How to Assess Yourself and Your Business Idea

Four basic factors influence a successful business start-up: a qualified entrepreneur, a profitable
business idea, a thorough business plan, and adequate capital. The latter two factors, plan and
capital, are subjects of the next two sections of this guide. Before you proceed, you should assess
both your own entrepreneurial skills and the viability of your business concept. If it is not feasible
(profitable) for you and your business concept to succeed, you will not need to spend time writing a
business plan and seeking financing.

Is Entrepreneurship the Right Choice for You?
Your previous work experience may not have fully prepared you for business ownership. Therefore,
before you can begin your entrepreneurial education, you will need to identify the characteristics of
successful entrepreneurs and compare them to your own strengths and weaknesses. Many studies
have been conducted and even more articles written on “the right stuff” for being an entrepreneur.
A summary of the primary characteristics of successful business owners follows. Rate yourself with
a plus (+) for those traits you already possess, or minus (-) for those that could benefit from
improvement.
Problem-solving: can explore innovative ways to respond to opportunities.
Goal-oriented: can envision a desired outcome, as well as plan and implement the activities
required to achieve it.
Self-confidence: believes in own ideas and abilities, and conveys that belief to others.
Risk-taking: can abandon status quo, explore options and pursue opportunities.
Decision-making: ability to make prudent choices even in a stressful environment.
Persistence: can tenaciously pursue goals regardless of the energy and commitment required.
Communication: can speak, listen and write effectively.
Interpersonal relationships: can understand the wants and needs of others, as well as inspire
them.
Leadership: can direct others effectively and empower their performance.
If you gave yourself a minus in any of the traits on the checklist, it does not mean you should give
up your entrepreneurial venture and seek a job in someone else’s business. By making a conscious
effort, you can strengthen weak entrepreneurial characteristics. Begin improvement by reading
business magazines and books, enrolling in educational programs, and seeking out a mentor who
exhibits the traits you need most. If you have some other idea about how to strengthen a weak
characteristic, that is good. You possess another characteristic of successful entrepreneurs—you are
creative!
As an entrepreneur you must possess not only the personal traits for success, you must also possess
some degree of expertise in each of the managerial skills required for business survival and growth.
Although you can hire skilled employees, engage qualified consultants, and develop a corporate
advisory board, ultimately, it is you who must determine the strengths and weaknesses of your
business, diagnose problems and seek out the expertise of others. You must learn to wear each of