If you are considering starting a business, there are a lot of considerations to take into account. It can be overwhelming, but if you are reading this on the ASBTDC website, you are starting in the right place. We offer a host of resources exclusively available to small businesses, including complimentary one-on-one consulting, webinars, and workshops. 

 

Use this blog post as a preliminary checklist for things to think about when considering starting a business.  

 

1.How to answer: is my business feasible? 

Market –  

What are the industry driving forces?  

Is there a demand for this product/ service? 

What are the competitive forces in the industry? (find your niche!) 

What is the market size?  What does the market share look like? 

 

Management –  

Are you able and willing to start and maintain a business? Working full-time to do everything yourself? This includes (for the first few years until you have the capacity to outsource it): 

• Directing marketing and advertising (or having the capacity to outsource it) 
• Managing finances and controlling cash 
• Consistently improving operational efficiency 
• Placing the right person in the right job (administrative) 

 

Money –  

What are your startup costs? 

What will you invest as an owner?  

What are your projected sales, profits, and cash flows? (you should create these documents) 

What are your funding sources? 

 

2. What is Your Business Plan? 

This is the “To-The-Point Plan”

What are your products and services? 

• What do you plan to sell? 
• Where do you plan to sell it? 
• What is your pricing strategy? 

 

What is your market? 

• Who is your target market? 
• What is your competitor analysis? 
• What is your brand strategy? 
• What is your marketing and sales strategy? 
• Where will you be located? 
• What does your market research look like? 

 

What is your industry? 

• How do firms in your industry typically market themselves? 
• Is cyclical cash flow management an issue in this industry?  
• Is regulation pending in this industry? 
• What keeps managers in this industry up at night? 
• What are the industry trends or niches? 

 

What is the plan for operations and management? 

• Who are your people? 
• What are your processes? 
• What are the key positions in the business? 
• What are the key qualifications of personnel? 
• What does compensation and incentives look like? 
• What do day-to-day operations look like? 

 

What is your financial plan? 

• How much money will you need? For inventory? Equipment? Deposits? 
• How much will it cost? For suppliers and dealers? Utilities? Internet? 
• What is your projected performance? 

 

 

3. Other Considerations 

Insurance:  

• What type of coverage does your business need? (check with your insurance agent) 

 

Personnel:  

• Do you know the employment laws?  
• Do you know the difference between an employee and independent contractor? 
• Do you know the proper practices for interviewing, hiring, and firing? 
• What is your personnel manual or employee handbook? 
• Have you considered employment or temp agencies?

 

Home-Based Business Issues: 

• Do you know the zoning laws, covenants, and regulations for your location and type of business? 
• Do you know the tax advantages of business use of home? 
• Do you have insurance coverage other than homeowner/ renter policies? 
• Will you have mail delivered to your home or post office? 
• Will you have a business or residential telephone? 

 

4. Legal & Tax Planning 

Entity Structure:  

• Have you chosen the right entity for your business? Are you a sole proprietor? Partnership? Limited liability company? 
• What state filings and government documents do you need to complete? 

 

Regulatory:

• What business licenses, zoning laws, and local regulations do you need to comply with? 
• What state and federal IRS filings do you need to complete? 

 

Taxation:

• What types of taxes do you need to pay? Sales and use? Franchise taxes? Other State and local taxes? 

 

Employee Issues: 

• What are your employment policies?  
• Do you have an employee handbook? 
• What employee contracts do you need? 
• How will you recruit and retain employees? 

 

Contracts: 

• What types of internal contracts do you need? Employment? Terms of use? 
• What types of external contracts will you need? Commercial contracts? Leases? 

 

 

If you can answer all of these questions about your business idea, you’re in a fantastic place. If you are stuck on some questions, we can help you get the answers! Either way, ASBTDC can help you bring your vision to life. Sign up for a consultation on our website.