Master Checklist

The following questions will serve as a master checklist of things to do or consider during the initial
planning and start-up phase of your business. As you work through the questions, be certain to
mark in the two right-hand columns whether further information or study is required.
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Self Assessment
1. Have you determined your main motive(s)
for going into your own business
2. Have you thoroughly discussed going
into business with your family?
3. Do you believe your family is fully supportive of you
going into business?
4. Is your personal situation right to start a business now?
5. Have you written down an honest assessment of your
strengths & weakness?
6. Have you rated yourself on the personal qualities
necessary for success in your own business?
7. Have you compared the advantages and
disadvantages of running your own business?
8. Do you like to take calculated risks?
9. Are you in shape physically to withstand the stresses
and long hours involved in starting a business?
10. Are you a self starter?
11. Do you have high energy level?
12. Are you willing to work long hours?
13. Do you like to make your own decisions?
14. Do you enjoy competition?
15. Do you have will power & self-discipline?
16. Can you control discouragement over obstacles?
17. Do you plan ahead?
18. Do you get things done on time?
19. Can you take advice from others?
20. Are you adaptable to changing conditions?
21. Are you prepared to lower standard of living
for a few months or years, if necessary?
22.Are you prepared to lose your savings or
investments in the business?
23. Have you worked in a business like the
one you want to start?
25. Do you know which skills and areas of
expertise are critical to the success of your project?
26. Do you have these skills?
27. Does your idea effectively utilize your own
skills and expertise?
28. Do you have the management skills needed?
29. Can you find personnel who have the expertise
you lack?

Yes

No

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Self Assessment Continued

30. Have you ever hired or managed staff?
31. Do you have any sales experience?
32. Have you ever dealt with the public?
33. Do you like to meet people?
34. Do you know how to discover new business
ideas and opportunities?
35. Have you examined thoroughly the alternatives
of starting from scratch, buying an existing
business, or buying a franchise?
36. Have you performed a feasibility study for your
venture idea?

Obtaining Advice
37. Have you discussed your idea with a small
business counselor, local economic development
officer, or other advisor?
38. Have you talked to a qualified accountant?
39. Have you talked to a lawyer regarding the legal
aspects of owning your own business?
40. Have you talked to an insurance broker as to all
the insurance considerations and costs involved?
41. Have you talked to a banker?

Business Structure
42. Have you decided on the business structure?
(proprietorship, partnership, or corporation)
43. Do you know what the advantages and
disadvantages are of the structure you have selected?
44. Did you obtain legal or accounting advice before
you chose your structure?

Partners
45. Do you want to have one or more partners?
46. Do you realy need a partner?
47. Do you know where you are going to find a
potential partner?
48. Have you determined the strengths and
weaknesses of your potential partners?
49. Have you realistically determined the personality
traits, qualities and skills required for a partner to
ensure compatibility with your personal/business need
50. Have you determined what ownership portion of
your business are you prepared to give up to a partner?
51. Have you determined detail exactly what
contributions you expect from your partner (e.g., money
time, contacts, expertise, etc.)?

Yes

No

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Yes

Partners continued
52. Have you discussed signing a partnership or shareholders agreement with your partner(s) setting out the
full terms of your relationship?
53. Have you and your partners prepared an informal
outline of all the key points you want in your partnership
or shareholders agreement?
54. Have you had a lawyer draw up a final partnership
Agreement?
55. Have you prepared a management contract?

Government Regulations
56. Are you aware of the government legislation or
restrictions affecting your business operation?
57. Do you have knowledge of and have you complied
with, any and all municipal, provincial and federal legal
requirements affecting your specific type of business:
-business license
-liquor license
-building bylaws
-fire bylaws
-zoning and development bylaws
-vehicle licensing bylaws
-shop closing bylaws
-sign bylaws
-health regulations
-employee labor regulations
-Workers Compensation Board bylaws
-sales tax regulation and tax number
-business registration
-corporation registration
-Revenue Canada deductions(income tax, UIC
CPP, Gst)
-federal excise regulations and tax number
(manufacturers)
-other regulations
-trade practice regulations
-consumer protection regulations
58. Have you complied with regulations governing the
use of a firm or trade name,brand names or trademarks?
59 Is a license necessary to handle special commodities?
60. Have you determined whether or not your product(s)
meets the government standards (where applicable)?
61. If you intend to operate an import or export business,
do you have the necessary permits?
62. If you are importing goods, do you have any
information regarding the amount of customs duties levied?

No

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Yes

Governmnet Regulations
63. For your raw material purchases, do you have a manufacturing license for federal sales tax exemption?
64. Have you provided for an adequate system of recordkeeping that will furnish essential information for provincial
and federal taxation purposes?
65. Are there long range regional economic development
plans occurring that could affect your business/
66. Will any competitive advantages you currently find at
the location you're considering be diminished by zoning
changes or changes in city or highway traffic?

Employees
67. Have you decided how many employees you will be hiring?
68. Have you planned your staff organization chart?
69. Have you analyzed the jobs that you will offer, and do
you have a job description for them?
70. Have you decided what special skills or training
your employees should have?
71. Is there an adequate labor force available?
72. Do you know how to recruit and select applicants?
73. Have you decided whether you will hire part time,
experienced or inexperienced people?
74. Would it be an advantage or disadvantage to hire a
friend or relative?
75. Are you familiar with the provincial and federal regulations
relating to employees?
76. Will you offer training? If so do you have a training plan?
77. Are your proposed pay and salary scales competitive
with similar businesses in your community?
78. Have you determined what holidays, sick leave, and
overtime pay you will allow, outside what is required by law?
79. Have you made decisions on employee benefits, including
pensions, group insurance, profit sharing, etc.?
80. Have you considered how you will keep employees
satisfied and motivated?
81. Have you planned working conditions to be as desirable
and practical as possible?
82. Do you intend to actively solicit employee feedback and
suggestions to pre-empt problems and maintain morale?
83. Have you established a set of personnel files and records?
84. Do you know how to evaluate your employees' performance?
85. Do you have the skills to lead and motivate your employees?

Finacial
86. Are you willing to risk uncertain or irregular income for the
next few years?

No

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Yes

Financial Continued
87. Have you calculated how much income you desire or need
for your personal living expenses during the start up phase?
88. Have you estimated your financial requirements for working
capital and operating expenses until the business is able to
support itself?
-advertising and promotion
-employee benefits
-equipment
-furnishings
-insurance
-interest
-inventory
-licenses
-professional fees
-rent
-supplies
-tax
-telephone
-transportation
-utilities
-wages and salaries
89. Do you know which expenses are direct, indirect, or fixed?
90. Have you been conservative in your estimates?
91. Have you compare the advantages and disadvantages of
leasing or renting your premises, equipment, machinery and
automobile rather than purchasing them?
92. Have you compared the benefits of contracting out certain
activities of the business with what it would cost you to do the
work itself?
93. Have you determined how much money of your own you can
put into the business?
94. Do you have other assets which you could, if necessary, sell
or on which you could borrow to get additional funds?
95. Have you determined your potential return on investment in
this business?
96. Do you know where you can borrow the rest of the money
you need to start your business and for the first year of
operation?
97Have you considered the following options?
-banks or near banks
-capitol stock
-factoring
-franchising
-friends and family
-house or chattel mortgage

No

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-insurance policies
-venture capitol

Yes

Financial Continued
98. Have you investigated government assistance programs at
the provincial and federal levels?
99. Have you established a credit rating?
100. Do you know how much credit you can get from your
suppliers?
101. Have you completed a cash flow projection for the first year
of operation?
102.Have you completed as pro-forma balance sheet and income
statement for the first year of operation?
103. Do you have a realistic sales forecast?
104. Do you know how to analyze your financial statements?
105. Have you prepared a detailed financial business plan?
106. Have you consulted a qualified accountant in setting up
systems, developing your projections, analyzing your statement
and business plan tax planning?
107. Have you decided who will be responsible for keeping your
records up-to-date and who will prepare your financial statements
and budgets?
108. Have you established a line of credit with your banker?

Recordkeeping
109. Have you developed an effective system of keeping records
in all areas of your business?
-payables
-receivables
-accounting
-tax
-employees
-other
110. Have you secured the necessary forms to enable you to
start keeping adequate records from the first day of operation of
the business?
111. Can you use standardized forms available at most office
supply outlets?
112. Have you investigated the possibility of using simplified
recordkeeping systems for some of your needs?
113. Do you intend to maintain separate records for both cash
and credit sales?
114. Have you made plans for the safekeeping of essential
records in addition to your accounting records?
115. Do you have a computer?
116. Are you going to maintain the records yourself?

No

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Yes

Location and Leasing

117. Have you considered working out of your own home,
and use a telephone answering service or machine?
118. Have you considered a "package office" service?
119. Do you need premium downtown space?
120. If your employees use public transit, are there bus
stops nearby?
121. Is the business easily accessible and visible?
122. Is exterior lighting in the area adequate to attract
evening shoppers and make them feel safe?
123. Are you near your suppliers?
124. Can you ship business products easily from your
location via truck, train, air or ship?
125. Have you chosen a location accessible to your
target market?
126. Is the trade area heavily dependent on seasonal business?
127. Are there any competitors close to your location?
128. Do local civic attitudes favour a business like yours?
129. Have you checked to see whether the neighbourhood is
improving or declining?
130. Is the cost of your location affordable?
131. Are property and business taxes in your location reasonable
now and will they increase in the future?
132. Do you know the present zoning and future zoning of your
building?
133. Do you plan to operate your business in your first
location indefinitely?
134. If the proposed building does not meet your desired needs
is there any good reason for deciding to use it?
135. Have you projected your space requirements over the next
few years?
136. Have you included costs for extras in your budget such as
utilities, maintenance, and taxes?
136. Can you renovate before you move in?
137. Are there restrictions on what you can do to renovate your
space?
138. Are customer rest-room facilities available/required?
139. Does the location awnings or decks to provide shelter
during bad weather?
140. Have you planned your proposed layout for the building to
scale on paper?
141. Are there storage facilities available or nearby?
142. Has the lease and zoning been thoroughly checked by
your lawyer?
143. Do you have to pay to have the lease drawn?
144. Are you aware of your responsibilities in the lease?
145. Are there protective covenants that will limit your sales or

No

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other legal restrictions in your lease?

Yes

Location and Leasing Continued

146. Is your rent fixed every month?
147. Will all government regulatory bodies approve your use of
the building, I.e., zoning, health, fire Marshall, transportation,
environment , and labour?
148. Is the term of the lease long enough to protect you?
149. Does the lease provide for reimbursement for alterations?
150. Are there restrictions regarding size and location of signs
on the building?
151. Are you permitted to sublet?
152. Do you know under which conditions you can break the
lease and how much it will cost?

Insurance
153. Have you made plans for protecting your store against
thefts of all kinds: shoplifting, robbery, burglary, employee
stealing?
154. Have you purchased general comprehensive insurance
coverage?
155. Has insurance protecting against damage suits and public
liability claims been purchased?
156. Do you know what other risks should be insured against?
157. Have you obtained sufficient personal insurance in excess
of all your personal business guarantees to cover your liability
in the event of you death? Disability, keyman coverage?
158. Have you obtained a minimum of three quotations from
insurance brokers before making your decision, to satisfy
yourself as to premiums and coverage?
159. Have you obtained advice from your accountant regarding
tax implications and the structure of your insurance policy?

Equipment
160. Do you know what furniture, equipment and fixtures you
will need, and at what costs?
161. Have you calculated how much money you have available
for equipment and fixtures?
162. Have you planned for expansion and future additions to
your equipment?
163. Can you get quick service from your suppliers when
something breaks down?
163. Have you obtained advice from your accountant as to the
nature and form of purchase in advance?
164. Have you held your purchase plans to a minimum without
omitting any essentials?
165. Is your investment infixtures and equipment in proper
proportion to your financial structure?

No

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166. Have you decided whether you are going to but or lease
the equipment?

Yes

Equipment Continued
167. Is buying secondhand equipment a viable option to buying
new equipment?

Purchasing and Inventory Control

168. Have you made a list of every item of inventory and
operating supplies needed?
169. Have you decided what goods to carry in relation to what
your target customers want?
170. Are there any product lines which you can get the privilege
of handling exclusively?
171. Have you estimated how much your total stock should be?
172. Have you broken this estimate down into the major lines
to be carried?
173. Do you know the quantity, quality, technical specifications
and price ranges desired for each product?
174. When considering each item of merchandise, ask yourself
the following:
- after markup is the selling price in line with similar
merchandise?
-does it compare with similar items in quantity?
Is it in style?
-does it have special selling points or exclusive
features?
-will I be the sole distributor in my territory?
-If the item sells rapidly, can it be replaced quickly?
-will it spoil quickly?
-does it meet a particular need?
-are product claims honest? Exaggerated?
175. Do you know the name and location of each potential
source of supply?
176. Have you given careful consideration to the choice of
suppliers, basing your decision on location, delivery, service,
trade terms, selection, experience, and financial stability?
177. Are you aware of which suppliers have an advantage
relative to transportation costs?
178. Is there a risk of shortage for any materials or
merchandise?
179. Have you investigated advantages of affiliating with a
voluntary or co-operative buying group for your business?
180. Have you made arrangements with wholesalers?
181. Have you decided what merchandise you will buy from
manufacturers?
182. Have you set up a model stock assortment to follow in
your buying?

No

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183. Do you how much stock to buy, when to buy it, and at
what cost?

Yes

Purchasing and Inventory Control Continued

184. Do you have provisions to check the receiving and
marking of goods?
185. Can you store your purchase securely?
186. Have you worked out any stock control plans to avoid
overstocks, understocks, and out of stocks?
187. Are you aware of the procedures involved in taking
physical inventory?
188. Have you listed the purposes and uses of information you
plan to secure from your inventory or stores control system?
189. Have you established systems to measure and control
theft and pilferage?
190. Have you decided on an insurance policy for your
inventory?

Pricing
191. Have you determined what price "image" you want for
your business?
192. Have you decided on the formula or method you will use
in pricing each class of goods and services?
193. Does your pricing allow for a comfortable profit margin
after calculating your break even point?
194. Have you considered the probable reaction of your
competitors to your pricing practices?
195. Have you decided how and to what extent you will meet
probable price competition?
196. Are you aware of the free low cost publications on pricing?

Competition
197. Do you know who are your major competitors?
198. Do you know the major strengths and weaknesses of
each of your competitors?
199. Are you familiar with the following factors concerning your
competitors?
-price structure
-product lines (quality, breadth, width)
-location
-promotional activities
-sources of supply
-image from a consumer's viewpoint
200. Do you know any competitor's plans for expansion?
201. Do you know of any competitors who plan to enter your
territory?
202. Have any firms of your type gone out of business lately?

No

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203. Do you know the sales and market share of each

competitor, and whether it is decreasing, increasing or stable?
204. Do you know if your competitors' profits are increasing,
decreasing or stable?

Yes

Competition Continued
205. Do competitors leave an opening for you to enter business
because they are not alert or aggressive?
206. Are your competitors well established?
207. Do you know if your competition is strong and active, or
week and sluggish?
208. Are people in your community buying from outside your
community because of poor or unavailable supplies or service?

Marketing
209. Have you defined the geographical areas from which you
can realistically expect to draw customers?
210. Will your business product/service appeal to the entire
market segment you have selected?
211. Have you decided on what basis (e.g.. Price, selection,
quality, location) you will appeal to your potential customers?
212. Have you decided what business image to project?
213. Have you considered the characteristics of your market
(potential customers) and methods to reach them with your
advertising?
-age
-buying habits
-education
-family size
-income
-marital status
-occupation
-sex
214. Do you know about the population growth trend in your
marketing areas?
215. Is your market segment large enough to support your
business at start-up and over the long term?
216. Do you what the consumers' attitude are towards a
business like yours?
219. Do you know about consumer shopping and spending
patterns relative to your type of business?
220. Does your product/service/business serve an existing
market in which demand exceeds supply?
221. Do you know what segment of the market your
competitors are serving?
222. Will your market be affected by demographic change in
the future?
223. Have you completed a marketing plan that includes your

No

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strategies to attain your objectives and means of evaluating the

effectiveness of your efforts?
224. Have you determined the best ways of distributing your
product in this market?

Yes

Marketing Continued
225. Have you researched all available media and evaluate
them relative to your needs (e.g., print, radio, TV, direct mail)?
226. Is the market accessible through existing media at an
affordable cost?
227. Have you developed a promotion strategy?

Advertising
228. Have you decided how you will advertise (newspapers,
posters, handbills, radio, mail, other)?
229. Do you know where to get help preparing your advertising?
230. Do your ads relay the benefits of your products or services
from the customers point of view?
231. Do your ads portray the image of your business/products/
services that you want to project?
232. Have you considered using seasonal interests or trends to
advertise your products or service?
233. Have you considered different features of your business
that would be appropriate for special promotions timed to your
customers' needs and interests?
234. Do your store signs, displays, layout present the right
image and entice the prospective customer to stay and shop?
235. Have you observed what other stores do to get people to
buy?
236. Have you written down the pros and cons of the different
types of advertising and promotion options?
237. Have you put in writing your own lists of do's and don'ts
to guide your advertising?
238. Have you selected the most promising reasons for people
to patronize your business and incorporated them in plans for
your opening advertising?
239. Have you decided how you can measure and record the
degree of success achieved with each sales promotion so that
you can repeat the hits and avoid the duds?

Sales
240. Do you know how to motivate your customers to buy?
241. Have you thought about why you like to buy from sales
clerks whiles others frustrate you?
242. Have you or your sales staff taken sales training courses?
243. Do you or you sales staff participate in a sales networking
group?

No

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244. Have you anticipated how you will handle customer

objections?
245. Have you clearly identified your customers needs and
wants and stresses these and the product benefits in your
sales presentation?

Yes

Sales Continued
246. Usually the first person a customer speaks with is the
receptionist. Is your receptionist aware of basic sales
information and style and order to create a positive first
impression?
247. Are you aware of effective non-verbal selling techniques
in terms of voice tone and modulation, posture, eye contact?
248. Are you aware of sales closing techniques?
249. Do you have a method of recording your prospective
customers for follow-up at a later date?
250. Do you have a record of all your customers for follow-up?
251.Do you know what percentage of these are repeat
customers?
252. Did you base your sales forecast on concrete data?
253. Did you set realistic as well as optimistic sales objectives?
254. Are there conditions or trends that could change your
forecast of total sales?
255. Have you calculated the gross profit you can make based
on sales volume?
256. Will your sales records be broken down by type of
merchandise and/or department?

Credit and Collection

257. Are you aware of the risks and administrative costs of
extending credit?
258. Have you carefully investigated the need for and
desirability of credit extension by your business?
259. Have you investigated the services, benefits and costs
associated with becoming a member of your local credit bureau?
260. Have you planned the basic procedures you or your staff
will always follow before extending credit to any applicant?
261. Have you formulated plans to control and monitor all credit
accounts
262. Have you obtained information on the benefits of obtaining
a merchant number for accepting credit cards?
263. Have you or your staff taken any seminars on credit and
collection?
264. Have you had a lawyer review your credit and collection
procedures, policies and documentation
265. Have you considered using one of the service companies
that protect you from an NSF cheque loss?

No

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Taxes
266. Does your proposed business structure (proprietorship,
partnership, or corporation) minimize taxes, both now and in the
future?
267. Are you identifying and taking advantage of available
investment and other tax credits?

Yes

Taxes Continued
268. Have you contacted any accounting firms to request they
keep you on the mailing list for free tax information booklets?
269. Did you explore the tax implications of anticipated business
transactions with your accountant?
270. Do you have a plan for the succession of the business
at the lowest tax cost to your family members?

Overall Management
271. Are you aware of how business plans can help you obtain
financing and manage your business?
272. Does your business plan meet the expectations of your
lenders, key investors and associates?
273. Do you have formal short-term and long-term goals that you
monitor regularly?
274. Do you know enough about your particular type of business
to operate it effectively and profitably?
275. Have you set out reporting procedures that enable you to
monitor progress toward your business objectives?
276. Have you assigned responsibilities for meeting your
objectives to key personnel?
277. Have you set objectives for the various parts of your
business plan?
278. Are you receiving timely answers to your "what if" planning
questions?
279. Do you have the information needed to permit you to
efficiently analyze the financial factors and trends affecting your
business?
280. Have you planned the way you will organize duties and
responsibilities?
281. Have you developed adequate management planning
approaches before making commitments or important decisions
covering future activities of the business?
282. Have you made an honest, objective investigation of the
probable success of your proposed policies?
283. Have you written down the main provisions of your general
and major policies?
284. Do you have policies to deal with customer needs(servicing,
complaints, etc.)?
285. Have you developed a policy on maintenance and

No

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replacement of your fixed assets?

286. Have you discussed your proposed policies with
competent advisors and are they in agreement?
289. Have you made adequate provisions to ensure that your
policies will be understood and enforced, and that you will
receive ample warning of the need for policy adjustments?
290. Do you have procedures and systems in place for your
staff to implement and maintain effectively?

Yes

Overall Management Continued

291. Have you established effective business and personal time
management practices?
292. If you are a manufacturer, have you developed
specifications and plans for your production process, including:
-scheduling
-materials requirements planning
-production methods
-product distribution
293. Have you taken any business management programs
through college, school, or night school?

No

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Business Plan Checklist

The following questions will serve as a master checklist of things to do or consider during the initial
planning and start-up phase of your business. As you work through the questions, be certain to
mark in the two right-hand columns whether further information or study is required.
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Self Assessment
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Satisfaction
1. Have you determined your main motive(s)
for going into your own business
2. Have you thoroughly discussed going
into business with your family?
3. Do you believe your family is fully supportive of you
going into business?
4. Is your personal situation right to start a business now?
5. Have you written down an honest assessment of your
strengths & weakness?
6. Have you rated yourself on the personal qualities
necessary for success in your own business?
7. Have you compared the advantages and
disadvantages of running your own business?
8. Do you like to take calculated risks?
9. Are you in shape physically to withstand the stresses
and long hours involved in starting a business?
10. Are you a self starter?
11. Do you have high energy level?
12. Are you willing to work long hours?
13. Do you like to make your own decisions?
14. Do you enjoy competition?
15. Do you have will power & self-discipline?
16. Can you control discouragement over obstacles?
17. Do you plan ahead?
18. Do you get things done on time?
19. Can you take advice from others?
20. Are you adaptable to changing conditions?
21. Are you prepared to lower standard of living
for a few months or years, if necessary?
22.Are you prepared to lose your savings or
investments in the business?
23. Have you worked in a business like the
one you want to start?
24. Do you know which skills and areas of
expertise are critical to the success of your project?
25. Do you have these skills?
26. Does your idea effectively utilize your own
skills and expertise?
27. Do you have the management skills needed?

Self Assessment Continued

28. Have you ever hired or managed staff?
29. Do you have any sales experience?
30. Have you ever dealt with the public?
31. Do you like to meet people?
32. Do you know how to discover new business
ideas and opportunities?
33. Have you examined thoroughly the alternatives
of starting from scratch, buying an existing
business, or buying a franchise?
34. Have you performed a feasibility study for your
venture idea?

Obtaining Advice
35. Have you discussed your idea with a small
business counselor, local economic development
officer, or other advisor?
36. Have you talked to a qualified accountant?
37. Have you talked to a lawyer regarding the legal
aspects of owning your own business?
38. Have you talked to an insurance broker as to all
the insurance considerations and costs involved?
39. Have you talked to a banker?

Business Structure
40. Have you decided on the business structure?
(proprietorship, partnership, or corporation)
41. Do you know what the advantages and
disadvantages are of the structure you have selected?
42. Did you obtain legal or accounting advice before
you chose your structure?

Partners
43. Do you want to have one or more partners?
44. Do you realy need a partner?
45. Do you know where you are going to find a
potential partner?
46. Have you determined the strengths and
weaknesses of your potential partners?
47. Have you realistically determined the personality
traits, qualities and skills required for a partner to
ensure compatibility with your personal/business need
48. Have you determined what ownership portion of
your business are you prepared to give up to a partner?
49. Have you determined detail exactly what
contributions you expect from your partner (e.g., money
time, contacts, expertise, etc.)?

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Partners Continued
50. Have you discussed signing a partnership or shareholders agreement with your partner(s) setting out the
full terms of your relationship?
51. Have you and your partners prepared an informal
outline of all the key points you want in your partnership
or shareholders agreement?
52. Have you had a lawyer draw up a final partnership
Agreement?
53. Have you prepared a management contract?

Government Regulations
54. Are you aware of the government legislation or
restrictions affecting your business operation?
55. Do you have knowledge of and have you complied
with, any and all municipal, provincial and federal legal
requirements affecting your specific type of business:
-business license
-liquor license
-building bylaws
-fire bylaws
-zoning and development bylaws
-vehicle licensing bylaws
-shop closing bylaws
-sign bylaws
-health regulations
-employee labor regulations
-Workers Compensation Board bylaws
-sales tax regulation and tax number
-business registration
-corporation registration
-federal excise regulations and tax number
(manufacturers)
-trade practice regulations
-consumer protection regulations
56. Have you complied with regulations governing the
use of a firm or trade name,brand names or trademarks?
57. Is a license necessary to handle special commodities?
58. Have you determined whether or not your product(s)
meets the government standards (where applicable)?
59. If you intend to operate an import or export business,
do you have the necessary permits?
60. If you are importing goods, do you have any
information regarding the amount of customs duties levied?

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Governmnet Regulations
61. For your raw material purchases, do you have a manufacturing license for federal sales tax exemption?
62. Have you provided for an adequate system of recordkeeping that will furnish essential information for provincial
and federal taxation purposes?
63. Are there long range regional economic development
plans occurring that could affect your business?
64. Will any competitive advantages you currently find at
the location you're considering be diminished by zoning
changes or changes in city or highway traffic?

Employees
65. Have you decided how many employees you will be hiring?
66. Have you planned your staff organization chart?
67. Have you analyzed the jobs that you will offer, and do
you have a job description for them?
68. Have you decided what special skills or training
your employees should have?
69. Is there an adequate labor force available?
70. Do you know how to recruit and select applicants?
71. Have you decided whether you will hire part time,
experienced or inexperienced people?
72. Would it be an advantage or disadvantage to hire a
friend or relative?
73. Are you familiar with the provincial and federal regulations
relating to employees?
74. Will you offer training? If so do you have a training plan?
75. Are your proposed pay and salary scales competitive
with similar businesses in your community?
76. Have you determined what holidays, sick leave, and
overtime pay you will allow, outside what is required by law?
77. Have you made decisions on employee benefits, including
pensions, group insurance, profit sharing, etc.?
78. Have you considered how you will keep employees
satisfied and motivated?
79. Have you planned working conditions to be as desirable
and practical as possible?
80. Do you intend to actively solicit employee feedback and
suggestions to pre-empt problems and maintain morale?
81. Have you established a set of personnel files and records?
82. Do you know how to evaluate your employees' performance?
83. Do you have the skills to lead and motivate your employees?

Finacial
84. Are you willing to risk uncertain or irregular income for the
next few years?

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Financial Continued

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85. Have you calculated how much income you desire or need
for your personal living expenses during the start up phase?
86. Have you estimated your financial requirements for working
capital and operating expenses until the business is able to
support itself?
-advertising and promotion
-employee benefits
-equipment
-insurance
-interest
-inventory
-licenses
-professional fees
-rent
-supplies
-tax
-telephone
-transportation
-utilities
-wages and salaries
87. Do you know which expenses are direct, indirect, or fixed?
88. Have you been conservative in your estimates?
89. Have you compare the advantages and disadvantages of
leasing or renting your premises, equipment, machinery and
automobile rather than purchasing them?
90. Have you compared the benefits of contracting out certain
activities of the business with what it would cost you to do the
work itself?
91. Have you determined how much money of your own you can
put into the business?
92. Do you have other assets which you could, if necessary, sell
or on which you could borrow to get additional funds?
93. Have you determined your potential return on investment in
this business?
94. Do you know where you can borrow the rest of the money
you need to start your business and for the first year of
operation?
95. Have you considered the following options?
-banks or near banks
-capitol stock
-franchising
-friends and family
-house or chattel mortgage
-insurance policies
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Yes

Financial Continued
96. Have you investigated government assistance programs at
the provincial and federal levels?
97. Have you established a credit rating?
98. Do you know how much credit you can get from your
suppliers?
99. Have you completed a cash flow projection for the first year
of operation?
100.Have you completed as pro-forma balance sheet and income
statement for the first year of operation?
101. Do you have a realistic sales forecast?
102. Do you know how to analyze your financial statements?
103. Have you prepared a detailed financial business plan?
104. Have you consulted a qualified accountant in setting up
systems, developing your projections, analyzing your statement
and business plan tax planning?
105. Have you decided who will be responsible for keeping your
records up-to-date and who will prepare your financial statements
and budgets?
106. Have you established a line of credit with your banker?

Recordkeeping
107. Have you developed an effective system of keeping records
in all areas of your business?
-payables
-receivables
-accounting
-tax
-employees
-other
108. Have you secured the necessary forms to enable you to
start keeping adequate records from the first day of operation of
the business?
109. Can you use standardized forms available at most office
supply outlets?
110. Have you investigated the possibility of using simplified
recordkeeping systems for some of your needs?
111. Do you intend to maintain separate records for both cash
and credit sales?
112. Have you made plans for the safekeeping of essential
records in addition to your accounting records?
113. Do you have a computer?
114. Are you going to maintain the records yourself?

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Location and Leasing

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115. Have you considered working out of your own home,

and use a telephone answering service or machine?
116. If your employees use public transit, are there bus
stops nearby?
117. Is the business easily accessible and visible?
118. Is exterior lighting in the area adequate to attract
evening shoppers and make them feel safe?
119. Are you near your suppliers?
120. Can you ship business products easily from your
location via truck, train, air or ship?
121. Have you chosen a location accessible to your
target market?
122. Is the trade area heavily dependent on seasonal business?
123. Are there any competitors close to your location?
124. Do local civic attitudes favour a business like yours?
125. Have you checked to see whether the neighbourhood is
improving or declining?
126. Is the cost of your location affordable?
127. Are property and business taxes in your location
reasonable now and will they increase in the future?
128. Do you know the present zoning and future zoning of your
building?
129. Do you plan to operate your business in your first
location indefinitely?
130. If the proposed building does not meet your desired needs
is there any good reason for deciding to use it?
131. Have you projected your space requirements over the next
few years?
132. Have you included costs for extras in your budget such as
utilities, maintenance, and taxes?
136. Can you renovate before you move in?
133. Are there restrictions on what you can do to renovate your
space?
134. Are customer rest-room facilities available/required?
135. Does the location awnings or decks to provide shelter
during bad weather?
136. Have you planned your proposed layout for the building to
scale on paper?
137. Are there storage facilities available or nearby?
138. Has the lease and zoning been thoroughly checked by
your lawyer?
139. Are you aware of your responsibilities in the lease?
140. Are there protective covenants that will limit your sales or
other legal restrictions in your lease?
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141. Is your rent fixed every month?

142. Will all government regulatory bodies approve your use of
the building, I.e., zoning, health, fire Marshall, transportation,
environment , and labour?
143. Is the term of the lease long enough to protect you?
144. Does the lease provide for reimbursement for alterations?
145. Are there restrictions regarding size and location of signs
on the building?
146. Are you permitted to sublet?
147. Do you know under which conditions you can break the
lease and how much it will cost?

Insurance
148. Have you made plans for protecting your store against
thefts of all kinds: shoplifting, robbery, burglary, employee
stealing?
149. Have you purchased general comprehensive insurance
coverage?
150. Has insurance protecting against damage suits and public
liability claims been purchased?
151. Have you obtained sufficient personal insurance in excess
of all your personal business guarantees to cover your liability
in the event of you death? Disability, keyman coverage?
152. Have you obtained a minimum of three quotations from
insurance brokers before making your decision, to satisfy
yourself as to premiums and coverage?
153. Have you obtained advice from your accountant regarding
tax implications and the structure of your insurance policy?

Equipment
154. Do you know what furniture, equipment and fixtures you
will need, and at what costs?
155. Have you calculated how much money you have available
for equipment and fixtures?
156. Have you planned for expansion and future additions to
your equipment?
157. Can you get quick service from your suppliers when
something breaks down?
158. Have you obtained advice from your accountant as to the
nature and form of purchase in advance?
159. Have you held your purchase plans to a minimum without
omitting any essentials?
160. Is your investment infixtures and equipment in proper
proportion to your financial structure?
161. Have you decided whether you are going to buy or lease
the equipment?
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Equipment Continued
162. Is buying secondhand equipment a viable option to buying
new equipment?

Purchasing and Inventory Control

163. Have you made a list of every item of inventory and
operating supplies needed?
164. Have you decided what goods to carry in relation to what
your target customers want?
165. Are there any product lines which you can get the privilege
of handling exclusively?
166. Have you estimated how much your total stock should be?
167. Have you broken this estimate down into the major lines
to be carried?
168. Do you know the quantity, quality, technical specifications
and price ranges desired for each product?
169. When considering each item of merchandise, ask yourself
the following:
- after markup is the selling price in line with similar
merchandise?
- does it compare with similar items in quantity?
Is it in style?
- does it have special selling points or exclusive
features?
- will I be the sole distributor in my territory?
- If the item sells rapidly, can it be replaced quickly?
- will it spoil quickly?
- does it meet a particular need?
170. Do you know the name and location of each potential
source of supply?
171. Have you given careful consideration to the choice of
suppliers, basing your decision on location, delivery, service,
trade terms, selection, experience, and financial stability?
172. Are you aware of which suppliers have an advantage
relative to transportation costs?
173. Is there a risk of shortage for any materials or
merchandise?
174. Have you investigated advantages of affiliating with a
voluntary or co-operative buying group for your business?
175. Have you made arrangements with wholesalers?
176. Have you decided what merchandise you will buy from
manufacturers?
177. Have you set up a model stock assortment to follow in
your buying?
178. Do you how much stock to buy, when to buy it, and at
what cost?

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179. Do you have provisions to check the receiving and

marking of goods?
180. Can you store your purchase securely?
181. Have you worked out any stock control plans to avoid
overstocks, understocks, and out of stocks?
182. Are you aware of the procedures involved in taking
physical inventory?
183. Have you listed the purposes and uses of information you
plan to secure from your inventory or stores control system?
184. Have you established systems to measure and control
theft and pilferage?
185. Have you decided on an insurance policy for your
inventory?

Pricing
186. Have you determined what price "image" you want for
your business?
187. Have you decided on the formula or method you will use
in pricing each class of goods and services?
188. Does your pricing allow for a comfortable profit margin
after calculating your break even point?
189. Have you considered the probable reaction of your
competitors to your pricing practices?
190. Have you decided how and to what extent you will meet
probable price competition?
191. Are you aware of the free low cost publications on pricing?

Competition
192. Do you know who are your major competitors?
193. Do you know the major strengths and weaknesses of
each of your competitors?
194. Are you familiar with the following factors concerning your
competitors?
-price structure
-product lines (quality, breadth, width)
-location
-promotional activities
-sources of supply
195. Do you know of any competitors who plan to enter your
territory?
196. Have any firms of your type gone out of business lately?
197. Do you know the sales and market share of each
competitor, and whether it is decreasing, increasing or stable?
198. Do you know if your competitors' profits are increasing,
decreasing or stable?
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199. Do competitors leave an opening for you to enter business

because they are not alert or aggressive?
200. Are your competitors well established?
201. Do you know if your competition is strong and active, or
week and sluggish?
202. Are people in your community buying from outside your
community because of poor or unavailable supplies or service?

Marketing
203. Have you defined the geographical areas from which you
can realistically expect to draw customers?
204. Will your business product/service appeal to the entire
market segment you have selected?
205. Have you decided on what basis (e.g.. Price, selection,
quality, location) you will appeal to your potential customers?
206. Have you decided what business image to project?
207. Have you considered the characteristics of your market
(potential customers) and methods to reach them with your
advertising?
-age
-buying habits
-family size
-income
-marital status
-occupation
208. Do you know about the population growth trend in your
marketing areas?
209. Is your market segment large enough to support your
business at start-up and over the long term?
210. Do you know what the consumers' attitude are towards a
business like yours?
211. Do you know about consumer shopping and spending
patterns relative to your type of business?
212. Does your product/service/business serve an existing
market in which demand exceeds supply?
213. Do you know what segment of the market your
competitors are serving?
214. Will your market be affected by demographic change in
the future?
215. Have you completed a marketing plan that includes your
strategies to attain your objectives and means of evaluating the
effectiveness of your efforts?
216. Have you determined the best ways of distributing your
product in this market?
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Marketing Continued
217. Have you researched all available media and evaluate
them relative to your needs (e.g., print, radio, TV, direct mail)?
218. Is the market accessible through existing media at an
affordable cost?
219. Have you developed a promotion strategy?

Advertising
220. Have you decided how you will advertise (newspapers,
posters, handbills, radio, mail, other)?
221. Do you know where to get help preparing your advertising?
222. Do your ads relay the benefits of your products or services
from the customers point of view?
223. Do your ads portray the image of your business/products/
services that you want to project?
224. Have you considered using seasonal interests or trends to
advertise your products or service?
225. Have you considered different features of your business
that would be appropriate for special promotions timed to your
customers' needs and interests?
226. Do your store signs, displays, layout present the right
image and entice the prospective customer to stay and shop?
227. Have you observed what other stores do to get people to
buy?
228. Have you written down the pros and cons of the different
types of advertising and promotion options?
229. Have you put in writing your own lists of do's and don'ts
to guide your advertising?
230. Have you selected the most promising reasons for people
to patronize your business and incorporated them in plans for
your opening advertising?
231. Have you decided how you can measure and record the
degree of success achieved with each sales promotion so that
you can repeat the hits and avoid the duds?

Sales
232. Do you know how to motivate your customers to buy?
233. Have you thought about why you like to buy from sales
clerks whiles others frustrate you?
234. Have you or your sales staff taken sales training courses?
235. Do you or you sales staff participate in a sales networking
group?

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Sales Continued
236. Have you anticipated how you will handle customer
objections?
237. Have you clearly identified your customers needs and
wants and stresses these and the product benefits in your
sales presentation?
238. Usually the first person a customer speaks with is the
receptionist. Is your receptionist aware of basic sales
information and style and order to create a positive first
impression?
239. Are you aware of effective non-verbal selling techniques
in terms of voice tone and modulation, posture, eye contact?
240. Are you aware of sales closing techniques?
241. Do you have a method of recording your prospective
customers for follow-up at a later date?
242. Do you have a record of all your customers for follow-up?
243.Do you know what percentage of these are repeat
customers?
244. Did you base your sales forecast on concrete data?
245. Did you set realistic as well as optimistic sales objectives?
246. Are there conditions or trends that could change your
forecast of total sales?
247. Have you calculated the gross profit you can make based
on sales volume?
248. Will your sales records be broken down by type of
merchandise and/or department?

Credit and Collection

249. Are you aware of the risks and administrative costs of
extending credit?
250. Have you carefully investigated the need for and
desirability of credit extension by your business?
251. Have you investigated the services, benefits and costs
associated with becoming a member of your local credit bureau?
252. Have you planned the basic procedures you or your staff
will always follow before extending credit to any applicant?
253. Have you formulated plans to control and monitor all credit
accounts
254. Have you obtained information on the benefits of obtaining
a merchant number for accepting credit cards?
255. Have you or your staff taken any seminars on credit and
collection?
256. Have you had a lawyer review your credit and collection
procedures, policies and documentation

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257. Have you considered using one of the service companies

that protect you from an NSF cheque loss?

Taxes
258. Does your proposed business structure (proprietorship,
partnership, or corporation) minimize taxes, both now and in the
future?
259. Are you identifying and taking advantage of available
investment and other tax credits?
260. Have you contacted any accounting firms to request they
keep you on the mailing list for free tax information booklets?
261. Did you explore the tax implications of anticipated business
transactions with your accountant?
262. Do you have a plan for the succession of the business
at the lowest tax cost to your family members?

Overall Management
263. Are you aware of how business plans can help you obtain
financing and manage your business?
264. Does your business plan meet the expectations of your
lenders, key investors and associates?
265. Do you have formal short-term and long-term goals that you
monitor regularly?
266. Do you know enough about your particular type of business
to operate it effectively and profitably?
267. Have you set out reporting procedures that enable you to
monitor progress toward your business objectives?
268. Have you assigned responsibilities for meeting your
objectives to key personnel?
269. Have you set objectives for the various parts of your
business plan?
270. Are you receiving timely answers to your "what if" planning
questions?
271. Do you have the information needed to permit you to
efficiently analyze the financial factors and trends affecting your
business?
272. Have you planned the way you will organize duties and
responsibilities?
273. Have you developed adequate management planning
approaches before making commitments or important decisions
covering future activities of the business?
274. Have you made an honest, objective investigation of the
probable success of your proposed policies?
275. Have you written down the main provisions of your general
and major policies?
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Overall Management Continued

276. Do you have policies to deal with customer needs(servicing,
complaints, etc.)?
277. Have you developed a policy on maintenance and
replacement of your fixed assets?
278. Have you discussed your proposed policies with
competent advisors and are they in agreement?
279. Have you made adequate provisions to ensure that your
policies will be understood and enforced, and that you will
receive ample warning of the need for policy adjustments?
280. Do you have procedures and systems in place for your
staff to implement and maintain effectively?
281. Have you established effective business and personal time
management practices?
282. If you are a manufacturer, have you developed
specifications and plans for your production process, including:
-scheduling
-materials requirements planning
-production methods
-product distribution
283. Have you taken any business management programs
through college, school, or night school?

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