Self-Assessment for Entrepreneurs

When considering buying a business, you should consider your personality and character and whether or not you are suited to the role of entrepreneur. Try answering the following questions:

  1. Is one of your values a “steady income”? If so, being an entrepreneur may not be suitable.
  2. Do you tend to be an introvert? If so, becoming an entrepreneur may be a challenge when you are selling products or services.
  3. Do you tend to be creative, adventurous and willing to take financial risk for a large potential reward? If so, you may have the characteristics of an entrepreneur!
  4. Do you have a history of entrepreneurship within your family? This is also a positive indicator for being an entrepreneur.
»Photosteve101. (2012, January 11) Red post-it label, calculator and ballpen. www.planetofsuccess.com/blog/. Retrieved from https://www.flickr.com/photos/42931449@N07/6812497415/. Attribution 2.0 Generic Creative Commons License

Photosteve101. (2012, January 11) Red post-it label, calculator and ballpen. www.planetofsuccess.com/blog/. Retrieved from https://www.flickr.com/photos/42931449@N07/6812497415/. Attribution 2.0 Generic Creative Commons License

Many resources are available to help you gain a deeper understanding of yourself. First, we recommend you complete the Keirsey Temperament Sorter®-II  (KTS-II) on the Keirsey Website, or the Meyers Briggs Personality Types at The Myers and Briggs Foundation website. The Keirsey site has a free summary; however, any custom reports have a modest charge. The Meyers Briggs site does charge to take the test. There are also free options which are typically based on same theory as the Meyers Brigg test. One example is http://personality-testing.info/tests/OEJTS/.

We also recommend you perform a preliminary analysis of your strengths, weaknesses, opportunities and threats—in essence a SWOT analysis of your personality. If you haven’t completed a personal SWOT in the recent past, you may want to take the time to complete one now. The following resources can be helpful.

In addition to evaluating your personality fit for entrepreneurship, it is essential to take a serious look at your financial situation to determine your borrowing capacity for a down payment on an existing business. You will need to assess your ability to provide ongoing financial support of the business. This process will help define the size of a business that is feasible for you. This is also the ideal time to determine what you will need to gain from the business in order to cover your personal expenses.

Finally, it is important that you have a family discussion explaining the impact of being in business for yourself. Often family members become involved in the new endeavour and are potential candidates to continue the business into the future. Having your family’s support will be paramount in becoming a successful entrepreneur.

Activity: Self-Assessment

You may want to take the time now to consider your own personality, conduct a personal SWOT analysis and examine your financial situation more carefully as you consider purchasing a business.

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