Absolutely, it might appear uncomplicated, and naturally, the title carries a touch of humor. However, the process of establishing a business demands substantial effort.
Prior to investing a single dollar, seek advice from several experts. Utilize resources like the library or the internet to delve into thorough research. Dedicate some time to ensure that entrepreneurship suits your profile.
Generate a list of pros and cons related to business ownership and conduct an honest self-assessment.
❕ How many traits do you share with accomplished entrepreneurs?
❕ Is your financial position robust enough?
❕ Do you possess the requisite technical and managerial skills?
You won't become the flawless entrepreneur; nobody does. Nevertheless, to develop into the best entrepreneur you can be, consider strategies to mitigate any weaknesses you may have.
I originate from Canada, so the governmental bodies mentioned in this guide are Canadian; however, they can be of benefit to anyone. If you're located outside Canada, you only need to locate equivalent resources as per your region. Some steps might vary slightly, and you might not need to concern yourself with matters like GST, for instance. Regardless, this discourse is likely to offer valuable insights.
The sequence of steps for launching a business is generally logical, but you might find the need to adapt it to your unique circumstances.
This isn't a significant concern, as long as you accomplish the core components. Certain steps might be skipped, but it's recommended not to omit the crucial ones, which will be evident upon reviewing the list.
Assuming you've completed your evaluation and remain committed to starting a business, take a deep breath, and let's initiate the process.
1- Conduct a feasibility analysis of your business.
Outline your typical customer, product, and competitors.
- Who will be your suppliers?
- What pricing structure will you adopt?
- How will you promote your product?
2- Compose a comprehensive business plan for your company,
Drawing insights from your feasibility assessment.
This frequently overlooked yet critical step should encompass a company description, objectives, market analysis, financial details, and your strategies for achieving your objectives.
3- Secure your financing arrangements.
Various funding options exist, from personal savings to credit cards and bank loans. If credit is necessary, ensure you are thoroughly acquainted with your business plan.
4- Determine the suitable structure for your company.
Legally, you have three fundamental choices: sole proprietorship, partnership, and incorporation, each accompanied by advantages and disadvantages.
5- Select a name for your company and verify its availability.
Naming your enterprise is deeply personal, but it holds the primary association with your business, so choose meticulously.
You'll need to undergo a NUANS (Newly Upgraded Automated Name Search) report, which examines your name options for originality against a database of other business names. A reserved name is valid for 90 days.
6- Decide whether to register at a federal or provincial level and complete the registration.
Federal registration entails provincial registration as well, almost doubling the cost.
Legal assistance isn't mandatory for this process, though consulting a lawyer could be prudent. Forms can be obtained from local government officials, either through fax or download, and can be submitted likewise.
7- Reach out to Canada Revenue Agency Business Window for your business number and register for GST/HST, payroll, corporate income tax, and import/export (if applicable).
CRA can also provide general insights on business expenses. You might be required to collect GST, and it might be worthwhile to register for a GST number even if not mandatory, owing to potential input tax credits.
8- Determine the necessity of collecting PST.
If required, you need to submit "Registration as a Vendor" documents with your province.
9- Ascertain whether any specialized permits or licenses are mandatory in your locality.
It's highly improbable that your municipality doesn't require such permits or licenses.
10- Develop the marketing materials outlined in your business plan.
These should encompass a company identity package, press kit, and website. Your identity package includes your logo, business card, and letterhead.
A press kit might comprise introduction letters, biographies, press releases, articles, and a brochure. In today's digital age, physical materials aren't sufficient.
Your website needs to be professionally designed, aligned with your print materials, and boast compelling content. It's also vital for search engine optimization.
11- Establish your business bank account and record-keeping system.
Your bank will need to review your incorporation documents. Consider setting up multiple accounts for better financial tracking.
Maintaining records is obligatory and can be manual or facilitated by software.
12- Procure appropriate insurance coverage.
Various insurance types are available; your business likely requires at least one. For instance, if you'll have employees, contact the Worker's Compensation Board.
Depending on your business type, even if employee-less, it might be advisable to establish contact with them for personal coverage.
13- Contact potential creditors and establish credit terms.
You should have explored suppliers during your feasibility study. Now is the time to initiate contact.
14- Determine your business location and secure the necessary space through lease.
Alternatively, if feasible, you might opt to commence your business from home.
Commencing from home comes with advantages and drawbacks. Tax deductions are possible, but your professional image might be affected.
15- Procure essential supplies and office equipment.
The needs will differ across businesses, but items like fax machines, printers, computers, paper, pens, pencils, and calculators are usually necessary.
