Seacoast Chapter 185 Evaluating Your Entrepreneurial Potential

Seacoast 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?

Seacoast 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?

Seacoast 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?

Seacoast 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.

Seacoast 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.

Seacoast 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?

Seacoast 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?

Seacoast 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?

Seacoast 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?

Seacoast 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.

Seacoast Chapter 185 Success Seekers A snapshot of who starts a business – and why

Seacoast Chapter 185 New Business Owners of all new businesses are started by a sole entrepreneur 70%

Seacoast Chapter 185 Gender of New Business Owner Women 35% 65% Men

Seacoast Chapter 185 Age of New Business Owner 25.4% 32.9% 24.9% 12.6% 4.2% Under & over

Seacoast Chapter 185 Personality Types 40% 30% 20% 10% ManagerHeroRainmakerArtistMaverickOther 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

Seacoast Chapter 185 Why a Business is Started Grow to be a Large Business 28.6% Provide a Decent Living 35.5% Supplement Income 27.1% Carry Over Until Job Found 4.6% No Answer 4.2%

Seacoast Chapter 185 Business Survival Rate 66% 57% 50% Years in Business 100% 82%

Seacoast 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