Are You Ready to Become an Entrepreneur?

Truthful questions you need to answer before you take the plunge.

 


 

Are You Ready to Become an Entrepreneur?
Are you Really Ready?  Let's Find Out!! 
WHAT ABOUT YOU? YES NO
1) Are you the kind of person who can get a business started and run it successfully?    
2) Think about why you want to own your own business.  Do you want it badly enough to work long hours without knowing how much money you'll end up with?
3) Does your family go along with your plan to start a business of your own?
4) Have you worked in a business similar to the one you want to start?
5) Have you worked for someone else as a supervisor or manager?
6) Have you had any business training in school?
WHAT ABOUT THE MONEY? YES NO
7) Have you saved money?
8) Do you know how much money you will need to get your business started?
9) Have you figured out whether you could make more money working for someone else?
10) Have you determined how much of your own money you can put into the business?
11) Do you know how much credit you can get from your suppliers - the people from whom you will buy?
12) Do you know where you can borrow the rest of the money needed to start your business?
13) Have you figured out your expected net income per year from the business? 
(Include your salary and profit on the money you put into the business.)
14) Can you live on less than this so that you can use some of it to help your business grow?
15) Have you talked to a banker about your plans?
EQUIPMENT AND SUPPLIERS YES NO
16) Do you know what equipment and supplies you will need and how much they will cost?
17) Can you save some money by buying second hand equipment?
HOW ABOUT A PARTNER? YES NO
18) If you need a partner, who has money or know-how you need? Do you know someone who will fit- someone with whom you can get along?
19) Do you know the good and bad points about going it alone, having a partner, and/or incorporating your business?
20) Do you know a lawyer to whom you can go for advice and help with legal papers?
21) Have you talked to a lawyer about it?
YOUR MERCHANDISE/SERVICES YES NO
22) Have you decided what products/services you will sell?
23) Do you know how much or how many of each product you will need to buy in order to open your business?
24) Have you found suppliers who will sell what you need at a good price?
25) Have you compared the prices and credit terms of different suppliers?
BUYING YES NO
26) Do you know how to find out what your customers want?
27) Will your inventory records tell you when it is time to reorder or how much to order?
28) Will you buy most of your stock from a few suppliers rather than a little from many, so that those you buy from will want to help you succeed?
29) Have you made plans protecting your business against thefts of all kinds (shoplifting, robbery, burglary, stealing by employees)?
30) Have you talked with an insurance agent about what kinds of insurance you will need?
WHAT ABOUT YOUR CUSTOMERS? YES NO
31) Do most businesses in your community seem to be doing well?
32) Have you tried to find out how well businesses similar to the one you want to open are doing in your community and in the rest of the country?
33) Do you know what kind of people will want to buy what you plan to sell?
34) Do such people live in the area where you want to open your business?
35) Do you feel they need a business like yours?
36) If not, have you thought about opening a different kind of business or going to another neighborhood?
THE PRICE YOU CHARGE YES NO
37) Can you determine what you should charge for each product or service you sell?
38) Do you know what other businesses like yours charge?
SELLING YES NO
39) Have you decided on a selling plan?
40) Do you know how to get customers to buy?
41) Have you thought about the selling techniques that make customers want to buy from salespersons while others turn them off?
CREDIT FOR YOUR CUSTOMERS YES NO
42) Have you decided whether to let your customers by on credit?
43) Do you know the good and bad points about joining a credit card plan?
44) Can you tell a "deadbeat" from a good credit customer?
45) Have you talked with other business owners in the area about what they think of the business?
46) Have you talked with the company's suppliers?
47) Have you talked to a lawyer about it?
ADVERTISING YES NO
48) Have you decided how you will advertise (newspapers, Internet, posters, handbills, radio, mail)?
49) Do you know where to get help with your ads?
50) Have you watched how other similar businesses get people to buy?
YOUR RECORDS YES NO
51) Have you planned a system of records that will enable you to keep track of your income and expenses, what you owe other people, and what other people owe you?
52) Can you keep track of your inventory so that you will always have enough on hand for your customers, but not more that you sell?
53) Have you figured out how to keep payroll records and take care of tax reports and payments?
54) Do you know what financial statements you should prepare?
55) Do you know how to use those financial statements?
56) Do you know an accountant who will help you with your records and financial statements?
YOUR BUSINESS AND THE LAW YES NO
57) Do you know what licenses and permits you need?
58) Do you know what business laws you have to obey?
YOUR BUILDING YES NO
59) Have you found a good location for your business?
60) Will you have enough room when your business "gets going"?
61) Will you have adequate parking facilities?
62) Can you fix the building the way you want to without spending too much money?
63) Can potential customers get to it easily from parking spaces, bus stops, or homes?
64) Have you had a lawyer check the lease and zoning?
YOUR EMPLOYEES YES NO
65) If you need to hire someone to help you, do you know where to look?
66) Do you know what kind of person you need?
67) Do you know how much to pay?
68) Do you know what benefits to provide?
69) Do you have a plan for training your employees?
70) Do you have a work plan for yourself and your employees?
BUYING A BUSINESS FROM SOMEONE ELSE YES NO
71) Have you made a list of what you like and don't like about buying a business someone else has started?
72) Are you sure you know the real reason why the owner wants to sell that business?
73) Have you compared the cost of buying the business with the cost of starting a new business?
74) Are the stock/equipment/fixtures up to date and in good condition?
75) Is the building in good condition?
76) Will the owner of the building transfer the lease to you?
77) Have you talked with other business people in the area the see what they think of the business?
78) Have you talked with the company's suppliers?
79) Have you talked with a lawyer about it?


 

INSURANCE - Be sure you have the best possible protection.  Loss exposure checklist

critical important unimportant Liability arising out of:
Workmen's compensation and employers' liability
Your premises and operations
Your products or work completed
Independent contractors
Contractual assumptions of liability
Libel, slander, false arrest, etc.
Damage to rented premises
Damage to property of others in your custody
Aircraft
Watercraft
Owned automobiles
Leased or hired automobiles
Employees automobiles used on company business
Critical important unimportant Damage to or destruction of buildings cause by:
Fire or lightening
Windstorm, hail explosion, riot, vehicles, aircraft, smoke
Vandalism & malicious mischief
Boiler explosion
collapse
Earthquake
Flood
Sprinkler leakage
Water damage
Other perils
Damage to or destruction of signs
Damage to or destruction of plate glass
Damage to or destruction of improvements and betterments
critical important unimportant Damage to or destruction of fixtures, machinery, stocks, or inventories
Fire or lightening
Windstorm, hall, explosion, riot, vehicles, aircraft, smoke
Vandalism & malicious mischief
Boiler explosion
Collapse
Earthquake
Flood
Sprinkler leakage
Water damage
Other perils
Loss of profits resulting from damage to unsold manufactured goods
Damage to or destruction of autos, trailers, aircraft or watercraft
Loss resulting from destruction of account receivable records
Loss resulting from destruction of other valuable papers
Destruction or loss of money and securities
critical important unimportant Indirect loss resulting from damage to owned or non-owned property
Loss of income during a period of shutdown or business interruption
Additional expenses incurred to continue operations
Loss of rental income
Loss resulting from cancellation of a favorable lease
Loss of assets resulting from dishonest acts of employees
critical important unimportant Loss resulting from criminal acts of non-employees including
Burglary
Robbery
Forgery
Extortion
Safe Burglary
Loss resulting from death or disability of key employees
Bonds required in connection with work performed for others.

If you answered yes to most of these questions, then you could be ready.