Personal AssessmentPersonal AssessmentEssential QuestionsBefore you begin writing your plan, you need clear answers to a number of questions. They are provided in two documentsone for personal and this one for business assessment. This set of questions covers the areas specific to the business you will start / have started. The other set pertains to your personal reasons for owning a business.

Weve provided the questions as a list and as responses you can customize. They include a variety of suggestions. Please make all the changes you like. The most important part of this process is clarifying for yourself what starting a business is really about for you. With slight modification, some of the responses you create here can be copied and pasted into different areas in your business plan.

The answers to the Personal Assessment questions may help you determine your readiness to begin building your dream. You may find that this is exactly the right time to get started, or that you have some homework to do to prepare to take the next steps in your venture. Either way, complete the questions before you start writing your plan. Youll be better prepared to write your plan and start your business when you have solid answers to these questions. The answers to the Business Assessment questions will help you structure your ideas in a way that will support success in your business.

Business PerspectiveKeys to Building a Successful Business

Your Market

What do you plan to sell?Why do people buy what you plan to sell?Why does the world need you?How big is this market?Who makes up your market?Who else is doing the same thing?Why will the market buy from you?Where is this market in its life cycle?What do you see happening in this market?How will you reach and inspire the world to buy from you? [How will you get their attention?]How will you sustain sales?

Your Business

Who are you?Where did you come from?What is the purpose of your business?What is your vision for this business?What makes you most likely to succeed?How do you make money?Who will help make your business successful?Who is behind your business?Where are you today?What are your goals and objectives?

Finances

How much money do you need to get started / to grow?Where will you get the money?Whats the deal?How much will you / investors make?When will you / investors see a return?What are your long-range future plans?

Business PerspectiveKeys to Building a Successful Business

Your Market

1. What do you plan to sell?This business will sell [xxx services as an owner-operated service / xxx services for xxx that will include a parts inventory to support the service / xxx, a product for xxx / xxx products for xxx and supporting services / consumer or B2B goods in a (shop / store / catalog / online store)].

2. Why do people buy what you plan to sell?People need [what you sell] to [complete important projects / be entertained at home / keep their appliances operating / remodel business space to suit their businesses, etc]

3. Why does the world need you?My business offers xxx that [other competitors dont provide / is proprietary technology / is unique in the market because / meets convenience needs of xxx / people dont yet know they need, but will when I tell them].

4. How big is this market?The market in [area where you plan to offer your xxx / this (state / county / city / neighborhood) / nation(s) / xxx global market] includes roughly xxx potential customers. Actual spending in this market exceeds $xxx annually. Research indicates that this business could secure xx% of this market.

5. Who makes up your market?Customers in this market are typically [provide customer demographics and buying patterns].

6. Who else is doing the same thing?XX competitors compete in the specific market this business targets. They are: [provide competitor names, market share, and how they are likely to be affected by your business.]

7. Why will the market buy from you?The market will buy our xxx because [list reasons].

8. Where is this market in its life cycle?The market we are targeting is [about to emerge / emerging / in the growth cycle / mature / declining / obsolete].

9. What do you see happening in this market?Observation, fluctuations in our sales, current market trends and industry analysts indicate that [describe market direction and its influence on your business].

10. How will you reach and inspire the world to buy from you?We will inspire sales by [describe how you will make your product / service visible in the marketplace and how you plan to promote your products / services / business.]

11. How will you sustain sales?We plan to [describe how you will acquire and retain customers; how you will generate repeat sales and returning customers].

Your Business

12. Who are you?I am a xxx, with xx years background in xxx, and extensive experience with xxx, which makes this business ideal for me.

13. Where did you come from?My experience with xxx was acquired while serving as xxx at xxx. Additional experience with xxx and xxx come from my work with xxx. I have also served in xxx capacity in a community / service / non-profit / church / volunteer program where I gained skills for xxx.

14. What is the purpose of your business?The purpose of this business is to [meet the needs of xxx in the xxx market / fill a serious shortage of xxx / create an environment where xxx can xxx / provide support for xxx, etc], while allowing [me / all x company principals / my family] to xxx.

15. What is your vision for this business?I see this business [what will you or the business be doing?] in [describe the surroundings] providing [describe your product / service] for [describe your customers / market]. By [the point in the future when you will feel success] I expect to be serving x% of the market in this [market niche / locale / industry] and realizing profits of xxx.

16. What makes you most likely to succeed?Success in this business hinges on our vision and the passion {I / we] bring to providing xxx for our customers. It also depends on [flexibility to respond swiftly to changes in the marketplace / our ability to manage growth / getting the right people in key roles / getting to market ahead of the competition / innovation and well-timed execution / a strong public image, etc].

17. How do you make money?We make money by [providing xxx service(s) / selling xxx / / selling xxx products and offering xxx supporting services / offering xxx service and the materials to deliver the service].

18. Who will help make your business successful?Our seasoned management team, with the addition of [list management staff you still need] provide the experience and insights to lead this business to success. Our team of [designers / engineers / sales staff / administrative staff / production staff] fill supporting roles and outside experts will provide guidance with [accounting / legal matters, etc.] We plan to outsource [production / PR / marketing / fulfillment] to allow us to focus on our primary areas of competencethe business of our business.

19. Who is behind your business?We have financial backing from [each of our company principals / loans from (business associates / family / friends) / a line of credit with xxx Bank / investments from xx angel investors / investments for xx% of the company from VC firms].

20. Where are you today?We are [in business / planning to launch the business on (start date) / in the early planning stages / completing our business plan / planning to expand the existing business / planning to downsize the business / selling off a division to make way for a new product launch / approaching bankers or investors / preparing to merge, sell or be acquired / preparing to sell off assets and close the business].

21. What are your goals and objectives?Our initial objective is to [get the business started and profitable / achieve sales of $X by xxx / secure X% market share by xxx / take the business to IPO / acquire xxx (a competitor, a complementary business, OEM licensing for xxx, a patent on xxx for licensing to a manufacturer / grow the business to the point where I can comfortably quit my current job / generate sufficient sales to xxx / grow the business to the point where we can sell it and retire to xxx, etc].

Finances

22. How much money do you need to get started / to grow?We will need $xxx to [get the business started / open our doors / expand the xxx line / add xxx new products / expand our facilities / hire people to meet the demand for xxx, etc].

23. Where will you get the money?Funding will come from [personal credit cards / the principals / family / friends / a secured loan / a character loan / a bank line of credit / angel investors / VCs / sale of assets / sale of real property, etc]

24. Whats the deal?The deal for [principals is their investment plus x% of profits] OR [family / friends is payback within xx months / years, with x% interest on their investment or x% of the business] OR [for angel investorswhatever they say ;-] OR [for VCs, x% of the business and xx at IPO].

25. How much will you / investors make? [This question is unnecessary if you describe the deal.]Investors will make whats specified above.

26. When will you / investors see a return?We expect to be profitable by xx, and to have investors seeing a return by xx.

27. What are your long-range future plans?We plan to xxx by xxx, with an eye to [selling / acquiring / expanding / merging / cashing out] in approximately xx years.

Executive Team Background Template

[x], [Title], [age], [Degree, University of xx][Executive First Name]'s professional experience includes many different areas in the [xxx] industry.[He / she] has been involved in [xxx], and [Executive First Name]'s [design / management / sales / marketing] experience covers many diverse areas.[He / she] acquired knowledge of [example: electronics and mechanical design] to develop [x]s that are used to [example: gather information from outer space]. At [former company], as a [former title], [Executive First Name] was involved in the development of [xxx].After learning the basic techniques of [example: C++ programming], [Executive First Name] worked with [example: automated accounting systems] for more than [xx] years.While working for [former company], [Executive First Name] was involved with [xxx]. There [he / she] developed [xxx].[Executive First Name] enjoyed considerable success as [job title] at [former company(s)], however, [he /she] became interested in [xxx]. With a clear picture in mind, [Executive First Name] went in search of a company where [he / she] could [xxx]. [Executive First Name] found that [Company] was developing such a [xxx], [he / she] accepted [Company]s offer, and has been with [Company] for [xx] [months / years].

Personal AssessmentEssential QuestionsBefore you begin writing your plan, you need clear answers to a number of questions. They are provided in two documentsone for business and this one for personal assessment. The set of questions pertains to your personal reasons for owning a business; the other set covers the areas specific to the business you will start / have started.

Weve provided the questions as a list and as responses you can customize. They include a variety of suggestions. Please make all the changes you like. The most important part of this process is clarifying for yourself what starting a business is really about for you. With slight modification, some of the responses you create here can be copied and pasted into different areas in your business plan.

The answers to the Personal Assessment questions may help you determine your readiness to begin building your dream. You may find that this is exactly the right time to get started, or that you have some homework to do to prepare to take the next steps in your venture. Either way, complete the questions before you start writing your plan. Youll be better prepared to write your plan and start your business when you have solid answers to these questions. The answers to the Business Assessment questions will help you structure your ideas in a way that will support success in your business.

Personal PerspectiveChoosing a Business thats Right for You

Your MotivationWhat are / were your personal reasons for starting your own business?

What are you really good at?What have people always told you youd be good at?Do you have interests, talents or hobbies that are marketable?What business do you want to be in?Why do you want to be in that business?What do you like doing so much that youd do it for free if you were independently wealthy?What business will fit your interests, your strengths, and let you use your existing skills and experience? Is that the business you want to be in? Your Interests and Experience

What do you like to do with your time?What do you bring to the business that will make it viable?How will you ensure success?

Personal Considerations

Will this be a part-time or full-time business; will you keep another job while running your business?Are you a self-starter?How well do you juggle multiple demands on your time / attention?How well do you deal with pressure?How much time are you willing / able to dedicate to the business?Will your family be supportive?Will the business involve other family members?

Factors For SuccessWhat need will your business fill?

Is your idea practical?What kind of business do you want to run?Home-based / freelance, shop / production facility / storefront, or client-locationOwner-operated with employees / without employeesProduce and sell a product(s), sell a product(s), or provide a serviceOperate a franchiseMulti-level

Personal PerspectiveChoosing a Business thats Right for You

Your Motivation

What are / were your personal reasons for starting your own business?Starting this business allows me to [be my own boss / have the flexibility I want / find financial independence / leave an unhappy or uncomfortable job / challenge myself / have creative freedom / fully use my skills and knowledge / bypass discrimination / involve my family in my business life / have more time with my family / work from home / work close to home / eliminate an ugly commute / live in an area I might not be able to live in otherwise / go to school while providing for my family] I have a passion for xxx and the time is right to act on it.

What are you really good at?Ive always been good at [accounting / marketing / cooking / managing production facilities / sales / negotiations / managing my time / staying focused / coming up with ideas for xxx / managing a team / recognizing market gaps / writing / guiding people in their businesses / working with kids / growing things / working with animals / customer service / designing xxx / creating xxx / delivering xxx / making people happy, etc]

What have people always told you youd be good at?For years people have told me I should open a / an xxx

Do you have interests, talents or hobbies that are marketable?Ive always loved xxx and I could market xxx. I have a gift for / love to xxx. Ive already sold xxx, and see where I could sell or market xxx

What business do you want to be in?I want to be in the business of xxx

Why do you want to be in that business?I want to be in that business because [I get great satisfaction from xxx / Im very good at xxx / I see a huge gap in the market for xxx and I know how to fill it / nobody else is doing it / nobody can do it as well as I can, etc.]

What do you like doing so much that youd do it for free if you were independently wealthy?Money considerations aside, I would spend my time [working with children in xxx / consulting with new businesses / cooking for xxx / producing xxx / selling xxx / protecting the environment / photographing wildlife, etc]

What business will fit your interests, your strengths, and let you use your existing skills and experience?The business that would fit my interests and utilize my strengths, skills and experience would be a business that xxx, xxx, and xxx.

Is that the business you want to be in?The business I want to be in will [utilize my skills and experience in xxx / use some of my skills / require some additional education / training / allow me to develop skills in xxx / require other people to complement my skills / experience / require extensive retraining that I am anxious to get, etc]

Your Interests and Experience

What do you like to do with your time?I like to spend time xxx. This [lends itself to building a business in xxx / conflicts with demands on my time as I start my business / will fit into the flexible schedule I anticipate for my business].

What do you bring to the business that will make it viable?I have xx years of experience in xxx, and have dedicated xxx [hours / months / years] to xxx while it was my [vocation / hobby / supplementary income source]. I also have xx years experience working with xxx in a volunteer role with xxx, and intermittent experience in xxx. Combined, I [have / am developing] the necessary skills and experience to successfully operate [a / an] xxx business.

How will you ensure success?To help ensure the success of my business, I have / will [evaluate the market / secure letters of intent from prospective customers / promote my business to xxx / make the press aware of my business / hire the best xxx to xxx in the business / carefully manage cash flow / stay on the leading edge of technology in my field / market to the customers who most need what I offer / offer a strong value proposition to prospective customers / price my products to support their actual value / identify ways to produce my products most economically, etc]

Personal Considerations

Will this be a part-time or full-time business; will you keep another job while running your business?I plan to [run the business part-time and continue my current job until: my business is funded / run the business part-time until my business plan is complete and I have a location for my business / keep my current job and run the business on the side indefinitely] OR [start this business immediately on a part-time basis / start full-time immediately / start the business once I have xxx] OR [work the business full-time 40 hours each week and hold a part-time job until the business stabilizes].

Are you a self-starter?Im good at [self-starting / getting something started then delegating to someone else to finish / generating ideas for others to carry out / taking direction, so Ill hire someone to handle the starting aspects of the business / responding to customer or client requests / proceeding under my own steam once I have a clear direction outlined, etc]

How well do you juggle multiple demands on your time / attention?I have [frequently worn many hats and multi-task well / occasionally had to multi-task and find it challenging / not handled multiple demands well in the past / people on board to help with setting priorities, etc].

How well do you deal with pressure?I [perform best under pressure / hate pressure / have chosen this business for its lack of pressure / handle pressure by delegating what I dont handle well, etc].

How much time are you willing / able to dedicate to the business?I am willing to dedicate [all my time / whatever it takes / up to xx hours per week / nights and weekends / part of my family time / time I used to dedicate to golf (or whatever you did)] until [the business is running / I have qualified managers in place / we show a profit / the investors are repaid / I retire].

Will your family be supportive?My family [is 100% enthusiastically behind me / is skeptical / will be involved in the business / has a vested interest in my success (their money) / has agreed to back me while I get the business going / doesnt know what Im doing / will be informed once I succeed, etc].Will the business involve other family members?My [family member(s)] has [put up cash / agreed to partner with me / will work in the business / will keep his / her job (indefinitely / until the business is profitable) / will join me in the business in xx (months / years)].

Factors For Success

What need will your business fill?This business will fill my need for xxx, and a need in the xxx market for xxx.

Is your idea practical?Based on my experience with xxx, and [extensive / reasonable / some] research, this is a [very / somewhat / marginally] practical idea.

What kind of business do you want to run?Home-based / freelance, shop / production facility / storefront, or client-locationOwner-operated with employees / without employeesProduce and sell a product(s), sell a product(s), or provide a serviceOperate a franchiseMulti-levelOther (describe)