Entrepreneurship isn’t a one size fits all type of experience. There are several different business models you can run as an entrepreneur. Some you’ll love, others you might hate! I’ve played in a few of these business models. And I’ve found that being in the wrong business model for my personality makes me quickly start to hate my business. Hate might be a strong word. But everything feels like so much work and pressure! The passion goes out the window. And I find myself feeling trapped behind my desk.
However, when I’m working in one of the models that works well for me, I love the work as well as the rewards. I feel creative and excited. I have perspective and a desire to grow the company. When I’m in the wrong model, I find I often put on the breaks because I intuitively know that with more business, comes more work that I’m not loving. Finding which model is the best fit for your personality is critical for your happiness as an entrepreneur.
Here’s some of my favorite business models along with the personality I’ve found tends to be a good fit.
Online product sales- In this model you get to conquer the world from your PJ’s, work on the go, and serve a volume of people. Branding is extremely important in this model. You’ll find yourself creating a platform and focusing a lot on visibility. If you have a personal brand, then the visibility is on you!
Who is it a fit for? The person who is borderline introvert/extrovert. They are not afraid to take the microphone. But they also recharge with personal time. They are introspective. This is a great model for people who place a high value on freedom, and impact. It can sometimes be a lonely road, so it’s not a great fit for those that have a strong desire for team and a support system. You have to build both of those and your role in them is the leader, not the team member.
Professional Entrepreneur- In this model you went to school to obtain degrees or certificates to qualify you to provide a service for your clients. You then decide to start your own practice rather than work for someone else. Many Professional Entrepreneurs spent years in school and thousands of dollars obtaining their professional skills, but are still very new to entrepreneurship and are sometimes unsure of their role as business owner.
Who is it a fit for? The person that values establishment, structure, proven methods, and is driven to build something that lasts. Working inside of someone else’s practice could provide an income for your family. But being a business owner will provide a legacy that can be sold or passed on to the next generation. This model gives a balance between taking a secure path, (there’s always a back up plan of using the degree to work for someone else), and taking the risk of going out on your own.
Consultant- In this model you use your skills to pick up contracts to do work for other businesses. Your contracts tend to last longer. And unless you are also an empire builder, you don’t tend to need a large number of clients. It’s about finding the right clients and the right type of business.
Who is it a fit for? The person that likes to be highly influential and impactful to an organization while maintaining independence. You have access to the internal team of the company you are working for. And you get to be a part of the team without having the same stipulations for accountability to the company. You are accountable for your results, but not how you get to the results. This gives you a happy median between having a job, and having your freedom.
Network Marketer- This model allows you to step into a done-for-you business. The branding is done. The systems are done. The product development is done. And your only roles as the businesses owner are marketing, sales, and leadership. It does take work! You have to think of it and run it like a business in order to be successful. But it doesn’t require as much from you as other models. The investment tends to be significantly lower than most of the other models on this list.
Who is it for? This is my favorite for new entrepreneurs and for those who know they like to dabble in a lot of different areas in life. Business ownership requires focus and discipline. And while taking a break from network marketing is inadvisable, it doesn’t’ kill the business. This is a great option for people who don’t want to work full time or put other priorities on hold while building the company. It is not a fit for those looking for a get rich quick scheme. Better keep investing in lotto tickets. It takes consistent work. But where most new entrepreneurs are working 40+ hours a week to build their business, the network marketer is looking at more like 20+ hours a week. It is also a good transition into entrepreneurship because you have a built in support network.
Empire builder- This model should be used for anyone who wants to build a multi-million dollar company and become an employer. This model should be decided on when you launch the company because you will always need to be thinking about scaling. Otherwise you find yourself making decisions that are good for the short term, but end up blocking growth in the long run. This model is going to focus on getting cash into the business as soon as possible and hiring a talented team.
Who is it a fit for? This is a fit for highly driven individuals who love to work and find their joy and purpose in creating business results. It will take a lot from you. And in return it will give back. You’ll be working a full time job and then some for several years until you reach the point where you can hire other talented individuals to run the day-to-day operations.
Bigger is sometimes better in business. But other times, it’s not about creating a bigger company. It’s about settling into a business model that really fits for you. Self awareness is critical! Comparison is detrimental! If you aren’t sure where you lie, or what model you want to use as you grow your company, I suggest interviewing successful business owners in each of these categories.
Still have questions? Reach out! amywalker@amywalkerconsulting.com