BEST's Six Steps to Small Business Success

Business Start-up Diagnostic

For those of you who have completed the PRE BUSINESS RENEWAL or who simply
want to begin your business now, the BUSINESS START-UP DIAGNOSIS is provided. This Diagnosis combines elements of Business Idea Selection, Business Plan Development, and Business Start-Up (Steps 2, 3, and 4 ,respectively, in Best's Six Steps to Small Business Success). This BUSINESS START-UP DIAGNOSIS is aimed at those individuals who believe that they are personally and professionally prepared to go into business but want to develop a good business idea, or who believe that they already have a good business idea and who simply want to get started.

Each of the subparts of this BUSINESS START-UP DIAGNOSIS, Business Idea Selection, Business Plan Development, and Business Start-Up, is further developed with specific exercises, techniques, and discussions in the appropriate Step within Best's Six Steps to Small Business Success.

Instructions: Use the following values of a 5-point scale to score each of the statements.

Very Confident (I am very confident about this statement.)
Fairly Confident (I am fairly confident about this statement.)
Neutral (I feel neutral rather than positive or negative about this statement.)
Not Very Confident (I am not particularly confident about this statement.)
No Confidence (I am not at all confident about this statement.)

Answer each statement as honestly as you can, after you've read the accompanying clarification/explanation, (noted in italics). This is not the time for bravado because your personal, financial, and professional life may very well depend on your objectivity.

Use the "Comments" space under each statement to summarize your reactions/ideas to the statement. This will help with further analysis, whether it comes from you or another source.

Name: Email:

Business Start-up Diagnostic
1.	I believe that my business idea, or at least parts of it, is very creative and unique. (It is unlikely that your business idea will be totally unique but the more you can distance yourself from your competition{e.g. through product, price, or service} the more successful you're likely to be.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
2.	I have some basis in my life experience for this business. (Prior experience on any basis in relation to your business can be very helpful but not necessarily essential.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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3.	I have a definite passion for the business idea I have in mind. (Many business veterans will tell you that having a passion for your business will be a very important source of strength for you in those bad times that your business will inevitably face from time to time. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
4.	I understand and have reviewed the various external elements that could impact the success of my business such as the potential customer base, the competition, and the state of the economy, and believe that my business can compete effectively in this environment. (There are many different external elements that could impact the success of your business. You should do as much market research as you can afford to find out what the status of these elements is and how they could help or hurt your business. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
5.	I have a well thought-out, written general plan for my business. (1 out of 10 businesses fail within 10 years. Out of the survivors, 7 out of 10 have a well- developed business plan. Could there be a correlation? )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
6.	I am aware of what type of legal organization structure I want for my business and the rationale for it. (There are many different options for the legal structure of your business. Knowing what those options are could save a lot of headache (not to mention money) for you in the future. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
7.	I know which of my personal values that I would want to be part of my business. (By bringing some of your personal values into the start-up of your business, as appropriate, you will help ensure that the business develops within the framework of your values rather than someone else's values, or worse yet, valueless. Having this kind of framework is also helpful in recruiting and retaining the "right" staff. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
8.	I have a clear sense (vision) of what I want my business to become in 5 to 10 years, and I have a fairly good sense of how to get there. (Having a clear sense of what you want your business to become will help you identify and act on short range and medium range objectives. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
9.	I know how my business will be managed, including the use of an advisory group or a more formal board, as appropriate. I also know which management functions will have to be delegated inside the business or outsourced, if any. (This is no time for an over-inflated ego. If you are aware of any management weaknesses that you have, and you don't feel that you have the time and/or talent to develop a higher competency in them, then know how you are going to cover for them. In any event, don't leave any management areas exposed. You do so at your own peril.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
10.	Based on the market research that I have done, I know what marketing approach I will take to promote my business. (You will probably have limited funds for this but your marketing budget should be higher than usual at the beginning. Get creative to stretch the dollars.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
11.	I know how much money I will need to start and run my business for at least a year, including realistic cash flow projections. (Financial problems usually start right here, by underestimating the amount of cash you'll need or the amount of sales you'll generate. Make your best money projections and then increase it by 50% so you have some added protection. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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12.	I feel confident about the different sources from which I will be able to obtain the necessary funds, including my own personal resources. (If you need to borrow money, you'll usually be expected to put a substantial portion of your own money into the pot. In general, it's best to put off borrowing any money for as long as possible but that's not always an option. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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13.	I have identified and am reasonably prepared for a variety of contingencies that I know might occur. (Again, be as honest with yourself on this contingency issue as possible. Anticipate the contingencies and figure out alternative strategies for how to meet them.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
14.	I know what the exit strategy is for my business. (This may seem like a strange time to be concerned about exiting your business but many of the decisions you are making now, for example the legal structure and the kinds of personnel you might hire, will have an impact on how easily it will be to leave your business on your own terms. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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15.	I know the specific steps (and their interrelationship with each other) that I need to accomplish before I can open my business. (Even the smallest business can have an overwhelming number of tasks to be completed before the first customer can be served. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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16.	I have adequate and appropriate insurance coverage. (Before* you start incurring liabilities, make sure you have insurance coverage. You don't want to get stopped out before you really get started. )*	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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17.	I believe that the distribution channels I have identified and contracted with, either for receiving supplies/materials and/or getting my product/service to potential customers will be effective. (Distribution channels should generally be used when they can do the job better, faster, cheaper than you. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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18.	I have appropriate and effective legal counsel for the different aspects of my business. (Lawyers specializing in small business, as rare as they might be, are usually the best bet.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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19.	I have an appropriate and secured location for my business whether in the community or in my house. (In this era of sophisticated communication technology, "Location, Location, Location", is often being replaced with "Home Sweet Home", at least as an initial for a business location. There are advantages/disadvantages to both but the cost savings of a home location should at least be evaluated.)	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
Comments:
20.	The operations of the business, including personnel procedures if appropriate, are established and codified in written form. You are ready for Monday morning. (There are few things in life as exciting yet scary as that first customer. Have as many of the operational elements in place and written down before you start as possible. But don't be afraid to adjust once operations are underway. It is strongly suggested that you simulate the opening with a few of your close friends who will provide you with objective feedback. )	Very Confident	Confident	Neutral	Not Very Confident	No Confidence
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