Evaluating Your Entrepreneurial Potential

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 Don’t read the slide!!! Describe what SCORE stands for – Service Corps of Retired Executives with the emphasis on SERVICE – for example – over 12,500 volunteers provide over 1.3 million counseling hours every YEAR!

About SCORE 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 Don’t read the slide!!! Describe how we provide free counseling – one hour appointments at two locations. We are prepared to help over 2000 businesses every year.

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?

Personal Considerations – cont’d. 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. 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?

A snapshot of who starts a business – and why Success Seekers A snapshot of who starts a business – and why

of all new businesses are started by a sole entrepreneur New Business Owners 70% of all new businesses are started by a sole entrepreneur

Gender of New Business Owner 35% 65% Women Men

Age of New Business Owner 25.4% 32.9% 24.9% 12.6% 4.2% Under 30 30-39 40-49 50-59 60 & over

Personality Types 34 27 16 11 8 4 40% 30% 20% 10% Manager Hero 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 30% 27 20% 16 11 8 10% 4 Manager Hero Rainmaker Artist Maverick Other

Why a Business is Started No Answer 4.2% Carry Over 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 66% 57% 50% 1 2 3 4 Years in Business 100% 82%

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: info@scorehelp.org Web: www.seacoast.score.org