DO YOU HAVE WHAT IT TAKES TO BE AN ENTREPRENEUR? The first step in deciding whether to start a business is to ask yourself this important question: "Do I have what it takes to be an entrepreneur?" Studying the characteristics of successful business owners will help you to tell whether your personality traits, experiences, and values are similar to those who have succeeded. And assessing your experience, skills, and life goals will also help you decide if you want to invest the energy, time, and resources that successful entrepreneurship requires. Who is the "Typical" Entrepreneur? What makes an entrepreneur successful is a hotly debated and vigorously researched subject. In Success And Survival In The Family-Owned Business, Pat B. Alcorn, an expert on entrepreneurial problems, has developed the following questionnaire to help you determine your "Entrepreneurial Quotient." Write your answers in the margin. Then read on to discover what she believes characterizes the typical entrepreneur: Do you reconcile your bank account as soon as the monthly statement comes in? Entrepreneurs are careful about money. They usually know how much money they have so they can seize opportunities on short notice. They know what things cost, whether prices are going up or down, and whether they are getting a bargain. Did you earn money on your own from some source other than your family before you were 10 years old? Most people who are going to make money in business show an affinity for making money at an early age--by babysitting, selling lemonade, delivering newspapers, or some such strategy. Do you get up early in the morning and find yourself at work before others are out of bed? Entrepreneurs sleep and eat enough to keep up their strength, but they don't usually tarry at these pursuits. Do you tend to trust your hunches rather than wait until you have a lot of information on hand? Hunches are judgments based on factors that cannot be quantified, A big part of entrepreneurship seems to be risk-taking based on these hunches. Do you keep new ideas in your head instead of writing them down? Entrepreneurs keep a lot of things in their heads, including their most creative ideas. Do you remember people's names and faces well? Ease in remembering names and faces is very important in the business world. Were you good in "hard" subjects--mathematics, biology, engineering, accounting, and so forth--in school? People who major in business administration in college are more likely to be successful entrepreneurs than anyone else. They prefer subjects in which the answers are conclusive rather than open-ended conclusions full of contingencies. In school, did you pretty much stay away from such organizations as Scouts and student government? Most entrepreneurs tend to be loners rather than joiners, unless joining is a useful tactic for making contacts and gathering business information. In courting the opposite sex, did you tend to go for one person at a time as opposed to playing the field? Most entrepreneurs preferred one person because to play the field would have taken too much time away from business activities. Do you close deals with a handshake rather than insisting on written contracts and guarantees? Good entrepreneurs are often comfortable with something less binding than written contracts. When the only bond is a word, it becomes a matter of honor, and no entrepreneur can afford to lose honor. Do you devote considerably more time and thought to work than to other activities, such as hobbies? Entrepreneurs may have some leisure time activities, but their principal hobby is their work. A similar test was developed by John Komives, director of Milwaukee's Center for Venture Management. Again, write your answers in the margin, then read on to see the expert's answers Was your parent an entrepreneur? Having a close relative who was an entrepreneur is the single most telling indicator of a successful entrepreneur. Are you an immigrant? There is a high correlation between immigrants and entrepreneurs. In this sense, "immigrant" includes not only those who were born outside the United States, but also those who moved from farm to city or from the Midwest to the West Coast. Did you have a paper route? The entrepreneurial streak shows up early in life. Were you a good student? Typical entrepreneurs were anything but model students and often were expelled from school. Do you have a favorite spectator sport? The best answer is "no." Entrepreneurs are poor spectators. They often excel at individual, fast-paced sports such as skiing or sailing. What size company do you now work for? The typical entrepreneur comes from a medium-sized company--30 to 500 employees. Have you ever been fired? Entrepreneurs make poor employees. That's why they become entrepreneurs. If you had a new business going, would you play your cards close to the vest, or would you be willing to discuss problems with your employees? Typical entrepreneurs have a secretive streak. If they confide in anyone, it is likely to be another entrepreneur. Are you an inventor? A Ph.D.? Not a positive indicator. Inventors fall in love with their products, Ph.D.s with their research. How old are your? The typical age for starting a business seems to be 32-35. When do you plan to retire? Entrepreneurs don't retire. They may sell a business and think they will retire, but they are always out there starting a new business. In still another study, Jeffry A. Timmons asserts that entrepreneurs are people who have high energy, feel self-confident, set long-term goals, and view money as a measure of accomplishment. They persist in problem solving, take moderate risks, learn from failures, seek and use feedback, take initiative, accept personal responsibility, and use all available resources. They compete with themselves and believe that success or failure lies within their personal control or influence. They can tolerate ambiguity. Are You Ready, Willing, and Able? Now that you have studied the characteristics of others who have succeeded, survey your reasons for wanting a home-based business. Are you dissatisfied with your current job? What are your skills? What is your business experience, especially in the business you want to start? What are your life goals? What resources do you have that might help? Answering these questions will provide reality testing for ideas that can sound incredibly glamorous when chatting with friends or seductively attractive when you are irritated or bored by your present job. How does your family react to the idea of a home business? Will you expect them to help out? What changes would your business use of the house mean for them? Will you have to remodel to create a usable business space? What resources are available to you? Will you start by keeping your job and "moonlighting" for a while? Do you have a small nest egg, inheritance, or retirement income to live on until you get the business going? Do you already own tools or machines that will help (for instance, a word processor for a secretarial business or professional cameras and a darkroom for a commercial photography business)? Are you able to go back to school for training if necessary? Have you built up a network of contacts and possible customers through your previous lines of work or will you be starting from scratch? Answering these questions honestly and completely will help you assess not only your chances for success but also which type of home-based business to choose. For instance, if your past professional life and contacts are all in the educational, teaching, child-oriented school area, then you should have powerful reasons for leaving that and opening a mail-order seed business. Possibly a tutoring business or a tot exercise franchise would use more of your resources and networks. On the other hand, if your assessment of your life goals and preferences helps you realize that you are burned out from working with kids, then perhaps a business planning birthday parties could later be built into a general party planning and catering business. You would be using your old contacts to build a long-range business plan that focuses on a service business for adults. ------------------------------------------------------------------- Strictly Business!BBB * Int'l Trade Conference -=-=-=-=-=-=-=-=-=-=- An Information Exchange Service For Entrepreneurs, Managers & Business Professionals * InterNet Email & NewsGroups * USA Today Decision Line * Daily Reporter Newspaper * 5GB+ Files * "How-To" Business Files * Online Legal Advisor * Int'l Trade Leads & Calendar of Events * Qwk Mail * TravelSearch Database * FREE Online Business Newsletter * RIP Graphics 614/538-9250 @ 9600bps/MNP * 614/538-0548 @ 14.4Kbps * Bringing Businesses Together Online(tm) * UNICOM Information Services