Credit700.ca | Starting a business 101

Starting a business 101

Feb 09 2018

Last week's article (which you can read here) gave you some needed motivation to start your business? Good! But as in any project, starting a business requires a lot of planning. Were it so easy to get financial freedom overnight, there would be no more employees!

In any case, we have put together a small article with the most important steps for a new business so that when you’re ready to quit your job, you’ll be prepared for success in your new adventure!


1. Have an idea

Everything starts from here. Generally, it comes up rather easy because it’s the idea itself that often motivates our desire to venture into entrepreneurship. A unique product/service, an area in which you have expertise or a passion you want to pursue are some of the interesting ways in your approach to build the core of your ??project.


2. Evaluate

Having an idea is one thing. To validate it, another! If your love of animals makes you wanna open a pet store, take a minute or two and google for the competition: there’s a good chance you’re aren’t alone and maybe the market is saturated. And even if you’re alone, opening a fine dining restaurant in an industrial park where people have little time for lunch would be a bad idea too.

Take the necessary time to revise and test your concept! It’s better to return to the drawing board than to invest in a project that is destined for failure.

Key questions to ask yourself:

- Is there a lot of competition?
- Will the product or service fulfill a need sufficiently present to

justify the company?
- Is the location suitable for the idea?
- Does the project require one or more skills that I do not have? (hint: the answer is always yes)


3. Do the maths

This is probably the most important step to measure your success on the medium and long term: is this project feasible according to my budget and when will it become profitable? What will my expenses be and will I need a loan?

It is essential to demonstrate that the project makes sense financially because even if the idea of ??launching a new telecom company makes sense in a lot of ways, you’ll put yourself in the streets before even selling your first phone.


4. Ask for an expert’s opinion

It is optional, but highly recommended. It’s very possible that your financially impaired brother-in-law might gracefully offer to teach you the ways of the "Business", but seeing an expert might be a good call.

Resources exist all over the province to provide free advice to small businesses: LDCs, or local development centers, for example, offer help for anyone wishing to venture into entrepreneurship. How to build a solid business plan, what financial resources exist to help you achieve your project, how to refine your idea, etc. are all questions to which you’ll find answers to if you pay them a visit or two.


5. Formalities

The technical but important bits of work are done at this stage: if your idea is proven and feasible, it's time to register your business, start your new corporate banking account, etc.


6. Work

And finally, work! Your success will always be tied to your efforts. If your plan is well built, the motivation is there, you’re resourceful when it comes to problem-solving and your funding is good, both in dollars and time, you will eventually reach your goal.

Owner of your dream company.

 

Need a personal loan?

These tips are not enough? Perhaps you need a personal loan. Trust Credit700, the personal loan experts.

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