Checklist For Going Into Business
Summary
Thinking of owning and managing your own business? It's a good idea-provided you know and have what it takes.
Starting a business is risky at best, but your chances of making it succeed will be better if you understand the problems you'll meet and work out as many of them as you can before you start.
Here are some questions and worksheets to help you think through what you need to know and do. You can print off this form or answer them with numbers on a piece of paper. Write in YES if the answer is YES. Where the answer is NO, leave it blank and you have some work to do.
Before You Start
1. Are you the kind of person who can get
a business started and make it run
efficiently?______________
2. Think about why you want to own your own
business. Do you want to badly enough work
long hours without knowing how much money
you'll end up with?______________
3. Have you worked for someone else as a
foreman of manager?______________
4. Have you had any business training in
school?______________
5. Have you saved any money?______________
How About the Money?
6. Do you know how much money you will need to get your business started?______________
7. Have you determined how much money of your own you can put into the business?______________
8. Do you know how much credit you can get from your suppliers-the people you will buy from?______________
9. Do you know where you can borrow the rest of the money you need to start your business?______________
10. Have you figured out what net/loss income per year you expect to get from the business?______________
11. Are you willing to re-invest your salary/business profits to help your business grow?______________
12. Have you talked to a banker about your plans?______________
How About a Partner?
13. If you require a partner for additional financing, do you know someone who will fit-someone you can get along with?______________
14. Do you know the good and bad points about running your own business, having a partnership and incorporating your business?______________
15. Have you talked to a lawyer about a partner?______________
How About Your Customers?
16. Do most businesses in your community seem to be doing well?______________
17. Have you tried to find out whether or not businesses like the one you want to open are doing well in your community and in the rest of the country?______________
18. Do you know what kind of people will want to buy what you plan to sell?______________
19. Do people like to live in the area where you want to open your business?______________
20. Do they need a business like yours?______________
21. If not, have you thought about opening a different kind of business or going to another location?______________
Your Building
22. Have you found a good building for your business?______________
23. Will you have sufficient room to expand when necessary?______________
24. Can you fix the building up the way you want without spending too much money?______________
25. Can people access your business easily from parking spaces, bus stops, or their homes?______________
26. Have you had a lawyer check the lease and zoning requirements?______________
Equipment and Supplies
27. Do you know what equipment and supplies you need, and how much they will cost?______________
28. Is it feasible to buy second-hand equipment?______________
Expenses
29. Do you know what your expenses will be for: rent, wages, insurance, utilities, advertising, interest, etc.?______________
30. Do you need to know which expenses are direct, indirect or fixed?______________
31. Do you know how much your overhead costs will be?______________
32. Do you know how much your selling expenses will be?______________
Miscellaneous
33. Are you aware of the major risks associated with your product? ______________
Service? ______________
Business?______________
34. Can you minimize any of these major risks?______________
35. Are there major risks beyond your control?______________
36. Can these risks bankrupt you?______________
Your Merchandise
37. Have you decided what things you will sell?______________
38. Do you know how much or how many of each you will buy to open your store with?______________
39. Have you found suppliers who will sell you what you need at a competitive price?______________
40. Have you compared the prices and credit terms of different suppliers?______________
Your Records
41. Have you planned a system of records that will keep track of your income and expenses, what you owe people, and what other people owe you?______________
42. Have you worked out a way to keep track of your inventory so that you will always have enough on hand for your customers but not more than you can sell?______________
43. Have you figured out how to keep your payroll records and take care of tax reports and payments?______________
44. Do you know what financial statements you should prepare?______________
45. Do you know an account who will help you with your records and financial statements?______________
Your Business and the Law
46. Do you know what licenses and permits you need?______________
47. Do you know what business laws you have to obey?______________
48. Do you know a lawyer you can go to for advice and help with legal papers?______________
Buying a Business Someone Else Has Started
49. Have you made a list of the advantages and disadvantages of the business someone else has started?______________
50. Are you sure you know the real reason why the owner wants to sell this business?______________
51. Have you compared the cost of buying the business with the cost of starting a new business?______________
52. Are the equipment/inventory up to date and in good condition?______________
53. Will the owner of the building transfer the lease to you?______________
54. Have you talked with other business owners in the area to see what they think of the business for sale?______________
55. Have you talked with the company's current suppliers?______________
56. Have you talked with a lawyer about the existing business?______________
Advertising
57. Have you decided how you will advertise? (Newspapers-posters-television-radio-Internet-mail?)______________
58. Do you know where to get help with your ads?______________
59. Have you watched what other competitors do to get people to buy?______________
The Prices You Charge
60. Do you know how to determine what you should charge for each item you sell?______________
61. Do you know what your competitors charge?______________
Buying
62. Do you have a plan for finding out what your customers want?______________
63. Will your plan for keeping track of your inventory tell you when it is time to order more and how much to order?______________
64. Do you plan to buy most of your stock from a few suppliers or several?______________
Do you know the advantages and disadvantages of each supply method?______________
Selling
65. Have you decided whether you will have sales associates or self-service?______________
66. Do you know how to encourage customers to buy?______________
Have you thought about why you like to buy from some sales associates while other turn you off?______________
Your Employees
67. If you need to hire someone to help you, do you know where to look?______________
68. Do you know what kind of employees you need?______________
69. Do you have a plan for training employees?______________
Credit For Your Customers
70. Have you decided whether or not to let your customers buy on credit?______________
71. Do you know the good and bad points about joining a credit-card plan?______________
72. Can you tell a deadbeat from a good credit customer?______________
A Few Extra Questions
73. Have you figured out whether or not you could make more money working for someone else?______________
74. Does your family go along with your plan to start a business of your own?______________
75. Do you know where to find out about new business ideas and new products?______________
76. Do you have a business for yourself and your employees?______________
If you have answered all these questions carefully, you've done some hard work and serious thinking. Moreover, you have probably found some things you still need to know more about or do something about.
Do all you can for yourself, but don't hesitate to ask for help from people who can tell you what you need to know. Remember, running a business takes courage! You've got to be able to decide what
you need and then go after it.
Good Luck!