is a Professor Emeritus of Finance, Valdosta State University. He has actually been a consultant both to small and medium size businesses and has conducted a number of small-business workshops and also management-training programs. He is a service journalist and the author of various posts in expert journals and also three publications on small business jae won management and planning.
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What the Takes To be AnEntrepreneur The driving pressure behind thenumerous small- and medium-size companies that prosper in our economy, is theentrepreneur. For those interested in starting and operation a business, it isuseful to understand who this distinctive individual is and whether they have similarpersonality traits.

Who Is anEntrepreneur?

Social researchers haveconducted countless studies to determine whether successful entrepreneursevidence personality traits different from the general population.

They uncovered that the typicalentrepreneur is:

An opportunist capable of recognizing one attractive, potentially profitable venture; A threat taker willing to i think the hazard of ns in return because that the promise that an agree level of profit and also other personal rewards; Goal oriented and also a high-achiever that enjoys setting difficult objectives and has the ambition and perseverance to with them v his or her very own efforts; A highly motivated, difficult working, high energy, self-starter through a solid sense that commitment that is ready to endure the frustrations and demands associated with making a service venture successful in return for the rewards; Self confident with enough faith in his or her capacity to fulfill challenges, conquer adversity, fix problems, and make great decisions (It is the solid sense of self confidence that leads businessman to expropriate the above average risk connected with a brand-new business venture.); Independent (The typical entrepreneur desires to be in control, to execute things his or her way, to lead rather than follow, and also to do decisions there is no interference from others.).

Needed Traits

The following an easy assessmentquestionnaire should offer the prospective business man a basic idea the whetherhe or she possesses personality traits continual with this entrepreneurialprofile. To score your responses, assign one point to every "Yes"answer and a zero to every "No" answer. Include the suggest values and usethe following argued guidelines for interpreting her score.

A score the 17 or over indicates properties consist through those the the common entrepreneur. A score between 13 and also 16 suggests only moderately consistent traits. A score of less than 13 says a lack of consistency.

When interpreting her score,realize the the results are just suggestive and also not conclusive. There aresuccessful entrepreneurs with scores less than 13 when a score the 17 or greaterisn"t an automatically guarantee the success. Success likewise requires a good businessconcept, organization and also managerial skills, the important financing, a lot of ofhard, demanding work, an excellent timing, and also a measure of luck.

EntrepreneurAssessment Questionnaire

assuming you had actually the choice and know the risk and also sacrifices involved, would certainly you choose a little business entrepreneur"s job over any other? correct ______ No ______ are you willing to take an extensive risk, for example investing your life savings, if the potential reward is sufficient? yes ____ No _____ have the right to you do a decision and stick to it even though the decision is unpopular v those the are impacted by the outcome? correct _____ No _____ 4. Perform you enjoy having actually the duty for making decisions also knowing that you will certainly be hosted accountable for bad results? yes ______ No ______ carry out you collection goals prior to beginning critical undertaking? correctly ____No _____ perform you do a detailed activity plan prior to beginning a significant undertaking? correctly _____ No _____ are you may be to efficiently organize the resources required to complete a major undertaking? correctly ______ No ______ do you complete tasks or jobs that you start in spite of difficulties or obstacles? correct ______ No ______ space you willing to spend every little thing time and also effort are required to finish a task? correctly ____ No ____ do you gain meeting and dealing with people? yes _____ No _____ perform the people you deal with trust you? correctly ____ No____ do the world you attend to understand the concepts and also ideas you effort to communicate? yes _____ No ______ space you able to motivate the people you address to go together with your ideas? correctly _____ No _____ space you in great health? correctly _____ No ______ room you fix up or creative? correct _____ No _____ perform you thoroughly investigate crucial undertakings before getting involved? correctly _____ No _____ have you done a self-analysis to determine your personal strengths and weaknesses? correctly _____ No ______ carry out you have actually technical endure in the form of company you plan to start? yes _____ No ______ carry out you have management experience in the form of company you setup to start? correctly _____ No _____ space you willing to have world with field of expertise or talent you lack join you to operate the service you plan? correct _____ No ______

Starting A new Business

A major factor contributing tothe poor success price of startup enterprise is the entrepreneur"s failure tocarefully investigate and also plan a brand-new venture. Because that this reason, professionals advise atwo-fold method to the pre-startup stage: do a feasibility examine and, if theventure shows up promising, prepare a substantial business plan.

The Feasibility Study

As the name suggests, afeasibility research is a mindful investigation into the question: what is thelikelihood that commercial and financial success because that the proposed new venture? Toproposed prize this an essential question, the entrepreneur must very first determine whetherthere is a great fit in between the knowledge, skills, and also experience required toeffectively operate the business and also the ability of the administration team thefirm will ultimately employ. Next, the entrepreneur need to gather details onthe determinants that are an essential to the venture"s success. This include:

The sales expansion potential for the firm"s industry and also the market(s) in which the will perform business; The customer group that constitutes the firm"s target market and also how they have the right to most effectively be reached; The firm"s strengths and also weaknesses loved one to its compete (The two crucial questions to be answered right here are: why have to consumers buy from me fairly than from mine competitors, and what competitive benefit does my firm possess?); The initial and near-term financing needed to sustain the business and how and also where it deserve to be raised? The degree of hazard to i beg your pardon the business and the entrepreneur"s investment will be exposed and also whether the potential rewards are adequate to compensate because that this risk.

If the feasibility research doesnot suggest a an excellent match between the required skills and monitoring abilities, or ifsolid proof supporting the likelihood the success does no exist, the businessis more than likely doomed native the start.

The BusinessPlan

A well-prepared company planis an extensive blueprint because that the firm. That details the business concept; howthe firm will certainly be organized, financed, marketed, and operated; the strategiesused to guide operations; and also the lift and skills of its crucial people. Bypreparing a formal company plan, the entrepreneur is compelled to:

convert pipe dreams to realities by crystallizing thoughts and submitting castle to document so they have the right to be objectively evaluated; conference the information necessary to plainly identify wherein the firm is headed, the market methods that make this possible, just how management intends to take benefit of these opportunities, and also the data to support the assumptions underlying plans and also projections; evaluate the firm"s strengths and also weaknesses loved one to the industry, that market, that is competition, and its customers and spell out how strengths will certainly be exploited and weaknesses overcome; recognize the significant factors that add to the firm�s success or bring about its downfall; fully develop the firm"s business concept and also flesh the end the tactics that will certainly drive it; Think around realistic, attainable goals for the business and how development toward them will be monitored and measured; Think carefully about each part of the business, understand just how the parts should tie with each other to form a going concern, and also identify the human, physical, and also financial resources that are compelled to successfully run the business.

The sizable invest of timeand energy required to perform a feasibility study and write a solid service planusually prompt new entrepreneurs to inquiry whether the effort is reallynecessary. Organization experts say, "absolutely and also positively, YES."They agree the a solid research and also planning effort are the many importantweapon the entrepreneur has for drastically increasing the odds of success.What"s more, a reality feasibility study and business setup serve as evidencethat the certain is in the hands of knowledgeable management. This is proof thatany prospective financier or investor expects come see.

Buying An present Business

Before you buy one existingbusiness, it is in cautious and investigate closely beforeyou invest. Purchase a going problem involves together weighty a planning and decisionprocess as that required to start a organization from scratch. Both endeavors requireenough info to carry out a convincing answer come the complying with question: isthere adequate evidence to show a strong likelihood that the businesswill, under my management, generate sufficient sales, cash flow, and profit tocompensate for the hazard assumed and also the money, time, and effort invested? Toanswer this question, the entrepreneur must very closely investigate both thecompetitive environment surrounding the business and the inner factorscritical to its success.

TheCompetitive Environment

The firm"s competitiveenvironment refers to the external threats and also opportunities that impact itssuccess yet are exterior the direct control of management. The entrepreneur�sinvestigation the this area should emphasis on the following crucial factors:

Industry Outlook Thelongevity of any business is directly affected by the success the the industry inwhich it operates. If the market is in, or relocating toward, a state that decline,then member firms cannot be much behind. To understand the dynamics that the targetfirm�s industry, the entrepreneur should understand:

The dangers it faces; The factors that recognize its success or add to that is failure; The present stage that its life cycle; The outlook for long-term success.

Market Outlook Closelyakin come the wellness of the firm"s market is that of the market(s) it serves.The entrepreneur have to be satisfied that this market has actually a solid economicbase, is either growing or has the potential because that sustainable growth, and has alegal and political climate which is organization friendly. Again, it is a rarebusiness that deserve to be effective in a weak or hostile industry environment.

Customer base Without asolid, loyal group of customers, that is difficult for the company to create asatisfactory return ~ above investment. To assess the quality of the firm�scustomer base, the business man must have actually a clear knowledge of:

The qualities that define the firm"s target client group; exactly how the firm"s products/services satisfy their needs; Why this team buys or need to buy indigenous the firm rather than from competitors; how they can be motivated to buy from the firm; whether the size of the customer base is expanding or contracting; whether the unit and dollar sales come the customer base are expanding or contracting.

Competitive OutlookUnderstanding the firm"s competition and how that stacks up against thatcompetition is as vital for success as knowledge its customers. Theentrepreneur have to identify:

The firms against which that competes; Why customers buy from them; What its rivals do right and also the mistakes they make; The strengths and also weaknesses of its competitors; your competitive advantages or disadvantages family member to myfirm.

Location If place iscrucial to the success of the business, the entrepreneur have to be satisfied thatthe firm is attractively positioned and, if so, that there space no significant changes inthe functions which would adversely influence this site. If the present location is notsuitable, the business man must determine whether a move have the right to be make or whetherone would certainly be price prohibitive. If the last is the case, it usually rulesagainst a decision to acquisition the business.


Internal factors refer to thoseelements that the firm"s operations that are under the direct regulate ofmanagement. These encompass the human, physical, financial, and also intangible assetsneeded to run the business.

Personnel Chronic labor difficulties are usuallythe curse the small- and also medium-sized firms, and the entrepreneur must be surethat that or she is no buying potentially irresolvable issues. The firm"spersonnel must be carefully evaluated to recognize whether lock areproductive; adequately compensated; well-suited come the requirements of the businessand the management layout that will be employed; and also will remain with the firmwhen the ownership alters hands.

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Physical legacy The firm�s physical assetssuch together buildings, equipment, and also inventory need to be carefully evaluated toensure that fair worth is received for the price paid. The heritage base should belarge sufficient to accommodate the supposed level the sales and sufficientlyproductive to satisfy expected operation needs.

Financial PerformanceEarning a satisfactory return on invest is the major reason because that businessownership and also the entrepreneur should be satisfied that the firm"s financialoutlook is promising. Jae won records must be analyzed to identify whether: