Builder vs Scaler Entrepreneurs

A framework for understanding different types of entrepreneurs and their approach to business acquisition vs building from scratch.

Core Types of Entrepreneurs

• Builders (0 to 1)

  • Excel at creating something from nothing
  • Best suited for starting businesses from scratch
  • Focus on initial product/market fit

• Scalers (1 to 10)

  • Better at growing existing businesses
  • Prefer buying vs building
  • Focus on optimization and growth
  • Look for businesses with proven product-market fit but room for improvement

Business Buying Strategy (For Scalers)

• Look for businesses similar to "fixer-upper" houses:

  • Good fundamentals/market
  • Currently underperforming
  • Clear opportunities for improvement
  • Not already optimized by previous owners

• Key evaluation criteria:

  • Must solve real problems
  • Should have untapped marketing channels
  • Look for basic operational improvements needed
    • Website optimization
    • Better copy/images
    • Email marketing implementation
    • Paid acquisition opportunities
  • Avoid businesses already optimized by experienced marketers

Example Case Study: Dog Ramp Business

• Initial state:
  • Solved real problem for specific niche
  • Limited competition
  • No paid acquisition
  • Poor website
  • No email marketing
  • No customer database utilization
  • Clear opportunity for improvement through basic marketing/operations

The key is matching your entrepreneurial style (builder vs scaler) to the right business opportunity, rather than forcing yourself into a role that doesn't align with your strengths.