HRSBDC | Checklists

Checklists

First-time/Start-up Business

Conduct a self-evaluation of monthly cost of living
Attend the Center's Owning Your Own Business course
Review the SBDC website
Conduct initial market research and feasibility study
Pull your credit report and review its contents (Information on how to do this is available on the SBDC website)
Begin work on your business plan
Begin work on Start-up Costs and Financial Projections
Have a list of questions for the counselor prepared

Existing Businesses

Review the SBDC website (www.hrsbdc.org) to find potential answer to your question
Have a list of questions for the counselor prepared prior to the session
Prior to scheduling an appointment, provide the business plan, financial
Bring back taxes for review, if necessary
Bring along any other pertinent information

Prior to Starting a Business

Conduct an analysis of personal costs of living expenses
Determine if the business will be successful and how long it will take to reach break-even
Complete the business plan and financial projections. Prior to taking the plan to the bank, allow the SBDC counselor to take one final look to ensure that there are no issues that could jeopardize the loan package
Work with the bank and obtain financing (either conventional or SBA guaranteed)
Register with the State Corporation Commission if incorporating your business
Obtain an Employer Identification Number (this can be done online at www.IRS.gov)
Register with the Clerk of the Court if operating as a Sole Proprietor
Obtain a city business license, if required
Ensure any zoning issues are adequately addressed
Ensure liability and any other insurance policies (e.g. Key man insurance) are arranged
Get certification from the state Department of Professional Occupational Registry, if required
Check with the Virginia Employment Commission concerning employees and independent contractors, if required
Check with the state Department of Taxation and ensure provisions are made for payment of any taxes

Prior to Obtaining a Bank Loan

Obtain a personal credit report for you and any member who has a 20% or greater equity share in the company
Review and check for the following:
- Owe back taxes to the IRS - Yes or No
- In arrears on any government backed loan - Yes or No
- In arrears on alimony payments - Yes or No
- In arrears on child support payments - Yes or No
- Any unexplained bankruptcies - Yes or No
  (A yes answer to any of the above questions will seriously jeopardize the loan application)
Prepare a Personal Financial Statement listing all assets and liabilities
Determine if the loan will be conventional or guaranteed by the SBA
Do you have adequate:
- Collateral - Yes or No
- Owner Cash In (usually 20% or greater) - Yes or No
Have you made the provision of from 3% to 6% of the total loan amount to be paid for closing costs for a conventional loan and closing costs and guarantee fees for an SBA guaranteed loan
Provide the bank with three years of back tax returns (either personal or business returns)
Do your cash flow projections demonstrate you have the ability to service your debt (i.e. make loan payments)