Researching & Writing a Business Plan Management Assessment Small Business Development Center University of Wisconsin Oshkosh College of Business Tel. 1-800-232-8939 (In Oshkosh, (920) 424-1453) Web Site: www.uwosh.edu/sbdc *Business Planning Process Overview Step #1 Market Assessment Step #2 Financial Assessment Step #3 Management Assessment Step #4 Securing Start-Up/Expansion Financing *Management Assessment Will Starting or Owning A Business Make Personal Sense? Your Current Business Skills (Worksheet #11) Areas for Personal Improvement Areas to Seek Outside Assistance Your Personal Finances (Worksheet #12) Personal Income Personal Assets and Liabilities Personal Goals (Worksheet #13) Five-Year Goals Goals for the Coming Year Impact of a Business on Your Life (Worksheet #14) Impact on Personal Life and Goals Impact on Others Who Are Part of Your Life Impact of a Business on Your Personal Goals (Worksheet #15) Potential Risks Potential Rewards
Researching & Writing a Business Plan Management Assessment Worksheet #11 Assessing Your Business Skills There are many skills required to start and run your own business. Part of the key to running a successful business is to build on your strengths and take steps to address your weaknesses. Rank in order from 1 thru 5, your current knowledge or experience of each of following: Accounting & Finance managing the financial aspects of the business, including budgeting, paying bills, establishing pricing, collecting accounts, calculating taxes, working on payroll, etc. Product/Service Delivery physically producing the product or providing the service to the customer, including supervising co-workers. Advertising and Marketing promoting products or services to potential customers using a variety media, such as news releases, promotional events, paid advertising on television or radio. Sales & Customer Service Management dealing directly with current and potential customers including providing product and service information, preparing price quotations, closing the sale in person or on the telephone. Personnel Management recruiting, hiring, managing, evaluating, promoting and discharging employees, in compliance with local, state and federal laws and regulations. Business Skill Area Current Level of Knowledge or Experience 1. Strongest Skill 2. 3. 4. 5. Skill Most Needing Improvement
Worksheet #11 Assessing Your Business Skills (cont.) In light of your current business skills, what is your plan or strategy for managing these areas of your business? Possible strategies include doing the work personally based on your current skill level or after more training, using outside resource people (such as bookkeepers, marketing consultants, etc.) and/or hiring employees with the required business skills. Business Skill Area Management Strategy Accounting & Finance managing the financial aspects of the business, including budgeting, paying bills, establishing pricing, collecting accounts, calculating taxes, working on payroll, etc. Product or Service Delivery physically producing the product or providing the service to the customer, including supervising co-workers. Advertising and Marketing promoting products or services to potential customers using a variety media, such as news releases, promotional events, paid advertising on television or radio. Sales & Customer Service dealing directly with current and potential customers including providing product and service information, preparing price quotations, closing sales in person or on the telephone. Personnel Management recruiting, hiring, managing, evaluating, promoting and discharging employees, in compliance with local, state and federal laws and regulations. Product or Service Development generating ideas for new products or services, and/or finding ways to improve existing products or services.
Researching & Writing a Business Plan Management Assessment Worksheet #12 Assessing Your Personal Finances Evaluate Your Current Income Look carefully at your current income - the amount of money that you are used to living on. Your total income will probably decrease during the first year of your new business. How much you are willing to put at risk in your small business? Source of Income Annual Amount Salary Bonuses and Commissions Rental Income Interest Income Dividend Income Capital Gains Partnership Income Other Income: Total Income
Worksheet #12 Assessing Your Personal Finances (cont.) Evaluate Your Net Worth Your net worth - what is left after subtracting liabilities from assets - will be a factor in credit decisions. Evaluate your net worth by doing an inventory of your assets - what you own and liabilities - what you owe. Assets Amount Liabilities Amount Cash in Bank Mortgage Loan Readily Marketable Securities Non-readily Marketable Securities Accounts and Notes Receivable Cash Value of Life Insurance Residential Real Estate Real Estate investments Personal Property Other Assets (list): Auto Loan Credit Card Debt Taxes Other Liabilities (list): Total Assets Total Liabilities Estimated Net Worth: Total Assets Total Liabilities = Net Worth
Researching & Writing a Business Plan Management Assessment Worksheet #13 Identifying Your Personal Goals In the table below, write down your personal goals for the next five years, and then write down your goals for the next year. Don t take a lot of time thinking about them. You can return them later and make changes. Think of these goals as works in progress that will change over time. The most important thing is put your goals down on paper which has been shown to increase the likelihood that a person will take steps to achieve them. Personal Development My 5 Year Goals Family & Friends Health & Fitness Community Financial Personal Development My Goals for Next Year Family & Friends Health & Fitness Community Financial
Researching & Writing a Business Plan Management Assessment Worksheet #14 Visualizing Impact of a Business on Your Life To help visualize owning or starting your own business, write down answer to the following questions. How much money are you earning? Be specific, such as 75,000 per year rather than a ton. What kind of lifestyle are you and your family leading? Describe it in detail. How big is your business? Describe in terms of sales, employees, stores and other measures. How does your business reflect you and your values? What products and/or services are you offering? Who are your customers? How many are there? What are they like? Where is your business located? What does your place of business look like? Who are your employees? How many are there? What are they doing? How are you treating them? What are you doing in the business? Do you like what you are doing?
Researching & Writing a Business Plan Management Assessment Worksheet #15 Visualizing the Impact of a Business on Your Goals Risks and Rewards In the table below, list as many risks and rewards associated with starting your own business as you can think of for the four categories listed. Financial Risks Rewards Family & Friends Career & Community Health & Fitness Which of the risks listed above concern you the most? List some ways that you might be able to reduce those risks.