What are the 5 Levels of Entrepreneurs?When you hear the term “entrepreneur” most people think about a business owner. Did you know there are 5 levels of entrepreneurship, and becoming a true entrepreneur is a process? It is, and here are the levels or steps to becoming a true entrepreneur.

Entrepreneurs create wealth. But it takes time to get there. We all start in the same place, as students. We learn as children growing into adults we learn and build our knowledge base from elementary school through college. However, this isn’t actually one of the levels of entrepreneurship, because it costs money. Whether paid by society or yourself through tuition, education costs and doesn’t generate wealth.

Level 1 is self employment. Each business you run is truly an education and an apprenticeship for the next level. It teaches you everything from sales, marketing, management, accounting, legal, finance and HR.

Level 2 is employer and manager. It’s a smaller step, but it teaches you how to employ, train and manage people who work for you, but it is still a level that you are doing much of the work of your business. This is a critical piece to the next step.

Level 3 of the levels of entrepreneurs is business owner. This is different from level 1. A business owner has an enterprise that works without you having to work in it. It is the level where you have built your employees and management team to a place where they do the work of your business and you get out of their way. Your business then establishes a critical piece for the next level – your cash flow and capital. Cash flow and capital are both needed. Cash flow allows you to purchase capital, but if you become heavy on capital or assets, in times when the economy is poor, leveraging assets by mortgaging them is more difficult. That means you will need to sell assets in order to raise cash.

Level 4 is investor. It relies on the cash flow and capital in order to allow you to invest. At this level you learn about investing in business, real estate and stock market, and why balancing investments is important. Now on to being able to create wealth.

The last level of the 5 levels of entrepreneurs is the pinnacle and when you can actually call yourself an entrepreneur. An entrepreneur uses other people’s money ideas talent and time to create wealth. It takes the lessons and knowledge learned from each level before to become a master of level 5.

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