Starting and Managing a Business From Your Home

Who is the "Typical" Entrepreneur?

Do you reconcile your bank account as soon as the monthly statement comes in?

Entrepreneurs are careful about money. They usually know how much money they have so they can seize opportunities on short notice. They know what things cost, whether prices are going up or down, and whether they are getting a bargain.

Did you earn money on your own from some source other than your family before you were 10 years old?

Most people who are going to make money in business show an affinity for making money at an early age--by babysitting, selling lemonade, delivering newspapers, or some such strategy.

Do you get up early in the morning and find yourself at work before others are out of bed?

Entrepreneurs sleep and eat enough to keep up their strength, but they don't usually tarry at these pursuits.

Do you tend to trust your hunches rather than wait until you have a lot of information on hand?

Hunches are judgments based on factors that cannot be quantified, A big part of entrepreneurship seems to be risk-taking based on these hunches.

Do you keep new ideas in your head instead of writing them down?

Entrepreneurs keep a lot of things in their heads, including their most creative ideas.

Do you remember people's names and faces well?

Ease in remembering names and faces is very important in the business world.

Were you good in "hard" subjects--mathematics, biology, engineering, accounting, and so forth--in school?

People who major in business administration in college are more likely to be successful entrepreneurs than anyone else. They prefer subjects in which the answers are conclusive rather than open-ended conclusions full of contingencies.

In school, did you pretty much stay away from such organizations as Scouts and student government?

Most entrepreneurs tend to be loners rather than joiners, unless joining is a useful tactic for making contacts and gathering business information.

In courting the opposite sex, did you tend to go for one person at a time as opposed to playing the field? Most entrepreneurs preferred one person because to play the field would have taken too much time away from business activities.

Do you close deals with a handshake rather than insisting on written contracts and guarantees?

Good entrepreneurs are often comfortable with something less binding than written contracts. When the only bond is a word, it becomes a matter of honor, and no entrepreneur can afford to lose honor.

Do you devote considerably more time and thought to work than to other activities, such as hobbies?

Entrepreneurs may have some leisure time activities, but their principal hobby is their work.

A similar test was developed by John Komives, director of Milwaukee's Center for Venture Management. Again, write your answers in the margin, then read on to see the expert's answers

Was your parent an entrepreneur?

Having a close relative who was an entrepreneur is the single most telling indicator of a successful entrepreneur.

Are you an immigrant?

There is a high correlation between immigrants and entrepreneurs. In this sense, "immigrant" includes not only those who were born outside the United States, but also those who moved from farm to city or from the Midwest to the West Coast.

Did you have a paper route?

The entrepreneurial streak shows up early in life.

Were you a good student?

Typical entrepreneurs were anything but model students and often were expelled from school.

Do you have a favorite spectator sport?

The best answer is "no." Entrepreneurs are poor spectators. They often excel at individual, fast-paced sports such as skiing or sailing.

What size company do you now work for?

The typical entrepreneur comes from a medium-sized company--30 to 500 employees.

Have you ever been fired?

Entrepreneurs make poor employees. That's why they become entrepreneurs.

If you had a new business going, would you play your cards close to the vest, or would you be willing to discuss problems with your employees?

Typical entrepreneurs have a secretive streak. If they confide in anyone, it is likely to be another entrepreneur.

Are you an inventor? A Ph.D.?

Not a positive indicator. Inventors fall in love with their products, Ph.D.s with their research.

How old are your?

The typical age for starting a business seems to be 32-35.

When do you plan to retire?

In still another study, Jeffry A. Timmons asserts that entrepreneurs are people who have high energy, feel self-confident, set long-term goals, and view money as a measure of accomplishment. They persist in problem solving, take moderate risks, learn from failures, seek and use feedback, take initiative, accept personal responsibility, and use all available resources. They compete with themselves and believe that success or failure lies within their personal control or influence. They can tolerate ambiguity.