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HOW TO START A BUSINESS : Business Start-up ChecklistUse this small business start-up checklist make sure you don't miss any important steps. Taking a college business course would help you considerabley also. Business Start-up Checklist #1. Choosing a corporation type (C or S Corporation, Proprietorship, LLC, LLP, Partnership, etc.) Do you adequately understand and have planned for how your business is to be taxed? Are adequate tax planning techniques/procedures being applied to mitigate your tax liability so that there are no unnecessary surprises, penalties and interest? Understanding the tax effects...Are the tax and operational advantages adequately understood and contemplated? Is our present entity choice the best option for our existing business? Selecting a fiscal year. Selecting officers and directors. Setting up a corporate account / obtaining a business license. Business Start-up Checklist #2. The Formative Stage How is business organized? What is its state of domicile and determine if you should register in other states? Have you set up adequate internal controls to protect and safeguard cash, assets and contracting ability? Have you selected an initial and a backup bank and are you continually marketing to keep your banker informed? A well-advised banker is best apt to respond favorably when needed. When/how much of a line of credit needs to be established and what are the procedures/timing to determine its adequacy? Has the line of credit maximum been evaluated with what the business model / plan would suggest? How much insurance do we need (Directors and Officers, Errors and Omissions, Corporate Umbrella, Product Liability, Worker's Compensation, auto, contents, renters, building, business interruption, surety, fidelity, etc.)? Business Start-up Checklist #3. Corporate Taxes Are all of the long term (S Elections / filing status) and annual elections (annual registration, business license, etc.) and filings being made both timely and properly? Is proper tax planning in place and being maintained on an ongoing basis at least twice annually and for all substantive changes in operations? Is everything being done that can possibly be done to keep the tax bill as low as legally possible? Do we routinely search for any missed deductions? Business Start-up Checklist #4. Pensions, Profit Sharing Plans and Benefits When and how does the company plan to offer medical, dental, life, or disability insurance? Is there an adequate amount of coverage to both protect and plan for your staff's retirement and to retain a competitive edge in the marketplace to both attract and retain employees? How/when does the company plan to set up a 401K, SEP / IRA, simplified IRA, pension, or a profit sharing plan? Are we seeking wise counsel in setting up a plan's parameters and aware of its filing requirements? How/when does the company plan to set up a Section 125 or cafeteria plan/HSA (Medical Savings Account)? Are we familiar / well advised with vesting rules / obligations, anti-discrimination rules, establishment of the plan document (SPD), and annual filing requirements of the pension plan you contemplate initiating/presently have. Business Start-up Checklist #5. Computerization Do we have enough RAM & data storage memory to cover your business growth, as specified in our business plan? Are our computers data programs and operations adequately physically protected and safeguarded? When will our present software package be technologically outgrown? Are plans for a new package being presently evaluated? What are our critical path components for data storage/numbers of users, etc and who is responsible for monitoring them and how often? Are we better served with an off the shelf or proprietary package? Do we have off-site data storage and backup in both hardcopy and disk form? Is our data backed up daily and off site at least weekly? Larger firms should do off-site storage each day. Are passwords and other appropriate levels of protection/firewalls, Spam control, current and operating adequately to safeguard all of our electronic data? Business Start-up Checklist #6. Shareholders/Officers Who should we elect and what do they "bring to the table"? Do we understand the responsibilities and legalities of all parties nominated and are they qualified? If an active shareholder quits, dies or is disabled, how does the shareholder agreement address the vacancy? Is this covered in our shareholders agreement? How is the shareholder agreement structured? Is it adequate to protect the business future viability? How much is the buyout or how is the purchase price to be determined? Is it fair and adequate? Are there realistic provisions made for the company to finance or fund a payout? Business Start-up Checklist #7. Marketing Strategy What are the resources available and are they adequate for the task at hand/growth planned? How big do we want to get? What does our business plan say? Are budgeted marketing efforts being consistently achieved and monitored? How are we tracking new business leads and what is our strategy for keeping and retaining our present client base? Marketing statistics are the purveyor of future operational results and are critical to be adequately determined and tracked appropriate with corrective changes in marketing efforts being consistently made. Business Start-up Checklist #8. Financials Do our financials properly reflect our business needs? Are we able to adequately track meaningful management information such as current assets to liabilities ratios, gross margins, days in receivables, etc? Are appropriate percentages and ratios being examined? Are we tracking/working with our CPA to determine and track essential financial, operational, and narrative information? Is the company under capitalized? Do we have enough cash to meet ongoing/expected needs for operations based upon past trends/projections and our business plan? Do the financials properly reflect the operations of the business and do we understand their nuances? Is management taking the necessary corrections and monitoring their results adequately? Business Start-up Checklist #9. Internal Controls Who is authorized and to what levels to access the company assets and proprietary data/records/methods and trade secrets? How is this controlled and documented? Is their adequate safeguarding of assets (i.e., are staff members who write checks different from those who prepare the bank reconciliation's and review the cancelled checks)? In controlling cash, accounts receivable, accounts payable, inventory and fixed assets, are books and records, passwords, billing procedures, sequential numbering and accounting for invoices and checks properly maintained and controlled? Are assets physically protected and secured with keys/pass codes/tracking technology and video surveillance cameras? Are assets properly safeguarded / locked during day and evening hours? Locked not only means under physical lock and key but adequately protected by limiting procedures and segregation of staff duties to maintain adequate separation of duties and internal control. Are policies and procedures documented and are all appropriate personnel informed of the varying levels of safeguards, segregation of duties and appropriate monitoring maintained? Business Start-up Checklist #10. The Business Plan Is it well written/adequate/up-to-date? Is the plan available to all key personnel? Do all employees understand and committed to your corporate mission? Do you have a standard/motto to live by? Is your business plan updated periodically and monitored against actual results? Are operating statistics and financial data appropriately measured and evaluated against the plan? Are we on track? Do we have an independent, non-biased, voice and business mentor to challenge our assumptions and decisions? Is the business plan operation based and sufficient so that knowledgeable/key employees have adequate criteria and direction to manage and operate their segment of the business? Does our banker have access to both the business plan and actual operating results? How often is this communicated? Is your banker told well in advance of any operational or financial variances? You will want your banker to positively respond when needed so be sure they are adequately prepped and informed. What does our company stand for (company motto or mission statement)? Do all employees "buy into" the statement? Is our motto one of actual operational guidance or one of superficial quality? Is our motto customer centered? How to Start a Small BusinessHow DO you start a small business? Let's take into consideration you have thought out an angle to start a business that is going to revolutionize the industry. Now it's decision time. Are you willing to take a financial risk on the strength of your business idea?...Why Start a Business?Though to start your own business does mean that you'll be stepping away from the relative security of a regular paycheck, having the desire to own and start a new business...Starting a Home-Based BusinessStarting a home-based business can be a little complicated. The checklist below covers the most important sujects that you will need to consider starting your own business...Partnership for Business a Good Idea?Business partnerships have been an important part of entrepreneurship and startup success. The reasons are simple: complementary skill sets, shared equipment ...What it Takes to Start a BusinessWhat attributes suggest someone's a good candidate to start their own business? ...To Start a New Business, Appearance is EverythingThe success of starting a new business depends largely on the owner's ability to convince potential employees or customers that the business is operational,...Before You Start a BusinessIt's a terrific idea for aspiring entrepreneurs to work in the industry they want to start a business, whether they are college business majors...Choosing Your Business NameKeep in mind the availability of a domain name when choosing your business name. Also ask a friend or relative with a knack for words to help you brainstorm....Business Start-up ChecklistUse this small business start-up checklist make sure you don't miss any important steps. Taking a college business course would help you considerabley also....Other related Articles: Business Furniture SolutionsThere is a whole list of business furniture that must be kept in mind before buying what you need. Choose solutions that are best for your working environment and select every item carefully keeping in mind its purpose and usage....Best Businesses to Start in a Recession August 11, 2010Choosing to start a business in a recession can be risky if you don't know what you are doing. Do your research, information and do some planning. Some small businesses thrive during a difficult economy. These businesses are called counter-cyclical businesses...Getting Money to Start a Business July 1, 2010Getting money to start a business will be tough in a down economy, but not impossible. Depending on the type of business and the amount needed, you may need to acquire...What Home Business Should I Start - Service, Retail, or Product Based Feb 3, 2010Any good home business begins with a good idea. As you brainstorm, plan and prepare to start your new home-based business, you must first understand what kind of business...How to Run a Business from Home Jan 13, 2010Below are 9 helpful suggestions from other business savy entrepreneurs on how to run a business from home ...Start-Up a New Business Jan 7, 2010Over the past 15 years, small business has generated 64% of America's net new jobs, and more than half of American nonfarm GDP is created by small business. Why not start up a new business?...How to Fund a Start-Up Business Oct 13, 2009Here are some sources for funding a small-business for start-up business owners ...The Basics of Starting a Business Sept 3, 2009You’ve made the huge decision to start a business. Most efforts to start a business end in failure, but with the right business idea you can become successful. ...How to Start a Profitable Home Based Business August 17, 2009More and more people are investigating the possibilities of starting their own extra-income profitable home based business. Most of these part-time endeavors...5 Steps to Building a Successful Niche Business August 10, 2009Building a successful niche business with products and services can have the potential to generate big bucks if they capture the hearts, minds and wallets of a...10 Worst Business Partners For Your Start-Up July 3, 2009Business Partnerships can turn out to be a blessing or a curse. For every thriving partnership featured in Entrepreneur, ...How to Build a Family Business May 25, 2009More than 80% of businesses in America are considered family businesses, according to the Cox Family Enterprise Center. But as Professor ...Selecting Your Type of Business May 20, 2009Indeed starting a business and what type of business is one of the most challenging tasks anyone can undertake. One must balance ...Right time to start a business? March 29, 2009I am in my 20s and recently laid off. I have always been interested in starting a business, but with the state of the economy, I am a little unsure ...Start a Business in a Recession March 24, 2009Believe it or not but some entrepreneurs are actually looking to start a business in these economic times. ...How to Start a Start-upAndy McLoughlin spoke a little while ago about how he started a business, Huddle.net, from a simple business idea in a pub to a fully working new business... |
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