A Basic Checklist

Yes	No
	You

Are you a self-starter?
yes q no q
Are you willing to work harder than you've ever worked before and for long hours without the
security of as steady paycheck?
yes q no q
Can you afford to work without knowing how much money - or success - you'll ultimately
earn?
yes q no q
Are you ready to make tough decisions on your own?
yes q no q
Do you know when you're "in over your head" and need outside help?
yes q no q
Are you willing to seek outside help? Do you know where to find it?
yes q no q
Can you deal effectively with other people?
yes q no q
Are you an effective leader, motivator, and communicator?
yes q no q
Are you willing to delegate authority and responsibility to others?
yes q no q
Are you willing to admit it when you're wrong?
yes q no q
Do you project a professional image to your clients and customers?
yes q no q
Can people trust what you say?
yes q no q
Can people trust you to do what you say you will do?
yes q no q
Do you have managerial experience?
yes q no q

Yes	No

Do you have the technical skills you will need to operate your particular business?
yes q no q
Do you have the business skills you need to run a business?
yes q no q
Do you know your strengths and weaknesses?
yes q no q
Do you have business partners or advisors who can compensate for your weaknesses?
yes q no q
Have you worked in a business like the one you want to start?
yes q no q
Have you researched your business thoroughly?
yes q no q
Do you read a lot about your business and its industry?
yes q no q
Are you a good listener?
yes q no q

Yes	No
	Your Idea

Is your product or service idea unique?
yes q no q
Does it serve a customer need or want?
yes q no q
Have you defined the competitive advantage your product or service offers ?
yes q no q
Do you know what your product or service will cost you?
yes q no q
Have you defined the "image" you want your product or service to have in the marketplace?
yes q no q
Can competitors easily copy your product or service?
yes q no q
Have you located suppliers who will sell you what you need at a reasonable price?
yes q no q

Yes	No
	Your Business

Have you evaluated the various forms of ownership to determine which one is best for you?
yes q no q
If you have chosen to form a sole proprietorship, can you afford the unlimited personal
liability?
yes q no q

If you have chosen to form a partnership, have you created a partnership agreement?
yes q no q
If you have chosen to form a partnership, have you determined which partners are general
partners and which are limited partners?
yes q no q
If you have chosen to form a partnership, have you determined how a partner can leave the
business?
yes q no q
If you have chosen to form a partnership, have you determined how a you will settle
disputes?
yes q no q
If you have chosen to form a corporation, have you filed the articles of partnership with the
appropriate state?
yes q no q
If you have chosen to form a corporation, are you willing to tolerate the "double taxation" of
this form of ownership?
yes q no q
Have you considered the Limited Liability Company (LLC) as a form of ownership?
yes q no q
If you have chosen to form an LLC, have you filed both the articles of organization and the
operating agreement with the proper state?
yes q no q
If appropriate, have you filed a patent application with the U.S. Patent and Trademark
Office for your product?
yes q no q
Have you given your business, product, and service names proper trademark protection?
yes q no q
If the answer to question #42 is "Yes," are you using the trademark properly?
yes q no q
If your business is built around original works of authorship, have you protected them with
a copyright?
yes q no q

Yes	No
	Your Strategy

Have you defined the core values that will guide your business?
yes q no q
Do you have a well-articulated, meaningful mission statement for your business?
yes q no q
Have you assessed your company's strengths and weaknesses?
yes q no q
Have you identified the key opportunities and threats facing your business?
yes q no q

Yes	No

Do you know what the key success factors are for your business?
yes q no q
Have you analyzed your competition well enough to know their strengths and weaknesses?
yes q no q
Have you established meaningful goals and objectives for your company?
yes q no q
Have you formulated a clear, coherent strategy that will serve as your company's "game
plan"?
yes q no q
Have you created specific tactics to implement your company's strategy in the marketplace?
yes q no q
Have you established accurate control systems that will give you feedback on how well your
strategy is working and how well your business is doing?
yes q no q

Yes	No
	Your Market

Have you evaluated key economic trends and how they will affect your business?
yes q no q
Have you evaluated key technological trends and how they will affect your business?
yes q no q
Have you evaluated key sociopolitical trends and how they will affect your business?
yes q no q
Have you evaluated key demographic and lifestyle trends and how they will affect your
business?
yes q no q
Have you identified your company's target market?
yes q no q
Have you researched your target customers enough to know their likes, dislikes, wants,
needs, and preferences?
yes q no q
Have you determined the level of satisfaction your target customers have with existing
products or services?
yes q no q
Have you defined how you will create value for your customers?
yes q no q
Do you know why your customers will want to buy your company's product or service?
yes q no q

Yes	No
	Your Marketing Strategy

Have you developed a marketing strategy that is customer-focused?
yes q no q
Have you developed specific practices to implement this strategy?

Have you developed a marketing strategy that will produce a quality product or service for
your customers?
yes q no q
Have you developed specific practices to implement this strategy?
yes q no q
Have you developed a marketing strategy that is focused on providing customer
convenience?
yes q no q
Have you developed specific practices to implement this strategy?
yes q no q
Have you developed a marketing strategy that will generate innovations in your product or
service over time?
yes q no q
Have you developed specific practices to implement this strategy?
yes q no q
Have you developed a marketing strategy that exploits speed as a competitive advantage?
yes q no q
Have you developed specific practices to implement this strategy?
yes q no q
Have you developed a marketing strategy that is built on customer service?
yes q no q
Have you developed specific practices to implement this strategy?
yes q no q
Do you know what stage of the product life cycle your product or service is in?
yes q no q
Have you identified the channels of distribution you will use to get your product or service
to your target customers?
yes q no q
Have you established a price that will be reasonable to customers, profitable for your
business, and will create the image you want in the marketplace?
yes q no q
Have you determined which advertising media will be most effective in reaching your target
audience?
yes q no q
Have you identified the unique selling position that you will build your advertising messages
around?
yes q no q
Do the ads you are planning to run answer the customer's question, "Why should I consider
buying this product or service?"
yes q no q

Yes	No
	Your Financial Plan

Have you created projected income statements for three years for your business?
yes q no q
Have you created projected balance sheets for three years for your business?
yes q no q
Have you developed estimates for your one-time startup expenses?
yes q no q
Have you developed estimates for your on-going business expenses?
yes q no q
Can you analyze your company's financial statements using ratio analysis?
yes q no q
Do you know what your company's breakeven point is?
yes q no q
Have you reworked your startup cost estimates to see if you can lower your breakeven
point?
yes q no q
Do you know how long your company's cash flow cycle is?
yes q no q
Have you developed a cash budget for your company's first year of operation using a
pessimistic, optimistic, and most likely sales forecast?
yes q no q
Have you developed a plan for collecting your accounts receivable promptly?
yes q no q
Have you set up a functional system for paying your accounts payable on time?
yes q no q
Have you set up a system for monitoring your company's inventory?
yes q no q
Do you know how much inventory you should have?
yes q no q
Have you developed a plan to avoid the "cash crunch?"
yes q no q

Yes	No
	Your Business Plan

Have you developed a complete business plan for your company?
yes q no q
Does your plan include the "5 M's' - Market, Methodology, Management, Money, and
Menaces?
yes q no q
Have you scored your plan on the Business Plan evaluation Scale?
yes q no q

Yes	No
	Financing Your Business

Do you know how much money it will take to launch your business, and have you included
a little extra for "Murphy's Law"?
yes q no q
Do you understand the implications of both debt and equity capital to your business?
yes q no q
Have you identified family members and friends who might be willing to finance your
business?
yes q no q
Have you identified potential angels who might be willing to finance your business?
yes q no q
Is your business a possible candidate for a simplified registration or exemption for a public
offering?
yes q no q
Have you established a business relationship with a banker?
yes q no q
Have you answered the seven questions every entrepreneur should be able to answer before
approaching a banker for financing?
yes q no q
Have you considered other forms of debt financing?
Trade credit?
q q
Equipment suppliers?
q q
Commercial finance companies?
q q
Savings and Loans?
q q
Stock brokers?
q q
Insurance companies?
q q
Credit unions?
q q
The Small Business Administration?
q q
State and local development programs?
yes q no q

Yes	No
	Your Location and Layout

Have you studied the demographics of your proposed location and matched them against
the profile of your target customer base?
yes q no q
Have you analyzed data from Census reports concerning your location?
yes q no q
Have you calculated the index of retail saturation for your proposed location?
yes q no q
Have you evaluated the site in terms of the level of competition, retail compatibility, and
other factors unique to your business?
yes q no q
Have you evaluated building, buying, and leasing a building to house your business?
yes q no q

Yes	No
	Your People

Have you developed a human resources plan for your business?
yes q no q
Have you created job descriptions and job specifications for each job in your company?
yes q no q
Have you developed a recruiting strategy to get the workers you need?
yes q no q
Have you developed a job application form that will give you the information you need
about candidates and will avoid charges of discrimination?
yes q no q
Have you developed interviewing questions that will give you the information you need
about candidates and will avoid charges of discrimination?
yes q no q
Have you developed a plan for orienting and training your employees on a continuous
basis?
yes q no q
Have you developed a compensation plan that is equitable and motivating to employees?
yes q no q
Have you developed a plan for evaluating your employees' performances regularly?
yes q no q
Have you developed a procedure for documenting employees' performances in case you
must fire them?
yes q no q


Before You Start: A Basic Checklist	Business Plan Evaluation Scale	Small Business and Entrepreneurship Resources	Small Business Management Audit	Feedback	H o m e

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