How Entrepreneurially Ready Are You?

You don’t have to be an Oprah Winfrey fan to understand the value of self-awareness, and as someone likely in your late forties or older, you’ve had lots of chances to get to know yourself. But that doesn’t necessarily mean you know yourself as an entrepreneur.

The Small Business Administration (SBA) defines “entrepreneur” as “a person who organizes and manages a business undertaking, assuming the risk for the sake of profit.”

That definition is telling in a few ways:

1. “Who organizes and manages” indicates a level of operational experience that, quite frankly, only comes with age.
2. “Assuming the risk” emphasizes the fact that it takes being comfortable with uncertainty to be a successful entrepreneur.
3. “For the sake of profit” shows a commitment to the practice of making money.

The following short quiz will help you assess your entrepreneurial readiness—i.e., how well you embody those three simple qualities we just extracted from the SBA definition of “entrepreneur.”

It’s a good idea to involve your spouse or life partner, either by taking the quiz together or discussing your results afterward.

Respond to each question with the first honest answer that comes to you.

Ready? Assess your entrepreneurial readiness!

1. If I were left alone on a deserted island, I would:

1. Probably go insane from loneliness.
2. Eventually adapt to the situation.
3. Be as happy as a clam.

2. The most money I’ve risked in either a business venture, gambling, or other situation is:

1. A month’s wages.
2. A year’s wages.
3. More than a year’s wages.

3. When a venture didn’t pay off for me, I felt:

1. Devastated; I’ll never do it again.
2. Down for a week or so, then I bounced back.
3. Nothing ventured, nothing gained…on to the next venture!

4. When I have to make an important business decision, I feel:

1. Analysis paralysis; I seek someone else to make the decision.
2. Some anxiety and procrastination, but I follow through.
3. Energized and fully engaged.

5. When thinking of investing, I expect a return on my investment:

1. As soon as possible (i.e., within the first year).
2. In the short term (over the next couple of years).
3. Over a longer term (five or more years).

6. When I work in a team, what I really want to do is:

1. Stay quiet so I don’t cause conflict.
2. Build consensus so everyone gets heard.
3. Take the lead, have control.

7. I would prefer to be involved in a team sport as:

1. A spectator.
2. A coach, trainer, or helper.
3. A key player on the team.

8. If I imagine having a business empire in the future, I feel:

1. Skeptical; it’s not likely to happen.
2. Cautiously optimistic about the possibility.
3. Gung ho—let’s get ’er done!

Scoring

Now add up your points:

1 point for each a answer

2 points for each b answer

3 points for each c answer

If your total number of points is:

8: You’re probably not ready to be an entrepreneur at this time in your life. But don’t give up; do some more soul-searching and research, and take this quiz again in a few months or a year.

9-16: You’re ready to become your own boss, cautiously at first. A “Company of One,” such as buying a franchise, might be a good start for you at this time.

17-23: You’re busting to get started! Your best options probably fall under the “Boss of a Few” or “Business of Many” headings— that is, either buying an existing business or franchise, or creating a start-up.

24: Wow! You’re slated to become an entrepreneur on steroids—growing your venture quickly via diversification or multiple units.

To take a more in-depth version of this entrepreneurial readiness quiz, go to yourbestboss.com/quiz.

Excerpt from “Be Your Best Boss” by William Seagraves with the permission of TarcherPerigee, an imprint of Penguin Random House. Copyright © 2016 by William Seagraves.

William R. Seagraves specializes in helping aspiring business owners make the leap from the restraints of corporate America to discover the freedom that small business and franchise ownership can provide. With more than 20 years of experience as an entrepreneur and financial funding guru, he is expertly positioned to offer sound advice that has seen hundreds of small business owners not only succeed but flourish during the midlife entrepreneur stage of their lives. Seagraves’ company, Catchfire Funding, specializes in sharing information about wealth building with funding and financing strategies and educating clients on the best practices for building their own businesses.