Action Checklist for the Prospective Entrepreneur
Assessing Personal Suitability
- Have you objectively rated your personal strengths, weaknesses and knowledge?
- Are you ready to face the uncertainty and irregularity of income during the early years of your business?
- Is there a need and market for the product or service?
- Are general business conditions conducive?
- Do you have sufficient information on competition and markets?
- What is the typical return-on-investment of your business? Is it greater than if the money were invested elsewhere?
- Have you a complete list of capital needed for start-up, including equipment, supplies and inventory?
- Have you pro forma financial statements, including cash flow, for at least three years?
- Have you discussed your plans with your banker and accountant? Are their attitudes supportive?
- Have you investigated insurance coverage for accidents, fire liability, judgments, or loss of a key employee?
- Do you know the pros and cons of partnerships, corporations, etc.?
- Have you checked the makeup of the population, and the number and type of competitors in the area?
- Can the area support a business like the one you propose?
- Have you investigated the utilities, parking, police and fire protection, room for expansion?
Alternatives to a New Business
- Have you compared the cost of equipping and stocking a new business with the cost of buying a going business?
- Have you considered the advantages and disadvantages of franchising?
- Have you calculated initial inventory and worked out stock control plans?
- Have you found dependable suppliers with reasonable prices?
- Are you familiar with your competitors’ prices?
- Have you determined your own price ranges? Costing details? Legal aspects of your price policy?
- Have you determined your selling and promotion methods?
- Do you have a marketing plan?
- Do you know your personnel needs and prevailing wage scales?
- Do you have a plan for employee training and motivation?
- Are you informed about required employer obligations to employees?
- Have you checked the permits and licenses required?
- Are there health, safety or interstate commerce regulations that apply to your business?
- Has a system been set up?
- Do you know what financial statements you will require and how to use these statements?
- Have you set realistic goals and dates for them?
- Have you made plans to keep up with improvements in your trade?