BUSINESS EVALUATION WORKSHEET Copyright 1988, Attard Communications Before you go into a business you should attempt to learn as much about the business (and yourself!) as possible. This worksheet--if you actually fill it out and answer all questions honestly --will help you collect and evaluate essential information about yourself and the business you would like to start. While it won't give you all the facts you need to determine if you should pursue your business idea, it will help you answer some very fundamental questions and help you identify possible pitfalls. -------------------------------------------------------------- List the reasons you want to go into business for yourself? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Are you so determined to go into this business that you would work long hours without any guarantee of how much money you'd actually make?. [] YES .[] NO Have you ever worked in a business similar to the one you want to start?. [] YES .[] NO Have you ever worked as a foreman or manager for someone else? [] YES .[] NO Have you taken any business courses in school? [] YES .[] NO How much money do you have saved? $_______ How much money do you need to start this business? $_______ (see WORKSHEET 2 below) How much of your own money can you put into this business $_______ Where will you get the rest of the money you need to start this business? (list sources and amounts) __________________________________________________________ __________________________________________________________ __________________________________________________________ How much credit will you be able to get from suppliers (people you will have to buy goods or services from)?$_______ How much money do you expect to make per year from this business (salary and profit on investment)? $_______ What is the minimum amount of money you need per year to meet living expenses? $_______ Have you discussed business loans with a banker or an accountant? [] YES .[] NO Will you need a partner to supply money or business know-how? [] YES .[] NO If you will need a partner, do you know someone who would be appropriate and with whom you are sure you could get along? [] YES .[] NO Have you investigated the pros and cons of working on your own (sole proprietor), with a partner, or as a coporation? [] YES .[] NO Have you discussed your plans with a lawyer? [] YES .[] NO Are most businesses in your community doing well? [] YES .[] NO Are other businesses like the one you want to start doing well in your area? [] YES .[] NO Are other businesses like the one you want to start doing well in the rest of the country? [] YES .[] NO List the kinds of businesses or consumers who would to buy what you are planning to sell. _________________________________________________________ _________________________________________________________ _________________________________________________________ In what geographic areas are those kinds of businesses and/or consumers located? _______________________________________ __________________________________________________________ How will you get your products or services to them, or how will they (customers) get to you?_________________________ __________________________________________________________ List the businesses that would be your competitors: __________________________________________________________ __________________________________________________________ __________________________________________________________ Is there really a need another business like the one you are planning to start? [] YES .[] NO How will you advertise your business? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Who will prepare your ads?_________________________________ Where can you get help with your ads?______________________ How do other businesses like the one you are considering get customers?_____________________________________________ ___________________________________________________________ Do you know how to price the products or services you plan to sell? [] YES .[] NO Do you know what other businesses are charging for products and services like those you plan to sell? [] YES .[] NO What have you done to find out what your potential customers really want to buy?_________________________________ ______________________________________________________________ _______________________________________________________________ If you will be selling products, do you have a system devised for tracking inventory and determining when to reorder? [] YES .[] NO Where will you get your stock if you are selling a product? __________________________________________________________________ Who will actually do the selling? You, or a salesperson?_______________________________________________ Do you have any sales training, or have you studied books on salesmanship? ________________________________________________ Do you like selling? [] YES .[] NO Where will you find employees if you need them?__________________ _________________________________________________________________ Are other businesses in you area having difficulty finding qualified help? [] YES .[] NO What salary will you have to pay to get reliable help? $_______ How will you train your employees?_________________________________ ___________________________________________________________________ Do you know how long it normally takes to get paid in your line of business? [] YES .[] NO Will you accept credit cards? [] YES .[] NO Have you investigated the requirements of credit card companies and the benefits and drawbacks of accepting credit cards? [] YES .[] NO Could you make more money working for someone else? [] YES [] NO Are you sure you will have the support of your family? [] YES [] NO Do you read trade journals or other sources of information about new ideas and products in your field? [] YES [] NO Have you investigated how the Small Business Administration might be able to assist you with formulating and implementing your plans? [] YES .[] NO ________________________ Copyright 1988 Attard Communications This article is intended for your own personal use and may not be reproduced in print, electronically, or by any other means without the express written permission of the author. For reprint or other information, contact: Janet Attard Attard Communications Box 223 Centereach, NY 11720 (516) 467-6826 GEnie mail address: J.Attard