3 Levels of LeadershipIn “How Entrepreneurs Increase Their Sales Through Video” I mentioned three types of people: Providers, Business Owners and Entrepreneurs. In this article let’s explore each type see how they operate in business at their respective levels.

 The Provider

The Provider is the lowest level in business and is usually where all of us start out in business.

Most people become providers when they have a skill or a product that they wish to sell and they tell friends and family about it and everyone encourages them to start their own business because they are so good at what they do.

So they begin exchanging money for their products and services and so begins their new life in business.

At the Provider level the focus is on making sales. Things go bad when the focus shifts onto other things, such as investing heavily in the wrong things or investing too quickly. This is why most businesses fail in Australia at this stage because Providers or as they are commonly known as, small or micro businesses, end up focusing on the wrong things and have to start looking for work.

The Business Owner

If a Provider gets their focus right, pretty soon there will be a big demand for their products and services so they will need to expand and hire staff to help them manage the increase in demand. At this stage they become a Business Owner.

At the Business Owner level the focus is on efficiency and Business Owners need to create systems, policies and procedures that help them make sales more efficiently.

 The Entrepreneur

When the Business Owner’s business starts humming like a well oiled machine, then they have the option to continue business as usual or aspire to move up to the third level of business – The Entrepreneur.

Entrepreneurs see the world through entirely different lenses and at this level the focus is on big ideas and working out how to turn these ideas into reality.

If you look around the room that you are in right now, everything you see was once just an idea in an Entrepreneurs head and through a whole bunch of processes, has been turned into the object that you see in front of you.

Most people in business remain at the Business Owner level and there’s nothing wrong with that. Issues only arise when you are at a certain level and you start to play around at other levels without being ready to do so.

For example, a Business Owner might have a stroke of genius idea about franchising their business to make more money but not take the time to develop the proper systems and procedures for their own business in order for anyone else to replicate it successfully.

Having said that, Entrepreneurs who have big ideas often become Providers again at the initial stage of their journey to turn their idea into reality but what separates them from the other two levels is their Entrepreneurial skills including their mindset.

We’ll explore The Entrepreneurial Mind in the next article of this series.

AJ Kulatunga is a keynote speaker and consultant on Entrepreneurship who helps businesses develop Entrepreneurial thinking through the areas of business, motivation and leadership.

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AJ Kulatunga is a keynote speaker who inspires conversations around Disruption, The Changing World and Entrepreneurial Thinking to help Leaders navigate change. See AJ Speak