A study commissioned by the Department for Business Innovation and Skills across a wide range of different business sectors identified different entrepreneur ‘types’ according to criteria such as business acumen, experience in their chosen field of business and their general motivation. The overall aim of the study was to examine why someone decides to go into business for themself in the first place but it is also interesting to think about which categories different owners fit into.
They identified four distinct types of business owner –
Older opportunists using existing skills
- These tend to be older entrepreneurs, perhaps approaching retirement or recently retired
• Their business is not driven by a financial need, therefore they have little risk – they are driven more by remaining occupied, taking advantage of a good opportunity or earning a little extra money
• Some have been self-employed before
• Not intended to be a long-term venture
Consistently self-employed
- These entrepreneurs have been self-employed for a long time, generally moving from one business to another
• The business tends to be their main source of income
• These entrepreneurs tend to be skilled in their specific area and in running a business in general
• Intend to maintain the business long term, and grow it in some cases and generally have a concrete plan in place for doing so
• Rely on getting clients / projects through the door to maintain income
Business-from-scratch: competent / experienced
- Entrepreneurs that have never been self-employed before
• The business tends to be their main source of income
• They are using skills previously used in employment, and are working in an area that is related but different – for example a journalist now self-employed as a media consultant
• Often driven by wanting to be their own boss / flexible working
• Have a reasonable level of business knowledge due to general business-savviness and watching others run their own business, but want help with aspects specific to their chosen area, for example, advice on legislation or licenses.
Business-from-scratch: no experience
- Entrepreneurs that have never been self-employed before
• The business tends to be their main source of income
• Often driven by wanting to be their own boss / flexible working
• Have no / very little experience in their chosen area, i.e. they are not necessarily using skills from their
• previous employment but trying something completely new, for example setting up a property management company
• Can struggle with business planning, drive, focus and confidence
So – to the question of which type would benefit most from business coaching, I would suggest they all might but the different categories need particular types of coaches. If you are in one of the fast growing ‘young’ sectors like non-alcoholic beer production, medical cannabis or virtual reality tech, then most likely you need an early stage business coach who can help it grow, put systems into place and make sense of some of the boring but necessary aspects of trade.
For the mature business, which already generates cash and whose owner may be thinking about retirement, a business consultant who can help prepare the company for sale and maximise the sales price would be more useful. Of course, most business owners have a mix of support requirements but thinking about which category fits you best is helpful for planning your entrepreneurial journey and identifying your specific needs.
