How would you know whether this person is suitable to run business?
When a person decided to run a business, is there a way to check whether he is fit to run business?
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Jan 7, 2014
I would assess what is needed in this particular business and with these data assess the person using the CVI, an assessment that bypasses personality and behavior revealing ones unchanging motivational drivers and sense for how one is wired to contribute to the world around him.
A free example of this assessment can be found here: http://members.taylorprotocols.com/Tools/CVIGift.aspx?GiftHash=dbbd4225-58ae-1030-aa1a-adf0ab89abbd
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Jan 5, 2014
Check out his references and do a background check. It's not everything but it should be a good start.
Jan 3, 2014
There are certain characteristics of people that can be assessed to determine their suitability. In summary, they should be decisive, be driven by certain values that are suitable to the type of business and should base their decision-making on practical thinking. These characteristics can be determined by the use of a profile assessment that can be taken on line.
Jan 3, 2014
Jan 3, 2014
Sorry, I am confused by your question. If you are asking my role in asking this question - it is the intention to have "suitability" open to discussion so that we can gain more through this process.
Jan 8, 2014
I apologize for the confusion (and for my delay in responding). Your question then is to help another decide if they are suitable to run a business. Is this correct? It seems you are mentoring/coaching/advising someone else (that is where my question was going). In that case my first question of "the client" would be what is your purpose in starting this business? There is no short answer to the question, as it is a process as the many respondents have pointed out.
Jan 8, 2014
I am a management consultant. As mentioned earlier - this question is meant for people to discuss so that we all can gain at the same time. I would expect the answer apply to everyone - not just "the client", simply because we need an approach to apply to everyone not just "the client". BTW, I have clients who also management consultants too.
Jan 2, 2014
Passion for the Business. Persistence.
These are not reducible to paper or gleaned from qualifications but most often found in one's experiences. You can develop a hiring matrix but developing an instinct for people will net a far higher success rate.
Jan 2, 2014
Depending upon the business, hopefully it's something they have experience or knowledge in and are very passionate about it. There are personality and disc tests that can help find out too. Besides having knowledge or expertise in an area, a person needs an entrepreneurial spirit, willingness to go it alone, work long hours when needed, be the boss and make decisions, have good leadership and management skills. The disk tests really help and some of them can even help fit someone in the right business or business area.
Jan 2, 2014
Good question JC. Most all of these questions answer this question in one way or another. I'll take a little different tact here and make it simple. Does the person WANT to run a business or just do the kind of work (service/product) that the business plans to provide?!
Here is the point of the question. Many people start a business because they love to do the work, but they hate learning about business. Same business owners like this tend to create a job for themselves instead of creating a self-sustaining asset. As a result they find themselves miserable after the honeymoon is over.
If the person is serious about learning what is necessary in order to make the business successful then I say YES the person can learn what is necessary to be successful. They just must realize that it will require a change in themselves in order to finally achieve success.
I hope this helps, - Dino
Jan 2, 2014
Totally agree with you Dino. 6 years back I partner with another 2 friends to incorporation a company. These two friends held very high positions in a MNC and had some power to influence the market we are in. A wonderful match where they responsible to marketing, sales, and technical respectively and I responsible for general management and operation.
However, when the business didn't turned out to expected, one of the partner "suddenly" feel that he was not suitable to do business and left the company with full consent and support from us. Eventually, the business fail and we are split, however the other partner and myself still running our own business and 3 of us have regular meeting to do catch up since then.
I would like to put your point as psychological conditioning which probably links to the personality of an individual.
Jan 5, 2014
Great point JC and thanks for sharing. I would say that your awareness of the situation and this psychological conditioning gives you a far greater chance to find a success outcome. Good luck and let me know if I can be of any assistance as you progress. - Dino
Jan 2, 2014
The primary way of finding out if someone is suitable to run a business is based on three things:
(1) Previous experience.
(2) Their understanding of true leadership and entrepreneurship and, through questionning, ascertaining what creative energies they may have that will not only mean they will be able to run the business, but also to develop it.
(3) Define an opportunity to work with them on a small project, especially if it was in order to ultimately appoint them to the role to run a business on your behalf.
Jan 2, 2014
Thanks for your input, Trevor. I would like to reduce the unceesary variables to make the testing more objective and general. The intention is not ambitious but essential as once we establish the basic, additional variables for different scenarios can insert as adjusters. Thus I would take in your point 1 & 2 and to forgo point 3 reason being that we try to avoid subjective conclusion.... Just some of my thoughts.
Jan 1, 2014
When I am writing a custom business plan for a start-up, buyout or expansion and my client says, I don't know too many times I start to wonder about their success. Don't get me wrong. There are many acceptable "I don't knows" for a start-up. These are followed by, "I will find outs". And when I need to chase after them and ask the same question 7 times, I get a sense of not qualified.
Jan 1, 2014
I'll try to answer with very simple words )
First of all, just check his/her personnel/professional background...(portfolio, experience, trusted person or not etc.)
Second, Analyze his/her business plan/offer/proposal (business type/model, his/her risks, your risks, costs, estimated revenue, rev.share percentage etc.)
Then you will get some results and will know what is your next step. Good luck )
Thanks, this looks great!