I write this piece to share my personal and professional involvement in all of you aspiring entrepreneurs in out there regarding issues that you will likely have to face when starting your own business. Please note that some of the legal topics in this piece apply to someone starting and operating a business in Ontario, Canada.
DO YOU HAVE WHAT IT TAKES?
Experience and education
You need the technical education and involvement with your area of interest to offer a great assistance or product, whether you’re an accountant, a furniture salesman or a website specialist. But if you have only this, it only qualifies you to be great representative. It doesn’t mean you are able to maintain a business.
To effectively maintain a small business, you should be a “jack of all trades” with a working knowledge in the areas of sales and marketing, accounting and finance, business law, and human resources management.
No one expects you to be an expert in these areas to be an effective entrepreneur, but you should know enough to identify potential problems or issues so you can enlist an expert to deal with them rapidly before problems get worse. If you cannot identify a problem, then you’re setting yourself up for some major trouble.
If you’ve considered starting up a business, you ideally should first find some work with an effective manager in the industry that interests you and learn all aspects of how the business is run. You ought to also select some introductory courses in accounting, finance, business law and marketing at a local school or university.
From our experience, most fruitful entrepreneurs have the following personality traits:
1. They are profoundly organized
2. They love their work – they are truly passionate about what they do and that gives them an edge over their competition. This translates into a strong work ethic, and the best entrepreneurs are considered “workaholics”.
3. They have a broad range of interests and talents. In the context of running a business, they are good at selling, financial management and working with individuals. This goes back to being a “jack-of-all trades” in order to prevail in business.
4. They can tolerate risk but carefully assess risks before making any major decisions.
To be more specific, there are individuals who are exceptionally intelligent and educated, but require the emotional security blanket of having some work with a steady paycheque. At the flip side of the scale are business individuals who will make decisions foolishly without first getting facts, analyzing them and then weighing the risks. Neither of these types can be effective entrepreneurs in the long run.
PREPARE A BUSINESS PLAN
Why? Because you need to know who you’re selling to – what’s the point of being in business if you can’t sell your product or administration?
You also need to know how much it’s going to cost to set Best PR Agency in Canada up and maintain your business. After all, if you spend more than what you sell, you’ll be losing money. For what reason be in business if you’re losing money all the time?
Finally, except if you already have a lot of money in the bank, you need to figure out how you’re going to finance the start up costs of your business.
Who are you selling to (define your market)?
If you took our advice already and worked for a company specializing in your industry of interest, you ought to have an idea of who you can offer to and at what cost.
If you didn’t, and have no idea whatsoever, then stop right here – you shouldn’t be starting a business at all.
Will I make any money (preparing a cash-stream projection)?
The most common costs you’ll incur can be separated into two categories:
Legal expenses if you’re incorporating your business
First and last months rent if you’re operating from rented premises
Costs of setting up an IT network, phone and fax system
Monthly operating costs
Inventory purchases if you’re selling goods
Professional expenses (accounting, legal)
Leasing costs for business equipment
Once you’re able to estimate what you can sell and your cost of doing business, you (or you and your accountant) are in a position to put together a cash-stream projection.
The motivation behind putting together a cash-stream projection is to determine if it makes sense to go into business in the first place.
Therefore, get accurate information about what how much you can sell and how much it costs to set up and operate. If you don’t do this before proceeding with actually going ahead with the business, it could lead to disaster.