evaluating your entrepreneurial potential
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www.seacoast.score.orgSeacoast 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
www.seacoast.score.orgSeacoast Chapter 185
Seacoast Chapter 185
• 40 Volunteer Business Counselors• Free Counseling at Commerce Way office• Provides Email Business Counseling• Frequent Free Basic Workshops & Seminars• Local Website – www.seacoast.score.org• Email – info@scorehelp.org
About SCORE
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
• 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?
Personal Considerations – cont’d.
www.seacoast.score.orgSeacoast Chapter 185
• 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?
Personal Considerations – cont’d.
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
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?
www.seacoast.score.orgSeacoast Chapter 185
• 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?
Financial Considerations – cont’d.
www.seacoast.score.orgSeacoast Chapter 185
Success Seekers
A snapshot of who starts a business – and why
www.seacoast.score.orgSeacoast Chapter 185
New Business Owners
of all new businesses are started by a sole entrepreneur
70%
www.seacoast.score.orgSeacoast Chapter 185
Age of New Business Owner
25.4%
32.9%
24.9%
12.6%
4.2%
Under30
30-39 40-49 50-59 60 &over
www.seacoast.score.orgSeacoast Chapter 185
Personality Types
40%
30%
20%
10%
Manager Hero Rainmaker Artist Maverick Other
34
27
16
11
4
8
Manager – enjoys operations side of the business
Hero – puts the interests of customers first
Rainmaker – thrives on obtaining new business
Artist – passionate about creating the product
Maverick – takes business risks for the adventure
www.seacoast.score.orgSeacoast Chapter 185
Why a Business is Started
Grow to be aLarge Business
28.6%
Provide aDecent Living
35.5%
SupplementIncome27.1%
Carry OverUntil Job Found
4.6%
No Answer4.2%
www.seacoast.score.orgSeacoast Chapter 185
Business Survival Rate
66%57%
50%
0 1 2 3 4
Years in Business
100%
82%
www.seacoast.score.orgSeacoast Chapter 185
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
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