o

t
w
o
H
e
Th book
Hand

smart
tips
Start-up
series

Checklists
10 practical worksheets

tools for analysing: balance sheets, ideas,

costs, industry, competitors, marketing & more

Bagged with Entrepreneur Magazine Not for sale separately
Issue 07 April 2008 www.entrepreneurmag.co.za

defining the business model

Get a Head Start:

Use these practical checklists to create clarity
and direction valuable tools to kickstart
your new business into reality.

Try These Mental Workouts:

Personal Balance Sheet

By filling out a personal balance sheet, you

will be able to determine your net worth your first
step to funding your business. pg 2

Personal Goals Worksheet

The How-to Guide

for Starting & Improving a Business
www.entrepreneurmag.co.za

Setting goals gives you an ongoing

roadmap for success, but it shows you the best
alternatives should you need or desire a change
along the way. Pg 4

markets for your product. Pg 10

Competitor Analysis
Worksheet

A worksheet to help you define

your competitors. Pg 11

Mission Statement

Key questions to develop

an effective mission
statement. Pg 12

10

Business Name Brainstorming

The tools you need to develop a catchy name

for your budding enterprise. Pg 5

The Best Business Idea

Think you have a hot business idea?

Put it to the test. Pg 6

Business Idea Analysis

This worksheet will help you determine how

successful you will be if you enter a given business
and sell a given product. Pg 8

Industry Analysis

Target Market Worksheet

It is critical to know who it is you are selling to.

This worksheet will help you find out. Pg 13

Start-up Costs Worksheet

These two worksheets will help you to

compute your initial cash requirements for your
business. They list the things you need to consider
when determining your start-up costs including onetime initial costs and ongoing costs. Pg 14

11

Market Planning Checklist

Before you launch a marketing campaign,

answer the following questions about your business
Use this checklist to help you define your
position in your industry and identify possible niche and your product or service. Pg 16

PUBLISHING CREDITS
publisher Andrew Honey managing editor Nicole Lombard copy editor Lesley Lambert art director Nikki Price
Entrepreneur South Africa is published by Smart Business Solutions (Pty) Ltd. A KreditInform Group Company

smart tips: start-up checklists

01 Personal Balance Sheet

By filling out a personal
balance sheet, you will be able
to determine your net worth
your first step to funding
your business.

liabilities analysis
liabilities

detail

totals

Secured Loans
Unsecured Loans
Credit Card/Charge Account Bills
Personal Debts
Current Monthly Bills
Real Estate Mortgages
Unpaid Income Tax

assets analysis
ASSETS

Other Unpaid Taxes and Interest

detail

totals

Cash, Cheque and Savings Accounts

Marketable Securities
Non-Marketable Securities

Other Itemised Debts

Total Liabilities

Net Worth (A B = C)

Total Liabilities & Net Worth

Real Estate/Home
Partial Interest in Real Estate
Vehicles

degree of debt analysis

Personal Property

If total liabilities exceed total assets, subtract assets from liabilities to determine degree of debt (B A = E)

Personal Loans
Insurance Cash Values
Other
Total Assets

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Total Liabilities

TOTAL ASSETS

DEGREE OF DEBT

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defining the business model

smart tips: start-up checklists

02 Personal Goals Worksheet

Setting goals gives you an ongoing road map for success.

personal goals worksheet

review your
goals
a regular
basis.for
Many
do this
1. ou
Theshould
most important
reason
foron
being
in business
myself
is: daily as it helps them assess
their progress and gives them the ability to make faster and more informed decisions.
You will find the following questionnaire very helpful in setting and resetting your goals.

03 Business Name Brainstorming

the tools you need to develop a catchy name for your budding enterprise.

business name worksheet

outhree
should
review
your
goals
on a regular
basis.you
Many
daily(e.g.,
as itchildrens
helps them
assess
List
ideas
based
on the
products
or services
plando
tothis
provide
clothing,
custom
menu
aromatherapy
products):
theirdesign,
progress
and gives them
the ability to make faster and more informed decisions.
You will find the following questionnaire very helpful in setting and resetting your goals.

2. What I like best about being in business for myself is:

List three ideas based on your special niche (e.g. affordable childrens special occasion clothes,
exclusive designs for the small restauranteur, aromatherapy for the office environment):
3. Within five years I would like my business to be:

4. When I look back over the past five years of my career I feel:

List three ideas based on your special niche (e.g. affordable childrens special occasion clothes,
exclusive designs for the small restauranteur, aromatherapy for the office environment):

5. My financial condition as of today is:

List three ideas combining a favourite theme with your special niche: (e.g. Tea Party childrens party
clothes, Table for Two menu designs, The Tranquil Desk aromatic office products):
6. I feel the next thing I must do about my business is:

7. The most important part of my business is (or will be):

after youve decided which name you like best,

ask yourself a few important questions
 ave you said it aloud to make sure its easily understood and pronounced? (Has it passed the test
H
with your family? Have you had a friend call to see how it sounds over the phone?)
Have you checked your local Yellow Pages to make sure the same or a similar name is not already listed?
Have you checked with your local business authority to make sure the name is available?
Have you started your trademark search?

8. The area of my business I really excel in is:

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smart tips: start-up checklists

04 The Best Business Idea

Think you have a hot business idea? Put it to the test. By Brad Sugars

hinking up a great idea is a

first step; its critical that you
take the time to thoroughly
examine the idea thats to become
your future livelihood. As most
business owners eventually learn,
its not the person running the
business, the marketing or the
employees that makes or breaks a
companys success; its the quality
and profitability of the idea behind
the company.
When you go into business,
you have to look at the idea or
opportunity driving it from a
different angle. Most people
wrongly choose a business based
on one of two personal biases:
n Its a business they already know.

The hairdresser opens a salon, the

lawyer his or her own practice and
so on. Generally, a huge mistake.
Theyre thinking about the job,
not the business. Just because
youre a good chef doesnt mean
you know how to run a restaurant.
More important, it doesnt mean a
restaurant would be successful in
your market.
n Its a product or service theyve
8 s m a rt tips series

a business
owner
should focus on getting a customer once,
but making a
profit from
that person
for a very
long time.

fallen in love with. Again, just

because you love something
doesnt mean a profitable
business will come of it. This
is especially true for first-time
entrepreneurs. Learning to run
a business is hard enough; you
dont need to make it any harder
by doing something you love
rather than something customers
love paying you a good profit for.
How can you be sure your idea
is also something from which you
can truly make a profit? There are
three essential considerations:

Make sure the product or

service has a repeat buy. This
is by far the most important aspect
of long-term business success. You
have to have a product or service
that people will keep buying. Its
better and more profitable, in my
opinion, to have a pool cleaning
company than a pool building
company, for example. Put another
way, a business owner should focus
on getting a customer once,
but making a profit from that person
for a very long time.

www. e n t r e pr e n eu r m ag. co. z a

Quick Tip:

Be certain you have a high

profit margin. There are very
few companies that can compete
long-term on a we are cheaper
marketing platform. In any new
business, you need to watch your
cash flow and if youre trying to
work with low profit margins and
make gains in volume, youll need to
have a high level of working capital
to keep you running through the
lean profits early on. Having a higher
margin is extremely important when
youre growing a business so you
can self-finance your growth.

Build a strong support team

a good idea isnt enough.
The idea counts most, yet a quality
idea must still have a great team
of people behind it to give it wings.
Time after time, when people
bring me a business investment
proposal or an idea they want to
take to market, I ask them whos
on their team and they respond
with something crazy like: Oh, we
havent hired anyone yet. Get a
board of advisors. Get a team of
professional accountants, coaches,
lawyers and bankers. A great team
will greatly improve the chances of
success for any business.

What would I choose if I were going into

business today? I would start with one
premise and some hot industries.
The premise is, you dont make
money panning for gold, you make
money selling pans. Get in the way of a
buying frenzy, and youll be a success.
The fastest way to make a restaurant
profitable is not by having a great chef and great
dcor; its by attracting a starving crowd with money.

more
i info
need some
inspiration?

Check out our

downloadable
sample business
plans. Log
on to www.

entrepreneurmag.
co.za

Once you understand this, the

question is, which industries are
gold rushes right now? With an
ageing population, health and
leisure are growing industry segments. Professional advice is at an
all-time high in many fields. Or, you
may want to look at my old favourite: staple products and services,
like paper or plumbing, that you
can deliver just a little better than
the competition.
One last point: start with the end
in mind. Look for an idea you can
take national or, even better, global
at some stage. It might be fun and
a challenge to establish yourself
locally right now, but eventually
youll want to build something
much bigger.
Entrepreneur Magazine SA. All rights reserved

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smart tips: start-up checklists

05 Business Idea Analysis

This worksheet will help you determine how successful you will
be if you enter a given business and sell a given product.

ssign each business opportunity and product a column number. Answer each question along
the left-hand side of the form assigning a rating of 1-3, with 3 being the strongest. Total each
column after youve finished. The opportunity and product with the highest total points are
your strongest candidates for success.

product marketability analysis

product
concept 1

product
concept 2

product
concept 3

product
concept 4

Probability of use by target market

Compatibility with image desired

business opportunity analysis

business
op 1

Competitiveness of price
business
op 2

Relevance of your previous experience to

opportunity
Familiarity with the daily operations of this
type of business

business
op 3

business
op 4

Number and strength of marketable features

Probability that product will enhance sales of
current line
Projected stability of demand

Compatibility of business with your

investment goals

Ability to overcome seasonal or cyclical resistance

Compatibility of business with your income goals

Uniqueness of product

Likely profitability of business

Ability of business to obtain needed equipment

Likelihood of business to meet your desire for

personal fulfillment

Likely acceptance potential

Projected growth for the industry

Ability of business to afford the development and

production of product
Column Totals

Acceptability of risk level

Acceptability of hours you will need to work
Column Totals

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total scores

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smart tips: start-up checklists

06 Industry Analysis
Use this checklist to help you define your
position in your industry and identify possible
niche markets for your product.

industry analysis checklist

07Competitor Analysis
This worksheet will help you define your competitors.

ompetitors are companies that make products or perform services

similar to yours (e.g. you deliver complete dinners, and so do they),
make products or perform services that can be substituted for yours
(e.g. delivery of pizza or Chinese food), and make products or perform services
that are analogous to yours (e.g. ready-made deli take-aways from supermarkets).
Fill in the following table about your competitors. You may need to create additional
tables to have enough room for all your major competitors.

Are there any new competitors in the arena?

Does everyone think this is a hot idea?
Have any gone out of business recently?
Why?

competitor a

What are your competitors annual sales?

Who are the major managers and members of the board?

Are there a small number of competitors for a large market, or a large number for
a small market?

What are the competitors strengths?

If there had been no recent innovation in your market, is it because the profit margins arent
there to make it profitable, or because the corporations are getting lazy and staid and giving
you a legitimate opportunity?

Is the company owned or in partnership with any

other corporations?

What are their weaknesses?

What is the companys product line?
How do the products compare to yours, in terms
of functionality, appearance and any other criteria?
What is their price structure?

Is there room for improvement in the quality of service given to the market
(for example, the Postal Service), which will give a new/small company an edge?

What are the companys marketing activities?

What is the history of your market? New markets, like microwaveable foods when microwaves
were first invented, grow and change quickly. Old markets, like radio manufacturing, may
be more difficult to enter. In an old market you must have a new idea, a real edge.
In a new market, you need to be fast.

What are the strengths and weaknesses of their

sales literature?

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competitor c

Where is your competitor located?

If there have been no new entries in the market, is it because there are fatal flaws with
the concept, or because you are the first with a new idea? Have you have figured out how
to overcome problems others didnt solve?

If all the other competitors are large companies, can you fit in a small but profitable
niche, or do you have the capital to compete head-to-head? Are you at risk of being
attacked by large, established corporations?

competitor b

What are the companys supply sources for products?

Is the company expanding or cutting back?

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smart tips: start-up checklists

08Mission Statement

To develop an effective mission statement, ask yourself these three questions:

mission statement worksheet

1. Why does our company exist? Who do we serve? What is our purpose?

09 Target Market Worksheet

knowing who to sell your product or service to is of critical
importance. use this worksheet to identify your prospects.

target market worksheet

1. Describe your idea:

2. What will the concept be used for?

2. What are our strengths, weaknesses, opportunities and threats?

3. Where are similar concepts used and sold?

3. What is important to us? What do we stand for?

4. What places do your prospects go to for recreation?

5. Where do your prospects go for education?

Now that youve answered those questions, you are ready to write your own mission statement.
Use the area below.

6. Where do your prospects do their shopping?

7. What types of newspapers, magazines, newsletters do your prospects read?

8. What TV and radio stations do your prospects watch and listen to?

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defining the business model

smart tips: start-up checklists

10

Start-up Costs Worksheet

The following two worksheets will help you to compute the initial
cash requirements for your business. They list the things you need to
consider when determining your start-up costs and include both the
one-time initial costs needed to open your doors and the ongoing costs
youll face each month for the first 90 days.

capital requirements one-off start-up expenses

start-up expenses

Advertising
Starting inventory
Building construction
Cash
Decorating
Deposits
Fixtures and equipment
Insurance
Lease payments
Licenses and permits
Miscellaneous
Professional fees
Remodeling
Rent
Services
Signs
Supplies
Unanticipated expenses
Other
Other
Other
Total Startup Costs

amount

description

Promotion for opening the business

Amount of inventory required to open
Amount per contractor quote and other
Amount needed for the cash register
Estimate based on quote if appropriate
Check with utility companies
Use actual quotes
Quote from insurance agent
Fee to be paid before opening
Check with city or municipal offices
All other
Include CPA, attorney, etc.
Use contractor quotes
Fee to be paid before opening
Cleaning, accounting, etc.
Use contractor quotes
Office, cleaning, etc. supplies
Include an amount for the unexpected

Amount of costs before opening

capital requirements ongoing monthly expenses

start-up expenses

amount

Advertising
Bank service fees
Credit card charges
Delivery fees
Dues and subscriptions
Health insurance
Insurance
Interest
Inventory**
Lease payments
Loan payments
Office expenses
Payroll taxes
Professional fees
Rent
Repairs and maintenance
Sales tax
Supplies
Telephone
Utilities
Your salary
Other

description

Exclude amount on preceding page

Exclude amount on preceding page

Exclude amount on preceding page

Principal and interest payments
Payroll other than owner

Exclude amount on preceding page

If applicable for first three months

Total ongoing Costs

Total Start-up Costs

Amount from preceding page

Total Cash Needed

*Include the first three months cash needs unless otherwise noted.
**Include amount required for inventory expansion.
If inventory is to be replaced from cash sales, do not include here. Assume sales will generate enough cash for replacements.

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smart tips: start-up checklists

11 Market Planning Checklist

Before you launch a marketing campaign,
answer the following questions about
your business and your product
or service.

marketing checklist
Have you analysed the market for
your product or service? Do you know
which features of your product or
service will appeal to different
market segments?
In forming your marketing message,
have you described how your product
or service will benefit your clients?
Have you prepared a pricing
schedule? What kinds of discounts
do you offer, and to whom do you
offer them?

Do your marketing materials mention

any optional accessories or added
services that consumers might want
to purchase?
If you offer a product, have you
prepared clear operating and assembly
instructions? What kind of warranty
do you provide? What type of customer
service or support do you offer after
the sale?
Do you have product liability
insurance?

Have you prepared a sales forecast?

Is your style of packaging likely to

appeal to your target market?

What type of media will you use in

your marketing campaign?

If your product is one you can patent,

have you done so?

Have you planned any sales

promotions?

How will you distribute your product?

Have you planned a publicity

campaign?

Have you prepared job descriptions for

all of the employees needed to carry
out your marketing plans?

All information featured in this booklet Entrepreneur Media Inc. All rights reserved

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The How-to Guide

for Starting & Improving a Business
www.entrepreneurmag.co.za