The reason why 80% of start-up businesses fail by their 2nd year is as a result of poor planning. Some folks don’t even know what is required before starting a business. An idea just pops into you head, you raise a little capital and bingo, you go live with your business and even expect to make a million in the first 6months. So I compiled this for my friends who have given self employment a shot before and had little success, and for those, whose businesses are still standing, before you go Rambo with your next idea/project, make sure you’ve gone through this checklist thoroughly.

Background work

  • Analyze your business idea by doing a SWOT analysis
  • Assess your strengths and weaknesses as an entrepreneur
  • Establish business and personal goals
  • Assess your financial resources and identify potential sources of funds
  • Identify the financial risks
  • Determine the start-up costs
  • Decide on your business location
  • Do a thorough market research
  • Identify your customers
  • Identify your competitors
  • Develop a marketing plan

Business transactions

  • Select a lawyer and an accountant
  • Choose a form of organization (proprietorship, partnership, or corporation, for example)
  • Create your business (register your name, incorporate the business, etc.)
  • Prepare a business plan
  • Select a banker and set up a corporate account
  • Apply for business loans and grants (if applicable)
  • Establish a line of credit (if possible)
  • Select an insurance agent and obtain business insurance

First steps

  • Prepare corporate brochures
  • Build a web site
  • Set-up corporate e-mail accounts
  • Get business card
  • Obtain a lease
  • Line up suppliers (if applicable)
  • Get furniture and equipment
  • Obtain business licenses or permits (if applicable)
  • Get a federal employer identification number (if applicable)
  • Get a state employer ID number (if applicable)
  • Send for federal and state tax forms
  • Join a professional organization
  • Choose a starting date
  • Prepare and deploy your communication/marketing strategy