SBA Checklist

SBA Checklist for Owning a Franchise Business

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.

Owning a business is the dream of many Americans... a business converts your dreams into reality.

However, there is a gap between dreams and reality. Your dreams can only be achieved with careful planning. As an entrepreneur, you will need a plan to avoid pitfalls, to achieve your goals and to build a profitable business.

This checklist (provided by the SBA) is designed to help you get started. It has seven key components:

• Identify Your Reasons
• Self Analysis
• Personal Skills and Experience
• Finding a Niche
• Market Analysis
• Planning Your Startup
• Finances

Each component is comprehensive and is designed to prepare you for self employment. In addition, each component includes an analysis of you responses as well as a menu of supporting resources

IDENTIFY YOUR REASONS

As a first and often overlooked step, ask yourself why you want to own your own business.

• Freedom from the 9-5 daily work routine?
• Being your own boss?
• Doing what you want when you want to do it?
• Improving your standard of living?
• Boredom with your present job?
• Having a product or service for which you feel there is a demand?

A SELF-ANALYSIS

Personal Characteristics

• Are you a leader?
• Do you like to make your own decisions?
• Do others turn to you for help in making decisions?
• Do you enjoy competition?
• Do you have will power and self discipline?
• Do you plan ahead?
• Do you like people?
• Do you get along well with others?

Personal Conditions

• Are you aware that running your own business may require working 12-16 hours a day six days a week and maybe even Sundays and holidays?
• Do you have the physical stamina to handle the workload and schedule?
• Do you have the emotional strength to withstand the strain?
• Are you prepared if needed to temporarily lower your standard of living until your business is firmly established?
• Is your family prepared to go along with the strains they too must bear?
• Are you prepared to lose your savings?

PERSONAL SKILLS AND EXPERIENCE

• Do you know what basic skills you will need in order to have a successful business?
• Do you possess those skills?
• When hiring personnel will you be able to determine if the applicants' skills meet the requirements for the positions you are filling?
• Have you ever worked in a managerial or supervisory capacity?
• Have you ever worked in a business similar to the one you want to start?
• Have you had any business training in school?
• If you discover you don't have the basic skills needed for your business will you be willing to delay your plans until you've acquired the necessary skills?