Pre-Business Plan Start-Up Questionnaire
The following questionnaire is for individuals who are preparing to develop a business plan. (please do not edit in your real information as that should remain private and confidential).
Small Businesses succeed due to a combination of market opportunity, management ability, sufficient start-up capital and cash flow. The following questionnaire is designed to assist you in considering a number of these fundamental and important aspects related to your business idea. Think of your answers to these questions as a preliminary assessment of what it will take for you to be successful!
Contents
Basic Business Information
- Every good business starts with a well-defined idea. In a paragraph or two, write down your business idea and why your business will be successful.
- It takes time to plan and start a new business. What is your time line for getting your business started?
- Within your first 12 months after starting your business, what specific goals do you want to accomplish? (Remember: Goals can be measured, so please let your answers reflect how you will measure your success. For instance: "I want to reach $65,000.00 in sales by the end of my first year" or "I will earn $10,000.00 my first year."
A Few Questions About Your Marketing
Many people say the key to small business success starts with a good marketing plan. These questions will help you define the building blocks for successful selling your goods or services to your customers.
- Specifically, What goods or services will you sell?
- Please explain how you will set prices for your goods or services?
- Now, Describe the group of people (market segment) to whom you will sell. What do they have in common? -for instance, age, gender, education, location, number of children, etc.
- How will your future customers know that you are in business? How will you advertise and promote your business to them?
- Will these people buy from you and not from your competitors?
- Finally, how will you get your product or service to your customers? Will they come to you, or will you deliver to them?
A Few Questions About Your Business Operation
At the heart of your business will be the issues of what, where and how you conduct your trade.
- Where will you locate your operation? Why is this a good spot?
- Will you need to hire anyone to help you run the business? If so what will they do for work?
- Please make a list of the functions that you expect to perform as you run your business. For example, selling services, making your products, purchasing materials and supplies, communications with vendors and customers, billing, money management, etc.
- It can be both very exciting and very lonely to start a small business, when you do all the planning, make all the decisions and perform most of the jobs. Who do you plan to turn to for support and advice to help you through the inevitable challenges you will face?
Management Skills Assessment
Since small business success requires the owner to perform a number of tasks, each requiring specific skills, Consider your work history, education and life experiences as you answer these following questions.
For the following Business Management Skills please rank yourself on a scale of 1 to 5. An answer of 1 would mean that you have no experience or knowledge in that skill and an answer of 5 means that you have strong experience and or knowledge.
- Bookkeeping & Accounting
- Planning
- Organizing
- Financial Management
- People Management
- Time Management
- Personal Selling
- Marketing
- Decision Making
- Personnel Policies
- Pricing of Products and or Services
- Computers
What About The Money?
Every small business requires cash to get started and operate. Often potential owners underestimate the costs of starting up and operating their businesses. This can lead to serious problems. For this reason, it is recommended that you fill out the following Estimating Form as best you can.
Estimating Costs
- What will it cost you to buy everything you need to start your business?
- Advertising (Promotion for opening your business)
- Beginning Inventory (Amount required to open for business)
- Building Construction (Contractors' estimates)
- Building Improvements (Contractors' estimates)
- Working Capital (Cash in the bank/till on opening day)
- Computer (Hardwar,peripherals and software)
- Decorating (Contractors' estimates)
- Deposits (Utilities, including phone, fuel, heat)
- Fixtures and Equipment (Estimated and researched costs)
- Insurance (Agency quotes)
- Lease Payments (Equipment rental estimates)
- Licenses and Permits (State and Federal)
- Professional Fees (Accountants, lawyer fees)
- Rent (Down payment and security deposit)
- Services (Contractors' estimates)
- Signage (Inside and outside the building)
- Supplies (Office,operating, cleaning, etc.)
- Other (Other costs unique to your business)
- Miscellaneous (Add 10% to Total of above costs)
Finding Capital
The cash to begin your business can fome from either your savings or borrowing.
In order to borrow money you may need to apply for a small business loan. Banks frequently consider start-up business risky. This is due to the fact that there is no sales history as well as the owncers and managers have no track record to evaluate. In order to determine if you can borrow money, a lender will want to know several things about you. Please answer these questions to the best of your ability.
- Of the total amount of Capital (cash) required to start your business how much will you contribute?
- Do you have collateral to offer the bank? Please list your collateral.
- How would you assess your credit history? (excellent, good, fair, poor)
Congratulations
You have completed an important first step toward starting your small business - and you have evaluated a number of critical issues that can lead to small business success.
Related Articles
You can now check out these articles which will help you continue to develop a great business plan!
- Business Plan Guidelines
- Small Business Start-Up Checklist
- Small Business Entities
- Financing Your Business Start-Up
- Visit the Entrepreneur Education Portal!
