Before we look at the qualities and characteristics of Successful Entrepreneurs we are going to take a quick look at the different categories of businesses that you may own as a business owner.

These three categories are:
1. The Lifestyle Business
2. The Community or Generic Business
3. The High Growth Business

The Lifestyle Business
The lifestyle business is usually a small business built around one or two people and is often operated by people with an expertise that decided to create an income and lifestyle for themselves, rather than be employed by someone else. They like the freedom it gives them, they like being their own boss and the venture allows them the flexibility to live a certain lifestyle. Trades-people, Consultants, Beauty Therapists, Engineers, Advertising Experts, Independent Sales Agents who work by themselves or with a small support staff or strategic partners often fit in this category. With a lifestyle business the key person(s) are the business. They personally bring in most of the income. If they lose interest or for some other reason stop working the business, the business usually disappears. The business can usually be started on a small investment, their expertise is their main asset and the owners often work from their home or shared premises with low overheads. Rather than being seen as a business owner, they are more likely to be viewed as self employed individuals. The informal sector of business owners i Canada would most likely fit in this group, as well. (Buskers, crafts-people, etc.) Most lifestyle business owners are content with the lifestyle their businesses give them and are not trying to build a big business.

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The Community / Generic Business
The Community or Generic Business usually has more employees than a lifestyle business. This type of business usually involves the renting or buying of physical offices or physical space, equipment, etc. A Community or Generic Business would be most local retail stores, restaurants, hotels, professional practices, local or regional focused manufacturers, wholesalers, distributors, builders or service type companies. These businesses eventually generate income without the founders or owners being involved 100% of their time. Over time the business develops value through its processes, local branding, proven income and profit and can be sold or passed on to family members. Energetic lifestyle business owners such as trades-people (electricians, carpenters, plumbers), professionals (accountants, lawyers, trainers, consultants) who decide to develop a larger business with more key people, processes and products earning revenue will often graduate to a Community or Generic Business. Local franchisees to regional, national and international franchise organisations would also fall into the Community or Generic Business category.

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The High Growth Business
This would be those businesses that decide to expand and risk into several locations or new markets regionally, nationally or internationally. Business owners that decide to expand through franchising or owning several locations fit here. A manufacturer, distributor, wholesaler, service organisation, professional group, retailer, or any other company or group (could be co-operative crafts group) that decides to work the much bigger regional, national or international market through agents, distributors, affiliates, partners, direct marketing, tradeshows and e-commerce type marketing would usually be viewed as a High Growth Business. These are more complicated businesses to operate.  The risks and rewards are bigger and larger numbers of employees, suppliers and affiliated businesses and personnel earn income from the High Growth Business. Community or Generic Businesses often expand into becoming a High Growth Business. Ambitious entrepreneurial types and new ventures established by large High Growth Businesses will often go from the Concept Stage to the Take-off Stage straight into the Ambitious Stage of expand and risk in a very short time. This takes capital and expertise. Many High Growth Businesses often become public companies listed on the Stock Exchange or are bought by or merge with larger companies.

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Where Do You Fit?
If you are starting a business venture it is important to decide which category of business ownership you wish to initially be in and where you eventually want to be. Many people wisely choose the lifestyle business and are happy with the rewards of that category of business. Others may want to establish a community business having more people work with them and establish a local brand worth re-sale value at a later date. Then there are those highly ambitious entrepreneur types that want to make the bigger sacrifice of time, energy, ability, money and reputation, to play in the big leagues for bigger stakes. There are advantages and disadvantages to each of these. To help you decide we’ve made a short list of the Advantages and Disadvantages of these three categories of Businesses. It will help you and your family see where you want to be or realistically can be.

Research in Europe indicates that only a small portion of small to medium size businesses create the majority of jobs. It is the dynamic companies and ambitious entrepreneurs that are the biggest generators of jobs. Obviously it is the High Growth Businesses that have the biggest single impact on job creation. Collectively the self-employed individuals in a country like South Africa also have a major impact on the economy because all of these people have a job working for themselves. The Community and Generic Businesses are also major contributors collectively to local, regional and national economies. The ambitious ones often grow into High Growth Businesses. The majority of the ideas, tools, “how to’s” and processes in this program can be used by business owners and entrepreneurs and their staff in all three categories of business ownership. You just have to adapt them and use a bit of innovation and creativity.

Complete the Three Types Of Business Ownership Excercise now FREE: ThreeTypesofBusinessOwnershipExercise

This post has been published by Ryan Anthony Gibson