MODULE 1 Entrepreneurial Assessment
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1 Table of Contents MODULE 1 Introduction. 2 Project Outcomes 3 Facilitator s Notes 3 Management Skills. 4 Financial Abilities... 5 Marketing Skills. 5 Personal Skills. 6 Communication Skills 6 Participant Activities Introduction 8 Skills Assessment 9 Business Brainstorming. 10 Conclusion.. 12
2 Introduction: There are many opinions regarding what are the key success factors for an entrepreneur. In fact, there is one school of thought that suggests that entrepreneurs cannot be created or taught, they are born with the personal, professional, and technical traits that drive them to entrepreneurial success. But whether born or taught, all entrepreneurs can benefit from specific training and education. Numerous questionnaires checklists, assessments, and quiz s have been written to measure what is the right stuff required to be an entrepreneur. Each of these writings measure character and technical traits deemed by the author as essential to the entrepreneurial process. Does this mean that a low score on any of these assessments will accurately predict success or failure in business? Absolutely not! Are there common attributes which entrepreneurs share? Absolutely! Module 1, although an entrepreneurial assessment, allows the participants to develop skills to measure personal goals and vision, assess weaknesses and strengths, and develop a plan or road map for personal and professional success. 2
3 Projected Outcomes: Upon completion of Module 1, participants will be able to: Describe key success factors of an entrepreneur. Describe and assess personal and business related skills. Identify personal and business challenges impeding personal goals and objectives. Understand goal setting practices and methods. Develop greater self-confidence and self-awareness. Facilitators Notes: What are the key or common attributes or characteristics of a successful entrepreneur? Although there is much debate over this subject, it is generally believed that an entrepreneur should have the following skills or abilities: Management skills Financial abilities, Marketing skills, Personal skills, and Communication skills. 3
4 Do all entrepreneurs have all these skills and abilities? No, very seldom does an entrepreneur have all these skills. But successful entrepreneurs realize their importance. It is important to note that ALL successful entrepreneurs demonstrate persistence and commitment. The ability to stick to your dream, to adapt to ever changing market conditions, and to follow through with obligations is the most important attribute an entrepreneur can achieve. The following section examines these and other qualities that add to the chances for business success. It should be noted that this list of skills and personal attributes are not complete; there are many other factors that contribute to business success and will be discussed throughout the E-Spirit competition in following modules. 1. Management Skills: Management skills cover a wide array of abilities such as organizational skills, computer skills in some instances, and the skills required for the business started. Management skills and computer technology are changing rapidly; the Internet has changed the way business does business. This changing business environment requires the entrepreneur to constantly learn and apply new skills if they wish to remain competitive. What implication does this mean to the potential entrepreneur? Continuous learning, life long learning is a motto for success. Attend seminars, workshops, business conferences, join local business groups and keep up to date with changes within the entrepreneurs chosen business field. It is important to never cease educational opportunities in the area of expertise required for that particular business venture. 4
5 2. Financial Abilities: Financial abilities are essential for today s entrepreneur. Although entrepreneurs hire accountants and bookkeepers to keep track of their business interests, the entrepreneur must have a strong understanding of financial/accounting principles and practices. Financial abilities may include accounting skills, organizational and administrative skills, an understanding of tax laws, and provincial/federal regulations. This seems like a lot for the small businessperson to learn, that is because it is a lot to learn. Education is the key to developing the financial abilities necessary to own and operate a business efficiently and effectively. Numerous educational institutions including secondary institutions offer courses that will enhance the potential entrepreneurs financial abilities and in turn increase their likelihood of success. 3. Marketing Skills: An entrepreneur may have the best product or service but if they cannot attract customers they are doomed to failure. Marketing skills allows the entrepreneur to communicate and inform potential customers of their products or services. Effective marketing encompasses one-on-one communication skills and the ability to define and target your market or customer. Defining and targeting your customer is one of the key success factors for business success, yet it is one of the areas most neglected by the entrepreneur. Once the market has been defined, communicating information to customer becomes the focus of marketing. This is not to suggest that this endeavour is a one-time occurrence for the entrepreneur, defining and re-defining the target market must be an on-going exercise for the business owner. If education seems like a reoccurring theme in this guide, you are correct. Numerous organizations, government agencies, and educational institutions offer marketing courses for the beginner or expert and should be taken advantage of, especially for the neophyte entrepreneur. 5
6 4. Personal Skills: A positive attitude and healthy self -esteem are necessary qualities for the businessperson. These qualities assist the entrepreneur in keeping motivated, organized, and better prepared to deal with the stresses of business ownership. In addition, personal skills are required when dealing with customers, suppliers, government personnel, and others who may become involved with the business venture. 5. Communication Skills: Communication skills are essential for today s entrepreneur or employee. This includes both written and verbal communication skills. The businessperson of today may communicate with lawyers, accountants, bank managers, employees, government officials and customers in a single day. Being able to communicate your message or information clearly, orally or written, is essential for success. The ability to communicate effectively with various audiences in a variety of forms is a skill few people possess naturally. Fortunately, there are a variety of courses and associations that may help sharpen communication skills. Toastmasters have been effectively teaching people how to get your message across professionally. Educational institutions offer a variety of courses, seminars, and workshops designed to improve written communication skills. 6
7 Participant Activities The following E-Spirit participant activities are in no way compulsory for this competition. However, the following activities may provide the participant insights into the world of entrepreneurialism and increase the educational value for the participant. Activities suggested in Module 1 include the Fundamentals of Brainstorming, and Creating Personal and Professional Goals. Neither of these activities is time consuming and will provide an excellent introduction into business planning and the business world. GOOD LUCK! 7
8 In business applications, personal skills can be categorized as either technical skills or management/business skills. An entrepreneur must make an honest appraisal of their strengths and their weaknesses. It is natural for someone to emphasize their strong points and downplay their weaknesses but that could put your business at risk for failure. Small business typically face 4 types of risk : Management risk Sales and marketing risk Production/technology and supply and purchasing risk, and Finance risk. The purpose of this exercise is to let the participants identify the skills they believe are essential for business success and compare those skills to their own. The goal of this exercise is to develop participant self-awareness, strategies for capacity development and success. 8
9 Participant Activities Activity 1: Skills Assessment: This assessment will determine what the participants believe are their strongest and weakest skills. Material required: Time: Activity: Example: Paper and pen. Approximately minutes Participants will write down their strongest skills and weakest skills. This may include things they enjoy such as a hobby, craft, music, art, etc. Write well, energetic, good math or accounting skills, work experience, speak well, etc. Closure: Participants do not have to show anyone their responses; this is for their personal knowledge. Tell them to keep this paper until the end of the competition; they may have a lot more to add to their list! The assessment is the first step in planning your business. Are you capable of running a business? If not, can you hire the help, personal training/education, and professional advice? In the majority of cases most participants will not have all the skills necessary to own and operate a business. This is not to say they cannot acquire those skills through education, training, experience, etc. Assessing your strengths and weaknesses is the first step in creating goals and objectives whether for personal or business use. No one is going to have the exact same goals or objectives. 9
10 Participant Activities Activity 2: Business Brainstorming: Brainstorming ideas and comments on what makes a good entrepreneur or business. Participants use their imagination to come up with an idea for a business. Facilitators Notes: Overhead transparencies have been provided for the following topics: What and Where are Business Opportunities Materials: Time: Activity A: Guidelines: Activity B: Flip chart, BDC supplied overhead transparencies Total time 1 hour (30 minutes brainstorming, 30 minutes discussion)- Participants share ideas for a business. All comments must be written down 1. No Comments Do not comment on an idea whether good or bad 2. Quantity The more ideas, the better! 3. Do not re-invent the wheel Build on someone else s idea or comment Discussion time. Participants must decide on a business idea or concept. Remember the idea will evolve over the course of the competition. The team should reach a consensus on the idea. Remember the business can be anything you dream of, a coffee shop, a recording studio, retail clothing store, or? Keep in mind a good business satisfies a real or perceived need or a customer that is willing to pay of that service or product. 10
11 Closure: Discuss the aspects of teamwork demonstrated by the team first in choosing a business and secondly by the process used to gain consensus. Business seldom operates in a vacuum; during the natural course of things businesses will have numerous discussions, partnerships, and strategic alliances. Participants have now chosen a business idea, examined their strengths and weaknesses, so it is now time to set some business goals and objectives. These goals may be to become an industry leader, invent a new process, and provide a service that is needed, or provide employment for the owners. Regardless what the goals are, it is commonly believed all goals and objectives should be SMART. (Overhead provided) 11
12 Conclusion: Entrepreneurial assessments are not conclusive. Individuals wishing to become entrepreneurs can gain the skills necessary to own and operate their own businesses by a series of steps. Assess your skills against those required to own and operate a business venture. Develop a plan, set goals and objectives that will address any weaknesses you recognize. On-going education and training, workshops, seminars, professional advice, and mentorship are necessary components of your plan. Implement your plan. It is never too early to start planning for your career or business venture. Setting goals and objectives is part of every day life for a business venture. How much can we sell, what profit are we trying to achieve, how can we reach my target market, and how can we enhance our abilities and capacities as entrepreneurs? SMART goals can assist us both in business development as well as in our personal lives. 12
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