Analyzing
Business Risk
1.
Self-confidence. Business owners strongly believe they will
succeed (rating themselves 9), those with lower expectations 6. __________
2.
Business size. Firms with initial investment of $50,000, or less
than $20,000. Firms
starting out with six or more employees.
__________
3.
Quality versus price. A business strategy of providing better
customer service for survival than a strategy based
on price. __________
4.
Hard work. Entrepreneurs work between 60-70 hours a week.
failure is higher than if you get some help and some
rest. __________
5.
Devotion. Entrepreneurs who give full-time attention are more
likely to succeed.
Keeping your day job will not work. __________
6.
Product/Service
experience. Entrepreneurs who provide
goods
or services they know well from previous jobs fare
better. __________
7.
Education. Entrepreneurs should have a
pre-MBA degree or
years of business experience as they will find themselves doing
all the tasks to run the business. __________
8.
Skills. Entrepreneurs should already have the skills required to
perform the services or provide the goods.
__________
9.
Mentor. It is very important for entrepreneurs to select and learn
from a more experienced
business owner in the same or similar
industry.
The entrepreneur must return the favor for the
relationship to last. Look for brutal honesty. __________
10.
Spouse
and family members. How much does
the entrepreneur
spouse or other family members support
the business venture? __________
Total Score: __________
Meaning:
90-100 =
Start developing the business plan immediately.
80-89
= Make some changes to your concept, than
proceed to develop the business plan.
70-79
= Do not proceed until some changes are made
to your concept.
60-69
= Seek professional advice
before proceeding to the business plan step.
50-59
= Reconsider the business venture and do not
proceed at this point.
10-49 =
Do not proceed. Seek out other career opportunities.