The other day I read an interesting book called “Entrepreneurial DNA” by Joe Abraham, the founder of BOSI Global, an operating partner to venture-backed and owner-operated companies. The book is based on Joe’s study of over 1,000 entrepreneurs. The research confirmed the discovery that all entrepreneurs are not all “wired” the same way. The book suggests that entrepreneurs fall into four distinct types of "entrepreneurial DNA’s” that leverage unique strengths, weaknesses and tendencies that are typical in each specific type of entrepreneur.
Here are the four types:
A Builder: A drive to build highly scalable businesses very fast.
When this DNA is high in an individual, they break past $5 million in revenue
within 2-4 years and keep going to up to $100 million. That's because these
individuals measure success through a very unique lens - infrastructure. It
drives the decisions they make and the strategy they build and deploy. They
aren't satisfied with a certain amount of personal income or goodwill toward
man. They are Pied Piper-like individuals who are master recruiters of talent,
investors and customers. Builder DNA activates certain behaviors like a
controlling temperament - leading to a Dr. Jekyll and Mr. Hyde like demeanor in
the office. Individuals with high Builder DNA tend to struggle most with
personal relationships - and typically have a revolving door of talent in their
companies.
An Opportunist: Picture Sir Richard
Branson and you have a pretty good idea of what Opportunist DNA is all about.
Individuals wired with this DNA are highly optimistic master promoters. They
enjoy marketing and selling. They are wired to sniff out well-timed money
making opportunities, jump in at the right time, ride the wave of growth up and
(hopefully) jump out at the peak. Opportunist DNA measures success based on the
amount of money they make (or will make) when they aren't working. So they are
drawn to business opportunities where leverage can be used to create residual
and renewal income. This behavioral preset in entrepreneurs makes them
impulsive decision makers - especially when it comes to money-making
opportunities. A trait that can serve them very well or be the source of their
demise.
A Specialist: This DNA activates
in the experts of our world. No sooner does an individual go through years of
schooling, apprenticeship or on-the-job training does this DNA activates -
driving the corresponding behaviors. Specialist DNA drives one to be very
analytical, relatively risk averse and anti-selling. Specialists generate most
of their new business from referrals and networking. They measure success based
on their personal income. Their businesses tend to grow fairly well in the
startup and early growth phase, but as soon as their personal income hits
preset targets, their internal thermostat kicks in - and they go into customer
service mode. Research found that most Specialist-owned businesses plateau in
revenues well below $5 million. The ones that get past this level take
significantly longer to do so than Builder DNA companies, often decades.
An Innovator: Picture Mark
Zuckerberg in the movie The Social Network and you'll see Innovator DNA
activating in the entrepreneur. Like most Innovators, he was doing something he
loved, when a business opportunity popped up around him. The breakthrough
discovery typically drives this entrepreneur in the "lab" of their
business - where they want to invent, design and tinker. They would much rather
be in the lab of their business than at the cash register or in the business
office. They find operating a business draining. They measure success based on
the impact their product or service is having on mankind. "It's not about
the money" you'll hear them say. "I'd do this for free for the rest
of my life if I could". Individuals with high Innovator DNA control most
of the great intellectual property of our time. Unfortunately, they hide in
dungeons and find it hard to engage in "business" discussions.
So what does this all mean? For centuries the approach to
entrepreneurship has been - what worked for one entrepreneur will work for
every entrepreneur - because after all, entrepreneurs are all the same. This
research has proven that entrepreneurs come in very different profiles. Some of
us are Innovator-Builders. Others are Specialist-Opportunists. Knowing your DNA
and the DNA of those surrounding you is mission critical to selecting the
business, strategy and team best suited for you. Just because it worked for
Richard Branson (Opportunist-Builder) or Bill Gates (Specialist-Builder),
doesn't mean it will work for you.
Based on the above classifications, I am an
Opportunist-Builder. If you are curious
what type of entrepreneur you are, you can take a free assessment on the BOSI DNA website.
For future posts, please follow me at: www.twitter.com/georgedeeb.