PART FIVE Stage Four: Adulthood

Question 1

What is the main problem faced in Stage Four of business development?

Answer 1

Sales slow down and may even stall.

Question 2

What is the main challenge for entrepreneurs in Stage Four?

Answer 2

Becoming entrepreneurial again.

Question 3

What is the main opportunity in Stage Four?

Answer 3

Getting the business to run itself.

Question 4

What additional skill is needed in Stage Four?

Answer 4

Determining the role you will play in the business’s future.

Question 5

What is the significance of reaching $50 million in revenue?

Answer 5

It places entrepreneurs in the top one-one-hundredth of the world’s population.

Question 6

List three opportunities available in Stage Four.

Answer 6

• Selling your business privately
• Bringing it public
• Stepping back and becoming chairman of the board

Question 7

What are the four roles entrepreneurs must play according to Richard Schefren?

Answer 7

• Employee
• Manager
• Business Builder
• Wealth Builder

Question 8

What is the role of the Employee in the early stages of a business?

Answer 8

Performing routine jobs and managing day-to-day tasks.

Question 9

In Stage Two, what percentage of time should an entrepreneur spend as a Manager?

Answer 9

Approximately 60 percent.

Question 10

What is the primary responsibility of a Business Builder?

Answer 10

Articulating the company’s core values, business philosophy, and vision for the future.

Question 11

What does the Wealth Builder role involve?

Answer 11

Treating the company as a valuable asset and assessing its worth.

Question 12

True or False: In Stage Four, an entrepreneur should still be heavily involved in management tasks.

Answer 12

False.

Question 13

Fill in the blank: The first duty of the Business Builder is to _______.

Answer 13

[articulate the company’s core values]

Question 14

What should an entrepreneur focus on to keep their work interesting?

Answer 14

New and challenging tasks.

Question 15

What is the author’s perspective on hard work?

Answer 15

They dislike hard work but find work easy and fun when engaged in interesting tasks.

Question 16

What should a Stage Four entrepreneur avoid doing to ensure business growth?

Answer 16

Avoid doing employee work that bottlenecks progress.

Question 17

How much time should a CEO spend on their visionary role in Stage Four?

Answer 17

Only an hour or two a week at most.

Question 18

What is a common misconception about hard work according to the author?

Answer 18

That working hard means doing something boring or uninteresting.

Question 19

List the two things that the author considers hard work.

Answer 19

• Doing something that bores me
• Doing something I don’t care about

Question 20

What is the ideal work situation for a Stage Four entrepreneur?

Answer 20

Being in charge of enjoyable work that they are passionate about.

Question 21

What should entrepreneurs do to avoid bottlenecks in their business?

Answer 21

Delegate management work to capable profit center managers.

Question 22

What type of work should not be done by a Stage Four entrepreneur?

Answer 22

Management work

Management work should be delegated to capable profit center managers.

Question 23

What is the role of business-building work for a Stage Four entrepreneur?

Answer 23

Meeting with profit center managers and their teams

Business-building work can be done part-time once the business is running smoothly.

Question 24

How often should a Stage Four entrepreneur assess their business’s worth?

Answer 24

Once or twice a year

This assessment should take no more than a day or two.

Question 25

What significant decision should a Stage Four entrepreneur consider regarding their involvement in the business?

Answer 25

Whether to continue working full-time ## Footnote If not, they should select a CEO from top personnel.

Question 26

What was the outcome of breaking a business into separately incorporated profit centers?

Answer 26

Revenues increased significantly ## Footnote This approach allowed for better growth and autonomy for each center.

Question 27

What is the benefit of sharing knowledge among profit centers?

Answer 27

Each center can advance more quickly ## Footnote Knowledge transfer leads to improved performance across the board.

Question 28

What role can a Stage Four entrepreneur play in their business?

Answer 28

Adviser and wealth builder ## Footnote This involves providing guidance while allowing profit center leaders autonomy.

Question 29

True or False: An adviser expects profit center executives to follow their advice without question.

Answer 29

False ## Footnote Executives must make their own decisions, even if contrary to advice.

Question 30

What is the Warren Buffett role for a Stage Four entrepreneur?

Answer 30

Helping to guide investment decisions ## Footnote This role focuses on increasing the company's future value.

Question 31

How did the author learn about wealth building?

Answer 31

By reinvesting profits back into the business ## Footnote This approach contrasts with taking income out quickly.

Question 32

What are some key investment decisions made by the investment committee?

Answer 32

Profit distributions, leadership changes, and major new launches ## Footnote These decisions are vital for maintaining company stability.

Question 33

What should be considered when buying a business?

Answer 33

Buy what you know, don't chase profits, have a Plan B ## Footnote These principles guide successful acquisitions.

Question 34

Fill in the blank: A good practice is to tell every business owner you admire that you would like to _______.

Answer 34

buy his company ## Footnote This can lead to future acquisition opportunities.

Question 35

What was the initial sales figure for the publishing business mentioned?

Answer 35

$90 million ## Footnote This figure grew significantly after strategic changes were made.

Question 36

What should you avoid if you don't know the optimum selling strategy?

Answer 36

Stay away from it.

Question 37

Why should you not chase profits when buying a business?

Answer 37

You should buy businesses that you can add something to—that you can grow.

Question 38

What is a crucial aspect to consider before buying a business?

Answer 38

Have a Plan B for liquidation strategy.

Question 39

Why do most entrepreneurs go public with their business?

Answer 39

To cash in their stock and earn big public multiples.

Question 40

What is the author's perspective on taking a business public for a payday?

Answer 40

It is considered stupid and shortsighted thinking.

Question 41

What is the only reason to go public, according to the author?

Answer 41

If it gives you a bank account to invest in the company’s growth.

Question 42

What should be the primary goal of an entrepreneur regarding their business?

Answer 42

To enjoy ownership and play desired roles.

Question 43

Why might someone tire of golf after selling their business?

Answer 43

They will look around for something to do.

Question 44

When did a significant gold discovery occur on the Klondike River?

Answer 44

In 1896.

Question 45

What was Belinda Mulrooney's first entrepreneurial venture?

Answer 45

A restaurant in Grand Forks.

Question 46

What was unique about Belinda Mulrooney's approach to wealth during the gold rush?

Answer 46

She sold products and services to gold seekers instead of mining for gold.

Question 47

What did Belinda do when Joe Brooks cheated her out of her shipment?

Answer 47

She seized Brooks’ pack train and retrieved her goods.

Question 48

What was the name of Belinda Mulrooney's successful hotel?

Answer 48

The Fairmont.

Question 49

What was the most profitable part of Belinda Mulrooney's business?

Answer 49

The saloon.

Question 50

What did Belinda Mulrooney do to make her hotel more professional?

Answer 50

Hired a manager and a chef.

Question 51

Who did Belinda Mulrooney marry in 1901?

Answer 51

Charles Eugene Carbonneau.

Question 52

What happened to Belinda's husband, Charles Carbonneau?

Answer 52

He embezzled money and skipped town.

Question 53

What business did Belinda open after returning to mining?

Answer 53

The Dome City Bank.

Question 54

Where did Belinda Mulrooney build her mansion after leaving the North Country?

Answer 54

Yakima, Washington.

Question 55

How old was Belinda Mulrooney when she died?

Answer 55

95.

Question 56

What is the author's view on the state of entrepreneurship today?

Answer 56

It is easier to start and grow a business than at any time in history.

Question 57

Fill in the blank: The science of _______ and the global reach of the Internet enable anyone to start a business.

Answer 57

direct marketing

Question 58

What is Early to Rise?

Answer 58

A daily success e-zine for actionable information on entrepreneurship.

Question 59

What can subscribers expect from Early to Rise?

Answer 59

Constant encouragement and smart new ideas for business building.

Question 60

What is the format of Early to Rise designed to be?

Answer 60

Easy-to-understand and productive for the morning routine.

Question 61

What is the estimated time to read Early to Rise?

Answer 61

Five minutes.

Question 62

How long will it take to read ETR?

Answer 62

Five minutes

Question 63

What is the benefit of reading ETR?

Answer 63

What you learn will last a lifetime

Question 64

Who is eligible for a complimentary subscription to Early to Rise?

Answer 64

Readers of Ready, Fire, Aim

Question 65

Can subscribers unsubscribe from Early to Rise?

Answer 65

Yes, at any time with no obligation

Question 66

What should you do to receive your first issue of Early to Rise?

Answer 66

Visit www.earlytorise.com/ReadyFireAim.htm

Question 67

True or False: Reading ETR is a complex and time-consuming task.

Answer 67

False

Question 68

Fill in the blank: Reading ETR will take just _______.

Answer 68

five minutes

Question 69

What is the most productive part of your morning routine according to the text?

Answer 69

Reading ETR