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Start-Up Checklist

CREATING THE FINANCIAL PLAN

Company

Prepared by

Email

Date

Copy to email

Answer these core financial planning questions

Can I make a profit building my projects?

Yes No

How do I know that?

By when do I expect to be operating profitably?

On what do I base this expectation?

What is my start-up budget amount for:

Interim income:

Marketing:

Tool and vehicle acquisition:

Safety items:

Computer and software:

Is the money required in my start-up budget available?

Yes No

If not, where is the money coming from?

Have I developed a budget for the first year of operation?

Yes No

Is the budget realistic?

Yes No

Develop pricing strategy

Am I going to be the low-cost, the average cost, or the highest-value builder in my market segment?

Low-cost Average cost Highest-value

What is my Unique Value Proposition (UVP)?

What percent of Total Revenue will my COST OF GOODS SOLD represent?

What percent of Total Revenue will my GROSS MARGIN represent?

What percent of Total Revenue will my OVERHEAD represent?

What percent of Total Revenue will my PROFIT represent?

My labor cost burden for production staff is:

My labor cost burden for clerical staff is:

I will be paid:

On the regular payroll cycle As the business is able to pay When I need the money

Select your accountant

Does my accountant know construction practices, Job Cost accounting, Percentage Completion accounting, and Completed Contract accounting?

Yes No I will have to ask

Do I need a bookkeeper and an accountant?

Yes No

Set up necessary accounting procedures

Will the bookkeeping be done in-house?

Yes No

Have I investigated remote bookkeeping?

Yes No

Will the payroll be done in-house?

Yes No

Do I understand the payroll withholding requirements for deposits and payment?

Yes No

Do I have a system set up to handle garnishments and other incidental withholding for employees?

Yes No

Will the accounts payable be paid in-house?

Yes No

Set up proper record-keeping and financial management

Does my bookkeeping software include job cost accounting?

Yes No

Will I be allocating direct expenses to projects?

Yes No

Do I have the knowledge and discipline to allocate direct expenses to specific projects?

Yes No

Do I understand the information I receive from my accounting program?

Yes No

Do I understand what the CASH FLOW STATEMENT tells me about my business?

Yes No

Do I understand what the INCOME STATEMENT tells me about my business?

Yes No

Do I understand what the NET WORTH STATEMENT tells me about my business?

Yes No

Set up your banking relationship

Have I introduced myself to my banker and had a preliminary 30-minute meeting?

Yes No

Have I provided my banker with a copy of my budget and my current financial information?

Yes No

Does my banker know my story?

Yes No

Open a business bank account

Do I have a business-only bank account

Yes No

Do I avoid co-mingling personal and business income and expenses?

Yes No

Establish a Line of Credit

Have I told my banker I will be talking to her "at some time in the future" about setting up a business line of credit?

Yes No

Select an Insurance Agent

Does my insurance agent understand construction?

Yes No

Does my insurance agent primarily represent business accounts?

Yes No

Identify the major financial risks

I have identified at least three major liabilities inherent in owning a business

I have identified at least three major liabilities specific to owning a construction business?

Satisfy insurance requirements

Do I have insurance in place which covers my business for the risks I have identified?

Yes No

Have I chosen to self-insure any of the risks identified?

Yes No

Worker's Compensation Insurance

Will I have employees in my business?

Yes No

Do I understand the importance of properly categorizing the employees in my business?

Yes No

If I already have employees, can I change the task categorization of any employee to reduce Worker Compensation insurance costs?

Yes No

Worker's Compensation Insurance for subcontractors

Have I shown my insurance agent the Subcontractor Agreements I have in place to mitigate my financial exposure?

Yes No

Do I have a system in place to track my subcontractor General Liability and Worker Compensation insurance policies?

Yes No

Do I have the Independent Contractor forms available on which subcontractors can explain why they do not have to provide coverage for their employees?

Yes No

Do I have completed copies of the Worker Compensation insurance forms for each subcontractor claiming exemption?

Yes No

Content is best viewed on a larger screen.

When submitted, form responses are sent to the email addresses provided and then deleted.
IF YOU WISH TO RETAIN THE INFORMATION YOU HAVE ENTERED, ADD AN EMAIL ADDRESS BEFORE SUBMITTING.

Start-Up Checklist

CREATING THE FINANCIAL PLAN

Answer these core financial planning questions

What is my start-up budget amount for:

Develop pricing strategy

Select your accountant

Set up necessary accounting procedures

Set up proper record-keeping and financial management

Set up your banking relationship

Open a business bank account

Establish a Line of Credit

Select an Insurance Agent

Identify the major financial risks

Satisfy insurance requirements

Worker's Compensation Insurance

Worker's Compensation Insurance for subcontractors

Note 1

Note 2

Note 3

Content is best viewed on a larger screen.

When submitted, form responses are sent to the email addresses provided and then deleted. IF YOU WISH TO RETAIN THE INFORMATION YOU HAVE ENTERED, ADD AN EMAIL ADDRESS BEFORE SUBMITTING.

Start-Up Checklist

CREATING THE FINANCIAL PLAN

Answer these core financial planning questions

What is my start-up budget amount for:

Develop pricing strategy

Select your accountant

Set up necessary accounting procedures

Set up proper record-keeping and financial management

Set up your banking relationship

Open a business bank account

Establish a Line of Credit

Select an Insurance Agent

Identify the major financial risks

Satisfy insurance requirements

Worker's Compensation Insurance

Worker's Compensation Insurance for subcontractors

Note 1

Note 2

Note 3

When submitted, form responses are sent to the email addresses provided and then deleted.
IF YOU WISH TO RETAIN THE INFORMATION YOU HAVE ENTERED, ADD AN EMAIL ADDRESS BEFORE SUBMITTING.