This is a Sample Lesson.  Please note that all digital classroom tools have been disabled.  These include: tracking your progress, sending a progress/ completion report to your boss/ teacher/ HR administrator, getting feedback on the Activity, and earning credit towards a Knowledgewebb Merit Badge.

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Estimated Time: This lesson will take about 60 minutes to complete.

What will I learn? In this lesson, you’ll take a test to determine if you have the right temperament, drive and social skills to succeed as an entrepreneur.

Equipment/ software needed: A computer, Internet connection and current Web browser.

Introduction: Thinking about starting a new blog business, content syndicate or even launching the next Snuggie (link disabled for Sample Lesson) competitor?  Before you give up that regular paycheck (or the opportunity for one), take our test. The greatest business ideas in the world are still subject to some basic business fundamentals.

Why you should care: Chances are good that if you're a good reporter, blogger, videographer, etc., you probably don't have lots of experience as a small businessperson. It may seem like now is the best time to start your own business, but we'd like for you to think first about who you are and how you work before jumping ship.

In-depth Explanation: It seems like everyone around you is starting her own business, while universities everywhere are now offering entrepreneurship bootcamps.  Sure, you may have a good idea, but do you have the right temperament, drive and social skills to succeed?

Below is a short test to help you determine if you should hang up a shingle and start a company...or if you should take that great idea to an organization that can instead help you get started.  Answer each question honestly and thoroughly.  Once you’re done, read the Activity section for next steps.

Test: Answer yes or no to each question below. Keep track of your answers. 


1. I like a challenge, even if it’s one I may not be able to win.
2. People tell me that I’d be better off if I was my own boss.
3. I’m a natural salesperson -- I can convince anyone that my ideas are golden.
4. I have a difficult time being told what to do by others who are less knowledgeable or less capable than me.
5. I’m at my best when I’m not being micro-managed or not working under direct supervision.
6. People often tell me that I have incredible drive.
7. I may not be the most talented person in the room, but I can guarantee you that I’ll work longer and harder than anyone to get the job done right.
8. If I have to choose between getting an important project done and a relaxing day at the beach, I’ll power through at my desk.
9. I’m rarely satisfied.
10. I’m a natural evangelist -- people get excited by my ideas and want to join me to act on them.
11. I have a knack for figuring out better ways of doing things, even if those things are outside of my core competency.
12. I’m 100% results-driven.
13. I have a list of personal and professional goals, and I strive most days to achieve them.
14. My motto is “fail fast.”  If my first idea doesn’t work, I’m quick to acknowledge and adapt. I always have other new ideas in the pipeline.
15. I live to work rather than work to live.
16. I feel comfortable not always counting on a monthly paycheck.
17. I can organize my finances so that I have multiple streams of income and so that I’m not reliant on just one source.
18. I’m a great administrator: I like to complete tasks on time, I follow up and follow through.
19. I feel comfortable keeping detailed records on my own expenses.
20. I’m willing and able to reconcile credit card and bank statements daily/ weekly.
21. Some of my friends run their own businesses.
22. Some of my family members run their own businesses.
23. My spouse/ significant other would give me space and time to work on my own, either in our house or at an office.
24. For those with children: I have a plan in place that will enable me to work and parent at the same time.
25. I’m comfortable working with a professional accountant to file quarterly taxes.
26. I have a thick skin and take criticism well.

Scoring: If you answered “yes” to at least 21 questions, you likely have the right personality, skills and life circumstances to start your own business.  If that’s you, continue on to the Activity below.

If you answered “yes” to fewer than 21 questions, this isn’t necessarily an indication that you would fail at starting a business.  What we’re asking you to do is to honestly evaluate yourself and your situation.

In order to succeed as an entrepreneur, you need to be a great administrator, which means being your own taskmaster. At the beginning, you’ll need to chase after your clients to get your invoices paid -- which also means that you’ll need to build a system for tracking your cashflow.  You’ll have to be a great salesperson, negotiating prices and deals as well as convincing folks that they should work with you. Your first project may not succeed. If you’re someone who becomes emotionally tied to a passion project and won’t be able to let go easily, you may lose your shirt (and whatever else you’ve invested in your startup) because you can’t pull the plug. 

Take some time to think about what it would meant to give up a regular paycheck (or a future regular paycheck) to pursue your idea. We also recommend talking your idea through with trusted friends and relatives who can give you an objective, candid opinion.

ACTIVITY:

So you’ve decided that you’re an entrepreneur.  We don’t have a badge for you, but we do have a whole other set of questions!

This list will help you hone your idea and should enable you to get working on a business plan. Yes, every startup, regardless of its size or scope, needs a business plan that details:

• Statement of purpose
• Description of your business
• Marketing plan
• Compensation plan (include your own compensation)
• Operating procedures
• Any staff you plan to hire
• Business insurance
• Legal: How will you file?  What’s your EIN? Do you need a DUNS number? Who is your lawyer?
• Financial Data: Any loan applications, capital equipment and supply list, balance sheet, income projections, cash flow projections.
• Any licenses that may be required for you to operate this company.

If you haven't already, we recommend that you check out our Staring a Web-based Business lesson (link disabled for Sample Lesson), which offers more details and a great downloadable checklist.

Now, the questions (yes or no):

1. How much is it going to cost you to get up and running?
2. Do you have that cash on hand, or will you need financing (through a loan, credit card or other investors)?
3. If you need financing, can you get it?
4. Will your idea fill an important need, solve for a major problem or ease someone’s dissatisfaction or frustration?
5. How big is the market your targeting? 
6. Is it the right market?  How do you know? 
7. Does your target market have money to pay for what you’re going to offer?  How do you know?
8. Can you easily explain your idea/ product so that someone can immediately understand it?
9. Do the people who you respect think that your idea is a good one? If so, ask them to give you details on why.
10. Will your idea/ product have competitors?  If so, list them -- and then explain how what you’re offering is different or a vast improvement.
11. Can you plan to launch your idea/ product in small steps? 
12. Do you have some knowledge or experience in social media marketing?
13. How will you exploit your own skills or the connections you have to get others talking about your idea/ product?
14. Who can you count on to join your team as coworkers or advisors?
15. Do their skills sets compliment yours?  Can they fill needs that you’ve identified?

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