ChApter 2 | DO YOU REALLY WANT TO OWN A BUSINESS? | 17How to Use the Self-Evaluation Lists .......................................................................................
After you’ve completed the four self-
evaluation lists, spend some time reading
them over. Take a moment to compare the
skills needed in your business to the list of
skills you have. Do you have what it takes?
Show them to your family and, if you’re
brave, to your friends or anyone who
knows you well and can be objective.
Of course, before showing the lists to
anyone, you may choose to delete any
private information that isn’t critical to your
business. If you show your lists to someone
who knows the tough realities of running
a successful small business, so much the
better. You may want to find a former
teacher, a fellow employee, or someone
else whose judgment you respect.
What do they think? Do they point out
any obvious inconsistencies between your
personality or skills and what you want
to accomplish? If so, pay attention. Treat
this exercise seriously and you will know
yourself better. Oh, and don’t destroy your
lists. Assuming you go ahead with your
business and write your business plan, the
lists can serve as background material or
even become part of the final plan.
You have accomplished several things if
you have followed these steps. You have
looked inside and asked yourself some
basic questions about who you are and
what you are realistically qualified to do.
As a result, you should now have a better
idea of whether you are willing to pay the
price required to be successful as a small
businessperson. If you are still eager to
have a business, you have said, “Yes, I
am willing to make short-term sacrifices
to achieve long-term benefits and to do
whatever is necessary—no matter the
inconvenience—to reach my goals.”Reality Check: Banker’s Analysis .................................................................................................
Banks and institutions that lend money
have a lot of knowledge about the success
rate of small businesses. Bankers are often
overly cautious in making loans to small
businesses. For that very reason it makes
sense to study their approach, even though
it may seem discouraging at first glance.Banker’s Ideal
Bankers look for an ideal loan applicant,
who typically meets these requirements:
• For an existing business, a cash flow
sufficient to make the loan payments.
• For a new business, an owner who has
a track record of profitably owning and
operating the same sort of business.
• An owner with a sound, well-thought-
out business plan.
• An owner with financial reserves
and personal collateral sufficient to
solve the unexpected problems and
fluctuations that affect all businesses.
Why does such a person need a loan,
you ask? He or she probably doesn’t,
which, of course, is the point. People
who lend money are most comfortable