THE START-UP TOP 10 CHECKLIST

We live in a time where the word “Start-up” has become fashionable and everywhere you turn, someone is either about to launch a start-up or has just launched one in the past 6 months. As a business coach who has worked with many start-up founders and small business owners over the past 10 years, I have developed a basic checklist, which every start-up founder should follow before launching their start-up. Here are the main issues in the list for you to consider:

1-WILL THE IDEA MAKE MONEY?

You have this amazing start-up idea and are ready to go. However, you need to first evaluate your idea to get a clear picture of weather you will be successful. The main question to ask yourself – does the idea work and can it make money and be profitable? Speak with as many people as possible to get their opinion, will they buy your product or service? Do they think it’s unique? Would they be attracted to the proposed price? Is there anything similar? What do you need to do in order to make it successful? The more questions asked and the more answers provided, the better the chances of success.

2 - RESEARCH, RESEARCH,

RESEARCH – Sadly, this is one area which is most neglected by start-up founders. Every founder thinks that their idea is unique and nobody else is doing it. Other founders that take an existing idea and give it a new twist think that the twist is unique and nobody else has tried it before. The more research you conduct in your industry and target

market, the more you discover what is already out there, how and if it is similar to your idea and even if the idea does already exist, is your idea a modified version that people will want?. You also need to research your competition and understand how they are doing, what they are doing and most importantly, is their idea working and making money?

3 – WRITE A BASIC BUSINESS

PLAN – This is another area mostly neglected by founders. However, it is a very important and critical step in laying down the foundation of your start-up. A well researched and thought-out business plan becomes the basic roadmap for the initial stages of your business. Remember that a business plan document is a work in progress and is constantly modified as circumstances evolve during the first year of your start-up.

4 – BUSINESS STRUCTURE – Are you the only founder? Do you have cofounders? What is the equity structure of the start-up? The answers to all these questions determine if you need to start as a sole proprietorship, partnership or is there is a need to incorporate your company as a limited liability entity.

5 – BUSINESS NAME AND LOGO –

To a certain degree, the strength of a business name and logo determine the success of the business in this age of social media. Ideally, come up with a list of 10 names and then bring them down to 3 as part of your research. Also check if the domain name is available, either as the name of your company or the name of your brand. If having a domain name is important, then you might need to change the name if the domain is not available. Should you need to incorporate your company, first conduct a name search before filling out a registration application to ensure that the name is available.

6 – REGISTERING YOUR BUSINESS –

Now that you have finished conducting research on available names and have decided on one, it’s time to quickly register your business and brand name.

7 – OPEN BUSINESS BANK

ACCOUNTS – As much as you might be tempted to use your personal savings account to do your initial business transactions and save some money, I strongly advice against it. Getting your accounting structure properly set-up (which includes opening the right kind of business banking current account) right from the beginning will go a long way in keeping your books of accounts clean and up to date. This will plan an important role when you finally seek external funding as the potential investor is going to do a complete audit of your business accounts to confirm that your numbers are what you claimed in your presentation.

8 – OPENING OTHER IMPORTANT

GOVERNMENT ACCOUNTS – Make sure to apply for your GST number as well as register for your other relevant accounts like Payroll, import/ export licence (if you need one) and corporate tax accounts. Note that some of these registrations take time and must be completed before your start your business hence it’s important to apply for them well in advance. You will also need to get a business licence from your local municipal office.

9 – SPECIAL PERMITS AND

REGISTRATION – Certain businesses may require additional registration from government bodies or industry regulators. Check with your local industry association if your startup needs additional licencing and registration from them or other government bodies.

10 – INTELLECTUAL PROPERTY

REGISTRATION – If you are the inventor of a unique product, you will need to file for a patent for which you will need to consult with a patent lawyer. Local start-up centers can assist you with the legal process.

As you may have noticed, I did not mention Funding from external sources like investors anywhere in my checklist. I believe that investor funding should only be taken if you have reached a stage where you have a number of paying customers, are reporting an operating profit and are now ready to rapidly scale the business in a specific market. This checklist is designed to make the start-up founder think in a more conservative, planned and sustainable manner which will allow him to research all the necessary steps required to launch a new startup. While going through the list, you might discover that you are not yet ready and need to do more homework and research prior to launch. Keep in mind that entrepreneurship is not for everyone as not everyone is prepared to take the necessary risks involved with launching a new business. All the best.

Rajula is an entrepreneur, international business coach and newspaper columnist with the OHerald in Goa, India. He has an extensive background in business development and marketing and in his spare time like to cook and travel.