'Existing Market' Entrants. People going into an already established market. Key issues are getting the basics right (it's a well-trodden path, so there's plenty of knowledge about) then, on top of this, differentiation: why you? (Arguably, if you differentiate enough, you are creating a new market rather than just trying to get into an existing one!) One way to storm an existing market is as a 'furious consumer', fed up with the way you have to buy x's and determined to make it better, nicer, easier… Furious consumers have a clear idea of the problem: if they can find enough kindred spirits, they've got a market. Less well placed is the entrant who is an 'optimistic outsider'. The most robust optimistic outsiders are convinced there's a market for their x's (and have some facts to support that); the least robust ones make x's and want to sell them, or just fancy the idea of opening an x shop. Challenge: creating a real space in the market. 'Arbitrageurs' are market entrants who seek to transfer things from one market to another: Coffee Republic and Seattle Coffee Company who took US-style coffee houses to the UK are classic arbitrageurs. Issues: understanding local market (if exporting), culture clash.

Inventors. Self explanatory! Key issues are reality of demand (does anybody really want one?), IPR protection, team (often operates as 'lone wolf'). It's often said that UK inventors are hard done by. There is probably some truth in this, but too many inventors fall in love with their products, and ignore what the market is saying about the product. An inventor only becomes an real entrepreneur when they have a business model to go with the invention ("…and this is how I'm going to make money out of it.")

Serial Entrepreneurs. Often a mixture of the categories above, but they deserve their own category as they are such compulsive starters of businesses. In a way, these are the classic pub entrepreneurs, always coming up with amazing ideas. The ones who succeed are the ones who see the ideas through to completion! The way for them to do this is to form teams early on, who share their enthusiasm but have the right technical and commercial disciplines - and who can control the serial entrepreneur's lack of focus and inability to attend to detail. Key issues: focus, realism.

Academics. Academic teams emerging blinking into the bright glare of the marketplace often have astounding technology. The problem for many is that the technology is still a 'problem in search of a solution'. Is there really a screaming need for this product? The answer may be yes, in which case they need to team up fast with commercial experts (sales and finance) to create a well-rounded business team. Dare I say it, some academics are guilty of arrogance towards commercial types (and the other way round - 'nerds' versus 'spivs'?) The best academic entrepreneurs leap over these boundaries and create great companies. Classic example: Sir Christopher Evans. Key issue: respecting the marketplace.

Insider innovators. People who work in an industry, spot a problem (x isn't being done properly) or an opportunity - a new market (our customers keep asking us for x's) or a new way of doing something (we'll do x even better) - then go out and marshal the resources to solve the problem or catch the opportunity. According to UK entrepreneur David Hall, this is the most successful route for entrepreneurs. They really understand the problem and the market around it, and they have the contacts. Key issues: risk (often in secure, well-paid jobs), conflict with existing employers. Sometimes, these people are better off becoming 'intrapreneurs' (see below). Examples of insider innovators abound; one is Mike's company The Instruction Set (already in training business, spotted opportunity to innovate).

Roving revolutionaries People who try and shake up an industry from outside. Unlike 'market entrants' above, they are descending on a market with a whole new business model. Classic example is the dotcoms. A successful example is Virgin, who have a 'standard' business model and look round for markets to apply it to. Issues: lack of real market understanding (insiders usually understand the real problems and needs better), lack of market contacts, arrogance.

Intrapreneurs. Insider innovators who don't want to leave their company, and would rather start a 'skunkworks'. Wise if you have kids, mortgage etc.! Key issue: corporate buy-in at highest level. Examples: Arthur Fry (post-it note) at 3M, Steve Jobs at Apple, Ajaz Ahmed and John Pluthero (Freeserve) at Dixons

Social Entrepreneurs. People who want to set up practical institutions that 'do things differently', but aren't in it for the money. Best examples: Prince Charles and the Princes Trust..

Raptors. People who start businesses with dishonest intentions (or who turn into crooks under various pressures). Examples: Robert Maxwell, Emil Savundra (remember him?) It's important to remember that, while there are a number of cowboys riding around out there, the overwhelming majority of businesses are honest and keen to offer value to their customers. (Government regulators please note…)

Source: Click to Open Web Page