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StartingaBusinessChecklist
DECIDINGONABUSINESS(Session1)
□ Have you considered starting part-time and keeping your current job?
□ Have you objectively compared your intended business with other possible
opportunities?
□ Have you prepared a "for" and "against" list to clarify your thinking?
□ Have you worked for someone else in your intended industry/business?
□ Is your intended business something you will enjoy doing?
□ Have you test marketed your product or service?
□ Have you reviewed the advantages and disadvantages of starting with a partner?
□ Are you focused on a specialized product or service?
□ Have you considered operating as a family business?
□ Have you talked to the most successful people in your intended business?
THEBUSINESSPLAN(Session2)
□ Have you completed all the sections of your business plan?
□ Did you personally prepare your business plan?
□ Did you use the My Own Business Institute (MOBI) template for your business
plan?
□ Does your business plan include one-year goals?
□ Have you submitted your plan for review to appropriate experts?
□ Are you prepared to change your plan frequently as conditions change?
□ Does your business plan include a one-year cash low projection?
HOME-BASEDAN DFREELANCEBUSINESSES(Session3)
□ Have you completed the home-based business readiness template?
□ Have you selected a business that does not conlict with your current job?
□ Do you understand accounting and cash low?
□ Are you able to delegate some of your business responsibilities to employees,
partners, or family?
□ Have you set a limit on how much money you can risk?
□ Do you have a disciplined and balanced lifestyle?
□ Do you have the space at home your business will require?
□ Have you checked local laws and licensing requirements for home-based
businesses?
© SCU MOBI 2020
www.scu.edu/mobi
FINANCINGTHEBUSINESS(Session4)
□ Are you saving money to start your business?
□ Are you willing to start small to minimize the capital required?
□ Are you prepared to invest the equity of your own labor?
□ Do you have inancing in place to support your cash low needs?
□ Do you understand the differences between loan (debt) vs. investment (equity)
sources of capital and the inancial and legal obligations of each?
□ Have you investigated the small business government loan guarantee programs?
□ Have you considered using suppliers as sources of inancing?
□ Have you considered bartering as a source of inancing?
□ Have you asked your accountant and attorney for lending references?
□ Are you prepared to live frugally to keep your living costs at a minimum?
□ Does your one-year projection show suficient cash low at the end of each month?
BUSINESSORGANIZATION (Session5)
□ Have you considered the pros and cons of a partner?
□ Have you made a list of your new business’s liabilities?
□ Did you consider how timing factors into liability?
□ Have you selected a business organization that is right for you?
□ Did you complete each of the “Steps You Should Take to Organize Your Business”?
□ Have you selected professionals, especially a lawyer and an accountant, to help
you?
□ Did you complete all the paperwork to organize your business?
LICENSESANDPERMITS(Session6)
□ Are you keeping notes, including the names of participants and dates, for all your
meetings?
□ Is your location approved for the type of business you intend to operate?
□ Is it legal to use your home for a home-based or freelance business?
□ Do you have all the certiications and licenses required by the government for your
type of business?
□ Do you have the special training, education, or equipment required by the
government for your intended business?
□ Do you have a “Seller’s Permit,” if needed?
□ Do you have an Employer Identiication Number (EIN)?
□ Do you have your business license?
□ Do you know how to collect sales tax or value-added tax (VAT) on your
transactions?
© SCU MOBI 2020
www.scu.edu/mobi
□ Have you researched your business name to make sure it is available?
□ Is the name you selected appropriate for the business, easy to remember, easy to
spell, and does it create a visual image?
□ Have you registered your name with the appropriate government agencies?
□ Have you registered your business name as a trademark?
□ Have you secured copyright and patents for your goods and services as needed?
□ Do you have a logo?
□ Have you created stationery, business cards, and business forms?
BUSINESSINSURANCE(Session7)
□ Have you selected an insurance agent who understands business insurance?
□ Did you review your risks with your attorney, your accountant, and your insurance
agent?
□ Have you picked the insurance policies that you need and the limits (amounts) of
coverage?
□ Which of the following policies does your business need?
o Business property insurance
o Business liability insurance
o Worker’s compensation insurance
o Excess liability coverage
o Employment practices liability insurance
o Life insurance
□ Did you include insurance premiums in your cash low projections?
COMMUNICATIONTOOLS(Session8)
□ Do you understand the difference between internal and external communication?
□ Have you selected the types of communication tools that will be important in your
business?
□ Have you printed business cards, lyers, and other materials for customers?
□ What email provider will you use?
□ What type of telephone communication with you use? Landlines? Cell phones?
Internet calling?
□ Is video or web conferencing important for your business?
□ What kind of online collaboration and productivity tools will you use?
□ Do you have a plan for learning about computers and collaboration tools?
□ Will you use social media to promote your business to customers?
□ Will you need a website? Will you build it yourself or hire a web designer?
□ Did you include subscriptions for communication tools in your inancial planning?
© SCU MOBI 2020
www.scu.edu/mobi
BUYINGABUSINESSORFRANCHISE(Session9)
□ Will your business provide full- or part-time employment for you?
□ Is the business a good it for your skills and preferences?
□ Have you investigated the industry thoroughly?
□ Have your lawyer and accountant advised you on all aspects of the transaction,
including approval of purchase agreement and leases?
□ Have you evaluated the quality and size of the inventory?
□ Are the payables veriied and current?
□ Are the receivables current and collectible?
□ Is there an order backlog?
□ Will the seller help inance the purchase of the business?
□ How strong are customer relationships?
□ Is the primary marketplace stable or changing?
□ Does the business have all necessary government approvals and licenses?
□ Is the seller motivated? Do you know why?
Ifyouareconsideringafranchise,hereareadditionalchecklistitems:
□ Have you talked to other franchisees about the business?
□ Have you reviewed the proit and loss records of some selected franchisees?
□ Do you have the inancial statement of the franchisor?
□ Are there outstanding lawsuits against the franchisor?
□ Is it a business you will enjoy operating?
□ Does the proposed location meet your site criteria for the business?
□ Is the franchisor well established?
□ Does the franchisor have a signiicant number of successful franchisees?
□ How many franchises have been sold andopened?
CHOOSINGABUSINESSLOCATION(Session 10)
□ Have you determined the kind of space you need for your new business?
□ Are you taking your time in reviewing all your options?
□ Where will you get information on available space?
□ Have you decided whether to buy or rent?
□ Do you understand the terms in a commercial business lease?
□ Are all your agreements in writing?
□ Have you evaluated potential sites with the “Site Criteria Table”?
□ Has your lawyer reviewed the lease or purchase agreement?
© SCU MOBI 2020
www.scu.edu/mobi
ACCOUNTINGANDCASHFLOW(Session11)
□ Do you understand accounting and cash low and how to keep score in business?
□ Do you know the difference between a balance sheet, a proit and loss statement,
and a cash low statement?
□ Do you have an accountant?
□ Is your accounting software in place?
□ Are you prepared to reconcile your bank account every month?
□ Have you projected your cash low for three months and for one year?
□ Will you be updating cash low every month?
□ Are you planning to keep your own records when you start out?
□ Have you set up an account with a service provider to handle payroll and beneits?
□ Will you personally be signing all the business checks?
□ Have you set up a separate business account at your bank?
□ Do you know your tax liability?
□ Have you established a good relationship with your banker?
□ Is your business credit policy in place?
□ Will you be matching up invoices with purchase orders?
□ Do you have safeguards against employee dishonesty in place?
E-COMMERCE(Session12)
□ Is E-commerce right for your business?
□ Which E-commerce segment is appropriate for your business?
□ Do you have a trusted way to process inancial transactions online?
□ Is your domain name registered and the website online?
□ Are you building your website or are you using a professional website developer?
□ Is your home page designed to represent your business and brand? Is it easy to
navigate?
□ Do you have a plan for marketing online using email, social media, or other tools?
□ Do you have all necessary E-commerce tools in place?
□ Is your website fully tested and ready to sell online?
OPENINGANDMARKETING(Session13)
□ Do you have a plan for promoting sales and marketing of your product or service?
□ Have you reviewed the most common mistakes made when opening a business?
□ Do you understand the basics of buying materials and carrying inventory in your
business?
□ Are all licenses, permits, and the certiicate of occupancy secured?
□ Is your merchandise displayed attractively?
□ Is the advertising and promotional material scheduled?
□ Have you started developing an email, text, and/or mail database?
□ Do you know how and where your successful competitors advertise and market
their products or services?
□ Have you joined the trade association of your industry?
© SCU MOBI 2020
www.scu.edu/mobi
□ Are you focused on selling a great product or service at a fair price?
MANAGINGEMP LOYEES(Session14)
□ Do you understand the difference between employees and independent
contractors?
□ Have you retained a payroll service provider or a professional employer
organization?
□ Do you have job descriptions and an employee handbook written up?
□ Do you have a plan for attracting and interviewing applicants?
□ Are you familiar with the laws associated with employees and the workplace?
□ Do you have a plan for training your employees?
□ Do you have a plan for retaining your best employees?
□ Do you have a plan for discharging poor employees?
□ Do you have a good way to communicate with your employees?
EXPANDINGANDHANDLINGPROBLEMS(Session15)
□ Do you have a detailed plan for expanding your business?
□ Are you starting with a pilot operation irst?
□ Have you created an advisory board to help you avoid mistakes?
□ Are you prepared to prove your business concept before expanding?
□ Do you have a plan for the delegation of authority and responsibility to managers?
□ Have you created separate proit centers for each expansion unit?
□ Do you understand the key elements for creating successful proit centers?
□ Do you understand the common problems of businesses that expand, like
uncontrolled cash low and new competition?
□ What are the rules for handling serious business problems? Will you follow those
rules?
□ Are you enjoying the adventure of growing your own business, creating new jobs,
and leaving a legacy of success?
© SCU MOBI 2020
www.scu.edu/mobi