| |
Thinking of becoming a new business owner? Read THE
checklist first ... it may mean your success or failure.
Starting and managing a business takes motivation, desire
and talent. It also takes research and planning. We
have prepared a checklist to help you see what awaits
you as an entrepreneur. |
|
| |
|
|
| |
Your
answers to these questions will help you conceptualize,
formulate and understand your planned business –
and whether this business fits your personality and
that you really want to do and have the capability to
do. It may not be possible to know everything at the
very beginning, but research and planning will help
you minimize the unknowns and help you become better
prepared. Always remember that lack of planning is one
of the leading causes of business failures. When you
start a business, your goal is to see it succeed, and
you can only do so if you are able to control all the
variables and turn them into your favor.
|
|
| |
|
|
| |
CHECK YOUR IDEA
|
|
| |
|
|
| |
What niche will my business fill? Before you actually
launch or expand a business, spend time checking out
the market for your new product or service. Since
it is easier to sell a product or service for which
a need already exists, look for problems that are
being created because the right product or service
does not exist, then challenge yourself to provide
it. What services or products will I sell? Ideas for
businesses come from many sources. You can turn your
interest or hobby into a business. Sell what you know,
and put to work technology and equipment that you
already have. Use your imagination to find a need
and fill it. Is my idea practical, and will it fill
a need? If it is not available and if there appears
to be a need for it, these factors are in your favor.
Conduct market research to find out if there is a
need for your product or service before committing
a great deal of time and money to the project. Take
the time to identify your customers and find the means
to get your products or services to them. In order
to be successful, you must know your market.
|
|
| |
|
|
| |
Who is my competition? There are two kinds of competition:
direct and indirect. Direct competition will be a
business offering the same product or service to the
same market. Indirect competition is a company with
the same product or service but a different market.
Identify all your competitors, look for their strengths
and images, and evaluate their image and their markets.
|
|
| |
|
|
| |
Can I deliver a better quality service? Build on
what you know and do best. Look for marketable products
or services compatible with your work background or
business contacts, or those that tie into your professional
or personal fields of interests. If you already have
a good understanding of the field you would like to
enter as a business owner, it will be much easier
to market your business.
|
|
| |
|
|
| |
Can I create a demand
for my business? The difference between financial success
and failure will depend on your management and marketing
skills; your clever approach to the marketplace; the way
the business idea is publicized or advertised; the way
the product is packaged, presented or delivered; or the
zest with which the service is performed. |
|
| |
|
|
| |
OPERATIONAL ASPECTS
|
|
| |
|
|
| |
Once you’ve determined
that your idea is feasible, answer these questions: |
|
| |
|
|
| |
What skills and experience do I bring to the business?
A logical first step for the undecided is to list
potential areas of personal background, special training,
educational and job experience, and special interests
that could be developed into a business. Is it a business
that suits your personality and tastes? The business
you choose is one that you feel good about and fires
your imagination. Enthusiasm can be a priceless ingredient
in the formula for success!
|
|
| |
|
|
| |
What will be my legal structure? Understand the advantages
and disadvantages to each form of organization. The
type of legal format you choose will depend on your
need for capital, your type of business, when you
want to start your business, your ability to finance
your business, the number of people involved in the
business, the liabilities and risks you are willing
to assume, your personal tax situation, your plan
for taking money out of the business, your plan for
continuing the business if something should happen
to you, and your long-range business plan.
|
|
| |
|
|
| |
How will my company’s business records be maintained?
Good record keeping provides you with tax information
that can easily be retrieved and verified. It also
provides you with information that you can use to
analyze your business. Accurate financial statements
will help you to see trends and implement changes
during the life of your business. On the other hand,
poor record keeping can cause you a multitude of problems
and may result in audits, penalties and even the termination
of your business.
|
|
| |
|
|
| |
What insurance coverage will I need? Today’s
world of rapidly expanding technology goes hand-in-hand
with a society steeped in lawsuits. The most innocent
business owner can find himself/herself involved in
legal actions against the business. In addition to
liability, there are many other insurance considerations
such as fire, flood, earthquake, auto, theft, worker’s
compensation, health insurance, etc. that need to
be addressed during the period of ownership.
|
|
| |
|
|
| |
What are my resources? In order to determine what
you have available for a business investment you should
determine your net worth on a personal financial statement.
If this is not enough (as it often is the case), you
can seek personal contributions and support from family
and friends. You can also seek money from banks and
lending institutions, but only if you could offer
liquid assets as security. Other sources include government-assisted
loans, taking on a partner or investors, and joint
venture capitalists.
|
|
| |
|
|
| |
What financing will I need? The lack of sufficient
and ready capital can quickly lead to business failure.
You need to determine whether you need to borrow money,
how much you need and when you will need it. Check
out possible sources of financing available to meet
your needs. Most importantly, know how much financing
could cost you.
|
|
| |
|
|
| |
Where will my business be located? Your most important
consideration in choosing your location is your ability
to satisfy your market. Your customers must be able
to reach your business easily, safely and pleasantly.
Other considerations include the location of the competition,
sources of supply, availability of labor force and
square footage costs. Consider early on whether you
want to have an online presence to improve market
reach.
|
|
| |
|
|
| |
What will I name my business? The name you choose
will have a great deal of bearing on the image you
project. Be sure that the name you choose is available
for use. Avoid cute and clever names; they do not
project a businesslike image. Make your name description
to advertise your product or service, and consider
alphabetical listings in the directory.
|
|
| |
|
|
