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Opening A Business Checklist

February 19, 2008

First things firstAn opening checklist is a great place to start. Remember that airline pilots are required to use a checklist before they take off!

Here are items you should have on your opening checklist. Add additional items that would be appropriate for your own business.

Before you start checklist

  • Have I focused on a specific product or service? As a general rule, specialists outperform non-specialists. Think about this in any field: retailers, real estate and food (where did you buy your last take-out pizza or chicken)? For example, if you open a doughnut shop, it would not be a good idea to sell ice cream during summer months when the doughnut business slows down. If you do both, you will lose the identity of being the very best in either one of them.
  • Will further specialization or focus improve my prospects for success? The more specialized, the better.
  • Will my business be home-based? Online? Storefront? Franchise?
  • Have I acknowledged my competition and limitations? It may be hard to compete with Wal-Mart or Home Depot. These “category killer” discount chains have powerful buying power and efficiencies of scale. Does your marketing plan serve a special niche?
  • Do I understand the difference between finding a market “niche” and going against what the public wants? For example, if you build a house for sale, stick with a floor plan that most buyers are seeking rather than trying to be uniquely different.
  • Do I have a one-year cash flow projection prepared to ensure there will be ongoing liquidity? (Refer to Session 8).
  • Do I have the necessary e-commerce tools in place? (Refer to Session 10).
  • Are all insurance policies in force?
  • If I plan to sell on credit terms, is my credit rating policy in place to avoid taking on customers with poor credit ratings? The last thing you need is to have customers who don’t pay on time, and good customers will respect you for this policy.
  • Is my business plan complete and in written format? Does it include pre-opening, first year and long-range planning? It will play a key role in securing investors and will help uncover any weaknesses in the planning process. (Review Session 2, The Business Plan and use the free templates to prepare your plan.)