5 things to consider before starting your own business

5 things to consider before starting your own business

Starting a small business isn’t easy. Here are five things you should consider before taking the plunge and starting your own company in Canada.

Small-scale businesses are the backbone of the Canadian economy. As per the official website of the Government of Canada, “As of December 2019, the Canadian economy totaled 1.23 million employer businesses. Of these, 1.2 million (97.9 percent) were small businesses, 22,905 (1.9 percent) were medium-sized businesses and 2,978 (0.2 percent) were large businesses.”

Bringing aboard quite sustainable, ingenious, and creative concepts, small-scale businesses have taken the Canadian market by storm. However, there is a reason behind the immense success and widespread market share of the small-scale industries – proper planning and execution. Without this, it is impossible to survive in an uncertain economy and amidst tough times. Therefore, before starting a small business in Canada, here is a list of five things that you must absolutely consider.

Determine Your Budget

5 things to consider before starting your own business

To build something from the scratch not just takes time but also money. While there is no limit to how much one can spend, however, as an entrepreneur it is important to determine your budget before starting a business. Because you will require to spend a number of things, without strategically planning this aspect, all your effort will be wasted. You will have to accept that it may take years before you become profitable and you receive your first paycheck. So you will have to cut down on all unnecessary expenses. Ask yourself – are you ready for this? Look, research, find an answer, and then proceed.

Understand the Basics of Funding

Business and its various aspects is an expensive task and it’s natural that everyone does not have that kind of money. What to do then? Well, that’s where funding comes in. As jumpstart puts it, “Start with your personal finances. Know your credit score because good credit may help you secure loans at a lower rate and allow you to get small business loans if needed. Have a budget for your personal finances.

Next, consider your business finances. Prepare a budget and financial projections to help avoid financial pitfalls and to determine the scale of your initial offerings. Then decide how you’ll fund your business.”

The Power of a Powerful Marketing Strategy

So you have a plan ready, the funding is done and you’re about to start. But have you wondered how will people get to know about your business? Well, that is where the importance of marketing comes in. Additionally, it’s not the local market where you have to spread the word. Be ambitious and target a global audience which can only be done when you have an online presence. To excel in the snickets and ginnels of the world wide web, you will need to consider a properly placed marketing strategy around your business.

There Will Be Legal Responsibilities

A business comes with its own set of responsibilities and the legal ones are amongst the most important. You have to ensure that you are not violating any laws put down in place for your municipality, state, city, and country. Projectmanager.com rightly explains “you’ll want to seek counsel to make sure you’re not opening yourself up for a lawsuit. There are different ways to approach the legal issues of a new business depending on whether you’re a large corporation or a small business, a non-profit or working with the government.”

Get Proper Support From a Mentor or an Expert

5 things to consider before starting your own business

Naturally, you may be setting foot in the completely unknown territory while starting a new business. In such a space, support from a mentor or an expert can help you choose the right path. It is a good thing to admit that there is a problem where you need help and seek guidance from the right sources. So, when you feel like your progress has plateaued, trust in that an expert or mentor to provide an outside viewpoint to help surmount the problem.

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