Entrepreneurial Self Assessment
What is Assessment?
The VBIC Assessment Forms are tools that assist VBIC Counsellors to determine if you are eligible for participation in our business planning program. The assessment forms provide a method by which they can determine your skill level and readiness to undertake your business venture.
Why is An Assessment Necessary?
An assessment is necessary as it provides a snapshot of your skills, readiness and financial position at this important point in time. Your completed Assessment tells us about your business concept, about your plans, and about how you will interact with the community. This is important information that assists us in determining how we can best assist you in making your business venture the success you envision it to become.
What Is Involved In The Assessment?
Before you begin, take note of what you will be required to provide including the following important personal information.
• Fact Sheet
We will require you to complete a Fact Sheet. Information generally found on a resumé is similar to the information needed for the Fact Sheet.
• References & Letters of Support
If you will require financing to support your business concept you may be required to provide a list of References and Letter(s) of Intent from your banker.
• Monthly Cost of Living Statement & Personal Net Worth Statement
Understanding your financial abilities and knowing your level of financial planning skills are critical first steps in determining if you are able to undertake the proposed business venture. We will need to know how prepared you are and this is indicated on the Personal Statement of Net Worth and Monthly Cost of Living Statement.
Your Personal Net Worth is:
1. The total all of your assets (what you own); minus
2. The total all of your liabilities (what you owe)
Monthly Cost of Living is:
1. Net Family Income; minus
2. Your family’s personal financial needs
After you have completed and submitted the Assessment Module and if you meet the basic criteria, you may be contacted to schedule an interview (by telephone or in person) with a program consultant. The consultant will have reviewed your completed Assessment Module with you and they may provide you with orientation, or an explanation of the program responsibilities and guidelines. You will be required to sign a Participation Agreement and an Equity Statement after you are fully briefed on all aspects of VBIC and are fully prepared to continue with the Business Planning process.
Following are some of the questions you should be prepared to answer:
Are You An Entrepreneur? What makes some entrepreneurs successful?
Entrepreneurs, they say, are born and not made. While this may appear to be true, there are traits common to all successful entrepreneurs. Entrepreneurs have definable management skills. They also believe in hard work and most often have a supportive environment.
The Entrepreneurial Quiz assists your Counsellor to assess which skills you possess and where additional discussions may be required. Remember this is a self-assessment so honesty is important.
Are You A Manager? What Management Skills do you possess?
Business failure statistics confirm that most small-business failures are the result of poor management. Making sure that your personal management profile is adequate is important to your overall success. The assessment will emphasize your strengths and identify your weaknesses.
Some of us cannot hold onto a nickel while others are reluctant to spend a cent even if they truly need to. Money management is “knowing” when to spend and when not to.
Do you get along with others? Have you been required to interact with co-workers, suppliers and customers? How you interact with others will make a difference in how well you manage your business.
Directing Business Operations
You may not have owned a business before but in previous work experience you may have gained skills that are critical to business direction.
Directing Sales and Marketing Operations
Your experiences may have taught you many valuable production skills but have you ever had to direct a sale or make a marketing decision?
Setting up a Business
There are many decisions to make in setting up a business. If you have never set up a business before you may need some assistance and guidance.
Qualifications & Credentials
What is it that makes this business the one for you? Training, experience, education, they all play a major role in how well you may do in your new business.
After completing the Management Skills Inventory, the VBIC Counsellor will be able to assess how to best assist you in achieving a balanced skill set. Obvious skills deficiencies will have emerged from your answers and responses. Example: If you have never made a sales call before (Directing Sales and Marketing) and do not interact well with people (Managing People) there may be reason for concern. The solution may be training or it may be a simple matter of hiring a sales staff right at start-up.
What is your Financial Status?
Monthly Cost of Living
The Monthly Cost of Living Statement assists you and the VBIC Counsellor to understand what your personal financial situation is today. The statement lists all Net Income (net income is after taxes and other payroll deductions) and lists the day-to-day expenses of you and your family.
The statement serves several important purposes: it identifies the Net Income; identifies the Expenses; and shows a Net Surplus or Shortfall in the statement month. The statement offers an indication of how much stress a new business may put on your existing household budget.
Personal Statement of Net Worth
Can you invest in a new business? If so, how much may be available as an investment? The Personal Statement of Net Worth will provide an indicator as to how much you may be able to invest in your new business.
The statement analyzes your Assets and Liabilities, or, how much you own and how much you owe. If you owe more than you own you may be limited in your ability to solicit funding.
Equity is the difference between what something is worth (valued at) and what is owed on that something.
Example: If you own a car and the value of that car is $10,000, and you had a loan of $4,000 against that car, you would have $6,000 in equity.
An Equity Statement is a tool used by the VBIC Counsellor to determine how much of an investment resource is available to a business. The Equity Statement is also the VBIC applicant’s signed proclamation as to the equity they are prepared to invest in their business.
ARE YOU READY TO BEGIN?
If you believe that starting your own business is right for you, the VBIC Business Planning program may be a critical guide for you, ensuring you receive adequate direction and mentorship with the process.
In order to proceed to the Assessment Module you will need to complete the VBIC Registration Form. After your submission the VBIC Counsellors will review the registration form and may authorize you to continue through the assessment process.