Starting a Business Checklist

A comprehensive list to help entrepreneurs start off on the right foot!

Download: Starting a Business Checklist 2020

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 (Session 2)

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 flow projection?

HOME-BASED AND FREELANCE BUSINESSES (Session 3)

Have you completed the home-based business readiness template?
Have you selected a business that does not conflict with your current job?
Do you understand accounting and cash flow?
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?

FINANCING THE BUSINESS (Session 4)

Do you understand the differences between loan (debt) vs. investment (equity) sources of capital and the financial and legal obligations of each?
Do you have financing in place to support your cash flow needs?
Are you prepared to invest the equity of your own labor?
Are you willing to start small to minimize the capital required?
Are you saving money to start your business?

Have you investigated the small business government loan guarantee programs?
Have you considered using suppliers as sources of financing?
Have you considered bartering as a source of financing?
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 sufficient cash flow at the end of each month?

BUSINESS ORGANIZATION (Session 5)

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 (Session 6)

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 certifications 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 Identification Number (EIN)?
Do you have your business license?
Do you know how to collect sales tax or value-added tax (VAT) on your transactions?
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?

Business property insurance
Business liability insurance
Worker’s compensation insurance
Excess liability coverage
Employment practices liability insurance
Life insurance

Did you include insurance premiums in your cash flow 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, flyers, 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 financial planning?

BUYING A BUSINESS OR FRANCHISE (Session 9)

Will your business provide full- or part-time employment for you?
Is the business a good fit 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 verified and current?
Are the receivables current and collectible?
Is there an order backlog?
Will the seller help finance 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 profit and loss records of some selected franchisees?
Do you have the financial 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 significant number of successful franchisees?
How many franchises have been sold and opened?

CHOOSING A BUSINESS LOCATION (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?

ACCOUNTING AND CASH FLOW (Session 11)

Do you understand accounting and cash flow and how to keep score in business?
Do you know the difference between a balance sheet, a profit and loss statement, and a cash flow 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 flow for three months and for one year?
Will you be updating cash flow 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 benefits?
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 (Session 12)

Is E-commerce right for your business?
Which E-commerce segment is appropriate for your business?
Do you have a trusted way to process financial 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 (Session 13)

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 certificate 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?
Are you focused on selling a great product or service at a fair price?

MANAGING EMPLOYEES (Session 14)

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 first?
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 profit centers for each expansion unit?
Do you understand the key elements for creating successful profit centers?
Do you understand the common problems of businesses that expand, like uncontrolled cash flow 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?

MOBI Spark