CyberDrive Illinois — Illinois Is Open For Business / Secretary of State Information

This feasibility checklist is designed to help the pre-business person determine whether his idea represents a valid business opportunity. The high failure rate of new businesses indicates that relatively few new businesses result in successful ventures. Too many entrepreneurs strike out on a business venture absolutely convinced of its merits without having adequately evaluated its real potential.

I. PERSONAL CONSIDERATIONS:
1. Do you enjoy working long hours?
2. Do you have self-discipline & willpower?
3. Do you meet deadlines easily?
4. Do you work well under pressure?
5. Will you jeopardize your home?
6. Do you have the necessary physical strength?
7. Does your family support this venture?
8. Do you have a back-up plan?

II. EXPERIENCE AND SKILLS:
1. Does your idea make use of your skills?
2. Does your idea require skills you do not have?
3. Can you find experienced personnel at an affordable rate?
4. Are you experienced in this line of work?
5. Do you have managerial experience?
6. Are you able to interpret financial data?
7. Are you familiar with tax regulations?
8. Do you know bookkeeping and accounting?

III. PLANNING AND PREPAREDNESS:
1. Have you already written a formal business plan?
2. Do you know exactly what services or products will be offered?
3. Do you know what customers to target?
4. Have you arranged for a business location?
5. Do you have a list of potential suppliers?
6. Do you know your competitors’ businesses well?
7. Have you arranged for insurance?
8. Do you have a business license?
9. Have you investigated advertising & its cost?
10. Have you hired a competent staff?

IV. REQUIREMENTS FOR SUCCESS:
1. Will your proposed business meet needed services?
2. Is there already a similar business in your community?
3. Can your business successfully compete against its competition
because of an advantage such as lower prices or superior service?

V. DETRIMENTAL FLAWS:
1. Are you affected by any monopolies, shortages, or restrictions that prevent
you from obtaining any necessary items at an affordable price?
2. Are capital requirements for starting up or continuing operations excessive?
3. Is adequate financing going to be difficult to obtain?
4. Does your business adversely affect the environment?
5. Is your business completely legal?
6. Are there any factors that prevent effective marketing?

VI. INCOME:
1. Will your business provide you with your desired level of income?
2. Do you know your industry’s averages – including gross profit,
expenses, and net profit as a percent of sales?
3. Do you know your industry’s inventory turnover rate?
4. Have you prepared an income statement to determine the level of sales
necessary to support your desired income level?
5. From a practical standpoint, can you support the level of sales in question 4?

This checklist is a tool to help the entrepreneur determine if there are any major obstacles that will prevent the business from becoming successful. Each NO answer should be carefully reviewed to determine how great an impact it will have on the business and to see if anything can be done to correct the problems it may create.

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1. Develop an effective and detailed business plan. It is the blueprint to your success. Update your business plan to reflect changes as they occur. A good plan should be flexible enough to adapt to a changing environment. Include cash flow projections in your business plan; insufficient working capital can be hazardous.

2. To be successful in small business one must be a entrepreneur, a manager and an technician.

3. Take pride in your business; it is an extension of yourself. Understand your weaknesses and strengths, your product and the market. Provide your customers with the right product, at the right time.

4. Know your competition, your industry and your target market inside and out. Do not rely on assumptions and hunches.

5. Trust yourself and your own judgment but take the time to truly know your market well – and the products it values. To stay one step ahead, constantly evaluate your business and its role in the market.

6. Serve the needs of the customers. Be sensitive to their needs, know how to reach them, and most of all, know what will convince them to buy your product or service. Advertising is essential.

7. Know your limits. Are you willing to work day and night to make it work? Don’t do it all yourself. Get moral support and the right kind of help to run your business. Professional consultants can help you tap the full resources of your business.

8. Carefully select your staff. They are the faces that people associate with your business. Train them to perform the job to your satisfaction and reward them when the job is well done.

9. Treat employees as individuals. Each has their own strengths, weaknesses and preferences.

10. Read relevant newspapers and magazines daily; become familiar with the financial section. Keep up-to-date so that you may understand the big picture.

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