Whatever your reasons for wanting to have your
own business you must do so with your eyes open. We have prepared a decisive self-employment assessment made up of 132 questions to help you evaluate your readiness, and to determine if you and
your planned business are a good fit.
The questions were designed to help you conceptualize
the enormity of your venture, understand the commitment of time and resources that
will be expected of you as the owner of a successful business, and help you think
about priorities and objectives as you formulate your plans.
Attaining success in a small business should not be left to luck or to chance. Realistic goals, careful planning, hard work and
determination distinguish successful entrepreneurs from those that try and fail.
Whatever your reasons for wanting to go into your own business you must do
so with your eyes open. We have prepared
a decisive self-employment assessment – 132 questions to help you evaluate your
readiness and to determine if you and your planned business are a good fit.
The consummate entrepreneur
would enthusiastically want to answer "yes" to every question. We expect you may answer "no" to some
of these questions and that is quite an acceptable response for anyone embarking
on a business venture. In fact, some questions
may not apply to your type of business idea. However, it is important that you realize that at some point in the start-up
phase of your business or in its stages of operational growth, you may eventually
have to assume responsibility for completion of most or all of these
tasks. Therefore, before you start a business
you have to, at least, consider each of these questions and then evaluate how it
relates to you and your business.
If you
are uncertain about an answer, do some research to find out.
If you find these questions
thought provoking, that is good. That is
one of the goals of the questionnaire. The
questions were designed to help you conceptualize the enormity of your venture,
understand the commitment of time and resources that will be expected of you as
the owner of a successful business, and help you think about priorities and objectives
as you formulate your plans.
You could
skim the questions, but that would defeat the purpose. We suggest you examine your responses, using a
multi-pronged approach. For each question,
ask yourself four additional questions. When
a question is challenging, make notes to delve deeper. Exploring the questions and your responses should
help you to make informed decisions. Are you ready to be an entrepreneur?
1. Are you a self-starter – a person who initiates work or projects without the urging of others?
2. Can you afford to work, not knowing how much money or success you will ultimately earn?
3. Can you afford to work without the security of a regular paycheck?
4. Are you willing to work harder and longer hours than you have ever worked before?
5. Are you able and prepared to make tough decisions on your own?
6. Are you the type of person who can admit that you may be overwhelmed, overmatched or overextended and need outside help?
7. Are you willing to ask for help and do you know where to find it?
8. How comfortable are you when you meet strangers?
9. How do you deal with people who are upset, opinionated, or belligerent?
10. Are you an effective leader, motivator, and communicator?
11. Are you willing to delegate authority and responsibility to others?
12. Do you take responsibility for your own actions and willing to acknowledge when you are wrong?
13.. Do you project a professional image to your clients and suppliers?
14. Can people count on you to do what you say you will do and believe in what you say?
15. Do you have managerial experience?
16. Do you have the business skills you need to run a business?
17. Do you have the technical skills required to run your particular enterprise?
18. Have you worked in a business similar to the one you want to start?
19. Can you list your strengths and weaknesses as each relates to operating all aspects of your business?
20. Do you have business partners or advisors who can compensate for your weaknesses? If not, can you afford to pay for the expertise you may need?
21. Have you researched your business thoroughly to get as much information as possible about your customers, competition, suppliers and market area?
22. How do you stay abreast of new developments within your industry?
23. Are you a good listener?
24. Are you a good problem solver?
25. Is your product or service unique?
26. Does it serve a customer need or want?
27. Can you define the advantages your product or service has over and above your competition?
28. Have you determined what your product or service will cost you?
29. Have you outlined the image you want your product or service to have in the marketplace?
30. Is your product or service one that can be copied by the competition?
31. Have you located and talked to suppliers who have what you need and will provide it at a reasonable price?
questions 32 - 46
32. Have you examined the types of business ownership to determine which best suits you - sole proprietorship, partnership, corporation, or limited liability company?
33. Can you afford the unlimited personal liability of sole proprietorship?
34. If you have chosen to form a partnership, have you drawn up a partnership agreement?
35. Do you know the difference between general partners and limited partners?
36. Have you identified the partners?
37 If you have chosen to form a partnership, have you determined how a partner can leave the business?
38. If you have chosen to form a partnership, have you determined how a you will settle disputes?
39. Are these decisions documented in writing and witnessed?
40. Have you filed the articles of incorporation with the Province in which your business is located?
41. If you are conducting business in more than one location (out of Province or out of Canada) do you have to register elsewhere?
42. Is your product one that should be protected by a patent?
43. If so, have you filed a patent application? Do you know how long the process takes?
44. Have you given your business, product, and service names proper trademark protection?
45. If the answer is yes are you using the trademark properly?
46. Does anything you have created require copyright protection?
47. Have you written a mission statement for your business?
48. Have you made a list of your business's strengths and weaknesses?
49. Have you identified present and future opportunities for your business?
50. Have you explored what threats your business might face?
51. Do you know what the key success factors are for your business?
52. Have you established long-term and short-term goals and objectives for your company?
53. Have you formulated a game plan?
54. Have you outlined specific ways to implement your company's strategy in the marketplace?
55. Have you established control systems that will help you determine how well your game plan is working?
Questions 56 - 65
56. Do you know the strengths and weaknesses of your competition?
57. Does your strategy include ways to handle new competition?
58. Have you researched economic and technological trends and determined how they will affect your business?
59. Have you evaluated key demographic and lifestyle trends and how they will affect your business?
60. Will changes in government change your business in any way?
61. Have you identified your company's target market?
62. Have you researched your target customers to know their likes, dislikes, wants, needs, and preferences?
63. Have you determined the level of satisfaction your target customers have with the completition or similar products or services?
64. How you will create value for your customers?
65. Do you know why your customers will want to buy your company's product or service?
questions 66 - 74
66. Have you developed a marketing strategy that is focused on your potential customers or clients?
67. How will you implement this strategy?
68. Does your strategy include value, quality, customer convenience and satisfaction, competitive advantage, expanding product lines or additional services?
69. Have you identified channels of distribution to deliver your product or service to your customers?
70. Have you established a price that is reasonable, competitive, and profitable?
71. Does your marketing strategy, pricing, means of distribution endorse the image you want?
72. Have you compared advertising media to select the most effective way to reach your target audience?
73. Have you created an advertising campaign that is distinguishable?
74. Does your advertising campaign answer the following question for your target audience, "Why should I consider buying this product or service?"
questions 75-88
75. Have you developed estimates for your one-time startup expenses?
76. Have you developed estimates for your on-going business expenses?
77. Have you created projected income statements for three months, six months, one year and three years for your business?
78. Have you created projected balance sheets for three years for your business?
79. Do you know how to analyze your company's financial statements?
80. Do you know what your company's breakeven point is?
81. Have you reworked your cost estimates to see if you can lower your breakeven point?
82. Do you know how long your company's cash flow cycle is?
83. Have you developed a budget for your company's first year of operation using a pessimistic, optimistic, and most likely sales forecast?
84. Have you set up a bookkeeping system to track receivables and payables and keep them current?
85. Have you developed a plan for collecting your accounts receivable promptly?
86. How will you monitor or control inventory?
87. Do you know how much inventory you need and how quickly or easily you can increase that amount?
88. Have you developed a contingency plan to deal with unexpected cash flow problems?
questions 89 - 92
89. Have you developed a complete business plan for your company?
90. When was the last time you reviewed or updated it?
91. Have you asked another reliable person to edit and evaluate your business plan?
92. Does your plan include a market analysis, management overview, financial projections, strategies for implementation and troubleshooting?
questions 93 - 106
93. Have you calculated how much money you will need to start your business?
94. Do you know how much money you will need to operate for the first six months, the first year?
95. In determining these amounts, have you included a cushion amount for unexpected expenses?
96. Have you determined the amount of personal money you have available to invest in your business?
97. Have you examined all your resources like life insurance or home equity?
98. Have you identified family members and friends who might be willing to finance your business?
99. Have you identified potential investors that you can approach to finance your business?
100. Are you willing to go into debt to start and operate your business?
101. Can you afford to pay back the debt? Monthly? In the near future?
102. Is your business idea of such a timely nature that it would not be able to withstand a delay while you save more money or find investors?
103. Have you considered revising your start-up strategy to lower costs?
104. Do you know a banker that you can approach for a loan?
105. Have you explored other forms of debt financing?
106. Have to you considered bartering your skills, product, or services for equipment, supplies or services that you need to start and run your new business?
questions 107 - 117
107. Have you compared the demographics of your proposed location choices to the profile of your target customer base?
108. Have you obtained reports from Statistics Canada concerning your location?
109. Have you evaluated site options in terms of the competition (both existing and potential), compatibility with surrounding businesses, and factors that may be unique to your business?
110. Which is better for your business in the long term – renting, leasing or owning the property that will house your business?
111. If you enter into a lease agreement have you considered your options at the end of the lease?
112. Can any of these options be included in your leasing arrangements?
113. If you have to move your business in the first year or two how will it affect your business?
114. Do you need room for expansion?
115. Do you need a private area for meetings, uninterrupted work or keeping confidential files?
116. Does the location meet necessary standards as set out by Provincial or local regulations?
117. Will you have to renovate?
questions 118 - 130
118. Will you operate the business by yourself? With family? Part-time help? Full-time employees?
119. Have you developed a human resources plan for your business?
120. Have you created job descriptions/ responsibilities for each area of responsibility in your company?
121. How will you recruit the workers you need?
122. Have you considered remote work or developed a contingency plan if remote work becomes necessary?
123. Have you developed a job application form that will give you the information you need about candidates.
124. Do you have all the information that you need so you can avoid charges of discrimination?
125. Do you know what questions you will ask in an interview that will give you the information you need to make a qualified decision about applicants?
126. Have you developed a plan for orienting and training your employees? On a continuous basis?
127. Is your compensation plan equitable and motivating to employees?
128. Have you developed a plan for evaluating your employees' performances regularly?
129. Have you developed a procedure for documenting employees' performances in case of termination
130. Have you consulted with the appropriate government agencies such as, Worker's Compensation, Labor Standards, Canada Customs and Revenue Agency to ascertain all you are required to do as regards to workplace safety regulations, tax deductions, import/export regulations, etc.
questions 131 - 132
131. Will you qualify for a loan?
132. How will a lender gauge your credit worthiness? The determination for your denial or approval is based on several factors. What you know about credit before you apply is important.
Study the Six C’s of Credit as you devise your plan for applying.
As a small business owner
you should assess whether you are sourcing enough good ideas from outside your
immediate think group. The more ideas generated, the greater the chance of
finding innovative ways to combine them into something new.
Inspiration can strike when you least expect it, but that is rather an inefficient way to drive innovation and creativity. Want a do-it-yourself approach to decision-making and problem solving? Try one of these brainstorming techniques to develop your ideas.
Professionalism is what you do visibly that impresses and inspires others and what you do behind the scenes – integrity, self-regulation, conscientiousness – that allows you to fulfill your role to the best of your ability and gives you a sense of satisfaction and self-worth.
When you are overworked and under pressure, try these two super easy-to-implement strategies to fend off procrastination. They can be completed quickly and more importantly they work best to set the tone for an excellent day.
Kindness should extend to our colleagues and work family. In the workplace, kindness is a catalyst that helps to build trust, drives morale, improves well-being, engagement, and productivity. Kindness makes you feel good and that is a good way to spend your day.
As a professional, you want to get the job done – and done well. You do what is necessary to produce results that exceed expectations. You recognize whatever you do to keep advancing personally and professionally also helps your business to thrive.
