qprev_HBB Manual 2.qxd - Small Business BC

• Are business/professional activities andpersonal/household activities physicallyseparated as much as possible?• Is professional advice being obtained on aregular or as-needed basis; legal, accounting,bookkeeping, industry expert, business advisor,other?• Have you planned your insurance needs withan agent and secured adequate coverage?• Are all furniture, equipment, and machineryneeds itemized?• Can used, recycled or leased items reduceequipment costs?• Are plans for hiring, training and payingemployees in place?• Are you going to sub-contract work instead ofhaving employees, in order to simplify paperwork and maintain business flexibility?• Are business needs for supplies and materialsitemized and incorporated into financialprojections?• How will you handle expansion, unexpectedsuccess and high demand?• How will you handle unexpectedly low sales,sagging markets, and unanticipated economicshifts that could result in fewer sales than youprojected?Laws and Regulations• Have all required licenses and permits beenobtained?• Is the business operation in compliance withzoning and other bylaws?• Are provincial and federal sales taxes coveredin your plans?• Do you need a GST number?• Do you need a PST number?• Are municipal taxes allowed for in financialcalculations?• Are all regulations and laws that affect thebusiness adequately researched and is thebusiness operation in compliance with them?Financing and Cost Control• Have you determined your start-up costs?• Do your projections include the time it willtake for the business to develop sufficient salesto support itself?• What are your sales forecasts, expenses andprofits?• What is your break-even sales level?• Have you prepared one realistic and onepessimistic forecast for each key financialarea?• How will you control costs and expenses?• How much working or operating capital willyou need?• Are funds available for unforeseen difficultiesduring start-up (to be expected)?• Mow much of your own money will you beable to invest?• Where can you borrow or obtain additionalfunds?• Have you discussed financing with lendinginstitutions and suppliers?• Have you prepared a list of personal andbusiness assets that may be needed forsecurity/collateral?• Has a separate bank account been opened forthe business?• Have bookkeeping (financial records) andfiling systems been planned and put in place?106solutions for small business home-based business