The small business startup checklist outlines basic guidelines and points that helps you to refer and check out during implementation at stage of business startup. Typically, this comprehensive checklist may include various small business ideas, business planning, legal & government aspects, market analysis as well as financial requirements and management.
Good business idea
Whenever you are going to start the small business, it is obvious that – you have a good small business idea. The business idea is not just for profit, but it is much important for understanding the goals and market.
Usually, you have to understand some basic things, such as – SWOT analysis, matching your ideas with the small business needs, designing the ideas, and investing things that you expecting as inputs in the business.
Whenever you are going to start the business, you can use the business startup checklist that may contains the significant points that may help you to check before the start a new small business.
Actually, this is “To-Do List” – where you can define the points which is directly related to your small business, even point out which task, activity, process or items are necessary for start the small business.
What to Include?
Some extra points that may much helpful if you include it in the checklist are:
- Details of establishment business goals.
- Determine – best place / areas for establishment of the small business.
- List of background steps – which are you need to take.
- Describe – The assessing your financial situation.
- List of all pre-opening steps, as well regular business transactions that you need to take.
- List of government licenses, permissions, certificates from government, etc.
Probably, the small business startup checklist is – High level listing of the tasks or processes. Mean, it may describe the single point which is top level of task or group of tasks.
Such as when you include “Market research” – You does not need to list out every step / points that describe the entire research process.
Basic Checklist [Pre-investment]
Motivation for establishment
Make sure, you are clear about the key objectives of the small business that you are going to establish right, and you are on right direction to do something that you need to do it for small business.
Clear your self about the small business – the business which you are going to starting is your passion? or ambition?
Make sure, is the business that you are going to establish is in line with the market (Customer) needs?
small business description
Make sure is there any extra requirements of the customers for the products and services are they sell. However, there are may be any unique selling points for new businesses and also require to investigate the rates. Check the market competitions – product and services with quality to define proper quote.
Employees & Interested parties
It is obvious questions that – do you already have connections or trust that are likely to work, such as prospective sales and suppliers? and is the target (customer base) of the product and service sold clear? have you already secured the necessary personnel (employees) to start a small business?. These questions are basic and need to proper analysis for start the new business.
Qualities, knowledge and experience
The “Quality” is actually key requirement for any small business. As management – you have to make sure do you have the confidence & physical strength to manage the quality at the real production lines. However, you have to proper and sufficient knowledge and experience for the particular product or service.
What to include in small business start-up checklist?
To create effective small business startup checklist, you have to include some quality points that make sure your small business steps are takes in order.
The checklist elements must be sufficient that may guide you, and may able to keep track of the business activities, as well stages of business processes.
Determine viability of the small business
At the top of the checklist, you have to ensure the viability of the small business. You have to measure the long-term survival and ability of sustain profits over a period of the time. This is actually very important step that make your business more profitable, if you ensure the business viability, potential market and profit measurements.
Market research
When you are going to establish business, it is much important for you to know about the market – where your product will be go for sell. Hence, the market research is one of the important aspect for business. Even the checklist should include the techniques, what type of information are require, what will be targets etc.
small business structure and type
In order to establishment of any business needs a unique name and require register to government authority. The business name is unique identity and all the remain corresponding will be takes on it. Hence, first of all, you have to choose right name of the business.
Typically, the business structure and type may be – partnership type, limited liability company, corporation, sole proprietorship etc.
The business plan
Once you complete basic formality, now time to establish proper plan of your ideas. You have to draft all the business idea into single plan where you can manage all your points with specific steps and processes. The business plan will be help you to organize your tasks, even this will be guide you for future management and activities that require to accomplish the essential processes.
Financial aspects & resources
In the business startup checklist, financial requirements, aspects and resources are much important as you know. This is essential and focus on overall business aspects. Even, the business will be steadily perform if the business has a sufficient financial resources. Hence, the startup checklist must include the require financial stability with helps to ensure potential backup of financial resources.
Employee management
The checklist must describe the process, requirements and regular needs of staff. Typically, the employee requirements and its associate management is depending on business type, scale and segment of business. Hence, you have to ensure – how much employees are requiring for business, what type of skills are requiring to complete each task, what will be allocation process of tasks, and how much potential payable. You can describe each detail in the checklist that may help you to organize the tasks step by step.
Make a list of potential suppliers.
I consider this to be one of the most important items on any startup’s checklist.
Simply put, there’s nothing more frustrating than losing a valuable contract due to not being able to find suppliers. Or not have time to find suppliers.
If you’ve put together a business plan correctly, you’ll also be able to predict your supply chain. Make contact in advance. Don’t leave searching or chatting until you’ve cited the work. It only takes a few minutes for each provider.
However, take note that I’m not suggesting that you ask for dozens of quotes from strangers and keep them strict. Requests like nothing else drastically reduce goodwill towards you. Instead, develop a tactful and professional approach. For example, a phone call or an email, maybe even a personal visit.
If potential suppliers welcome you, ask for price samples as well. Here, let me stress the need to be humble in making contact. Never, ever, act like you’re the next big guru in the corporate world.
Remember, these establishments are older than yours. Most likely, they faced a lot of startups that also failed; thus, there will inevitably be some caution. Always respect potential suppliers as valuable future partners. Nothing less.
System deployment
It is very necessary for your business must determine – which system will be effectively works and require for the business. The methodology, operational aspects, automations, payment system etc.., should be sufficient for maintain the regular transactions.
The checklist must include the details of the internal management system, quality system, planning as well other standard system that may help the business to run smooth. This is actually pre-defined steps that business must needs to determine and deploy. Hence, all the steps should be included in the business startup checklist.
Prepare materials according to the corporate style.
I’m sure many entrepreneurs would find this an easy task these days. For example, within an hour, you can even get a new company logo online.
So, what’s the big deal? Why should this even be an item on any checklist for starting a business?
Again, this is because your resources are so limited. Your time is your most valuable asset, and you want to dedicate it to building relationships and closing deals, rather than drafting letterhead or waiting for a logo so you can prepare an offer.
In fact, nowadays it is so easy to create works of art, there is no reason for the corporate identity not to be prepared in advance.
One more thing. Don’t lose your cover files. If you can’t get to work on your proposal because you can’t find your letterhead, or that you have to pay the printer extra to redraw your logo every time you type something, such scripts go beyond stupidity.
Have an effective accounting
Obviously, when the business will be start, you have to do regular financial transactions. Even more, you have to record these transactions in any specific record keeping system. Hence the checklist should include and describe the details of the accounting system, that may suitable for your business. Usually, record-keeping system should be sufficient enough that quick, auto and responsive.
Business is about making money. So, what is more important than the system of managing your money?
- An efficient system for creating and storing all your invoices, receipts and other financial documents.
- An invoicing system that includes shipping orders, statements, etc.
- A purchase order system that helps you track accounts payable.
- A planned and systematic payment process for your suppliers and staff.
- A record system to track accounts receivable, that is, who did not pay you.
You do not want or want the following atrocities to begin from day one:
- Your bill is delayed because you haven’t set up your billing system yet.
- It’s tedious for other companies and individuals to pay you because you keep sending them incomplete or incorrectly written invoices, multiple copies of the same account, etc.
- You lose the faith of your employees and suppliers because your payments to them are constantly slowing down.
- Oh no! You paid someone two/three times!
Prepare templates for business letters, contracts, employment contracts, etc.
Regardless of the nature of your startup, you will need all types of professional documents. Some of them can be expensive to produce. For example, those that require training or approval.
Hold on. Are most of these documents still expensive?
Aren’t most of them now free?
Thanks to the Internet, you can download all sorts of free templates. Note here. Download, but it makes sense to configure. Make sure you fully understand the documents before you start using them.
It’s humiliating, to say the least, if your customer or vendor knows more about the document and points out that it’s you not reading the finer font.
As for the latter, you could also face serious problems with the law if this happens. Expensive problems with the law that can shut down your startup overnight.
Simple business startup checklist
Getting Started | ||
| ☐ | 1. Conduct a personal evaluation to determine why you want to start a business. | |
| ☐ | 2. Create a business plan: | |
| ☐ | a. What do we do? | |
| ☐ | b. How do we do it? | |
| ☐ | c. Who do we serve? | |
| ☐ | 3. Conduct a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. | |
| ☐ | 4. Assess how much capital you have available to invest. | |
| ☐ | 5. Discuss your plans with family members to ensure they are behind you. | |
| ☐ | 6. Determine if you want the business to be full-time or part-time. | |
Committing to Your Business | ||
| ☐ | 1. Define the customer “problem” and how your business can provide a solution in a unique way. | |
| ☐ | 2. Determine viability: Is there a market for your service? | |
| ☐ | 3. Identify businesses that are having success today. | |
| ☐ | 4. Will your business be relevant as time passes? How will you adapt? | |
| ☐ | 5. Define your market: | |
| ☐ | a. Who is your ideal customer? | |
| ☐ | b. What’s your market size? | |
| ☐ | c. How easy is it to acquire the customer? | |
| ☐ | 6. Validate your idea by talking to potential customers about it. | |
| ☐ | 7. Evaluate how customers solve this problem today, as well as what the competition offers. | |
| ☐ | 8. Create a quick financial plan, identifying costs and forecasted sales, to see if your capital gets you to a profit. | |
Setting Up Your Business | ||
| ☐ | 1. Select your business name. Perform a corporate name search to make sure your name is still available. | |
| ☐ | 2. Register a domain name and secure social media profiles for the company. | |
| ☐ | 3. Apply for an EIN with the IRS and local or state business licenses. | |
| ☐ | 4. Open a business bank account and apply for a business credit card. | |
| ☐ | 5. Find appropriate space to become your primary business location. | |
| ☐ | 6. Once location is secured, get services set up in the business name, including primary phone number and other necessary utilities. | |
| ☐ | 7. Decide on a legal structure or business structure and incorporate: Corporation, LLC, or Sole Proprietorship. | |
| ☐ | 8. Get your website up and running. | |
| ☐ | 9. Set up an accounting and record keeping system: | |
| ☐ | a. hire an accountant, | |
| ☐ | b. select an accounting system, and | |
| ☐ | c. select a fiscal year | |
| ☐ | 10. Evaluate and select needed insurance policies for your business: liability, workers’ compensation, or health insurance. | |
| ☐ | 11. Prepare and begin networking with pre-marketing materials: | |
| ☐ | a. business cards, | |
| ☐ | b. letterhead, | |
| ☐ | c. invoice, | |
| ☐ | d. brochures, or | |
| ☐ | e. public relations. | |
| ☐ | 12. Introduce your business to the surrounding businesses to your location. | |
Ensuring Sufficient Funds are Available | ||
| ☐ | 1. Estimate how long it will take for your business to acquire paying customers. | |
| ☐ | 2. Itemize your business expenses for the first year, at least, and assess where these will come from. | |
| ☐ | 3. Itemize how much capital is required to launch the business and project how long it will take to become profitable. | |
| ☐ | 4. From this, determine how many months of savings or investment you need to breakeven. | |
| ☐ | 5. If outside investment is required beyond the founders’ savings, complete a business plan. | |
Planning for Your Business’ Business Plan | ||
| ☐ | 1. Complete a Company Overview that includes basic information and a summary of the management team. | |
| ☐ | 2. Write a Business Description section describing your services and what problems they solve. | |
| ☐ | 3. Prepare a Market Analysis section that describes the total market and your target market, specific segment needs, competitive offerings available, and any trends that will affect the analysis. | |
| ☐ | 4. Describe an Operating Plan for the business, such as operating hours, location, number of employees, key vendors, or seasonal adjustments your business might need to adjust to. | |
| ☐ | 5. Create a Marketing and Sales Plan that includes a “Go To Market” or launch plan, pricing, how your business will generate leads, and close new business. | |
| ☐ | 6. Build a Financial Plan that shows a break-even analysis, projected profit and loss, and projected cash flows. | |
| ☐ | 7. Write an Executive Summary which gives a general overview of the above completed sections. | |
Setting Up to Operate | ||
| ☐ | 1. Find a feasible location for you that can provide you with the ideal space needed to conduct business. | |
| ☐ | 2. Set up your office with appropriate working spaces, including comfy chairs, desks, shelves, filing cabinets, and etc. | |
| ☐ | 3. Identify any staffing needs. | |
| ☐ | 4. Recruit, interview, hire, and train employees (if applicable). | |
| ☐ | 5. If hiring employees, get an employer ID from the IRS. | |
| ☐ | 6. Identify and set up any needed technology: | |
| ☐ | a. computers/laptops for business operations, | |
| ☐ | b. printer(s), | |
| ☐ | c. business software and applications, | |
| ☐ | d. POS, | |
| ☐ | e. business email accounts, | |
| ☐ | f. phones, | |
| ☐ | g. CRM | |
| ☐ | h. billing, and | |
| ☐ | i. payment systems. | |
| ☐ | 7. Ensure your technology systems are secure with your information and customer information. | |
| ☐ | 8. Install a security system, if applicable. | |
| ☐ | 9. Depending on the business type, identify and partner with the right suppliers/vendors. | |
Marketing and Launching Your Business | ||
| ☐ | 1. Develop and refine a brand for your company and its products or services. | |
| ☐ | 2. Create and fine tune an Elevator Pitch through conversations. | |
| ☐ | 3. Community outreach and networking: as a business, you may or may not have the normal foot traffic. Therefore, other marketing strategies may be needed to offset the lack of a storefront. Attend various networking events to build relationships with community connectors. | |
| ☐ | 4. Begin distributing or displaying your marketing materials: | |
| ☐ | a. web-based promotions, | |
| ☐ | b. social media, | |
| ☐ | c. direct mail, | |
| ☐ | d. business cards, | |
| ☐ | e. trade shows, or | |
| ☐ | f. brochures. | |
| ☐ | 5. Establish an email marketing account and initiate digital marketing through blogs, emails, or SEO strategies to drive traffic to your website. | |
| ☐ | 6. Let the local or regional press know you are opening and when. | |
| ☐ | 7. Utilize Guerrilla Marketing tactics to generate traffic. | |
| ☐ | 8. Organize an opening event. Create a relationship that might allow cross-promotions. | |
Sustaining Your Business | ||
| ☐ | 1. Keep track of strategies that worked and flopped to fine tune your marketing tactics. | |
| ☐ | 2. Ask for referrals and testimonials to build credibility. | |
| ☐ | 3. Maintain and nurture your repeat business. Remember, it costs 80% less to maintain a current relationship than to develop a new one. | |
| ☐ | 4. Recognize your top client base. They will be your best pied pipers. Ask for referrals. | |