Monday 11 April 2011
Starting your own Business
Starting and business 101 is a website with 10 helpful tips to give you the best start at opening your own business. This site will prepare you for what you need to know, common mistakes, and a lot of helpful tips. Never think that starting a business is out of your reach, or you wouldn’t be able to do it. This website makes you go step by step before you even open the business and show you your chances of succeeding and failing. So, if you are interested at opening your own business, do these simple steps and just see how close your dreams can be.
Steps 1 & 2
1) Choosing a Business
When opening up your own business you need to know; what you want to do, will you be a sole proprietor or a partnership, will you be working out of home or an office or online. When opening your own business you have to find something that you are passionate about. You should have significant knowledge in the field that you want to enter. You need to know how you are going to get your service or product out to your customers. You need to make sure that your customers want your service or product. “Over 1.6 million, or 16%, worked for medium-sized enterprises”. (“Industry Canada,” 2011) There are lot of businesses and opportunities out there, it’s up to you to find out what works best for you.
2) What do you need a start?
Once you have found the business you would like to start, it’s time to start looking at what you will need to open it. You need to be able to have the skills and knowledge it takes to start a business and understand how the industry works. Will you need to hire employees? How much equipment will you need? What other products will you need? Where should your location be? You should always overestimate your cost because you never know what’s going to happen. “To be successful in business you must have sufficient cash flow. Invoice factoring can provide you with working capital when conventional funding is not an option”. (“Small Business Finance Tips,” 2010) You should always hope for the best but prepare for the worst, so when you do start your business and you run into problems, you are prepared and already planned, and you’re able to deal with the problems quickly and efficiently.
When opening up your own business you need to know; what you want to do, will you be a sole proprietor or a partnership, will you be working out of home or an office or online. When opening your own business you have to find something that you are passionate about. You should have significant knowledge in the field that you want to enter. You need to know how you are going to get your service or product out to your customers. You need to make sure that your customers want your service or product. “Over 1.6 million, or 16%, worked for medium-sized enterprises”. (“Industry Canada,” 2011) There are lot of businesses and opportunities out there, it’s up to you to find out what works best for you.
2) What do you need a start?
Once you have found the business you would like to start, it’s time to start looking at what you will need to open it. You need to be able to have the skills and knowledge it takes to start a business and understand how the industry works. Will you need to hire employees? How much equipment will you need? What other products will you need? Where should your location be? You should always overestimate your cost because you never know what’s going to happen. “To be successful in business you must have sufficient cash flow. Invoice factoring can provide you with working capital when conventional funding is not an option”. (“Small Business Finance Tips,” 2010) You should always hope for the best but prepare for the worst, so when you do start your business and you run into problems, you are prepared and already planned, and you’re able to deal with the problems quickly and efficiently.
Steps 3 & 4
3) Government regulations
When starting a business one of the most important things you need to know about are the government regulations for opening up your business in your province. Do your homework, check online on the government websites, make an appointment to talk to somebody knowledgeable with the subjects your business deals with. You want to make sure you have all your You need to make sure everything else is up to code. If you don’t have the proper documentation for your business, you can stand to lose a lot of money in fines if you are not following the regulations. This could potentially make your business go bankrupt. Make sure you understand all the steps you need to take in order for your business to be safe and legal. Go down to the court house, or City Hall and make sure you know your stuff and its right.
4) How much will you need to start?
This is very important question you need ask yourself, can you actually afford starting your own business? When starting your own business you need to do your research and find out how much starting costs are for similar businesses like yours. You can go online, books, or going to businesses like yours and asking for their start-up costs. “There are nearly 2.4 million small business establishments in Canada”. (“Industry Canada,” 2011)You need to know things like how much your rent is going to be, how many employees you’re going to have, and how much their wages are going to be, how much equipment and products you are going to need in order for your business to be successful. You should always prepare ahead and make sure you have enough money from month to month to be able to run efficiently. If you don’t have enough money you can look to family, friends, investors, banks or find a partner and become a partnership. You should do mock cash flow statements to see if you will have enough money to be able to run.
When starting a business one of the most important things you need to know about are the government regulations for opening up your business in your province. Do your homework, check online on the government websites, make an appointment to talk to somebody knowledgeable with the subjects your business deals with. You want to make sure you have all your You need to make sure everything else is up to code. If you don’t have the proper documentation for your business, you can stand to lose a lot of money in fines if you are not following the regulations. This could potentially make your business go bankrupt. Make sure you understand all the steps you need to take in order for your business to be safe and legal. Go down to the court house, or City Hall and make sure you know your stuff and its right.
4) How much will you need to start?
This is very important question you need ask yourself, can you actually afford starting your own business? When starting your own business you need to do your research and find out how much starting costs are for similar businesses like yours. You can go online, books, or going to businesses like yours and asking for their start-up costs. “There are nearly 2.4 million small business establishments in Canada”. (“Industry Canada,” 2011)You need to know things like how much your rent is going to be, how many employees you’re going to have, and how much their wages are going to be, how much equipment and products you are going to need in order for your business to be successful. You should always prepare ahead and make sure you have enough money from month to month to be able to run efficiently. If you don’t have enough money you can look to family, friends, investors, banks or find a partner and become a partnership. You should do mock cash flow statements to see if you will have enough money to be able to run.
Steps 5 & 6
5) How much profit will you make?
You have to be realistic on how much money you will make. Is this business going to be worth opening, will you be able to make a profit? Having some idea of how much money you will make is an incentive as well as a hinder. When you do your research and you find you will make a profit in your industry, you need to make sure you will know how to handle your money properly and not get carried away with unnecessary purchases, because this will start to hinder your business and potentially cause it to go bankrupt. “On average over the last 13 years, there have been approximately 12 000 business bankruptcies per year in Canada”. (“Industry Canada,” 2011) Make sure you have room in your budget for customers not paying you back right away or at all and for shrinkage. You always want to overestimate your cost and underestimate your profit. You should do an industry analysis for your business you wanted get in when the business is striving so you have the best opportunity in order for your business to succeed.
6) Where can you get help?
When you have started your business, it can become overwhelming and you might need advice or help. Don’t try to figure it out yourself or wait until the last minute. This could be detrimental to your business. “Many new ventures place heavy demands on your time, your family relationships and your finances. As well, an overwhelming majority of small businesses fail within the first three years, and many require several years to return the entrepreneur's original investment”. (“Business Guide,” n.d.) Having some guidance might help open up doors you didn’t even know were there, it gives you a better look and suggestions that you might not have even thought about. Having input from somebody who knows the industry and knows about the business could be extremely beneficial for your business. Where do you find help? The government, banks, family & friends, books, Internet or people in your field can all be invaluable sources. “Various Canadian governments have set aside more than 20 billion dollars in funding programs grants and loans for financing small businesses like yours”. (“Small business,” 2010)
You have to be realistic on how much money you will make. Is this business going to be worth opening, will you be able to make a profit? Having some idea of how much money you will make is an incentive as well as a hinder. When you do your research and you find you will make a profit in your industry, you need to make sure you will know how to handle your money properly and not get carried away with unnecessary purchases, because this will start to hinder your business and potentially cause it to go bankrupt. “On average over the last 13 years, there have been approximately 12 000 business bankruptcies per year in Canada”. (“Industry Canada,” 2011) Make sure you have room in your budget for customers not paying you back right away or at all and for shrinkage. You always want to overestimate your cost and underestimate your profit. You should do an industry analysis for your business you wanted get in when the business is striving so you have the best opportunity in order for your business to succeed.
6) Where can you get help?
When you have started your business, it can become overwhelming and you might need advice or help. Don’t try to figure it out yourself or wait until the last minute. This could be detrimental to your business. “Many new ventures place heavy demands on your time, your family relationships and your finances. As well, an overwhelming majority of small businesses fail within the first three years, and many require several years to return the entrepreneur's original investment”. (“Business Guide,” n.d.) Having some guidance might help open up doors you didn’t even know were there, it gives you a better look and suggestions that you might not have even thought about. Having input from somebody who knows the industry and knows about the business could be extremely beneficial for your business. Where do you find help? The government, banks, family & friends, books, Internet or people in your field can all be invaluable sources. “Various Canadian governments have set aside more than 20 billion dollars in funding programs grants and loans for financing small businesses like yours”. (“Small business,” 2010)
Steps 7 & 8
7) How are people going to know you exist?
When you open your business, don’t make that mistake that people are going to know about your business and are going to come in right away and it’s going to be a big success, it’s not. You might have to work really hard trying to get customers. It’s something that you have to work on all the time. Factors that influence customers are price, location, product, quality, and service. If another company has the same product but one factor better than you, customers are more likely to go to your competitor. You need to have excellent quality, price and customer service in order to be competitive. You also need to do things that create awareness like having a grand opening, get it printed in your local newspaper. Have discount points cards or any other system that make sure customers feel but they have a good deal. If you can afford it, advertisements will help and have a big impact on your customers. Knowing you exist is most important, and the cheapest way is word of mouth. Make sure your products and services are very professionally and friendly.
8) Getting started
This step is where you put everything together to make sure your business will start out on a good foot and be successful. This is the opportunity to be able to see whether your business idea might be very successful or might not work and to quit while you’re ahead. You need to make sure you’re going to afford your permits, licenses, shops, employees, equipment and all your other products to make sure your business is a success. “Whether you need $100 or $100,000, don't miss the opportunity to take advantage of the available government grants & small business loans”. (“Small business,” 2010)You need to really think it through; about all your successes as well as your disappointments and you need to know how to work through them.
When you open your business, don’t make that mistake that people are going to know about your business and are going to come in right away and it’s going to be a big success, it’s not. You might have to work really hard trying to get customers. It’s something that you have to work on all the time. Factors that influence customers are price, location, product, quality, and service. If another company has the same product but one factor better than you, customers are more likely to go to your competitor. You need to have excellent quality, price and customer service in order to be competitive. You also need to do things that create awareness like having a grand opening, get it printed in your local newspaper. Have discount points cards or any other system that make sure customers feel but they have a good deal. If you can afford it, advertisements will help and have a big impact on your customers. Knowing you exist is most important, and the cheapest way is word of mouth. Make sure your products and services are very professionally and friendly.
8) Getting started
This step is where you put everything together to make sure your business will start out on a good foot and be successful. This is the opportunity to be able to see whether your business idea might be very successful or might not work and to quit while you’re ahead. You need to make sure you’re going to afford your permits, licenses, shops, employees, equipment and all your other products to make sure your business is a success. “Whether you need $100 or $100,000, don't miss the opportunity to take advantage of the available government grants & small business loans”. (“Small business,” 2010)You need to really think it through; about all your successes as well as your disappointments and you need to know how to work through them.
Steps 9 & 10
9) Using tools to improve
You should become very familiar with technology. Technology can make a business go from stressful to easy, with the push of a button. You should find software programs to help your business sort, find, order, or even deal with money. Technology can, and will, make your business run more efficiently. You need to be open to learning and using new technology it’s the only way you’re going to keep your business afloat.
10) When to exit
When you’re starting a business, you should always have an exit strategy. Getting out of a business doesn’t mean you’re giving up. It means you’re smart enough to realize your business was not being as successful as you would have liked, and to get out before it’s too late. When your business has no profit you want to seriously look at getting out of the industry. You don’t want your business to get out of hand, you don’t want to go bankrupt, so you can afford to live. You should always put a limit on how much money you can be in debt and still live off of. Once you have a reached that point you need to pull out and make sure your losses are not going to overweigh your living expenses. Don’t let pride stand in the way of your standard of living. “The Four D's of a Business Exit; death, disability, divorce, departure. Once you understand the four D’s, include the following actions in the creation of your business exit strategy”. (“About,” 2011) After you have exited the business, make sure you don’t forgive to learn from your experiences and go over what you could have done better or different for next time. Just remember it wasn’t a failure, but a learning experience so you can get it right next time.
You should become very familiar with technology. Technology can make a business go from stressful to easy, with the push of a button. You should find software programs to help your business sort, find, order, or even deal with money. Technology can, and will, make your business run more efficiently. You need to be open to learning and using new technology it’s the only way you’re going to keep your business afloat.
10) When to exit
When you’re starting a business, you should always have an exit strategy. Getting out of a business doesn’t mean you’re giving up. It means you’re smart enough to realize your business was not being as successful as you would have liked, and to get out before it’s too late. When your business has no profit you want to seriously look at getting out of the industry. You don’t want your business to get out of hand, you don’t want to go bankrupt, so you can afford to live. You should always put a limit on how much money you can be in debt and still live off of. Once you have a reached that point you need to pull out and make sure your losses are not going to overweigh your living expenses. Don’t let pride stand in the way of your standard of living. “The Four D's of a Business Exit; death, disability, divorce, departure. Once you understand the four D’s, include the following actions in the creation of your business exit strategy”. (“About,” 2011) After you have exited the business, make sure you don’t forgive to learn from your experiences and go over what you could have done better or different for next time. Just remember it wasn’t a failure, but a learning experience so you can get it right next time.
Resources
http://www.ontario.ca/en/life_events/job/004475.html
This web site is called looking for job- starting your own business. This site is very helpful when you are trying to start your own business, it’s an Ontario government web site. It has information on how to start up your own business. It has knowledge about different industries you are trying to look into so you can tell if your field is doing good or not. It tells you how to go about getting all the licensing and permits you need to be able to start up. The website goes into detail about occupational health and safety and what you should know to keep your workers safe. It has resources for woman looking at starting their own business and the obstacles you have to overcome. They have different programs you can take to help get the best head start when opening up your own business. This website will give you a clear understanding of the process you have to go through in order to have a successful business. (“Ontario,” 2011)
http://www.youth.gc.ca/eng/topics/jobs/business.shtml
This web site is called starting your own business. This site it directed to the younger of entrepreneurs trying to open a business. This site is very basic. It has a lot of questions to ask young entrepreneurs to ensure that this is really what they want to do. On the site you can find key information about business planning, marketing research, registration, financing, tax and patient, hiring and labor standards, importing and exporting, and how to manage your own business . It also has a link through a site that will help fund a year in new business and give you financing tips on how to manage your money. There’s also tips on how to use the Internet because the internet is a big part of daily life and should be directed in your business. It has a link to another site that will give you valuable information on how to run a small business, you can learn about the human resources, sales and marketing, financing, web design and technologies, the innovation, management and business evolution. This web site helps answer a lot of questions that young entrepreneurs may have in a concise manner. (“Youth Canada,” 2010)
http://www.canadabusiness.ca/eng/125/
This web site is called starting a business from the government of Canada entrepreneurs. This will give you tips on how to develop your business to make sure that you are informed and not rushing into anything. This site will also help you with finding the right name for your business and how to go about registering your business properly. It gives you advice on how to go about buying a business, whether it’s starting your own or going into a franchise. Also how to form a business organization in your business and gives you different advantages and disadvantages to consider. It gives you tips on how to finance and the different grants and loans that you can take advantages of when starting off. It will also help with your location and what area will work best with your company. This web site is very useful and has a lot of valuable tips and strategies you should take into consideration when starting your business. (“Canada Business,” 2011)
http://www.servicecanada.gc.ca/eng/lifeevents/business.shtml
This web site is called starting a business. This is a service Canada web site with a lot of information about the startup process. This web site helps you build a business plan step by step on things you should consider and gives you templates and samples. This site also helps you with how to register your business with guidelines and resources and getting a business number. It goes into detail on how to hire staff and all the regulations you have to follow like pay, benefits, and labour standards. This site also helps you apply for grants to help support your business. This site also talks about the benefits given back to you if you are self-employed, how to register for employment insurance, and if you are able to access special benefits like maternity, parental, sickness and compassionate and care benefits. This web site is very helpful for people who might not have enough money to start their own business and programs they can enter to help support them. (“Service Canada,” 2010)
http://www.workingincanada.gc.ca/content_pieces-eng.do?cid=206
This website is called starting your own business from the working in Canada government. This site has a lot of insight when starting a business. You have different business categories to choose from like hair salon, convenience store, restaurant and more. This gives you a step by step plan on how to go about opening one of these choices, like all the regulations, what kind of financing you will need, how many employees you will need, etcetera. This site also has different languages that will give you helpful knowledge on how to start your business, for example If you are an immigrant and want to come to Canada and start up your own hair salon. This web site shows you step by step in the language you choose the right steps in order to make your business successful from financing to where to buy your products. There is a lot of useful information on the site as well as links to other helpful websites to help to prepare for the future. (“Working in Canada,” 2011)
References
Small Business Finance Tips. (2010) Small business finance. Retrieved March 22, 2011, from http://www.smallbusinessfinancetips.com/
Small business (2011) Canadian government money now. Retrieved March 30,2011, from http://www.grants-loans.org/
Business Guide (n.d.) Business planning. Retrieved March 28,2011, from http://www.businessguide.net/steps_to_start_a_business/12-steps-to-startup.htm
About (2011) The 4 d’s of a business exit strategy. Retrieved March 30, 2011,from http://sbinformation.about.com/od/buyingorselling/a/ucexitplan.htm
Industry Canada (2011, January, 12) Key small business statistics. Retrieved March 31,2011, from http://www.ic.gc.ca/eic/site/sbrp-rppe.nsf/eng/rd01227.html
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