SBA Checklist

Is This Franchise for Me?

There's no doubt about it: franchising is big business. Walk down any street and you're bound to see the same familiar names wherever you go.

SBA Entrepreneurs Checklist

Business Planning and Management Limitations

• Do you know your own personal management assets and liabilities?
• Do you have a written small business plan covering 1 to 5 years?
• Can you concretely define what product or service franchise you are in?
• Can you describe in writing what business franchise you are in?

Market Analysis

• Do you know in detail what factual market conditions and government requirements impact on your franchise?
• Do you know your specific geographic and demographic market areas?
• Do you know your market area business and franchise competitor by name, organization, size and gross sales?
• Can you describe in writing the strengths and weaknesses of competitors in your defined market areas?

Marketing Strategy

• Can you identify in a written business plan what advantages your franchise's products or services have over specific competitors?
• Based on the guidelines from the franchisor, can you describe in writing how your products and services are distributed or sold?
• Based on the guidelines from the franchisor, do you know what sources of supplies and costs are required to operate your franchise?

Financial Controls

• Can you detail the specific monthly cash and credit requirements of your franchise?
• Do you maintain a file of and stay aware of the advantages of small business computer planning, accounting, financial management and marketing controls?
• Do you use Standard Financial Industry Ratios as a guide to measure your franchise's annual performance?
• Do you maintain written costs of sales, breakeven analyses, profit and loss statements and appropriate accounting journals?

Personnel Function

• Do you know how much personnel money your franchise spends on human resource development as compared to competitors?
• Do you know exactly what employee benefits cost your franchise?
• Do you know the impact when compared with industry standards?
• Based on guidelines from the franchisor, do you have a detailed personnel plan for the management staff, clerical and specific labor (i.e., part-time, union) required to operate your franchise?

Operation, Organization and Special Areas

• Based on guidelines from the franchisor, do you have a detailed building or facility plan which documents the space required to operate the business?
• Do you know why your business is a franchise and the legal limitations or advantages of this business form?
• Do you use specialized consultants on a pre-planned basis for accounting, legal, tax, insurance, employee benefits and other critical business operational areas?