The Business Start-Up Tool Kit

Here is a short list of the kind of questions that you need to ask yourself before setting out on starting up your own business. The list can be populated further (we do have a more exhaustive list) covering even more angles.

It has been statistically proven that four out of five business start-ups will close their doors within five years time. Yet every year hundreds of thousands of individuals venture out to do “their own thing”

The short list of questions below will prepare you for answering the basic questions. We feel that choosing the right business right from the start is important.The most important question is “who are you and what can you do?”

A man weighing 300 pounds cannot run 100 yards as fast as a 150 pound man can.

A 150 pound man cannot lift as heavy as a 300 pound man can.

A 60 year old cannot climb a tree as well as a 12 year old, and a 12 year old cannot solve cross word puzzles as well as a 60 year old.

So “who are you and what can you do?”Please be honest with yourself. The more honest you are with yourself at this stage, the easier it will be to be successful and avoid financial losses.

An accountant might not be as good in changing oil as a former machine tools worker would be.

The former machine tool worker might not be as good with numbers as the accountant would be.

I might not be that good of a writer as you can probably tell.

The truth is, we all have certain capabilities and learnt skills. If we concentrate on what we do best, and what we like to do best, and build our new business around this fundamental fact, we have already come very close to succeeding. Find out who you are and what you can do. The best way is to start asking people who know you well. They usually will tell you all about your good sides.

Next, talk to somebody whom you don’t know, like a business adviser or a management consultant. Tell them about your plans, your background and your business experience. Ask them to do a strengths and weakness analysis about you and your business to determine a “fit” and possible opportunities and threats to your business. The points listed below should constitute a portion of what you want should consider when talking to a external advisor.

1. Product or Service
• Have you clearly defined your business?
• What differentiates your product or service from your competitors?

2.Your Personal Needs
• How long can you survive financially?
• Are you ready to work long hours and weekends?
• Will your family support your decision?

3. Your Business’s Industry
• Do you know the cyclical/seasonal nature of the economy, the industry and your market and how these things can affect your business?

4. Marketing Issues
• Are there buyers out there who would be willing to part with their money to purchase your product/service?
• What do buyers pay for in your market: price, quality, or convenience levels?

5. The Competition
• Do you know who your competitors are?
• How does your business measure against the competition?

6. Your Finances?
• Where will your start-up funding come from?
• Are you aware of how much time it will take before you start to turn a profit?
• Are you aware of how your business structure is taxed?

7. Employment Issues
• Will you need to hire employees?
• Have you written a clear set of company policy and procedures for your employees?

8. Insurance
• Do you know what kind of property coverage your business will need?

9. Location
• Does your product or service require specific location needs?
• Can the area support a business like the one you propose?

Based on your answers to these questions, it would be wise to start preparing a business plan. You might have heard of the term “paralysis by analyses”. There is no need to for the business start-up to prepare an overly detailed business plan and over commit resources. But a business plan is necessary, especially if you will need to bring in outside investors. Please see our white paper on business plans.
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If you would like to learn more, please call us at number below or contact us by email. (If you would like to receive a copy of this white paper please email us}

ATN Management Consulting LLC

PMB 168, 344 Grove Street, Jersey City, NJ 07302

E-mail:info@atnconsulting.com

Telephone:( 201) 915 - 9850, Fax: (201) - 915 - 9851