Business Checklist - Research Phase
Business Checklist - Research PhaseWhen starting or purchasing a business you may need to undertake some or all of the following activities. Contact numbers can be found on the list of useful contacts .
Check on what licenses/registrations may be required through Business License Information Service
Check with a local council re-zoning, health regulations whether you need to lodge a Development Application or a Building Application.
Consult people currently operating in your industry - suppliers, competitors, agents, associations, and authoritative individuals.
Identify any trends and seasonal factors and reflect these in your sales forecast and cash flow projection.
Undertake Market research to determine target market, size, and location of market and distribution channels.
If buying an existing business, obtain 3 years trading figures (profit and loss statements, etc), history of the business and its owners, break up of purchase price (land, buildings, equipment, stack at value, intangible assets including goodwill, databases, patents, etc.) and determine real reason for sale.
Do a SWOT analysis (strengths, weaknesses, opportunities and threats) on the venture. Identify any perceived barriers the community may have to your venture. Checking alignment with Market Research and personal suitability. Utilise First Base Services, BizLink, seminars/workshops and other resources at the Hunter Region BEC.
Estimate the sales of your products and services for the first and second year of operation.
Determine: establishment costs, pricing policy, sales forecast, break even point and funds required.
Develop marketing plan (covering publicity, public relations, sales promotions, personal selling & advertising.
Prepare Cash Flow projection.
Determine your personal financial position (i.e. assets less liabilities).
Research a Business Plan of feasibility study, covering such areas as development costs, management plan, and financial plan.
Choose a qualified Accountant and discuss your proposal.
Determine legal structure for operation (company/partnership/sole trader).
Check tax obligations
Determine training needs for management and staff.