Checklist for Small Businesses

There is so much to consider when you decide you want to start or purchase small businessess. You will need to think about your startup business plans, including your small business startup financing options. You can answer many of these questions and gain useful small business startup advice with a simple small business checklist.

Personal
While answering these questions might seem a little silly at first, it is important to really consider whether you are prepared mentally, as well as possess the right skills, before you embark on a new business venture.

1. Are you self-confident?
2. Are you a self-starter?
3. Do you give up easily when faced with adversity?
4. Do you have the support of the significant people in your life?
5. Are you a good planner and organizer?
6. Are you willing to live on less money until your business is off the ground?
7. Are you willing to use your own money to invest in your business?
8. If so, how much?
9. Are you willing to spend the number of hours that your business will need in order to be successful?
10. Do you know your weaknesses in business skills? Are you willing to get expert help with these weaknesses?

Experience, Skills and Research
These are the practical nuts and bolts questions for which you should know the answers before you start a small business of your own. In addition, answering these questions will help you write your business plan.

1. Do you have experience with the product or service that you are planning to offer?
2. Do you know what your startup costs will be?
3. Do you know when you can expect your company to start to break even?
4. Have you done any market research on your product or service?
5. Does your product or service fulfill a need?
6. Do you know who your competition is, what their sales strategies are and what their pricing is?
7. Do you have a target market?
8. Have you developed a pricing strategy?
9. How will you position your product or service against your competitors?
10. Do you have a feel for future trends in the business?
11. Do you understand any legal requirements that your business may have, such as resale permits, licenses or other permits?
12. Do you know what kind of insurance your business will need?
13. Do you know if you want your company to be a sole proprietorship, a partnership, an LLC or a corporation?
14. Do you understand the tax and legal implications of these different types of business structures?
15. Do you want to take out a business loan?
16. Can you qualify for a business loan?
17. Are there local, state or federal regulations with which you will have to comply?
18. Do you understand how starting a business can affect your credit rating?
19. Will you have to rent office space, production space or warehouse space?
20. Have you taken into account all of your overhead costs, including utilities, computer access and phones?
21. Will you have to buy or lease equipment?
22. Can you read and write financial statements?
23. How will you advertise your product or service?
24. Do you know labor laws if you have to hire employees?

Once you have the answers to these questions, you will have taken a big step towards starting your own business.