The four types of business owner

Everyone’s different, but after working with hundreds of business owners, I’ve come up with what I think are four kinds. Each of the four types of business owner has a different hourly rate and each of them needs a different focus.

  • An Underpaid Employee receives a relatively low income for the hours they work. Their focus needs to be on getting their revenue, profit and income model working.

  • The Overloaded Manager has an okay hourly rate, but they’re still working too hard and need to focus on improving the leverage in their business.

  • The Effective Leader is earning good money and working normal hours while being able to focus on the fun business stuff - the growth opportunities.

  • The ultimate end game for most people is to become a Wealthy Entrepreneur. My definition of Wealthy Entrepreneur is, “a business owner that doesn’t have to work in their business if they choose not to, while the business supports their life and their lifestyle.” The focus for Wealthy Entrepreneur is to transition themselves out of the business completely, so they can invest their time and money in new endeavours.  

To transform yourself from an Underpaid Employee to a Wealthy Entrepreneur involves focusing on the right thing at the right time. But first, you need to sort your head out. Next month, I’ll outline the mindset shift you need to make to become a Wealthy Entrepreneur.