11 Simple Steps to follow when Starting your Business
Are you interested in starting a business in Canada, but youre overwhelmed with just how much goes into starting a business before you even get to see the first dollar. This guide is designed to simplify this process and show you exactly which steps should be taken and in what order in order to build the initial stages of your business before you launch if to great success.
A good idea is the basis of any successful business whether it is in Alberta, Canada, or anywhere else in the world. Study the current trends, focus on your skills, and look for ways to improve existing concepts, products, and business processes in order to find new markets for existing products or services or completely new ones. Ensure you test your idea to some extent before you choose to invest any significant amount of time and money into it.
The best way to test your idea is by turning it into a business plan. This will allow you to thoroughly examine everything about the industry, products, and market for your business. It will also give you something to present to investors and lenders—the ultimate testing ground for your business idea.
Before you launch your business, you should have a thorough, complete business plan to guide you. Not only will it allow investors to see the success you can achieve but a business plan will allow you to learn everything about the industry and market you will be participating in. Early in the process, though, it’s possible to put together a quick-start plan that will show you whether your business idea is viable.
Choosing the perfect name for your business isn’t just for customers to learn and recognize. Choosing the right business name comes with both legal and marketing considerations. Most businesses will have to register their name with the Canadian government and certain business structures have name restrictions placed on them by the government. Now that the legal aspects of your business name are out of the way, in terms of marketing, your name should communicate what the business does and what value it can bring to the customer.
When starting a business in Canada, there are only three basic forms of business ownership that you can choose from for a business structure: the sole proprietorship, the partnership, and the corporation. There are a few options within those, such as a cooperative corporation or the limited partnership, but they all fall under these three umbrellas. Deciding which structure is right for your business will depend on several factors, from your comfort level with liability to the tax deductions you want for your business.
Starting a business can take some financial investment during inception, sometimes a new small business can be financed out of your own pocket but many times funding will be necessary to generate initial growth and keep the business afloat while still in its infancy. There are many options to consider from debt financing to sharing equity, there are even some government grants available if your business meets the requirements. Be sure you understand the difference between each kind of financing before choosing one.
Many new businesses will need to get business licenses before they can operate legally within their municipalities. If your city or town doesn’t have a website, you can find contact information for government agencies online.Depending on what kind of business you’re starting, you may also need other licenses and permits.
When starting your business unless you’re grossing under $30,000 annually, you will have to register for GST and HST (if applicable). If you are starting a business in Alberta, British Columbia, Manitoba, or Saskatchewan, you will need to register as a collector of provincial sales tax (PST). In Quebec, you will need to register for Quebec Sales Tax (QST).
Hiring employees when starting a new business may be unnecessary as you or your friends and family can handle the necessary workload. But the time will come when you choose to hire that first of many employees, finding the right person will be key. Be sure to prepare ahead for all the paperwork and set up your legally covered to hire employees in Canada. Payroll deductions, workers compensation insurance, as well as employment insurance are just a few of the areas you should be prepared for before hiring your first employee.
Employment insurance isn’t the only insurance you’ll need to ensure your business is fully covered in every necessary area. Your business may need additional protection such as general liability, business interruption, and disability. Be sure you know which of the many options will suit your business needs.
Business will have a lot of moving parts no matter what industry, therefore keeping your records in order from the very beginning is of the utmost importance. Things such as accounting and tax services are necessary throughout your business lifecycle, starting early will ensure your business is always organized and ready to scale when the time comes. Hiring the right accounting services professionals will always make your life as a business owner easier as you grow your business from one employee with one location to hundreds.
Now you have your business setup, organized, and ready for launch. There is one more thing you don’t want to forget: Promote your business. A well researched marketing strategy will make a huge difference when it comes to allocating funds to promoting and building your business whether it’s online or in person. Setting specific marketing goals will ensure you are putting your money in the right area to maximize returns.
Wanting to start a business is easy, the execution is what makes it difficult. Organize the process from start to finish, follow each step covered above and you will have no problem launching your business. Bullseye Accounting is no stranger to helping entrepreneurs get their businesses off the ground. Get the expert help you need to minimize any potential hiccups during launch.