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Lesson 3 of 5The Entrepreneurial Mindset
Unit 1 · Lesson 3 of 5

Assessing Your Entrepreneurial Potential

You can measure your entrepreneurial potential with a scored self-assessment of your skills and experiences, sort the results into strengths and areas to grow, and turn them into a growth plan built on SMART goals.

4 min read1 quick check8 practice questionsAsk AI about this →

Key things to remember

  1. 1A self-assessment is an honest check of your own skills and experiences; the pattern of high and low scores matters more than the total.
  2. 2Scores of 4 or 5 are strengths to use now; scores of 1 or 2 are areas to grow with a plan.
  3. 3SMART goals are Specific, Measurable, Achievable, Relevant and Time-bound.
  4. 4Ways to grow: a mentor, volunteering, a small venture, online learning, clubs and competitions.
  5. 5A growth plan lists strengths, skills to build, actions, a timeline and regular check-ins.

Before an athlete trains, a coach checks what they can already do: how fast, how strong, how accurate. Then they plan training for the weak spots. You can do the same thing for your entrepreneurial skills. Potential means what you could become with effort. A self-assessment is an honest check of your own skills and experiences. It is not a test you pass or fail. It is a map that shows where you are now, so you can plan where to go next.

Taking stock of your skills and experiences

A skill is something you have learned to do well through practice, like managing money or speaking to a group. A characteristic is a personal quality that shows in how you act, like persistence or self-confidence. Experiences matter too: babysitting, a part-time job, a sports team or a school club all build skills even if they do not feel like 'business'.

Characteristicswho you tend to beSkillswhat you can learnInitiativeacts without being toldPersistencekeeps going after setbacksRisk toleranceaccepts calculated risksCreativitysees new possibilitiesSelf-confidencebelieves in own abilitiesAdaptabilityadjusts when plans changeGoal-orientedsets and chases targetsNegotiatingreaches fair dealsSellingpersuades customers to buyMoney managementbudgets and tracks cashInterpersonalworks well with peoplePlanningorganizes steps and timeEntrepreneurialprofileCharacteristics are tendencies you can build on; skills are learned through practice.
Fig 1Characteristics and learnable skills that show up again and again in entrepreneurs.

One simple self-assessment is a scored checklist. Read each statement and rate yourself from 1 (not like me at all) to 5 (very much like me). Add your scores, then look at which statements scored high and which scored low. The total is less important than the pattern.

StatementElement it checksLeo's score (1 to 5)
I often notice things that could be betterRecognizing opportunities4
I explain my ideas clearly to othersCommunicating and collaborating3
I enjoy coming up with new ideasCreativity5
I keep track of money I earn and spendManaging risk (money skills)2
I keep going when something goes wrongDealing with adversity4
I set goals and plan how to reach themBeing future-oriented3
I think about what could go wrong before I startAnticipating and managing risk2
I like to figure out why a problem happenedCritical thinking and problem solving4
I learn new skills on my ownBeing a lifelong learner5
I work well on a teamCommunicating and collaborating3
A ten-statement entrepreneurial self-assessment, filled in by Leo. The maximum total is 50.

Strengths and areas to grow

AStrengths (scores of 4 or 5)
  • Things you already do well
  • Use them to start your venture right away
  • Leo: creativity, lifelong learning, spotting opportunities, sticking with it, problem solving
BAreas to grow (scores of 1 or 2)
  • Skills that need practice, not weaknesses to hide
  • Plan specific actions to improve them
  • Leo: tracking money and thinking about risk
Be honest, not harsh
Rate yourself on what you actually do, not what you wish you did. A low score is useful information. It tells you exactly what to work on next.

Ways to grow as an entrepreneur

  • Find a mentor. A mentor is an experienced person who gives you advice and support, such as a relative who runs a business or a coach.
  • Volunteer. Helping at a food drive or a community event builds teamwork, communication and organizing skills.
  • Start a small venture. A one-day bake sale or a weekend dog-walking service teaches more than any reading.
  • Learn online. Free videos and courses can teach budgeting, design or coding at your own pace.
  • Join a club or competition. Business clubs and pitch contests let you practise with others.

Writing SMART goals for a growth plan

A growth plan only works if its goals are clear. A SMART goal is a goal that is Specific, Measurable, Achievable, Relevant and Time-bound. 'Get better with money' is not SMART: you cannot tell when you have done it. 'Track every dollar I earn and spend in a notebook app for the next 4 weeks' is SMART.

LetterMeaningQuestion to ask
SSpecificExactly what will I do?
MMeasurableHow will I know I did it?
AAchievableCan I really do this with my time and money?
RRelevantDoes it help me grow the skill I chose?
TTime-boundBy when will I finish?
The five parts of a SMART goal.
My entrepreneurial growth plan1Current strengthsWhat am I already good at? e.g. creative, good with people, reliable withmoney.2Skills to buildWhich mindset elements or skills need work? e.g. public speaking, budgeting,managing risk.3ActionsHow will I build them? Take a short course, find a mentor, volunteer at aschool event, run a small venture such as selling art prints.4TimelineWhen will I do each one? Sept–Oct: online budgeting course. Nov: meet amentor. Dec: volunteer. Jan–Mar: run the venture.5Check-inEvery month: What went well? What got in the way? What will I change? Thenupdate the plan.update and repeat
Fig 2A personal growth plan: list strengths, choose skills to build, plan actions, set a timeline, check in and update.
Quick checkTry it before you read on
1
Which goal is SMART?
VideoWatch how each part of a SMART goal turns a vague wish into a clear target, then use it to write the goals in your own growth plan.Watch on YouTube

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
Add up Leo's ten scores from the self-assessment table and express his total as a percentage of the maximum, 50.
Example 2
Sort Leo's results into strengths and areas to grow, and pick the one area he should work on first.
Example 3
Turn Leo's weak goal 'get better at money' into a SMART goal and build a one-month growth plan around it.

Where marks get lost

  • Giving yourself all 5s, or all 1s. An honest mix is far more useful than a flattering or harsh score.
  • Focusing only on the total score. The pattern of strengths and areas to grow is what you plan from.
  • Writing goals that are not measurable, such as 'be more confident', so you can never tell if you reached them.
  • Trying to fix every weak area at once. Pick one or two and plan specific actions for them.
  • Forgetting to check in. A plan you never review quickly stops being followed.

Flashcards 7

Potential
Self-assessment
Skill
Characteristic
+ 3 more

Practice

1
Priya rates herself on 8 statements from 1 to 5: 5, 4, 2, 3, 5, 4, 1, 4. What is her total score?
2
Priya's 8 statements have a maximum of points. Her total is 28. What percentage of the maximum is that? Give a whole number.
%
3
In Priya's scores (5, 4, 2, 3, 5, 4, 1, 4), how many statements count as areas to grow (scores of 1 or 2)?
4
Match each letter of SMART to its meaning.
S
M
A
R
T
5
Which goal is NOT time-bound?
6
What do we call an experienced person who gives you advice and support as you grow?
7
Put the steps of building a growth plan in order.
  1. 1Check in regularly and update the plan
  2. 2Write SMART goals and actions with a timeline
  3. 3Choose one or two skills to build
  4. 4Complete an honest self-assessment
  5. 5List your strengths and areas to grow
8
Maya scores 2 on 'I speak confidently to groups'. Which action is the best fit for her growth plan?

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