Entrepreneurs Aptitude Test (EAT)
Will the dogs eat the food?
A common venture capitalist investment criterion is derived from dog food, a relatively simple business. You have a horse, a can and a dog. First, you kill the horse. Second, you put it into the can. Third, you feed it to the dog. Now if the dog eats it, fine. But if the dog will not, you are out of business. Hence the venture capitalist´s key question: "But will the dogs eat the food?" In this spirit we provide you a personal self-assessment quiz, EAT, to help you determine whether you should pursue your venture.
A key criterion for success that this test does not measure is persistence - the need to be relentless. The Appendix in German "Der glückliche Unternehmer" is presented to give the reader an encouraging example. Conspicuous by their absence on this test are questions about ethics and wanting to get rich. Over history the entrepreneurial giants have covered all ethical extremes from ruthless, malevolent "management by terror" dictators with extraordinary criminal energy to munificent "manage by love" candidates for sainthood.
“I want to get rich” may, in fact, be a key personal driver for you. However if successful entrepreneurs were motivated purely by money, you would see them rapidly selling their businesses for a “life on the beach.” In fact, many of them keep on working, pursuing their dreams, into their 60s and beyond, some with celebrity lifestyles (private jet, etc.), others not at all. Many set up charitable foundations with their wealth.
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Scoring
There are 30 questions, plus a bonus question worth 11 points. If you are not already running your own business, you start off with minus 5 points! Then rate yourself on each question as follows:
Failing Poor Good Excellent
0 1 2 3.3
If you are already an entrepreneur and rate yourself “Excellent” on all 30 questions and nail the bonus question, your score would be (30 x 3.3) +11 =110, which means your existing business is about to acquire Microsoft and Apple. If you have not yet started your business, your score would still exceed a perfect 100%, (-5 + 110 = 105). Shortly after your business gets up and running it will acquire Microsoft and Apple. Alternatively, you are delusional. Do not be discouraged! Many spectacularly successful entrepreneurs are delusional about their abilities, believing they can walk on water. You are just ahead of the curve.
Idea
1) I have an idea – which solves a real problem. (Beware of having too many ideas to solve too many problems, i.e. lack of focus.)
2) I can sell my ideas and get people excited about them.
3) I like to challenge conventional wisdom, look for a better way.
Passion
4) I bring passion to my business.
5) I can communicate my passion, and get people enthusiastic about my business.
6) I like challenges and love to win.
Leadership/Working Style
7) I am an Alpha person, a leader.
8) I like being my own boss, to make the rules, not follow them.
9) I like to bring people together to accomplish something and can delegate to others, providing them guidance without micro-managing them.
10) I am good at follow-up, patient, polite and persistent.
11) Whenever there is a problem, I am quickly there as part of the solution.
12) I can focus on a single task without getting distracted, can really concentrate, and usually work my way out of trouble.
13) I am rarely satisfied with the status quo or my own performance. I am very determined. Once I set myself a goal, I do whatever it takes to reach it.
14) Regardless of whether my style is more “management by terror” or more “touchy-feely Good Samaritan,” one thing no can argue with: I get things done. I make things happen.
Background
15) My health is good. (Be honest now. Do not give yourself 3.3 points here if you smoke, or think beer is food.)
16) I started working young, after school and during vacations.
17) I played sports, especially team sports.
18) Family members and/or close friends run their own businesses, and/or are supportive.
19) My friends are winners, successful. (Success is contagious – and so is failure!)
20) I know the product/service or the customers very well.
21) I carefully watch how I spend my money and do not have credit card debt.
22) I have access to good professional advice (accountants, lawyers, a mentor or “business angel.”)
Skills
23) I have excellent communication skills, both written and oral (making presentations).
24) I am good at selling, familiar with solution selling, and can close.
25) I am good at networking, staying in touch with contacts before I need them.
26) I am quantitative, good with numbers, understand cash flow.
27) I have good computer and Internet skills.
28) I am realistic about my weaknesses, and know how to compensate for them.
Luck
29) I am risk adverse, try to minimize risks, do not gamble.
30) I am lucky, a winner. Fate smiles on me, often.
Attitude
31) Eleven point bonus question: I do not care what this test, my parents, spouse, other family, best friends, professional advisors, the Almighty or the Devil say, I will start my business.
No, we do not score the test for you. If you are quantitative, you kept a running score in your head. If not, then you need to break out a pencil and paper. It is left up to you to determine what you think a passing score is. However if you are well under 50 points, you might want to take a hard look at how you answered the last three questions. To discuss them in turn:
29) That entrepreneurs are fearless risk takers, rushing into ventures “where angels fear to tread” is a common myth. Yes, there are cases of someone “betting the ranch,” but most entrepreneurs are trying very hard to minimize risk. That means they do their homework, they painstakingly prepare, and when everyone thinks they are done, they then prepare some more.
30) Do not underestimate the role of luck. If you ask a Silicon Valley venture capitalist what the difference is between a good idea that makes it, and a good idea that does not, he will answer, if he is being honest, “largely, luck.” That means successful entrepreneurs are persistent. Keep on preparing, keep on trying, and eventually the enigmatic Lady Luck may decide to smile on you after all. (For a link to a very rare photograph of Lady Luck, and also a photo of her sister, Lady Fortuna, see section (5) of the Q3 Strategy Odyssey.)
31) If you scored a flat dead zero on the first 30 questions, but gave yourself full marks on the 31st bonus question, then you still have a shot, granted, a long shot, but a shot nonetheless. By all means go for your dream, but you might want to consider shoring up all those other weaknesses. Henry Ford, who went bankrupt three times before amassing his fortune in the car business, once remarked: "If you think you can do a thing, or think you can´t do a thing, you are right." Attitude is not everything, but it darn sure counts, and counts hugely.
Finally, an extra credit assignment: I could write a better test than Bridges (by changing the following...)
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Appendix I: "Der glückliche Unternehmer"1
(A summary in English is given below.)
22 Jahre jung
keine Freunde, ohne Freundin
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
32 Jahre jung
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
42 Jahre jung
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
ohne Hund und kein Zuhause
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
52 Jahre alt
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
ohne Hund und kein Zuhause
Vater tot und Mutter kalt
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
62 Jahre alt
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
ohne Hund und kein Zuhause
Vater tot und Mutter kalt
keine Frau und keine Kinder
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
72 Jahre alt
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
ohne Hund und kein Zuhause
keine Frau und keine Kinder
Gesundheit hin, jetzt geht´s bergauf
da stehe ich nun, ich armer Tor,
und weiß etwas mehr als je zuvor.
82 Jahre alt
Geld wie Heu und Freunde auch
Frau und Kind, eine Freundin noch
da stehe ich nun, ich reicher Tor,
und weiß viel mehr als je zuvor.
92 Jahre alt
keine Freunde, ohne Freundin
ohne Glück und kein Gehalt
ohne Hund und kein Zuhause
Vater tot und Mutter kalt
keine Frau - bös geschieden
keine Kinder, früh gestorben
da stehe ich nun, ich armer Tor,
und weiß so viel als je zuvor.
102 Jahre alt
endlich ohne echte Sorgen
lebte einsam, allein gestorben
da bin ich nun, ich armer Tor
und weiß so viel als je zuvor.
Summary: "Entrepreneur´s Lament"
22 years young, no friends, no woman; There stand I, poor fool, and know as much as I did before (the chorus).
32 years young, no friends, no woman and no luck, no salary, chorus.
42 years young, no friends, no woman, no luck, no salary and no dog, no house, chorus.
52 years old, as in the preceding verse, adding and no longer any parents, chorus.
62 years old, as in the preceding verse, adding and no wife, no children, chorus.
72 years old, as in the preceding verse, adding and health problems, but finally progress! There stand I, poor fool, and know a little more than ever before.
82 years old, rich as Croesus, with a wife, and mistress too. There stand I, poor fool, and know a lot more than ever before.
92 years old, no friends, no woman, no luck, no salary, no dog, no parents, no wife - nasty divorce, no children - died young. There stand I, poor fool, and know as much as ever before.
102 years old, finally without worries, a lonely life, died alone. There am I, poor fool, and know as much as ever before.
Note: the chorus is adapted from a stanza in Goethe´s Faust I, as referenced in the footnote below.
1 Mit einer Anlehnung an Johann Wolfgang Goethe (1749 - 1832), Faust I (1806):
Da steh ich nun,
ich armer Tor!
und bin so klug als wie zuvor
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