Financial Assessment

This is an opportunity to assess how likely your business idea is to be successful from a Financial point of view

1. Have you estimated your production costs and direct costs?

Yes (or I don't have direct costs)
I wouldn't know how to

2. Do you know what your annual overheads, or running costs, will be?

Yes and they're itemised in the business plan
Not really
I wouldn't know how to

3. Have you made a Sales Forecast based on Market Research and financial needs?

Not really, but I'm not sure I have too
I wouldn't know how to

4. Have you made a forecast of cash in and out of your business for the first year?

I wouldn't know how to

5. Have you made an estimate of your profit and is it enough?

No, but I'll just see how it goes
I wouldn't know how to

6. Can you live on the income you expect to make?

Yes and I have worked out a 'Survival Budget"
Not really, but I'm sure it will work out
I haven't estimated my income - I'm just flying by the seat of my pants
No, but my partner is working and I'm sure we'll make it

7. Will you need to raise money to start?

No, I am totally self funded
Yes, I'm sure there's some out there somewhere

8. Have you given any thought to the main risks your business will face financially?

I haven't carried out any type of risk assessment
I'm sure we'll be OK
I have carried out a financial SWOT analysis and have planned for all contingencies

9. Have you calculated what it costs you to work in a realistic way

I'm prepared to work 24 hours a day 7 days a week if necessary
Well, I know what my materials cost and I'll just add a bit on for labour
A friend told me to double my overheads as rough guess
I have worked out accurate costings for all materials and time

10. Have you calculated a profitable selling price?

Not really, I'm selling a lot cheaper than the competition to get into the market
Yes, although I have got a reasonable margin to play with, if necessary

11. Have you calculated your 'Breakeven' point and looked at ways to make your business safer, financially ?:

Everyone says about breakeven - what is it?
No, I'll just go flat out until I make it - or go bust
I've had enough of this test, let me out
Yes - and I'm aware of the areas to address in case of problems