 3M brought the product to market anyway, and now the Post-It Note is one of the most successful and ubiquitous products ever made.
Many of the highest-profile Internet companies were started by innovators – eBay, Youtube, Skype, MySpace, Facebook and MANY others.
‘Modelers’ provide products and services for which there is a known and certain market. They work out what people are already buying and then seek to sell whatever that is. Their competitive advantage is to provide that product or service in a unique and better way than their competitors.
A classic example of a modeler is a lawyer who decides to start a law firm.
‘Marketers’, like modelers, are market-driven. But they’re not just interested in following the market. They want to lead the market as well. As business people they tend to begin as modelers and then, after achieving a degree of success, devote some of their resources to innovating.
Yesterday, I named Brad Fallon as an example of a marketer. To my knowledge, his first successful online ventures were based on sound business models, whereas FreeIQ was a move into unknown territory.
So which type of entrepreneur is best?
Well, there is no ‘best’… just what’s best for you! You will likely have a natural inclination to be an innovator, modeler or marketer. What’s more, I believe that you will have the best chance of success if you do what suits you best.
However, I personally believe that marketers are better off than either innovators or modelers.
The way I look at it, innovators are most likely to achieve massive, breakthrough success. These are the entrepreneurs who come up with game-changing products and services from the get-go.
BUT while innovators are most likely to succeed on a massive scale, they are also the least likely to come up with products and services that people want in the first place. Put it this way: for every hugely successful innovator… there are probably hundreds of FAILED innovators who invented stuff no-one wanted.
Modelers are the reverse. Because they go into existing markets with tried-and-true products and services they have the best chance of building sustainable businesses. But because they’re conservative, their businesses never achieve the mammoth, iconic success we associate with, say, the Internet’s most successful companies.
Marketers, on the other hand, are positioned to both survive and thrive. Knowing the risks involved in starting a business, they tend to start businesses that are as close to being ‘sure things’ as possible.
But then they naturally look for opportunities to innovate and become market leaders. This may be in the same industry as the one they started in, or a new industry altogether. So, in a sense, marketers have the best chance of having their cake and eating it too.
Ironically, innovators who start companies that combine innovation with solid marketing are probably the most successful of all. Let’s be honest here – companies such as Microsoft, Apple and Google may call themselves technology companies. But they are really marketing powerhouses. Microsoft and Google, in particular, are also genius dealmakers since they actually bought many of their leading technologies from others.
However, for the guy or girl with no money and a dream to have their own business, I still think that being a marketer – starting off as a modeler and evolving into an innovator as well – is the surest path to huge success.
You are more likely to get your start-up into a positive cash-flow state (since you have customers who want your products and services!) and then be able to pursue innovative products and services without risking bankruptcy.
Nevertheless, despite my personal preferences, I still believe you are most likely to succeed if you do what comes naturally to you. So what do you think? Are you an innovator, modeler or marketer?
