Personal Report
Entrepreneur Scan
Personal Data
| Name | Gina Sample |
| Birthdate | 05/01/2003 |
| Status | Starter |
| Sector | Professional services |
| Date test | 15/11/2013 (15:12) |
Note: Your answer is socially desirable. The test contains questions to check this. Your score for this control question is high. Perhaps you did so subconsciously, but is the picture that you've painted of yourself realistic?
Foreword
Become an entrepreneur! At the moment much is said and written on becoming an entrepreneur, and over the last few years government has also been heavily involved in stimulating entrepreneurship. But it's not as simple as that. Being an entrepreneur means running a business and performing activities at your own risk, for you are the only one responsible for part or all of your own - and possibly other's - income.
I can easily imagine that an entrepreneur needs to receive personal feedback, to stand in front of an objective mirror, as it were, and gain insight into the competencies vital to being a successful businessperson. In my opinion, entrepreneurs look for affirmation in those areas where they are very strong or weak and an explanation of what the consequences are for their own company.
In addition, I can certainly imagine that someone who is seriously considering starting their own business wants to prepare him or herself properly. It seems to me that this is a very wise move. In my opinion that type of preparation should consist of at least two components: creating a business plan and compiling an entrepreneurial profile. Despite the surplus of literature about creating a business plan and courses on becoming entrepreneur, there are a few methods that provide insight into the competencies of the entrepreneur. What's more, surveys of financiers point out that venture capital and loans are provided on the basis of both an entrepreneurial plan and the individual applicant's personal abilities and experience.
Now that you have taken the test, you have taken an important step in your own development.
Prof. dr. P.S. Zwart
Professor of Small Business Management
Faculty of Economics, University of Groningen, the Netherlands
What can you expect from the E-Scan?
The E-Scan provides insight into your strengths and weaknesses as an entrepreneur. The success of a venture is determined by many factors, but as an entrepreneur you yourself are the most important factor. It is you who is the driving force behind your company. Needless to say, your product plays an important role, but ultimately it's your personality and behaviour that will turn your company into a success.
It is therefore vital that you know yourself. This means taking a critical look at yourself and plotting - or learning to plot - a strategy that will reinforce your own performance. Because as an entrepreneur you will be repeatedly confronted with situations that will demand a certain 'character' of you, i.e. situations for which you are not always ideally suited.
Scientific research - the basis for the E-Scan
The E-Scan is based on scientific research into the personal characteristics of successful entrepreneurs in small businesses - characteristics that largely separate successful entrepreneurs from unsuccessful ones. The industry's standard profile, against which your entrepreneurial profile is compared, has been based on research under consultants who on daily basis assess entrepreneurs with a proven track record and those who are just starting out.
The test distinguishes between three factors - characteristics, qualities and thinking styles - and there is an important difference to be made between them. Characteristics and thinking styles are rather fixed and more difficult to change over time, whereas qualities are easier to learn or unlearn. The test also indicates which competencies are vital in which phase of the business cycle.
The structure of the personal report
The personal report starts with a graphic overview of your entrepreneurial profile. Next, the scores of your specific characteristics, qualities and thinking styles are discussed, and tips and recommendations are provided. The personal characteristics vital in the various phases each venture passes through are then reviewed. Finally, the report concludes with the type of entrepreneur you are and the strategy best suited to you.
Your entrepreneurial profile
The orange field in the spider's web shaped diagram represents your scores and reflects your entrepreneurial profile. The thin connecting line shows the required industry profile and serves as a guideline. The gap between your profile and the industry profile provides insight into your strengths and weaknesses as an entrepreneur. Your entrepreneurial profile is reflected in the diagram below.
In comparison with the industry standard, your profile reveals the following:
| Very Strong area | Strong area | Reasonably strong area | Weak area |
|---|---|---|---|
| Flexibility |
Creativity Social Orientation Need for Power |
Market Awareness Endurance Need for Achievement Need for Autonomy Self Belief Risk Taking |
Your entrepreneurial profile against the average industry profile
In the spider's web your scores are represented by the (orange) field. This reflects your entrepreneurial profile. The thin connecting line shows the average profile of all the people who have done the scan in your sector. This gives you an extra insight how others have scored on the scan. The number of people which the average is based upon is behind the sector. But, this average profile doesn't say anything about successful entrepreneurship in that sector.
Your entrepreneurial profile with 360° feedback
In the spider's web your scores are represented by the (orange) field. This reflects your entrepreneurial profile. The thin connecting line shows the profiles based upon the answers of the persons you have asked to feedback on their views on you. Their names are in the graphic below.
If you have not asked anyone to give their feedback on how they see your entrepreneurial profile, then log in to your personal page and send them an e-mail.
This will make it very clear where others see your profile and where they differ from your own views. It will give you a new and better understanding of how others see your strengths and weaknesses as an entrepreneur.
In comparison with the feedback, your profile reveals the following:
| Thinkstyle | Gina Sample | Gary Partner |
|---|---|---|
| Pioneer | 20% | 25% |
| Salesperson | 35% | 20% |
| Manager | 20% | 35% |
| Specialist | 25% | 20% |
Need for Achievement
What do we mean?
Successful entrepreneurs are achievers. In other words, their ultimate goal is to perform well. Keeping their business objectives in mind, they devote all their strength and energy in their company. They want to perform to the best of their abilities in everything they do, and always strive to do better than the last time. They want to distinguish themselves, and their motivation comes from within. Less successful entrepreneurs don't have as much need to perform well or a weaker will to succeed. They are easily satisfied with less.
How you compare?
In comparison with the Norm profile Need for Achievement is a Weak area.
You are the type of person who sets themselves few goals. You derive energy more from the work you do than from the goals you can achieve. You prefer to get started and then see where you end up.
Moreover, you do not have the will to perform or succeed every time. You prefer not to set your goals too high or make them too difficult in an attempt to minimize your chances of failure. You are willing to accept that some goals just cannot be achieved.
The presence of others also stimulates you to perform, and you are prepared to take up the challenge as a team. Needing to win every time is not one of your strengths and you accept it when others perform better than you do.
Steps forward
You are the type of person whose need-for-a-goal score is mediocre. It is important to remember that every journey begins with a single step, irrespective of how distant the final destination is. You are the type of person who performs better if you have a clear goal in mind. For that reason, it is vital for you to make your goals SMART: Specific, Measurable, Attainable, Resourced and Time-Constrained. In other words, divide your end result into a series of smaller goals so that you can easily achieve the success that you want.
Your need to set high goals for yourself is not so strong. The need to succeed is vital to be a successful entrepreneur. It is therefore important that you set your goals high enough for yourself and that you dedicate yourself to your business objectives.
Your need to compete with others is rather strong. Don't forget to focus on your own strong points and try to distinguish yourself on this basis.
Need for Autonomy
What do we mean?
Independence is frequently the conscious or unconscious reason why some people choose the life of an entrepreneur. The need to make their own decisions and do what they want is very strong. Successful entrepreneurs act independently of others, make their own decisions, solve their own problems and successfully complete their activities on their own strength. Less successful entrepreneurs need support or aid and are inclined to leave the decision-making, more often than not, to others.
How you compare?
In comparison with the Norm profile Need for Autonomy is a Weak area.
You are the type of person whose choice to enter into business isn't based on an immediate need for independence. Your need for freedom to do what you want does not manifest itself very strongly. You can accept it when you are dependent on others and they can determine, in part, what you should do.
Generally speaking, you need the support of others to make progress, as you do not always dare to trust your own judgment. You also accept other people making decisions for you.
Steps forward
You are the type of person whose need for independence scores low. This raises an obvious question: If you are a new entrepreneur why do you want to start your own business? If you are an experienced entrepreneur, why did you want to start your own business?
As an entrepreneur, you can move forward by learning to trust your own decisions. Don't be afraid that someone might second-guess you. If this is still beyond your comfort zone, let someone assist you, i.e. someone with business experience or knowledge. Surround yourself with people who have 'made the grade', such as successful entrepreneurs or business experts. Ask them questions about their success; most people love to speak about their own success and there are always pieces of good advice to be found in their answers.
Need for Power
What do we mean?
The need for power is to have control over others, to impose your will on them. The need for power can be a reason to become an entrepreneur, because then you are in charge. Successful entrepreneurs know what they want and how they can influence others in order to attain their goals. In the process, they simply assume that their authority or opinion is generally accepted. Less successful entrepreneurs are more timid; they prefer to stay in the background.
How you compare?
In comparison with the Norm profile Need for Power is a Reasonably strong area.
You try to influence others without pressuring them against their will. You want to exert your influence without using your formal power as an entrepreneur. Although you are the boss, you will not act accordingly.
Finally, you find it difficult to persuade others of your view.
Steps forward
Being the boss and playing the boss are not the same thing. Sometimes you have to draw attention to yourself, if necessary by imposing yourself assertively. Don't forget that you are the one who is in charge.
Your need to persuade others is not a high attribute. When trying to persuade others, explain to them why you want to get something done and how they can help you achieve your goals. Explain their role in that process which will be more motivating as people want to help if they know why and for whom they are doing it. They will feel rewarded as they contribute.
Social Orientation
What do we mean?
Social orientation is the degree to which someone is focused on others. Successful entrepreneurs understand that people and networks are necessary to realize their ideas. They easily make contacts and permit business considerations to determine their social behaviour. Consequently, they can put their social needs aside and focus on their venture. Starting entrepreneurs frequently work alone, and it is no secret that self-employment can be a very solitary pursuit. Less successful entrepreneurs are more reserved and cautious when making contacts.
How you compare?
In comparison with the Norm profile Social Orientation is a Reasonably strong area.
You are the type of person who can make contacts, even though you are somewhat reserved or quiet in your approach. In other words, you aren't inclined to initiate contact. You prefer to manage relations than acquire new contacts; this is definitely the case when you have something to sell.
Steps forward
Your social orientation focuses on others as long as it's about people you know or get to know due to the circumstances you find yourself in, such as a meeting or at an event. Although, you are not the one to initiate contact with new people you have to remember that the person you are talking to might find it hard to do the same. Management of existing relationships suits you better than acquiring new or unknown customers.
Self Belief
What do we mean?
Self belief is the belief in your own abilities and in yourself relative to others. Successful entrepreneurs trust that they can reach their goals on their own strengths. They are not only convinced of their ability to complete every task successfully, this type of entrepreneur is convinced that their success depends primarily on themselves. This self-confidence also carries over into relations with others even with those who might be richer, more important or more powerful. Less successful entrepreneurs believe less in their own strengths and live with the idea that their success is dependent upon the prevailing circumstances.
How you compare?
In comparison with the Norm profile Self Belief is a Weak area.
When starting something new, you often doubt whether everything will work out according to plan. You have the idea that your future does not lie entirely in your hands. For instance, you do not dare to rely on your own strengths. Luck also plays a role in your opinion.
Additionally, you sometimes have doubts about yourself in relation to others, which can become a hindrance in your relationships with them. You are also inclined to look up to people. You easily feel they are placed above you, hierarchically speaking. You believe that the other person is more important, better or more powerful, and that makes you doubt yourself more than necessary. Consequently, you are often unsure how to behave in their presence.
Steps forward
Given that you often doubt your own strength and possibilities, try to think positive. Imagine your future situation and remember that it is only a matter of working towards your goal. Also look at successful people and ask what came first: their attitude or their success?
In relation to others you are sometimes uncertain of yourself. You worry about what other people think of you and whether you approach things correctly. However, it is not so much what others think of you, but rather your perception of what others think of you. The way you look at other people says a lot about how you think of yourself. These are your thoughts and not those of others. Think of your strong qualities and keep them in mind.
Endurance
What do we mean?
Endurance is continuing strongly in spite of negative developments or objections, even in the longer term. Successful entrepreneurs have great endurance. With a solid and clear goal in mind, they eventually overcome each hurdle to achieve success. Also, if they do not make immediate progress, they persist. They cling to their work and do not stop before their goal has been reached. Less successful entrepreneurs display a lack discipline and are quicker to put the blame for their lack of success on fatigue or trouble.
How you compare?
In comparison with the Norm profile Endurance is a Weak area.
In the long term, you do not always finish what you start. As soon as the going gets tough, you switch to something else and it takes a lot of effort to pick up again where you left off, later on. You eventually accept that you will not achieve your goal.
When you do not get ahead in your daily work or you feel that your attention span is waning, you give up more quickly than you would like to. You easily postpone your activities.
Steps forward
Given that you do not have long-term endurance, it is better develop your own vision into a concrete, measurable end result: what is the result that you want to achieve? Stipulate all the steps that will lead to this end result. Reduce the steps to even smaller ones and keep your focus only on the next step to be achieved.
Since you also have problems in the short term, take a step back and reflect on progress. Afterwards re-state the activities that you need to complete that day. Reduce the number of activities so that they fit into a single working day and then concentrate on one activity at a time.
Risk Taking
What do we mean?
Risk taking is being able to cope with uncertainties and the willingness to take losses. Successful entrepreneurs are active risk takers. They spot chances pro-actively, and do it with energy, initiative and the willingness to realise the chance of a desired outcome, despite the risks inherent to the change. Their goals are more set on improving their lives than on maintaining it. Unsuccessful entrepreneurs are passive risk takers. They approach risk more carefully and more defensive and often only react to what crosses their path, and what they cannot avoid.
How you compare?
In comparison with the Norm profile Risk Taking is a Weak area.
You are a risk avoiding person. You are very cautious and suspicious about situations in your environment that are new and for which you cannot estimate the risks. If the outcome is uncertain you prefer letting it pass.
Steps forward
You are really cautious, but where does this come from? What is it that holds you back? What are you afraid of and how bad would it be if what you are afraid of truly happens? Be honest; would it be that bad?
Market Awareness
What do we mean?
Market Awareness refers to the ability to visualize the needs of existing or potential customers and linking them to your own company. Successful entrepreneurs anticipate the specific needs of a clearly defined target group. They can also indicate precisely what their competitors do. They follow developments reported in magazines and trade journals and talk with customers to be able to anticipate changes in the market. Less successful entrepreneurs barely have an eye for the needs of their customers. They are frequently more product-orientated and have no clear target group in mind.
How you compare?
In comparison with the Norm profile Market Awareness is a Weak area.
You have a vague idea of what your market is and what's happening in it. However, by using limited information to specify your market approach it will need to be developed further or expensive mistakes could be made. You may know some of the the types of consumers for your products or services, though not have a fully refined understanding of your real target audience, which will make a significant difference to successful penetration.
Additionally, you have little understanding of your customers' motivations and the service or delivery methods by which you can best reach them.
Steps forward
Identify market specific websites where your product may be associated. Use search engines, social media and related online forums to view what others are doing and saying about the challenges and opportunities that your product or service may already be solving. It is worthwhile engaging in conversations, taking care not to disclose sensitive information, to find out key information that you may use to your advantage. Visit representatives of trade associations and look into recent developments and trends. Keep track of successful competitors in your market. Develop a product-market matrix to identify which consumer group produces the greatest turnover and which one the greatest profit.You may need to take professional advice or a short training course in understanding how to build up a marketing and sales plan.
Ask current or potential customers for their opinion of your product or service. Consider in advance what you want to know and be receptive to all answers. Consult with trusted colleagues, friends or experts as to how they would approach the market and the marketing strategies they would employ or be receptive towards.
Creativity
What do we mean?
Creativity is the capacity to ''play'' with thoughts and ideas and to see new possibilities. Successful entrepreneurs are open to what is happening in their surroundings. In doing so, they are not hampered by restrictions of the situation, but rather challenged by the possibilities. They have the capacity to think from different angels and choose the path less travelled. As a result, they can convert problems into new opportunities and dare to take risks. Less successful entrepreneurs are limited in their manner of thinking and are less anxious to experiment.
How you compare?
In comparison with the Norm profile Creativity is a Reasonably strong area.
You are the type of person who has the capacity to play with your thoughts.Your way of thinking can be described as intuitive, i.e. you think playfully with ideas which permits you to arrive relatively easily at new, sometimes intruiging and highly original ideas or solutions.
You score is moderate in terms of seeing opportunities. Your curiosity is piqued when you see something that's new or deviates from the norm, but you don't immediately react because you don't always see the opportunities it presents or how to do things differently.
Steps forward
You are the type of person who has a vivid imagination. Even though you are probably full of ideas, it's important to focus on the most attractive one. Develop this idea before you start considering or developing another one.
In order to visualise the possibilities, it's better to take a step back and think about what opportunities lie in the problem you are facing or in the problems you are aware of in your environment.
Flexibility
What do we mean?
Flexibility is based on the ability to adapt. Successful entrepreneurs react to changes they observe in their environment. Such as new wishes of customers or new competitors in the market. They interpret the effects of opportunities or threats and adjust their strategy or business plan accordingly. Unsuccessful entrepreneurs are hardly willing to adapt. They resist change and can be inflexible and stubborn.
How you compare?
In comparison with the Norm profile Flexibility is a Strong area.
You have the ability to be flexible and know how to adjust yourself and your plans when unexpected things happen around you. You are a dynamic person and know how to react to changes in the market or your surroundings as well as how to deal with the situation and not to give in too quickly when changes are forced upon you.
Steps forward
Wisdom is related to the ability to change. Wisdom is knowing when and how to change. Act out of wisdom rather than out of habit.
Your preference for a certain thinking style - a short explanation
The structure of your brain is directly related to the way you think; in other words, this is your thinking style. It is this thinking style that in turn influences your behavior. Your brain not only has a left and right half, but also a lower and upper part, which jointly form the four quadrants of your brain.
These four quadrants work together as a single unit. Their cooperation depends on the situation, but by nature one or more quadrants are more dominant than the others. In someone who is left-handed, for instance, the left hand is dominant relative to the right hand. Each quadrant has its own thinking style as well as a number of specific characteristics. People who are more left-half oriented have a different thinking style than others who are more right-half oriented. The same also applies to the upper and lower parts of the brain.
Reason (common sense) plays an important role in the left half, while with the right half is dominated by emotion. The lower part of the brain is characterized by dependence and instinct, whereas the upper part features independence and reasoning. The upper-left quadrant has characteristics such as logic, reasoning and analysis. The opposite quadrant, the lower-right part, features by contrast interpersonal and kinesthetic skills. The diagram of the brain below reflects the different characteristics per thinking style.
Everyone possesses all of these thinking styles, but there is a natural preference for a certain thinking style. That thinking style is generally the dominant one and determines how you think and act. It is, however, the situation that always determines how the four thinking styles cooperate and thus which behavior you display. For this reason, it is possible that on the basis of your preferred thinking style you react differently than you might expect. And that is what makes people so complex.
Figure: the four thinking styles (Herrmann (1996))
Thinking styles
Pioneer
What do we mean?
In business this thinking style is characteristic of pioneers. Their ideas are dominated by possibilities. They live, as it were, in the future and possess a vision for the long-term. Thanks to their strong sense of imagination, they frequently see the complete picture, where others have no idea. Pioneers think in a playful and quick manner, often in a way that is spontaneous. They are noted for their passion, optimism, as well as their occasionally naive style. They have the capacity to change a chaotic situation or save one from becoming chaotic. This is possible due to their ability to put current matters into a new perspective and transform apparently illogical problems into solutions. Pioneers can reach high altitudes in chaotic situations, but get lost in orderly environments and the daily routine. They are quickly annoyed and pay little attention to details. Their greatest motivation is to receive recognition. They distinguish themselves by acting differently in chaotic situations where they get their chance to do so. Where others accept impossibilities or the routine of a situation, pioneers continuously ask themselves why things happen the way they do and whether it is possible to do it another way. Their ideas or thoughts about how to improve things are only limited by their fantasy.
How you compare?
You score equally high on Pioneer and Manager, but these style's apply the least to you. You feel less attracted to situations where this style fits best. Situations where a lot of things don't have a solid form yet or even have to be made up. Situations where numerous things are unclear and uncertain, and you mainly need imagination and belief
Steps forward
First determine if you recognize yourself in the above descriptions. The descriptions have been written down robustly, to emphasise the differences. If you want to further develop these styles consider the next option. Design a logo for your own company, close your eyes and imagine your company over 10 years; take a decision based solely on intuition and try to make up a crazy idea every day.
Salesperson
What do we mean?
In business this thinking style is characteristic of salespeople. Salespeople love people and focus on establishing relationships with others. They frequently rely on their instincts. They have a tremendous interest in people and place a lot value on making contacts, although they can be led in this aspect by business considerations. They understand the customers needs better than anyone else. Their greatest motivation is to be accepted by others. This is the type of a person who focuses on other people: as long as others are satisfied, salespeople are too. The sale of products or services means connecting with the needs of the customer. Salespeople work well in harmonious situations, looking ceaselessly for win-win situations. Salespeople will gladly do what others want, because that raises their chance of acceptance. Consequently, this type of person is loyal, flexible and enthusiastic, even if others occasionally take advantage of them. They prefer to avoid conflicts and are not good at enduring criticism, as they take it personally. The fact that they have a thin skin makes them unsuited to making fast, hard or rational decisions. They worry more about who will suffer the consequences, instead of understanding which decision is the best.
How you compare?
Your preference corresponds primarily with this thinking style. In comparison with the other thinking styles your score for this category is the highest. You have a natural preference for situations focusing on people and personal contact. You gladly share with others, frequently act on instinct, are socially oriented and take into consideration the needs and wishes of others. These are the characteristics that a good salesperson must have. And for this reason, in business terms this thinking style is characterized to that of a salesperson. This doesn't mean, however, that you already are a good salesperson. It's not as simple as that, but you definitely possess the thinking style that a good salesperson must have. Being an entrepreneur also means more than just selling products or services. All thinking styles are necessary to sell products or services successfully. Hence the fact that being an entrepreneur requires every thinking style, not just during the start-up phase but also in later phases as well.
Steps forward
First, determine the extent to which you recognize yourself in the above description. Unambiguous wording has been purposefully used for this description to emphasize the differences between the various thinking styles. For this reason, you might also recognize part of yourself in the description of other thinking styles. If this bears out, then your strength lies in situations dealing with and being surrounded by individuals. Concentrate on activities in which relationships with people are an important component. Form a team of people with whom you work regularly. Do not avoid confrontations but take into consideration your own wishes and needs.
Manager
What do we mean?
In business this thinking style is characteristic of managers. Managers are able to look after their companies better than anyone else. As a result of the constant search for certainty, they place a great deal of importance on rules and procedures. Focused on the short-term, they keep an overview in an otherwise chaotic situation. They gladly take charge of things and strive for order. They structure their companies to operate efficiently and prepare plans right down to the smallest detail. Little is left to chance. They structure work to operate flawlessly in a system where everyone knows their role. However, when changes appear, managers become disoriented because the old rules are suddenly no longer valid. They gladly employ rules with a proven track record and don't give them up easily. They don't like change and demand that everyone sticks to the rules. If subordinates choose not to, then a strong remark will unavoidably follow. Managers have a strong sense of responsibility. They also accept that things must be done the way they have always been done, even if that is not in line with their own way of thinking. Business affairs are arranged in great detail, which make managers steadfast and honest.
How you compare?
You score equally on the entrepreneur style Manager and Pioneer, though these styles apply to you the least. You will be less attracted to situations that are ordered, structured and go according to a detailed plan.
Steps forward
First determine if you recognize yourself in the above description. The description has been written down robustly, to emphasise the differences. If you want to develop this style you can amongst other things do the following: Plan a project or assignment in detail and stick to it; make a things to do list and put a cross thought every task that has been done, or take a decision solely based on what you are certain of.
Specialist
What do we mean?
In business this thinking style is characteristic of specialists. Specialists stay abreast of all developments in their field. They know all the ins and outs of their profession. They visualize events based on their experience and professional knowledge, on the basis of which they can arrive at the proper decision in a rational and independent manner. They always know the best alternatives. Specialists are individualistic and realistic. They distinguish themselves by wanting to be the best, at least in their field of expertise. They are frequently critical and initially must be persuaded that something works before they trust it. They know better or at least claim to know better. They accept reality and within this reality they try to perform to the best of their abilities. The Achilles heel of this type of person is that they can be perfectionists and occasionally adopt an authoritarian attitude. If something concerns their profession, they do not avoid the discussion. Delivering a quality product is the highest priority for specialists. Since they aren't strong in communicating and dealing with people, sales are definitely not their preference. They are convinced that a good product will sell itself.
How you compare?
Your way of thinking is also suited to this style. Your score is above average when compared with the other thinking styles. You also know how to approach situations requiring a careful and qualitative approach that might be preceded by a well-considered analysis, i.e. expertise. Without a doubt, when problems are related to your field of expertise, you find it a challenge to come up with a solution.
Steps forward
First, determine the extent to which you recognize yourself in the above description. Unambiguous wording has been purposefully used for this description to emphasize the differences between the various thinking styles. Also, pay special attention to the description of the thinking style that typifies you the most. Which combination stands out and what does this say about you and your role as an entrepreneur at this moment and in the future? Analyse the differences between and similarities to your entrepreneurial characteristics and qualities. Which ones can or cannot be developed?
How to get a grip on growth - what every starting or experienced entrepreneur should know!
Organizations grow or shrink. As an entrepreneur, you must adjust to increasing or decreasing trends. This means that over time your role can change drastically and that other demands will be made on you. The start-up phase of a company requires a role different than the one needed in a phase of a decline. However, even though the development of an entrepreneur doesn't precisely follow the development of a company, an entrepreneur's weaker and stronger points will influence the venture.
Potential pitfalls in the development of the company lie in the person of the entrepreneur. Consequently, insight into your own personality is of vital importance for the development of your own company. This doesn't simply mean that your company will get bigger? It could also become better. But it is only when you recognize and accept your weak points or potential pitfalls that a decreasing trend in your company can be prevented. Only then can a successful strategy be chosen, one that will compensate for your weaker points.
The link between the businesses life cycle and thinking styles of an entrepreneur
The businesses life cycle of a company has four phases of development: no growth, light growth, strong growth and decreasing growth. Each phase can be passed through more than once. After a phase of decreasing growth a phase of light growth can follow. The whole process looks like the curve shown in the graph below. Increases or decreases are possible in this life cycle.
The first phase is called the start-up phase. An entrepreneur generally starts small. Most of their attention is spent on growing and organizing the company. Much practical detail has to be sorted out and in most cases the entrepreneur has to start by recruiting customers.
The growth phase is signaled by the first sign of an increase in sales or rising demand for the provision of services. That increase doesn't need to be a logical consequence of the commitment of the entrepreneur. Growth frequently arises by itself, and sometimes the entrepreneur is even taken by surprise by a large order. This could mean that the first employee or employees must be hired. The company relies heavily on the entrepreneur.
When the company meets the needs of the market, a period of strong growth ensues. Management becomes more complex, and entrepreneurs lose their overview. The need for the organization to create a clear structure, develop formal processes and delegate activities increases over time. The company becomes less dependent on the entrepreneur.
Inflexibility of the company may cause it to lose touch with the market, resulting in decreasing profits. The decreasing growth or decline phase can occur at any moment. Lack of re action could easily result in the closure of the company.
So there is a need for innovation to kick start a new life cycle. Although it is difficult to identify passages from one phase to another, they are initiated because existing structures can no longer cope. Though not always visible, these passages are real for entrepreneurs. Sometimes a conflict is necessary before an entrepreneur is able and willing to take the next step.
Figure: businesses life cycle
The entrepreneurial thinking style in the business process
The model of the thinking styles and the businesses life cycle complement each other very well. Together they provide clear insight into the different roles that are vital to an entrepreneur in the different phases of a business. In other words: the entrepreneur must play a different role at each stage of the venture. The four stages appear both before and after the start of a company.
Before start-up: from concept to limited company
Phase 1: the concept
The process starts with an idea or concept. The concept lives strongly in the imagination of the entrepreneur, and the challenge is to translate it into a product. This concept can be a prototype or an initial version of a product or service. This phase is characterized by thinking and envisioning. Entrepreneurs are dazzled by their concept and the possibilities it offers. This stage is perfectly suited to the skill set of the entrepreneurial role played by a pioneer.
Phase 2: the product
The first responses to the product or service are very important for product development and improvement. Friends or potential customers act as a test panel. The ability to feel and experience the needs of potential customers is characteristic of this phase. The entrepreneurial role played a salesperson is easily recognizable here.
Phase 3: the plan
Whereas instinct played such an important role in the initial phases, entrepreneurs now rely more heavily on a rational approach to the product and the market they target. Choices must be made and a plan drawn up, including a feasibility study of the company's concept. Working systematically and planning in detail are the most important characteristics of this phase, which just so happen to be in the skill set of the role played by a manager.
Phase 4: go/no-go decision
The question of whether or not to commence activities demands an objective assessment of a plan's feasibility. This requires an independent and critical approach. Reasoning must be dominant in this stage. Specific questions must be posed to trace the pitfalls in a plan before it becomes clear what needs to be improved. You may need a business consultant, a specialist to expose financial and other weaknesses objectively and critically .
After start-up: from start to finish
Early phase
During the early phase there is still no growth. This phase is especially characterized by chaos. The young venture is the new kid on the block, and entrepreneurs must be pioneering, especially to get their own business going. Pioneers are independent and take risks. They are convinced of their own ideas and have endurance.
Expansion phase
The company's activities connect with the market, as the first customers buy their products or services. The focus then shifts to intensifying sales efforts. Salespeople are open and focused on others. They adapt easily, are market-oriented and have the capacity to persuade others.
Mature phase
The stronger the organization grows, the stronger the wish to control the organization and its growth. Managers focus on running the organization in an orderly fashion and maximizing profits rather than increasing revenues. They may steer all business activities into a single, well-oiled operation. Managers plan, organize and control.
Contraction phase
But a strictly organized company adapts less easily to market changes. Growth may decline, for example, with the arrival of a competitor. A conflict rapidly arises, and the entrepreneur must find an answer. An objective picture of the deteriorating situation must be formed. Now may be the time for the analytical skills and expertise of business consultant. One that understands the ins and outs of good management. Just like any specialist, they strive for quality and want to achieve the best by finding a solution for the problems facing the company.
Final conclusion
Your answers to the Entrepreneur Scan form the basis for your personal report. This report, however, cannot be viewed as being independent of your personal and professional situation. For this reason, we recommend that you discuss your entrepreneurial profile with people who know you well, or even better, with an independent specialist or business adviser in this area. It is not important how well you scored on the E-Scan, but how you respond to it. Which points are important for your development as an entrepreneur and which are irrelevant. Use this input as a basis to increase your self-knowledge and to develop a strategy which reinforces your behaviour as an entrepreneur. One of these strategies could involve a mentor, coach or trainer, for instance. Being an entrepreneur means knowing your own strengths and weaknesses ? as well as how to complement or compensate for them. The better you know where your personal pitfalls lie, the better you know how to assemble that dream team to improve your venture.
You do not score well on important characteristics and qualities for becoming an entrepreneur, especially when they are combined. Nonetheless, you scored better on your ability to make contacts that can support your business. This result is also supported by the fact that the entrepreneurial role of a salesperson best applies to you. You are the type of entrepreneur who is able to visualize the needs of others.
You have indicated that you don't own a company yet. You might be considering starting up your own company or taking over an existing venture. Based on your answers in the E-Scan, your aptitude for starting a successful company is moderate. For this reason, we strongly recommended that you discuss your personal report with others so that you can also put your personal situation into perspective. If you want to start your own company, consider not to begin with a totally new concept. It would be better to start with an existing product or concept that needs an additional impulse. If you are thinking of taking over a company, consider focusing on companies that are in an early phase of their development or in the initial stages of an expansion phase.