First test Second test
Date completed: _________________ Date completed: __________________
1.I have been in business for:
a) ______ weeks b) ______ months c) ______ years
2.I started because:
(Circle only the most accurate response.) a) I was laid off and couldn’t find work
b) I no longer wanted to work for my employer
c) I was not getting enough recognition or pay for my work d) I was worried about job security
e) My work was boring and posed no challenges f) My goal has always been to own my own business g) I have planned this for years, and now I am ready h) My family owns its own business
i) All my friends seem to be self-employed
j) Owning my own business seemed like an attractive idea k) Other:_______________________________________________
3.I chose this business because:
(Circle only the most accurate response.)
a) I have worked in this field for more than five years b) I have excellent technical skills in this area
c) It was a challenge that drew on my strengths d) It required start-up capital of less than $10,000 e) I could work from home
f) I saw an advertisement that really appealed to me g) The business proposal promised an immediate income h) I always wanted to own a business like this one i) I thought I could learn how to operate it quickly
j) I have had a business before and this appeared to be a profitable concern
Figure 1.1
4.Before making the decision to start this business, I:
(Circle each applicable response.)
a) consulted an accountant or consultant with my idea b) researched the current and future market
c) researched the competition d) researched the product or service e) prepared a business plan
f) prepared projections and cash flow sheets for two years g) had an accountant review my business plan
h) had a lawyer review contracts and leases
i) checked local government regulations and licensing agencies j) had enough money on hand to operate for a minimum of six months k) set short- and long-term goals
5.I financed the business with:
(Circle only one applicable response.) a) my own capital
b) my partner’s and my own capital
c) a small business loan from the bank and one-third of my own capital d) money from my family
e) cash from my retirement savings f) a small business loan and a little capital g) my own capital plus d) or e)
h) my own capital plus a line of credit i) a line of credit
j) money obtained mainly through credit cards k) an extension on my home mortgage
l) a higher-interest loan, not from a bank
6.I am experiencing difficulties with my business in:
(Circle each applicable response.)
a) making enough profitable sales to pay the bills b) knowing how to reach my market
c) finding effective methods of advertising d) selling and closing potential deals e) understanding the necessary paperwork
f) understanding the bookkeeping and accounting requirements g) keeping on top of the paperwork
h) motivating myself to work i) keeping organized
j) not having enough recreation or family time k) keeping a positive attitude
l) drawing business away from my competitors m) keeping my prices competitive but profitable n) getting my customers to pay me on time o) finding the right employees
p) keeping inventory turning over quickly q) knowing how to manage my inventory
7.At this time, I know the following about my business:
(Circle each applicable response.) a) the seasonal sales trends
b) my average gross sales each month c) my average monthly gross profit d) my monthly break-even point e) how much my customers owe me
f) how much I owe to suppliers and tax departments g) my approximate personal tax situation for year-end h) the correct balance in my bank account
i) my estimated sales in the next six months
j) how much I can safely draw from my business each month k) how I am going to market in the next three months
8.My current state of mind in relationship to the business is:
(Circle only the most accurate response.) a) I am still very excited about the future
b) I am always planning ahead and thinking of innovative ideas c) I love what I am doing and am very content
d) I can foresee great potential for the future e) I am uncertain about the future
f) I am not sure if I made the right decision
g) This was not what I expected it to be h) It’s hard work and the glamour has worn off i) I get tired and have trouble motivating myself j) I am depressed because I don’t earn enough money k) I don’t think I am an entrepreneur after all
l) I think I’d prefer to be an employee again m) I could close the doors tomorrow and walk away
9.At this time, my future plans for the business are:
(Choose the one item which best describes your future plans.) a) to learn everything I can and to work on making it succeed b) to locate my problem areas and try to resolve them
c) to be profitable, to diversify, and to grow
d) to build this business to help support my retirement e) to build the goodwill and sell within the next few years f) to seriously analyze where I stand before I go much further g) I don’t have any future plans as yet
h) I’m having enough trouble surviving day-to-day, never mind the future i) to sell it for what I can and get out
Total your score for questions 2 to 9 by using the following formula and writing your points scored (or lost) in the space provided.
Score Scoring
Question 2: 1 point for a-e; 5 points for f-g; 2 points for h-k _________
Question 3: 5 points for a-c; 3 points for d-e; 2 points for f-j _________
Question 4: 15 points for all items circled; 7 points for 7-9 circled;
5 points for 4-6 circled; 1 point for 1-3 circled _________
Question 5: 5 points for a-c: 4 points for d-g; 3 points for h-i;
no points for j-l _________
Question 6: Deduct 1 point for all items circled in this question _________
Bonus: add 10 points if no items are circled
Question 7: Add one point for each item circled _________
Bonus: add 5 points if all items circled
Question 8: Add 5 points for a-d; deduct 1 point for e-f; _________
deduct 3 points for g-j; deduct 5 points for k-m
Question 9:10 points for a-e; 3 points for f; no points for g-i __________
Total Score __________
Score analysis
71 points:You are obviously an excellent entrepreneur who is doing everything right. Congratulations! Keep on doing what you are doing.
60-70 points:Well done and bravo! You have made a successful start and have pinpointed a few areas where you know you need to improve. Work on these areas with proper guidance, and you will definitely build or improve on a fine business.
30-59 points: There are some important areas you should address. For the most part, you have made a valiant effort to “do it right.” Don’t ignore problems or shortcomings as they likely can be overcome.
10-29 points:The warning bells are sounding. You have to evaluate what you are doing wrong or not doing at all. It’s not too late to work on the areas of concern, but it will require your dedicated commitment.
(–) to 9 points:Perhaps you should consider letting the business go before you get deeper in debt and more depressed. Entrepreneurship is not for everyone.
Some of the most successful people have quit or failed multiple times before eventually succeeding. If you are willing to accept professional guidance, you could get your business back on track. If it is the wrong business or you have lost interest, let it go.