Each of these entrepreneurs faces their own risks and their his own skill-set determining their choice. And each choice creates its own opportunity costs as well. For ease of reading, I’ve split the rest of this essay up into different sections discussing risks, skills and profit zones.
The creative or the artist type may never find a market at all. That is either because of a communication problem (“So why is a space pen a good idea exactly?”) or a resource problem of getting from creation to viable innovative product or service (“Ugh, I know it’s a good idea, but I didn’t quite think it through to the market.”).
The process orientated entrepreneur, by which I mean entrepreneurs like the ones that create enterprise software, a product that needs to fit within an, often, rigid system, faces the time consuming battle of having to convince his customers to change their ways. Even if they are good and/or connected, they still need to bridge the gap between pitch and purchase, which can take months if not years. They are also slave to the whims of their new masters, at times some pretty powerful corporate customers.
The copycat (or scale-focussed entrepreneur) will often grab readily available technologies to create & scale his business and will likely face competition that does the same. For him, it’s about speed and flexibility more than anything else.
Talent & skills
Talent or Skills can clearly be split into three categories as well. Creative people are often drawn to this path because they want to (and hopefully can) create something new. You could describe them as artist-business people and perhaps recognise the problems and trade-offs that exist in such a combination. Hence many artists are better at the art part and worse a business or, god beware, the opposite.
A process orientated entrepreneur is one who (hopefully) has a firm grasp if the market that he is developing solutions for. In my view, these tend to be smart people that would just as well in a corporate environment, but chose this other route because they want to accomplish more.
The copycat or scale entrepreneur has perhaps the best eye on the market and tries to take the path that leads him to reward he quickest. There are plenty of things to criticise as well as to admire about such a person, if they are successful.
If I were to tell you today which path to choose, it would probably not be the creative one, I think processes are great as long as you an an expert in them (otherwise they are not worth it), and he copycat is both the easiest and probably the smartest, as it’s less risky.
The real reason for writing this…
Is because I think about my own path from working in organisations to starting and closing several companies, to growing my career, to where I am today. I see writing as a product that I try to master, which is different from previous products where I felt less in control of the variables that go into e.g. creating a piece of complex electronics or into creating a consulting business with lot’s of (paying) clients. I don’t necessarily think that one needs to be a master of everything prior to starting, there is a steep but feasible learning curve involved, but it is good to master at least one, if not two areas (The three that I mentioned: creativity (the product orientation), the process, and growth (copycat or scale) are different points of the map of a possible personality for an entrepreneur).
The biggest risk that an entrepreneur faces, apart from laying all his eggs in one basket, is that he focusses only on one aspect of creating a viable business. Too creative and removed from the market, too slow a market or complex a product, or growing fast without fundamentals are all real problems that these people have to deal with every day.
In the end, I see everything as a positive learning point and an opportunity to do things differently the next time. And I hope that that is the one thing that you take away from this. Even if you are a certain type of entrepreneur, just take the leap to try something, fail hard and hopefully fast, reflect and start again when the time fits your context.