Your small business is a great family legacy
Tired of working for someone else? Want to start your own small business? You’re on the right track. It really pays to be your own boss!
It’s not only money and success but also independence that is a big motivation for new entrepreneurs. Why not harvest the fruits of your labour for yourself and family rather than toil to only put money in someone else’s pocket. Everyone has a vision of leaving a legacy for his/her children and grandchildren... Starting your own small business is a giant leap towards fulfilling those dreams.
- Becoming an entrepreneur and running your own business can be very lucrative but it comes with its share of challenges.
- Being prepared eliminates unnecessary stress.
- With the right kind of guidance (from qualified professionals) and hard work, there is no limit to how much you can achieve.
- Small businesses fulfill many of our requirements and are an important part of the Canadian economy.
- Once you know which seeds yield satisfying returns and what exactly is required to ensure a good harvest, your basket will overflow.
Don’t let a lack of information or misinformation (hearsay) prevent you from stepping into an entrepreneurship role. What would you do without your local laundry, hair salon, car mechanic, favourite corner bakery and host of other services? Your business can also fulfill an important need.
Knowledge can be your Miracle Grow
Knowing what running a small business involves is key to your decision-making process. Having an experienced business coach walk you through the process and navigate the twists and turns speeds up your success. It also minimizes stress and prevents unnecessary mistakes.
You wouldn’t let your dentist deliver your baby or have your car serviced by your hairstylist. So why not seek the help of a business specialist for this important step in your life?
What do you need to know about starting a small business?
You’re the cultivator of your business success. The right soil and proper fertilization techniques help you reap a rich harvest. Not only that, you will also ensure that your business is firmly rooted and able to weather any storm. Here are some valuable guidelines.
- Registration and structure: Decide whether you want your business to be a sole proprietorship, partnership, corporation, etc. Business entity/structure usually depends on the nature of your enterprise and liability exposure. Seek professional guidance before you make this important move.
- Capital flow: Money keeps everything moving. It’s as important as the essential soil nutrients in your garden. Many small businesses are undercapitalized and run out of money at a very critical time. Here’s how you can avoid getting into a jam.
- Make a proper business plan (on a month-to-month basis for a span of three years). This will give you a reasonable idea of how much working capital you need.
- Your plan should be conservative on the revenue side and liberal with expenses. That way, an unplanned expense won’t throw your balance sheet completely off track.
- When calculating revenue, don’t take into account sales to family and friends. Those sales are only a bonus, and you cannot rely on them to predict future revenues and growth.
- Avoid offering big discounts to friends and family until your business becomes profitable.
- Get your finances in order before you approach any financial institutions for a loan. To win the confidence of an investor, you need to show that your organization is on a solid foundation.
- Try and raise funds from your family and friends; this way the bank(s) may look at your case more favourably.
- You may want also want to give your family minority shares for a period of time. However this type of business structure will require professional assistance from your accountant or lawyer.
- Administrative guidelines: Running a successful business requires a well-defined administrative system. Taking shortcuts will only leave you with a mess that may be difficult and / or expensive to clean up!
- Draw up proper policies and guidelines to govern and manage your business. Have a guided business system in place for everything - from an incoming phone call to account receivables. Remember that business policies must always reflect changing times, challenges and barriers, so be prepared to update them. What works today may not be applicable in the future.
- Hire the best professionals your money can buy. Your success depends on it. Top quality talent delivers best results. It might seem expensive initially but brings high returns on your investment in the long run.
- Be firm, but treat your employees as you would like to be treated. Don’t tolerate laziness or slackers. Everyone must do their share. Get a proper handle on the labour, health and safety laws.
- Customer satisfaction: Positive interactions and experiences with your brand and your company can turn prospects into customers. A satisfied customer will be happy to send you referral business and can be nurtured into a great brand ambassador for you.
- Know the benefits of your products or services to your customers. Understand your niche market as well as your target audience. Seek to fulfill their needs.
- Build customer loyalty. Large businesses have a governance body known as the board of directors. Your small business can create a focus group of customers, suppliers and other professionals. Each individual will bring to the table their own experience, knowledge and insight. Sometimes many heads are better than one.
Ready to get started on setting up your own small business? Feeling overwhelmed or confused about the process? Need an experienced helping hand? We have an expert business coaching team available to help you get started. With an experienced financial gardener/business guide on your team your chances of producing a high yield are greatly increased.
Call Forum Tax Services at (416) 562-0808 for a free consultation.
