A SELF-EVALUATION OF YOUR:
a) aptitudes & skills to help you determine if you are ready to start a business.
b) thought process resulting in a product or service you will offer for sale.
BE HONEST WITH YOUR ASSESSMENT! ONLY YOU WILL SEE THE RESULTS.
Q.1) You would like to build a barn that will require you to obtain permits from the zoning board, building inspector, & home owners association. What do you do? a) Build without permits. b) Obtain the necessary permits. c) Delay starting until a later time. d) Hire a lawyer.
Q.2) You are home working on a job that you want to finish today. A tool/appliance that you need to finish this job breaks. What do you do? a) Call someone to fix it.
b) Attempt to work around broken tool/appliance by using other methods.
c) Throw it away and buy another later. d) Try and fix it yourself.
Q.3) You are the leader of a team assembling a wagon. A team member is not doing their share of the work. The team will not finish the wagon on time unless this team member helps. What do you do? a) Tell your boss. b) Talk to the wayward team member. c) Continue working and hope the team can finish on time.
Q.4) You are offered a new position with increased responsibility and pay. However, you will have to learn new skills, work with new people, and work longer hours. If you accept the new position, your old position will be given to someone else. What do you do?
a) Accept the new position. b) Turn down the position and stay where you are.
Q.5) You set goals that will take a year or more to reach. You are willing to work long and hard to achieve these goals. a) Never. b) Sometimes. c) Often.
Q.6) You are writing a letter that MUST be mailed today. You are being interrupted by a friend that needs your help. What do you do? a) Tell them to come back after you mail the letter. b) Help them now and then go back to the letter.
Q.7) Tax Time is here again. What do you do? a) Start organizing your tax papers and prepare and mail tax prior to 1 April. b) Ditto above, except wait until 10 April to start. c) Ditto above, except wait until 14 April to start.
DO NOT TURN TO NEXT PAGE UNTIL YOU FINISH ABOVE!!
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Q.1 & Q.2 & Q.3) Do You Accept A Problem As A Challenge To Be Solved OR Try And Avoid It? People Problems? Other Problems? Most Successful Entrepreneurs Enjoy Solving Problems AND Know When To Deal With Them OR Seek Help In Solving Them AND Know Where To Find The Help That They Need!
Are You Comfortable With & Have The Skills To Solve People Problems? Business IS ABOUT PEOPLE -- Customers, Suppliers, Employees, Support Personal (Legal, Financial, Insurance), etc!
Q.4 & Q.5) Are You Comfortable With Change? Change is inevitable. Plan for change!
Are You Always Seeking New Knowledge Or Skills? You must be ready, willing, and able to learn new skills.
Are You Willing To Work Long & Hard To Realize A Future Goal? Reaching your business goals may take a long time. Persistence is one of the most important traits for entrepreneurs.
Can You Make Difficult Decisions and Follow Through? Do You Postpone Decisions Until You Have All The Facts? Most successful entrepreneurs are willing to make difficult decisions based on partial data. That is not to say they make snap decisions, but that they analyze the available facts and make the best decision based on those facts.
Q.6) Are You Comfortable With Interruptions? Is it difficult for you to pick up a task after being interrupted? Multitasking is a constant part of being an entrepreneur!
Q.7) Do You Delay Doing Difficult Or Unpleasant Tasks? As an entrepreneur you will perform difficult and unpleasant tasks every day! You will likely have to fire people that you like!
Are You Organized? Organization is key to a successful business!
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WHAT SEPARATES WINNERS AND LOSERS?
WHERE: Tuesday, May 25, 2004 Baltimore Business Journal
WHAT: The Study.
* University of Maryland's Smith School of Business.
* 117 Central Pennsylvania-based entrepreneurs.
* Entrepreneurs whose ventures showed promise for three years.
* Interviews every six months.
HOW: The Results.
* A Dream Is Really Important. Are You Willing To Make Sacrifices Now To Reach A Future Goal?
* Those Who Have A Special Theme Are More Successful. Are You Satisfying A Market Niche? A Market Niche is “A Customer NEED That Is Not Being Served By The Competition”.
* The Better Articulated The Vision, The Better Are The Chances That You Will Make It. Planning is critical to success.
* The Ability To Convince Investors Is Important. While $’S Are Important This Refers To Your Ability To Convince Others To Invest In Your Business. That is, Can You Get A Skeptic To Believe In Your Business.
Ten Traits Shared By Winners http://www.onlinewbc.gov/docs/starting/traits.html
Are you tired of schlepping to the beat of someone else's drum? Does the idea of being your own boss appeal to you? Are you entrepreneur material?
1. An eye for opportunity: Many entrepreneurs start by finding a need and quickly satisfying it.
2. Independence: Even though most entrepreneurs know how to work within the framework for the sake of profits, they enjoy being their own boss -- i.e. making all the decisions and dealing with all the problems.
3. An appetite for hard work: Most entrepreneurs start out working long, hard hours with little pay.
4. Self-confidence: Entrepreneurs must demonstrate extreme self-confidence in order to cope with all the risks of operating their own business.
5. Discipline: Successful entrepreneurs resist the temptation to do what is unimportant or the easiest but have the ability to think through to what is the most essential and do it.
6. Judgment: Successful entrepreneurs have the ability to think quickly and make a wise decision.
7. Ability to accept change: Change occurs frequently when you own your own business, the entrepreneur thrives on changes and their businesses grow.
8. Make stress work for them: On the roller coaster to business success the entrepreneur often copes by focusing on the end result and not the process of getting there.
9. Need to achieve: Although they keep an "eye" on profits, this is often secondary to the drive toward personal success.
10. Focus on profits: Successful entrepreneurs always have the profit margin in sight and know that their business success is measured by profits.
Is this your profile or would you rather do your job, pick up your paycheck and leave the headaches to someone else? Most of us, quite easily, choose the later.
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How Will You Decide What Produce Or Service You Will Offer?
A) Your hobby is working on cars/sewing/baking/etc. and you will convert your hobby into a business.
B) You have some knowledge about cars/sewing/baking/etc. and you become aware of a customer need that is not being served by anyone else in your competitive area. You decide to open a business that offers a product or service that satisfies this customer need. You spend the next 6 weeks asking friends, relatives, and others how they want that product or service rendered.
C) You have some knowledge about cars/sewing/baking/etc. and you will spend the next 6 weeks asking friends, relatives, and others what product or service they need and want.
D) You have several years experience employed as a painter/landscaper/retail clerk/etc. and you will open a business offering the same product or service.
DO NOT GO TURN PAGE UNTIL YOU FINISH ABOVE!!
HOW SHOULD YOU DECIDE WHAT PRODUCE OR SERVICE YOU WILL OFFER?
FROM “The E Myth Revisited – Why Most Small Businesses Don’t Work And What to Do About It” by Michael Gerber
* Many People Start with a Product or Service and Then Try to Find Customers Willing to Pay for this Product or Service. This Path Is Difficult And Can Be Problematic!
* A Much Easier (And Successful) Path Is:
** First, Identify The Customer Need OR “What Is The Opportunity?”.
** And Then, Identify a Product Or Service That Satisfies This Need. This Product Or Service MUST Look And Act The Way The Customer Needs It To Look And Act.
** Finally, Create A Business That Renders The Identified Product Or Service The Way The Customer Wants It To Be Rendered.
Market Niche:
A Customer need That Is Not Being Served By The Competition.
People Will Only Pay You Money To Solve Their Problems!
SELL SOLUTIONS, Not Products Or Services!
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Pros Of Owning A Business: http://www.toolkit.cch.com/BOToC.asp
* You have an opportunity to make a lot more money than you can make working for someone else.
* You'll be your own boss and make the decisions that are crucial to your business' success or failure.
* You may be the boss of other people.
* You'll have job security — no one can fire you.
* You'll have the chance to put your ideas into practice.
* You may participate in every aspect of running a business.
* You'll learn more about every aspect of a business and gain experience in a variety of disciplines.
* You'll have the chance to work directly with your customers.
* You'll be able to benefit the local economy, such as by hiring other people to work for you.
* You'll have the personal satisfaction of creating and running a successful business.
* You'll be able to work in a field or area that you really enjoy.
* You'll have the opportunity to build real retirement value (for example, by selling the business when you retire).
* You'll have the chance to put down roots in a community and to provide a sense of belonging and stability for your family.
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Cons Of Owning A Business: http://www.toolkit.cch.com/BOToC.asp
* You may have to take a large financial risk. For example, you may have to risk all of your savings and your house.
* You will probably have to work long hours and may have fewer opportunities to take vacations.
* You may end up spending a lot of your time attending to the details of running a business and less time on those things you really enjoy.
* You may find that your income is not steady and that there are times when you don't have much income coming in at all.
* You may have to undertake tasks you find unpleasant, such as firing someone or refusing to hire a friend or relative.
* You may have to learn many new disciplines, such as filing and bookkeeping, inventory control, production planning, advertising and promotion, market research, and general management.
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Special Pros And Cons Of The Home-Based Business: http://www.toolkit.cch.com/BOToC.asp
* Your startup costs will be lower.
* Your operating costs will be lower than they would if you were renting space and paying utilities.
* Your commute will be shorter.
* If your location is unimportant to your business, you can theoretically live anywhere and still operate your business.
* You may be more flexible in your schedule if your business can be conducted at your convenience or outside "normal" weekday business hours.
* On the other hand, you're much more vulnerable to interruptions from family members, neighbors, and door-to-door salespeople.
* You may have trouble attracting qualified employees.
* You may be less accessible to suppliers.
* You may have an image problem, although with the growing popularity of home businesses, that's less common.
* You may run out of space at home if your business grows.
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Why Businesses Fail. By Agricultural Extension Service, The University of Tennessee ADC Info #24 Oct, 1998. http://cpa.utk.edu/pdffiles/adc24.pdf
* According to Dun & Bradstreet reports, “Businesses with fewer than 20 employees have only a 37% chance of surviving four years (of business) and only a 9% chance of surviving 10 years.” Restaurants only have a 20% chance of surviving 2 years. Of these failed business, only 10% of them close involuntarily due to bankruptcy and the remaining 90% close because the business was not successful, did not provide the level of income desired or was too much work for their efforts. The failure rate for new businesses seems to be around 70% to 80% in the first year and only about half of those who survive the first year will remain in business the next five years.
* Nine out of ten business failures in the United States are caused by a lack of general business management skills and planning.
* According to Dun and Bradstreet, over 75% of those businesses that cite economic factors as a reason for failure, indicate that a lack of profits is the primary reason. Catastrophic failures also result from the death of a partner, fire, fraud, burglary and acts of God. According to Dun & Bradstreet statistics, 88.7% of all business failures are due to management mistakes. The following list summarizes the 12 leading management mistakes that lead to business failures.
1) Going into business for the wrong reasons
2) Advice from family and friends
3) Being in the wrong place that the wrong time
4) Entrepreneur gets worn-out and/or underestimated the time requirements
5) Family pressure on time and money commitments
6) Pride
7) Lack of market awareness
8) The entrepreneur falls in love with the product/business
9) Lack of financial responsibility and awareness
10) Lack of a clear focus
11) Too much money
12) Optimistic/Realistic/Pessimistic
* It should be understood that no magic solutions will guarantee a business success. However, the following items should assist in the improvement of chances for success.
1) Development of a business plan
2) Obtaining accurate financial information about the business in a timely manner
3) Profile of target customer
4) Profile of competition
5) Go into business for the right reasons
6) Don’t borrow family money and don’t ask the family for advice
7) Network with other business owners in similar industries
8) Don’t forget, someone will always have a lower price than you
9) Realize that consumer tastes and preference change
10) Become better informed of the resources that are available
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Developing a Business Idea Provided by OPEN Small Business NetworkSM
Conventional wisdom says that your big idea for a small business will gradually develop into the exact replica of what you imagined when you came up with the idea. The reality for many business owners is that the first idea only serves as the kernel for the one that will eventually fly.
Chances are by the time you actually launch the business, your idea will be molded by market research, customer input, cost of development, and other information you learn in the research process. For this reason, it is important in the set-up stage not to become discouraged if you have to abandon part of your business idea, or even your entire idea. You will need flexibility and perseverance to keep your business afloat once you start, so applying it during the startup phase is good practice.
Unfortunately, some potential business owners abandon their ideas too easily believing that if an idea has flaws, the concept is unsalvageable. To help you avoid this trap, use the five instances of idea-roadblock listed here to determine how you can keep going if your idea isn't perfect.
You're hardly the first Problem: Lots of people are already running businesses doing what you planned on doing. Solution: Examine the field and see if there is still room for you. Often, lots of businesses cater to the same customer, but leave some small niche underserved. For example, if you planned on starting a dance studio and you find that there are already too many in town, there may be a market for someone who goes to private parties and teaches large groups of people who don't have time to go to a dance studio. To find an underserved niche, look at the current offerings of your future competitors and think about what narrow markets you may be able to serve that they are overlooking.
Too late? Problem: You are too late to market Solution: Just because other companies beat you to market doesn't mean you won't be successful. In fact, the first company to market has to spend a lot of money educating buyers about why this new product or service is worth purchasing. You can also learn from the mistakes of your predecessors. For example, look at how Microsoft came into the spreadsheet market and took over with Excel after Lotus had been dominant with its 1-2-3 product.
Flat industry Problem: Your research tells you the industry is flat. Solution: See if you can look at the business a totally new way. For example, a recent article in the Harvard Business Review talked about a movie theater owner in Europe who recently entered a market that was saturated and suffering from a lack of customers. However, by starting a movie theater with huge comfortable seats, lots of parking, and other amenities that transformed the movie-going experience, he was able to pack his theater night after night.
Prohibitive costs Problem: Set-up costs are too high. Solution: Start out as a contractor to a business that you want to create. For example, if you really want to own a bakery, but you cannot afford rent, start out by baking a few goods and supplying them to existing bakeries. Over time you can save enough money to have your own store.
Lack of information Problem: You can't find information about the industry to determine if your idea is viable. Solution: The best way to learn about an industry is to talk to small business owners who are in it. Many entrepreneurs will be willing to share a few hours with you to explain how they got started, how the business works, and industry pros and cons. As long as you are not potentially direct competitors, you will find many entrepreneurs helpful. You may need to call 50 people to find five who will help.
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