Determining Your
Entrepreneur Potential
Martha D. Soffer
U.S. Small Business Administration
[email protected]
www.sba.gov/ny/ny
Who is an Entrepreneur?
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A a person who organizes and manages a
business and assumes risk for the sake of
making a profit.
A person who may not necessarily upfront
have all of the proper skills, but fills the gap
with knowledge through education,
mentoring or training.
A person who hires the right consultants,
employees, and managers, professionals and
suppliers
Characteristics of a
Successful Entrepreneur
Guts and Willingness to “Fail”
An overwhelming desire to have and succeed in your own
business.
Personal responsibility and devotion to the business.
Patience and the ability to hang-in during the ”roller
coaster” phases.
“Trial and error” will be one of your mantras, but “error” will
never used as an excuse to fold-up and call it a day.
Characteristics of a
Successful Entrepreneur
Brains
While appropriate educational credentials are
important, you’ll need a working knowledge
about the business before you start it.
Common sense, experience, cautiousness,
follow through and attention to detail will make
or break you.
Characteristics of a
Successful Entrepreneur
Ability to Raise Capital
Your own money plus sufficient capital to
maintain a positive cash flow for at least
one year.
(Savings, loans, investors, “crowd
funding”, “friends and family)
www.sba.gov/ny/ny “Click on Financing”
and “Local Resources”
Are you a self starter?
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It will be up to you to develop
projects, organize your time and
follow tasks through to completion.
How well do you get along
with different personalities?
“Know Thy Self”
Your answer will determine what type of
business you should start.
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Customers
Vendors
Employees
Bankers
Lawyers
Accountants
Consultants
Are you a good decision
makers?
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Business owners needs to make
decisions constantly;
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Quickly
Independently
Under Pressure
How well do you plan and
organize?
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Poor planning might result in business
failure
Good organization of financial,
inventory, schedule and production can
help an Entrepreneur be successful.
How will the business affect
your family?
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The first few years are the hardest for
you and your family. Are you prepared
to balance the two?
Family members need to know what to
expect and their support and “buy in”
are vital.
Traits Necessary for
Successful Entrepreneurs
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Creativity: able to create new ideas and
ways of solving problems
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Adaptable
High self-confidence
Challenge-oriented
Idea-oriented
Traits Necessary for
Successful Entrepreneurs
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Innovative: ideas/products/services
Idea Generation:
--Imagination and Vision and Brainstorming
--Trial and Error and Problem-solving
--Books, Articles, Websites, Blogs, Industry
Publications,
--Workshops, Conferences, Industry
Publications.
--Business Advisors, Mentors
(SBA Resource Partners).
Positive Attitude
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Successful entrepreneurs
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Are optimistic
View problems as opportunities
Know that a positive mental attitude is the key
to success
Your thoughts have power.
Vision and Purpose
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What type of business should you
start? It all depends upon:
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Experience
Interests
A Market Need
Preparation
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How well are you prepared?
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Business Plan
Know and Research Your Competition
Trade Magazines, Books- Industry
Trends
Professional Business Assistance:
SBA Resource Partners
www.sba.gov/ny/ny Click on “Local Resources”
Know Your Individual Style
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Highly organized?
Energetic and action oriented?
Steady and persistent?
Goal-oriented?
Hard working?
Need to be in control?
Risk taker or risk adverse?
Know Your Individual Style?
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Dependable?
Self-motivated?
Cooperative and team player?
Flexible?
Alert to challenges and opportunities?
Strong leader?
Effective communicator?
Willing to ask for help?
What are Your Practical Skills?
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Capable writer?
Creative and original thinking?
Bookkeeping, accounting, financial
management?
Strategic and analytical problem solving?
Street smart and ‘school of hard knocks’?
Do you have what it Takes?
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Conduct real-life research by taking
field trips to your competitors.
--What are the biggest signs of
success in this field?
--What are your products most
important feature?
--What does your competition charge?
--What’s special about them and their
customer service?
TOP TEN DO’s
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Live economically and begin saving your
pennies for your business
Gain experience by first working for
someone else in the same business
Consider keeping your job and
“moonlighting”
Consider the option of a “family-owned
business”.
Objectively measure your skills and
training against potential competitors.
TOP TEN DO’s
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If you are manufacturing a product, consider
subcontracting to low cost suppliers.
Test market your product or service before
starting or expanding
Make a “pros” and “cons” list describing the
business you are considering
Talk to lots of people for advice
Make a comparative analysis of all the
opportunities and businesses you are
considering.
TOP TEN DON’TS
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Don’t quit your job before you have
completed start-up plans
Don’t consider operating a business in a filed
you do not enjoy
Don’t risk all the family assets. Limit your
liabilities to a predetermined amount.
Don’t compete with your employer in a
moonlight business
Don’t be in a hurry to start. Take your time to
plan it right and get proper advice..
TOP TEN DON’TS
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Don’t select a business that is too high risk
Don’t operate a business in which you must
have the lowest price to succeed
Don’t neglect to learn the negative aspects of
an intended business
Don’t permit “illusion, wishful thinking and
desire” outweigh careful diligence.
Allow the promise of a conceptual high
reward deter reality testing first.
In Conclusion
NOW GO HOME AND THINK
ABOUT IT.
IS BEING AN ENTREPRENEUR
RIGHT FOR YOU?
U.S. Small Business
Administration
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www.sba.gov/ny/ny
SBA Resource Partners
“Local Resources”
SCORE, SBDC, Women Business
Centers
SBA Financing “Financing Programs
Visit website or call 212-264-2734.