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SECTION 1: DO YOU HAVE WHAT IT TAKES?

Step 1: Personal Assessment

A score between 63 and 100 points indicates you have the right mix of personal skills to weather the challenges of starting a small business. You enjoy setting your own goals and you are comfortable with taking some risks. On those statements you scored yourself below a 3, consider ways to enhance these skills. Your ability to identify your weak areas and seek out ways to improve upon them speaks to how successful you will ultimately be in your entrepreneurial venture.

Scoring less than 62 points could mean that starting a business may not be right for you. It can mean that you lack confidence in certain areas, and that with training and experience, you could develop these skills and abilities. Partnering with other people or working in a small, entrepreneurial business to build a better skill set may be appropriate.


Scores based on a scale of 1 to 4.

1 = strongly disagree
2 = disagree
3 = agree
4 = strongly agree

4
: I enjoy competition in both work and play.
4
: I often set goals for myself.
3
: I often meet the goals I set for myself
2
: I set limits for myself and follow them (with money, time, projects).
4
: I am happiest when I am responsible for myself and my own decisions.
3
: If given a choice, I prefer to work with other people on a project.
3
: In group situations, I usually take a leadership role (setting the agenda, organizing duties, recording decisions, establishing criteria, etc.)
2
: I do things on my own. Nobody has to get me going.
2
: I work best when there are no precedents for what I am doing.
2
: I enjoy putting myself "on the line."
2
: When I start something, I am able to generate enthusiasm and commitment among other people.
3
: I believe that "luck favors the prepared mind."
1
: I do not perform well when other people set goals and define tasks I am to do.
2
: I am an on-time kind of person.
4
: I enjoy seeking out new challenges.
4
: I thrive on inventing new ideas, products, concepts.
4
: I find it exciting and exhilarating when circumstances change and I must adapt or expand my abilities.
2
: I enjoy speaking in front of groups of people.
4
: I have strong intuition, and I listen to it.
3
: I have many natural talents.
4
: I often identify new skills I need and work at acquiring them.
4
: I prefer to be very busy.
4
: I enjoy the task of juggling several tasks at once.
4
: I can make up my mind in a hurry if I have to and these decisions turn out to be good.
4
: I get excited about new opportunities, ideas or projects about every day.
78
Total Points
SECTION 1: DO YOU HAVE WHAT IT TAKES?

Step 2: Business Assessment

If you scored 63 points or above, you already possess basic business knowledge and skills. Review the areas where you scored below a 3 and concentrate on developing these skills.

If you scored below 63 points, you probably need to polish some existing skills and learn some new business skills. Take some time to narrow the specific areas of business in which you need to develop by looking at the areas where you scored below a three. Talking with experienced business people is a great way to get real life knowledge about business skills.

Whatever your point score, remember that learning new business skills is a continual process in today's marketplace. Consider taking advantage of one of the many SBDC workshops offered year-round which cover a number of business topics. A current listing of these workshops may be found on the Pennsylvania SBDC website. Another tool to help you assess the skills that you currently have can be found at BizMove.com.

N/A
: I keep track of my personal finances and balance my checkbook every week.
N/A
: I create monthly and yearly budgets for myself and follow them.
N/A
: For any given period of time, I know what I spend on medical costs and living expenses.
N/A
: I know within $100 how much it cost me to operate my car last year.
N/A
: Even if I don't prepare my tax return myself, I understand the concepts regarding taxation.
N/A
: I know how to borrow money from a bank.
N/A
: I have an excellent credit rating.
N/A
:  I enjoy getting "out there" and selling an idea or product to people I have never met.
N/A
: Give me five minutes, an audience, and a great product, and I can make a sale.
N/A
: I understand how to calculate profitability and perform break-even analysis.
N/A
: I understand the difference between fixed and variable costs.
N/A
: I regularly read business books to improve my skills.
N/A
: I am able to utilize a computer to efficiently manage my work and personal finances.
N/A
: I have an e-mail address and use it.
N/A
: I regularly read Inc. and other weekly business magazines.
N/A
: I would press customers for full payment up front, or if they refused, negotiate with them for a 50% deposit or unconventional payment terms.
N/A
: I have work experience in the industry or field in which I am interested in starting a business.
N/A
: I have successfully managed people by: setting goals, delegating responsibility, and addressing performance.
N/A
: When negotiating a decision with a friend, co-worker, or salesperson, I am confident in identifying and communicating my interests and succeed at maximizing my outcome.
N/A
: I understand the basics for how different products and services are distributed and why.
N/A
: I have hired and fired people.
N/A
: I know how to effectively interview and assess potential employees.
N/A
: I understand how the concept of "cash flow" impacts business decisions.
N/A
: I am comfortable giving presentations and know how to create professional, effective presentations.
N/A
: I know how to use computer software programs that are great small business tools.
N/A
: I know how to prepare an invoice.
N/A
Total Points
SECTION 1: DO YOU HAVE WHAT IT TAKES?

Step 3: Lifestyle Assessment

If your score is 63 or higher, you have a good tolerance for the impacts that running a small business will have on your life. Your score reveals that you are flexible enough to take on the challenges and uncertainties of beginning a new business. Be sure to pay particular attention to the statements in which you scored lower than a 3 and keep these in mind when choosing what type of business is best for you.

If you scored below 63, this does not automatically disqualify you from pursuing your own venture. This simply reveals some of the realities of your life and gives you the parameters within which you must make business decisions. Look at the statements you scored a 1 or 2, and you may be able to draw some conclusions about how time, money, family, and health factor into your ideal lifestyle.

These checklists have been reprinted from the NxLeveL Guide for Business Startups with permission from the U.S. West Foundation.

N/A
: My friends would describe me as a high energy person.
N/A
: My health is generally good.
N/A
: I can support myself without taking money out of my business for 1 year.
N/A
:  If I need to, I could keep my full-time job and run my new business on the side.
N/A
: I have no problem working 10 - 12 hours a day, 6 days a week, including holidays.
N/A
: I am willing to work 60 hours or more a week.
N/A
: My family will tolerate my working 60 hours or more a week.
N/A
: I consider myself a high performer.
N/A
: I know I can work productively for long hours and meet deadlines, no matter what it takes.
N/A
: I have very good physical stamina.
N/A
: My business would rank above family obligations on my list of priorities.
N/A
: At the expense of professional stability and perhaps higher income, it is important to me to be able to determine when and where I work.
N/A
: Foremost among my personal goals is the freedom to pursue my own ideas.
N/A
: I am prepared to lose my savings.
N/A
: I can manage my money.
N/A
: I am prepared to sacrifice the amount of money and/or time that I am able to commit to community, school, religious, or charity obligations during the first five years of my business.
N/A
: I can go a year without a vacation.
N/A
: I have the enthusiastic support of my family to pursue an entrepreneurial venture.
N/A
: I am comfortable setting, evaluating and achieving my own 1, 3, and 5 year plans.
N/A
: I understand that part of my job description in my new business would include sweeping the floor, typing letters and taking out the trash.
N/A
: When I think about the future, I envision positive, new growth opportunities.
N/A
: I don't get "stressed out" easily.
N/A
: I am comfortable working in a "gray area" where the boundaries between my work and personal life are sometimes hidden.
N/A
: I don't get sick very often.
N/A
Total Points
SECTION 2: WHAT BUSINESS IS RIGHT FOR YOU?

Business Idea Summary


What business would you like to start?
N/A

What skills do you have that make this business a good fit for you?
N/A

Will you need any additional training to start this business?
N/A

What other criteria made you pick this type of business?
N/A

What is going on in that particular industry?
N/A

What input did outside parties offer on your idea?
N/A
 
SECTION 3: MARKET FEASIBILITY
AND INDUSTRY RESEARCH

Market Feasibility To Do List and Summary

1. Identify and briefly describe the business you plan to start.
N/A

2. Identify the product or service you plan to sell.
N/A

3. What unfulfilled need does your product or service meet?
N/A

4. How do you know there is a sufficient demand for your service?
N/A

5. What will be your competitive advantage? Will it be product quality, selection, price, location, or some other factor?
N/A

6. List important characteristics of your market segment.
N/A

7. Establish a customer profile and outline the demographics of your market area by examining Census data, such as income, age, and family size.
N/A

8. Create a competitive grid that lists the SWOT information gained on each competitor so that you may easily compare them as you make your own business decisions.
N/A

9. Search for any trade associations that exist for your industry. Contact the appropriate associations to request industry-specific start-up information. Trade associations can be found on the Associations Directory Website
N/A
SECTION 4: GETTING STARTED – THE NUTS & BOLTS

Step 6: Banking

Getting Started: The Nuts and Bolts To Do List and Summary

Using the reference materials provided, answer the following questions:

1. What will be your business structure? Why is this structure the most appropriate for your purposes?
N/A

2. What will be your business name? Why does this name make sense?
N/A

3. Do you need to register your business name as a fictitious name?
N/A

4. What insurance coverages will you need to carry? What will these policies cost?
N/A

5. Which bookkeeping system will be the easiest for you to use? Why will it work best for you? Does your tax professional use this program?
N/A
 

SECTION 5: MARKETING

Every question that you scored a ‘5’ reflects a marketing strength. You should still review these areas to make sure that you are capturing the full potential that can be derived from those strengths. For those that you scored as a ‘1’ you need to examine each in detail to decide if employing some of these factors could be a valuable marketing tool for your business. Consider taking advantage of one of the many SBDC workshops offered year-round to help you develop your marketing skills. A current listing of these workshops may be found on the Pennsylvania SBDC website. If you scored somewhere in the middle, you need to do some research to determine if improvements in any of those areas could help you effectively market your business.

Promoting Your Business Assessment Tool

Answer the following questions on a 1-5 scale, with 1 being “Not at all” and 5 being “Absolutely” or by indicating N/A if it is not applicable to your business. Include any comments you have as well.
N/A
Are the unique appeals of your business reflected in the store image?
 
Comments:
N/A
N/A
Are these appeals promoted on a regular basis?
 
Comments:
N/A
N/A
Have you considered how various media and promotional methods might be useful to your business?
 
Comments:
N/A
N/A
Do you know which of your products or services can be successfully advertised?
 
Comments:
N/A
N/A
Do you know when it is profitable to advertise?
 
Comments:
N/A
N/A
Do you record sales of merchandise advertised on each ad?
 
Comments:
N/A
N/A
Do you count store traffic, either electronically or otherwise?
 
Comments:
N/A
N/A
Do you know what can and cannot be said in your advertising?
 
Comments:
N/A
N/A
Can you make use of direct mail?
 
Comments:
N/A
N/A
Is a mailing list available through customer check or credit card receipts?
 
Comments:
N/A
N/A
Are your promotional efforts regular?
 
Comments:
N/A
N/A
Do you concentrate promotions on certain seasons?
 
Comments:
N/A
N/A
Do you ask customers to refer your business to friends/relatives?
 
Comments:
N/A
N/A
Have you figured the best place in your store for displays?
 
Comments:
N/A
N/A
Do in-store signs provide pricing details?
 
Comments:
N/A
N/A
Is the outside of your store clean and attractive?
 
Comments:
N/A
SECTION 6: DEVELOPING A FINANCIAL PLAN & ACCESSING CAPITAL

Step 4: Other Financial Statements

Financial Statements To Do List and Summary

Completing the following tasks will help you as you pull together your financial plan


Make a list of all of your start-up costs.
N/A

Estimate your fixed and variable monthly expenses.
N/A

Start to prepare your cash-flow statement.
N/A
SECTION 6: DEVELOPING A FINANCIAL PLAN & ACCESSING CAPITAL

Step 6: Financing To Do List

Completing the following tasks will help you as you seek financing.

Obtain and review a copy of your credit report from www.annualcreditreport.com
N/A

Complete a personal financial statement at SBA
N/A

SECTION 7: EMPLOYEE ISSUES

Employee Issues To Do List and Summary

   Go to IRS Website. Study the information and prepare an outline of all of the tax and personnel obligations that you will have as an employer.  Summarize them here:
N/A

   Put together a plan that outlines your anticipated staffing levels, with rough job descriptions, for next three years.  Summarize this below.  Address the following issues:

What hours will they work?
What will you have to pay them?
What skills will they need?
How will you train them?
What benefits will be offered?
How will you recruit them?
What facility or office space will be needed to house them?

Year One:
N/A

Year Two:
N/A

Year Three:
N/A

SECTION 8: FEDERAL, STATE AND LOCAL REGULATIONS

Step 4: Federal Regulations Affecting All Businesses

REGULATIONS TO DO LIST AND SUMMARY

Map out an action plan of the steps that you will need to follow to prepare and file the application for each. Prepare a timeline for filing the applications to make sure that you have been approved before your target opening date. Document in writing that you discussed with and had your project approved by all of the appropriate authorities.

Using the information and links provided, do some research and find out which permits you will need for your business.

What Federal licenses and permits will I need?
N/A

What State licenses and permits will I need?
N/A

What Local licenses and permits will I need?
N/A

SECTION 9: E-COMMERCE AND TECHNOLOGY

E-COMMERCE TO DO LIST AND SUMMARY

Visit the BDC web site to review several very good articles on developing an online presence.
N/A

List your e-commerce goals and objectives.
N/A

Search online and study the web layout of the sites for other businesses in your industry. Make notes on what you like and do not like about their sites.
,, ,, ,, ,

Chat with e-solutions companies, ask each what they can do for you, and pick one that seems to fit your anticipated needs. E-solutions companies and their services:
,, ,, ,, ,

SECTION 10: YOUR BUSINESS PLAN

THE BUSINESS PLAN OUTLINE

Executive Summary

The business plan should start with an executive summary describing the highlights of the business plan. Even though your entire business is well described later on, a crisp, one or two page introduction helps to capture the immediate attention of the potential investor or lender.

What is the nature of business and what is their market area?
N/A
What type of loan is needed? A term loan or an operating line of credit? How much financing is needed? What will the funds be used for?
N/A
Overview the highlights of business plan--the project and any competitive advantages. What is the "bottom line" in a nutshell?
N/A

SECTION 10: YOUR BUSINESS PLAN

Legal Structure

Note: The contents of this section of your business plan will be based upon the information that you collected earlier in Section 4: Getting Started.

What is your business legal structure? Will you be a proprietorship, partnership, corporation, or an LLC?
N/A
Who are the principal shareholders of the company, and what will each of them bring to the table?
N/A
Make a list of all legal contracts and agreements in force, including management contracts, shareholder or partnership agreements, or franchiser service agreements.
N/A
Who are all of the directors and officers of the company? What role will they play?
N/A
What experiences does each key employee bring to the business? What activities will each be responsible for? Attach resumes of active owners and key employees.
N/A
Do you have any relationships with outside professionals or consultants to assist with particular issues?
N/A
What is your organizational chart, which identifies reporting relationships?
N/A

Threats and Risks (What can go wrong?):

How will your competitors react? Will they try to squeeze you out?
N/A
List critical external factors that may impact your business. What if…..you encounter a recession, new technology, adverse weather, new competition, supplier problems, or shifts in consumer demand?
N/A
List of critical internal factors that could affect your business. What if sales are off by 30%, if sales double, a key manager quits, or if workers unionize?
N/A
How will you deal with risks? What is your contingency plan to handle the most significant risks?
N/A

Financial Plan

Note:  The contents of this section of your business plan will be based upon the information that you collected earlier in Section Six:  Financial Plan.

The financial plan outlines historical and projected financial information, and addresses the amount of financing that you might be seeking. These financial statements are important tools that you will use to manage your action plan, and are your guide to business survival and profitability.

   Financial Statements

  • For existing businesses, or businesses being purchased, include the previous years' balance sheets and income statements. Include the past 2-3 years if applicable, as well as interim statements less than 90 days old.
N/A


   Financial Forecasts

  • Opening day balance sheet (for a new business only)
  • Projected income statements for the next three full years of operations
  • Cash flow forecast showing the budget of cash inflow and outflow on a monthly basis for next year (12 months) of operation
N/A


   Financing and Capitalization

  • How much financing do you need? What terms are you seeking, and when do you need the financing? What will you use the money for? Attach a detailed description of the assets to be financed with cost quotations.
  • How much equity are you contributing? What is your level of commitment to the business?
  • What security or collateral do you have to offer?
  • List the terms and balances of all existing debts.
N/A

References

What is the nature of business and what is their market area?
N/A
What type of loan is needed? A term loan or an operating line of credit? How much financing is needed? What will the funds be used for?
N/A
Overview the highlights of business plan--the project and any competitive advantages. What is the "bottom line" in a nutshell?
N/A
Personal financial statement. This will detail personal property values, investments, cash, bank loans, charge accounts, mortgages and other liabilities. This will substantiate the value of your personal guarantee if required for security.
N/A

Appendix
The following documents may be requested by your banker or potential investor:

Personal financial statement. This will detail personal property values, investments, cash, bank loans, charge accounts, mortgages and other liabilities. This will substantiate the value of your personal guarantee if required for security.
N/A
Letters of intent. Any potential orders, customer commitments, or letters of support.
N/A
Description of insurance coverage. Include copies of policies, detailing coverages.
N/A
Copies of legal agreements. Include contracts, leases, franchise agreements, mortgages, and debentures.
N/A