Evaluating Your Entrepreneurial Potential

Evaluating Your
Entrepreneurial Potential
www.seacoast.score.org
Seacoast Chapter 185
About SCORE
A not-for-profit association dedicated to entrepreneur

education and the formation, growth and success of small
business nationwide:
– Founded 1964
– SBA is a resource partner
– Over 10,500 Volunteers
– 389 Staffed Chapters
Each year:
– Over 6,500 Seminars and Workshops
– Over 1.0 million Free Counseling/Office Hours
– Over 400,000 Services Provided (100,000 by Email)
– National Web site – www.score.org
Should I Be An Entrepreneur?
• Is starting a business the best way to achieve my goals?
• Will the demands of starting a business take time away

from, rather than add to, the other commitments in my life?
• Do I have the personal resources of money, time and talent

to start and run my own business?
• Do I have the physical and emotional stamina required?
• Are my skills in this particular area balanced by general

business know-how and management savvy?
• How will my business affect the other aspects of my life?
Personal Considerations
Answer the following questions Yes or No:
• Do family & friends approve of and support your decision?
• Are you willing to work 12 to 16 hours a day, six days a

week, even on holidays, to get your business off the
ground?
Personal Considerations – cont’d.
• Do you have the physical stamina to work these hours?
• Are you prepared to lose your financial investment?
• Will the business generate enough income to meet your

financial goals?
• Are you prepared to lower your standard of living for

several months, or even years, until your business is a
success?
• Do you know which skills are critical to making your

business succeed?
• Do you possess these skills?
• Does your business idea effectively utilize your personal

strengths?
• Can you find and afford personnel to provide the skills you
lack?
• Will your business fulfill your career goals?
• Can you tolerate the loneliness of working alone while

building your business?
Management Ability
• Do you like to make your own decisions?
• Do you like competition?
• Are you self-disciplined?
• Are you an effective planner?
• Are you well organized?
• Do you get things done on time?
Management Ability – cont’d.
• Can you take advice from others?
• Are you adaptable to changing conditions?
• Can you delegate responsibility?
• Could you fire an ineffective employee?
Financial Considerations
• Do I know how much of an investment it will take to get my

business off the ground?
• Can I support my personal obligations without an income

for three months to a year, or longer, if necessary?
• Do I have a good personal credit history?
• Can I borrow money from friends or family?
Financial Considerations – cont’d.
• Am I willing to assume debt to start my business?
• Will my spouse support the acquisition of debt tied to our

jointly held assets?
• Am I willing to take on equity partners to fund the business

start-up or growth?
Financial Considerations – cont’d.
• Do I know the average rate of return on investment for a

business of the type I am starting or for the type of growth I
plan?
• Is it sufficient to support my personal income goals?
• Is it sufficient to support the goals of my investors?
Success Seekers
A snapshot of who starts a business – and why
New Business Owners
70%
of all new businesses are started by a sole entrepreneur
Gender of New Business Owner
35%
Women 65%
Men
Age of New Business Owner
32.9%
25.4% 24.9%
12.6%
4.2%
Under 30-39 40-49 50-59 60 &

30 over
Personality Types
40%
34 Manager – enjoys operations side of the business
Hero – puts the interests of customers first
30% 27 Rainmaker – thrives on obtaining new business
Artist – passionate about creating the product

Maverick – takes business risks for the adventure
20%
16
11
10% 8
4
Manager Hero Rainmaker Artist Maverick Other
Why a Business is Started
No Answer
Carry Over 4.2%
Until Job Found
4.6%
Grow to be a
Large Business
28.6%
Supplement
Income
27.1%
Provide a
Decent Living
35.5%
Business Survival Rate
100%
82%
66%
57%
50%
0 1 2 3 4
Years in Business
Top 10 Reasons Businesses Fail
50% of all small businesses fail within the first

four years, due to:
– Procrastination
– Ignoring the competition
– Incompetent employees
– Lack of versatility
– Poor location
– Cash flow problems
– A closed mind
– Sloppy or ineffective marketing
– Ignoring customers’ needs
– Inadequate planning
Chapter 185
215 Commerce Way, Suite 185
Portsmouth, NH 03801
Tel: 603-433-0575
Email: [email protected]
Web: www.seacoast.score.org

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Evaluating Your

A not-for-profit association dedicated to entrepreneur

• Is starting a business the best way to achieve my goals?

• Will the demands of starting a business take time away

• Do I have the personal resources of money, time and talent

• Do I have the physical and emotional stamina required?

• Are my skills in this particular area balanced by general

• How will my business affect the other aspects of my life?

Answer the following questions Yes or No:

• Do family & friends approve of and support your decision?

• Are you willing to work 12 to 16 hours a day, six days a

• Do you have the physical stamina to work these hours?

• Are you prepared to lose your financial investment?

• Will the business generate enough income to meet your

• Are you prepared to lower your standard of living for

• Do you know which skills are critical to making your

• Do you possess these skills?

• Does your business idea effectively utilize your personal

• Will your business fulfill your career goals?

• Can you tolerate the loneliness of working alone while

• Do you like to make your own decisions?

• Do you like competition?

• Are you self-disciplined?

• Are you an effective planner?

• Are you well organized?

• Do you get things done on time?

• Can you take advice from others?

• Are you adaptable to changing conditions?

• Can you delegate responsibility?

• Could you fire an ineffective employee?

• Do I know how much of an investment it will take to get my

• Can I support my personal obligations without an income

• Do I have a good personal credit history?

• Can I borrow money from friends or family?

• Am I willing to assume debt to start my business?

• Will my spouse support the acquisition of debt tied to our

• Am I willing to take on equity partners to fund the business

• Do I know the average rate of return on investment for a

• Is it sufficient to support my personal income goals?

• Is it sufficient to support the goals of my investors?

A snapshot of who starts a business – and why

Under 30-39 40-49 50-59 60 &

34 Manager – enjoys operations side of the business

Hero – puts the interests of customers first

30% 27 Rainmaker – thrives on obtaining new business

Artist – passionate about creating the product

Manager Hero Rainmaker Artist Maverick Other

50% of all small businesses fail within the first

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