If you are thinking of starting a small business in Canada, there are certain procedures to follow. However small it may be, you have to ensure that the business is within the permitted parameters of the country, the state and the city as different conditions may apply to different locations. Therefore it is essential to get the legal documentation in place before starting the business.
One of the main things to figure out is whether the business is going to be retail or wholesale and whether it is a business based on your innovative ideas or whether you are to start a business on the same line as an existing business or take a franchise from an established company which will require that you buy the right to sell their product and/or service. For this service you will be confined to a specific area and be liable to pay the franchise as well as royalties. You will also be required to abide by their rules and maintain the standards required.
If you are planning to do an independent business, there are limits or boundaries to what you can do, where you can do your business and how you can do your business provided you are within the legal framework.
If you are a professional, then your business is likely to revolve around your profession or a related business as you should be thorough with the content of the business; otherwise you will either have to spend much to educate yourself on the subject or make costly mistakes due to your lack of knowledge. A point to remember is you cannot learn from your mistakes all the time when you are running a business. You should have a thorough knowledge to enable you to run a business with minimal errors. It doesn’t make sense for a hair dresser to do a gourmet related business unless you are an expert in both. So stick to what you are good at and where your confidence lies. You have to enjoy every aspect of the business. You cannot say that you enjoy 80% of the business and you will let your staff handle the balance because that is where you are going to fail. No matter what, in any business you need to be involved in every aspect especially when the business is small and you cannot afford to recruit multiple number of professionals.
Do some market research to find out whether your business is conducive to the area in which you plan to do it.
Next is where are you going to start your business from. Would it be essential to rent out premises escalating your costs or at least for a start, can you do it from home with provision for expansion at which stage you will be able to afford rented premises. Keep the cost to a minimal so that recovery wont be difficult.
What kind of staff do you need and how many would you need. Do you need them to come over to your premises and work or can it be handled by Virtual Assistants.
Now it's time to do your math. Do up a business plan compiling all the contents and stating the figures that will be relative to each line item. Based on your market research, you should at least have an idea of what your potential will be.
Next is, do you have the money to put up for the capital or do you have to borrow. If so what would the cost of borrowing be as that figure too will need to be incorporated into your business plan and you may have to find a lender who is willing to give you the much needed money. Remember at least for the start you need to be able to service your loan without depending on the profit of your business therefore you will need to have a fund from which you can repay your loan.
Last but not least recruit the right people for the right job. This is a key aspect of your business and the success of your company will to a great extent be dependent on that.
Best of luck to your venture! |
