We Can’t All Be Bill Gates

Before he was 30, Bill Gates sold his Microsoft operating system to IBM and launched his rise to wealth and success.  

Six weeks before his 30^th birthday, Billy Graham preached the first sermon of his 1949 Los Angeles Crusade.  It was only supposed to last 3 weeks, but ended up being extended five additional weeks!  350,000 people attended the Los Angeles meetings that gave rise to “America’s Pastor.”

There are many other stories of famous and successful people that often become role models in business and life.

The study of leadership can be found throughout history, but it has intensified in the last 50 years.   Are leaders made or born?  What are the qualities or characteristics of a successful leader?  Some have tried to develop a model of the perfect leader.  Others try to apply the latest leadership or business strategy to their environment in the hope that it will launch them, their career or their business to the next level.  This often leads to discouragement.

The reality is that there are many different types of business owners.  Some are more risk tolerant than others.  Some are more emotionally attached to their business than others.  Some would work for free if they were assured their ‘mission’ would be accomplished and others are enamored by every new opportunity that presents itself.

Joe Abraham, in his book Entrepreneurial DNA, describes the different types of business owners and what drives their decision making process.  Abraham identifies four types of business owners.  Most people fall into one dominant category, but also have minor influences from one of the other types.  The four types he identifies are: The Builder, The Opportunist, The Specialist and The Innovator.

The Builder is concerned with expansion and growth.  He has the ability to put processes in place that will scale a business exponentially faster than industry norms.  He is not as interested in the product, customer or employee as he is in numbers that demonstrate the growth of the enterprise.  He will regularly include these numbers in every conversation about the business.  He is also not interested in the daily minutiae of running a business.

The Opportunist is concerned with quickly making a lot of money.  He is often buying, selling, flipping and turning whatever he can to make a profit.  He will regularly tell you that everything he has is for sale.  He does not become emotionally attached to the product, business or enterprise.  He is very risk tolerant and has frequently lost as much money as he has made in various deals.  He is very strong in selling and promoting.  Like The Builder, he cannot be counted on to handle the daily tasks needed to run a business.  Builders have also been known to abandon one enterprise midstream for a new ‘shiny object’ if he thinks this will get him to his goal faster.

The Specialist is an expert in his field.  He has gained this expertise through experience.  He is risk averse and concerned with his reputation among his customers and in the community.  The Specialist would choose a steady, predictable income stream over a less secure and sporadic windfall.  He does not mind doing the mundane daily tasks associated with running a business and is committed to the long term success of the enterprise.

The Innovator creates new products and services.  He is driven by his mission to expose as many as possible to his new and better widget.  His narrative goes beyond how the product will make your life easier or better.  It also contains an altruistic element that shows how the product will be better for the environment, for your health or for society.  This mission often overshadows the product in the mind of The Innovator.  A recent example of this is the statement by Elon Musk of Tesla that they will not initiate patent lawsuits against people who use Tesla’s electric vehicle technology.  His mission is not to make electric cars.  His mission is to get everyone to own and drive an electric car.  The Innovator is constantly creating and refining his product or service.  He cannot be counted on to grow or promote a business.

By understanding what type of owner you are, you can better understand how you fit into your present business and what drives the decisions you make.  You can better understand why you function easily and are successful in some areas while experiencing constant frustration and struggle in other areas.  This knowledge will also help as you evaluate new business opportunities.

Another practical application of understanding what type of business owner you are is that you can surround yourself with people who strengthen your weak areas.  Most business owners tend to hire people just like them because they understand how that type of person processes information and they experience a kinship with that person.  This is, however, a dangerous tendency.  One Specialist business owner woke up after 20 years of operation one day to discover that his business had stopped growing and they were not adding new clients.  After evaluating his employees, he discovered that he was surrounded by Specialists and had no one to grow or promote his business.

Your SBDC Consultant can help you evaluate your Entrepreneurship DNA and that of your key partners/employees.  He can also help you develop a plan to grow your business in light of this information.

The SBDC has 250 consultants and 40 offices in Florida.  The newest addition to the SBDC network is the North Central Florida office.  Our confidential consulting is available at no charge.  Please call us (386-362-1782) if there is any way we can help you start and grow your business.

Mark Yarick is a certified business analyst with the Small Business Development Center (SBDC) in North Central Florida and is hosted by the University of North Florida in the offices of the Suwannee County Chamber of Commerce.