Opportunists Vs. Problem Solvers

Throughout my time studying, working with, and being an entrepreneur, I have come to realize that there are two different approaches or mindsets as to why someone starts a business. Specifically, I believe that these are two types of fundamentally different personalities in the way that they approach business. Most entrepreneurs are a balance of the two, but I would always say that the intentions behind starting a business, and the overarching philosophy with how they run their business, can be broken down into two categories; Opportunists, and Problem Solvers.

Both have their reasons for starting a business, and both do see a larger opportunity as a whole; in the end that’s why they are starting a business. However, both have a much different mindset when it comes to the mission they are working on, and the way that they take advice on their business.

Opportunists are those who start a business because they see a large market opportunity. These are the types who can say “Well there’s x number of people doing y, which represents a total market of z, and if I can come in with a better solution and charge q, then I can get v% of the market and make $$$$”. Their reasons for starting a business are an opportunity to make money. They see a large market, they have a way to penetrate that market, and such, they start a business in hopes they have found the segment they would like to go after.

Problem Solvers on the other hand, are those who start a business because they have experienced a problem that they can solve. Problem Solvers are the people who say “I spent my life experiencing a specific pain point, I now have a solution for that pain point, and I can charge people money for that solution.” Their reasons for starting a business are primarily motivated by passion. They see a problem, have a way to solve it, and such they start a business in hopes of creating a solution for others who experience the same problem.

This fundamental difference of opportunity vs. passion then has a trickle down effect into the way that someone both builds and evolves the business that they are working on. Running a business is very tricky, and everyone will always have advice for you on the way that you should run your business. Some will say you should charge more money, some will say you should change your revenue model, and some will say you’re going after the wrong market altogether. The way in which this advice is then understood and implemented will vary drastically depending on if you are speaking with an opportunist or a problem solver.

Opportunists are the types who are incredibly susceptible to advice, and are continuously open to the “pivot”. These are the types who work very well with VC’s. Why? Because if a VC comes in and says that you should change your business model to cater to a different demographic of people, and in turn make much more money, an opportunist will most likely do it. Opportunists are market agnostic. If they see a better opportunity and a better way to make money, they will go after it. If they see a more attractive scale, they will go after it because they aren’t tied to any one specific problem. I would also say that these are the types who build a business looking for an acquisition. They’re primarily in it for the money.

Problem Solvers however, are those who are firm in their opinions, and will have a hard time changing their business to suit the needs of others. These are the types that (sometimes) don’t work well with VC’s, because they have a specific problem they want to solve and care less about how much money they will make and how large the market opportunity is. They are the ones who stay true to the problem they want to solve. Even if they see a better opportunity and a better way to make money, they will most likely take the stance that changing the business would also cause them to lose interest in the business as a whole. Problem solvers are those who build a business to “change the world.”, and don’t care if VC’s don’t understand that vision.

The downsides? Opportunists are the ones who have their business taken over by VC’s. Opportunists are the ones who build a business they never intended to because investors told them this was the business they needed to build.

On the other hand, problem solvers are those who might fail to see the larger opportunity as a whole. They are blinded by passion and thus overlook scale and sustainability because they just wanted to solve a problem.

The upsides? Opportunists usually make a lot more money and have larger acquisitions. Problem solvers change the way that people behave and change the world.

It’s important as an entrepreneur to have a healthy balance between these two perspectives. It’s important to identify which type of entrepreneur you are, and in doing so understand what questions you need to be asking yourself. Being honest about which type of mindset you come from will allow you to anticipate the challenges that will come your way, and the actions you will need to take in order to be successful.

If you’re an opportunist, it’s important to ask yourself the question “Is this a business that I can be passionate about for the next 5–10 years when struggle sets in?” I’ve met countless opportunists who end up running a business that they utterly hate, hoping that through their hard work they will eventually be acquired.

If you’re a problem solver, it’s important to ask yourself the question, “Is this a large enough market opportunity? Can I make this into a sustainable business? and most importantly, can I solve this problem at scale?” I’ve met a lot of passionate entrepreneurs who overlook these questions only to end up running a small lifestyle business, unhappy with the growth of their company.

At the end of the day it’s definitely not as black and white as I have painted, but I do fundamentally believe that these two mindsets exist, and influence how and why we run a business. It’s important that we identify with these roles honestly, and approach business with the questions we might not be asking ourselves. Every successful business requires a healthy balance of the two, and whichever side of the spectrum you stray towards, make sure that you don’t tip the scale too far :)