Starting a Small Business

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An ESL Guide to Starting a Small Business

» Phase I - Create a Strategic Plan

     A. Perform a Self-Assessment

1. Define your business vision

2. Identify your available skills, information and support

3. Decide whether to proceed

B.  Define the Opportunity

          1.  Research the market and competition

          2.  Interview owners of similar businesses

3.  Identify needed resources

4.  Identify operating cost elements

C.  Evaluate Business Approach

1.  Define new entity requirements

2.  Identify on-going business purchase opportunities

3.  Research franchise possibilities

4.  Summarize business approach

D.  Evaluate Potential Risks and Rewards

1.   Assess market size and stability

2.   Estimate the competition

3.   Assess needed resource availability

4.   Evaluate realistic initial market share

5.   Determine financial requirements

6.   Review personal suitability

7.   Evaluate initial profitability

E.  Review and modify the strategic plan

F.  Confirm decision to proceed

» Phase II - Define the Business Opportunity

 A.  Define the Market

1.  Access available information

2.  Create market analysis plan

3.  Implement market analysis plan

4.  Identify competition

5.  Summarize the market

6.  Identify target market niche

B.  Identify Needed Materials and Supplies

1.  Select a business approach

2.  Identify management staff resources

3.  Identify staffing requirements

4.  Identify needed raw materials

5.  Identify needed utilities

6.  Summarize operating expenses and financial projections

C.  Evaluate Potential Risks and Rewards

1.  Assess market size and stability

2.  Assess needed resources availability

3.  Forecast financial returns

4.  Review and modify the business opportunity

5.  Confirm decision to proceed

» Phase III - Plan for Action

A.  Develop a Detailed 5-Year Business Plan

1.   Describe your vision and the business opportunity

2.   List your assumptions about the business

3.   Describe the market

4.   Describe the new business

5.   Describe strengths, weaknesses, assets and threats

6.   Estimate sales volume during startup period

7.   Forecast your operating costs

8.   Establish pricing strategy for your products or services

9.   Forecast how much revenue your business should generate

10.  Summarize pro-forma financial statement

11.  Develop break-even analysis

12.  Develop cash-flow projection

13.  Identify licensing and permitting requirements

14.  Develop startup plan

15.  Develop sales and marketing strategy

16.  Develop distribution structure

17.  Describe risks and opportunities

18.  Publish the business plan

19.  Confirm decision to proceed

» Phase IV - Proceed With Startup Plan

A.  Choose a location

B.  Establish Business Structure

1.  Choose a Name

a)  Identify implications

b)  Research name availability

C.  Choose a Bank

1.   Establish accounts

2.   Establish line of credit

D.  Choose legal representation

E.   Select business tax-basis category

F.   Choose capital funding source

G.  Commit capital funding

H.   Establish the Operating Control Base

1.   Choose and set up the accounting system

2.   Obtain required licenses and permits

3.   Obtain needed insurance

4.   Establish security plan

I.   Develop Marketing Program

1.   Establish an advertising program

2.   Develop a logo

3.   Order promotional materials

J.   Provide Physical Facilities

1.   Secure operation space

2.   Select computer network hardware

3.   Select computer software

4.   Establish utilities

5.   Provide furniture and equipment

6.   Move in

K.  Provide Staffing

1.   Interview and test candidates

2.   Hire staff

3.   Train staff

» Phase V - Start your business!

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