So, You Want to Go Into Business Why?

2011
/ SBMS:
Experienced
Business
Mentors
Copyright 2011 (C)

SO, YOU WANT TO GO INTO BUSINESS – WHY?

A short list of questions and answers for potential new small business owners.

SO YOU WANT TO GO IN TO BUSINESS - WHY?

The following check list is a short list of questions and answers designed to give a potential new small business owner some guidance as they formulate their plans to go into business.

Is the business you are interested in a start-up business or an existing business?

Start –Up Existing business

What type of business is it?

Retail

Wholesale

Manufacturing

Franchise

Information Technology

Internet based E-tailing

Other (please specify) ______

What is your motivation for wanting to start this business or to purchase this business?

Lifestyle Yes/No

Financial reward Yes/No

Redundancy Yes/No

Development of a hobby Yes/No

Other (please specify) ______

Where will the business operate from?

Home

Leased Office

Leased factory

Leased Retail shop - strip shop or shopping centre shop

E-tail website

Other ______

Start-Up Businesses.

·  Have you the business experience to operate

this business? Yes/No

·  Have you conducted market research that shows

that the business should be able to be viable? Yes/No

·  Have you prepared a Business Plan? Yes/No

·  Have you conducted a SWOT analysis as part

of your Business Plan? Yes/No

·  Have you prepared a Financial Plan? Yes/No

·  Have you prepared a Marketing Plan? Yes/No

·  How long do you estimate it will take for the

business to become profitable? Months/Years ______

·  Have you sufficient capital to fund the business

until it becomes profitable? Yes/No

·  Do you have reserves of capital to continue to

fund the business in the event that the business

takes longer to become profitable than expected? Yes/No

·  Is your capital in the form of:

(a) cash resources or $______

(b) borrowed funds? $______

·  Have you a planned exit strategy and an exit

timetable in the event that the business does

not become profitable? Yes/No

Existing Businesses.

·  Have you the business experience to operate

this business? Yes/No

·  Have you examined at least three years financial

records to ensure that the business you are

purchasing is viable? Yes/No

·  Does the profitability of the business reward you

sufficiently for the investment you are making both in

financial terms and personal terms? Yes/No

·  Have you prepared a Business Plan? Yes/No

·  Have you conducted a SWOT analysis as part of

your Business Plan? Yes/No

·  Have you prepared a Financial Plan? Yes/No

·  Based on the expected profitability in your Financial Plan,

how many years will it take to cover the purchase price?

of the business? ______

·  Have you prepared a Marketing Plan? Yes/No

·  If the business is not presently viable have you

conducted any research that shows that the business

can be made sufficiently viable in both financial terms

and personal terms? Yes/No

·  In the event that the business is not presently viable

and it takes longer than expected to achieve profitability,

have you sufficient capital reserves to continue to fund

the business until the required profitability level is

achieved? Yes/No

·  What is the purchase price for this business? $______

·  How will it be funded:

(a) cash resources or $______

(b) borrowed funds $______

·  Have you a planned exit strategy and an exit timetable

in the event that the business does not achieve your goals? Yes/No

The following questions and responses apply equally to Start-Up Businesses and Existing Businesses

Retail or Wholesale Businesses.

·  Will your retail or wholesale business be selling stock

sourced from overseas? Yes/No

·  If you answered “yes” to the previous question –

(a) will similar stock be available for purchase

via the Internet? Yes/No

(b) Will your stock have a competitive advantage

over similar stock available for purchase via

the Internet? Yes/No

(c) Do you have a definite point of difference over

Internet based E-Tailers selling similar products? Yes/No

·  If your new business is a franchise operation, have you

checked the terms of the franchise agreement and the

support facilities to be provided by the franchisor? Yes/No

Internet Based E-Tailing Businesses.

·  Will your new Internet based E-Tailing business be selling

stock sourced from overseas? Yes/No

·  If you answered “yes” to the previous question –

(a) Will your stock have a competitive advantage

over similar stock available from retail outlets

or other E-tailing businesses selling similar

products? Yes/No

(b) Have you investigated Search Engine Optimisation

opportunities to achieve improved website ranking? Yes/No

(c) Have you developed a social media strategy to

engage with Facebook, Twitter and other social

media outlets? Yes/No

(d) Do you have an assured supply of stock and

sufficient storage/warehouse space from which to

operate your business? Yes/No

Manufacturing Businesses.

·  Will your new manufacturing business be manufacturing

goods for –

(a) the Australian market Yes/No

or

(b) an overseas market Yes/No

·  Will the products you manufacture be competitive in the

local market with similar products available from overseas? Yes/No

·  Will the products you manufacture replace goods presently

being imported into Australia? Yes/No

·  Will your products be exported from Australia to other

countries? Yes/No

·  Will your exported goods be competitive with other similar

products available in the markets of the countries to which

you wish to export? Yes/No

·  Have you investigate whether any grant funding is available

from Austrade? Yes/No

Some templates and diagnostic tools available from SBMS –

·  Business Plan template,

·  Financial Projection spreadsheet template,

·  Marketing Plan template,

·  Small Business Diagnostic questionnaire.

For further information please visit the SBMS website at www.sbms.org.au .

Some suggested publications –

·  Big Help for Small Business

A publication by Small Business Victoria, a business unit of the Department of Business and Innovation (State Government of Victoria) and provides among other things information about registering a business name, insurance requirements, licences required to operate your business, employing staff, financial management and taxation issues.

This publication is available by visiting the Victorian State Government website at www.business.vic.gov.au/vbc .

·  Starting your Business Checklist

An Australian Government publication and provides a checklist for issues involved with starting or buying a business, business structures, taxation and superannuation obligations, occupational health and safety, Fair Work Australia requirements, human rights, record keeping etc.

This checklist is available by visiting the Australian Government website at www.business.go.au .

Seminars and workshops –

The Victorian State Government conducts a number of low cost, growth focused workshops and seminars for people contemplating going into business and details of these can be obtained from visiting www.business.vic.gov.au/workshops .

/ __
Small Business Mentoring Service Inc is an independent not for profit
Incorporated Association
Registration Number: A0032560Y ABN 49 963 512 121
Website: www.sbms.org.au

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