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Important Things to Consider Before Starting Your Own Business

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StrategyDriven Entrepreneurship ArticleYou’ve got a great business idea that you’re pretty certain won’t fail. Perhaps you’ve got a crafty side to you and can make things you know people will want. Whatever your new business idea, there are a few things you should consider before you give up your day job and leap into working for yourself. Starting a new business can be very exciting, but it can also be very costly. Costs you’re not likely to get back if you don’t have a clear plan for the future!

The best place to start with your new venture is to write a business plan. It will help you decide whether your idea is as feasible as you think and give you some direction to follow. Draw up your business plan correctly, and it will provide you with a series of clear steps to follow. To help with your business plan, there are going to be some questions you need to ask yourself.

Do You Have Any Competition?

Is there anyone else doing what you want to do? Are they any good at it? Before setting up your own business, you need to do some research on the competition. It’s possible you could learn a lot from the mistakes they may have already made. You should also be able to gain an insight into what their customers appreciate. Look at what people are prepared to pay for the same kind of service or product you’ll be offering.

Who Will be Your Target Audience?

It’s extremely unlikely that your product or service will appeal to everyone, and even if it did, you’d need to narrow your audience down for marketing purposes. Consider the type of people who are going to want to pay you money and target everything at them. It will include your website, advertising and your marketing campaigns. If you’re not sure whether you’ve targeted the right audience, you can always send out a questionnaire. Alternatively, communicate with them via social media. There is another benefit to consulting with your customers; it will make them feel like they have a say, which will ultimately bring their loyalty and increase the chances of them making a recommendation.

Think About a Web Presence

It might surprise you to learn that as many as half of small businesses don’t actually have a website! Out of these, there are bound to be a large percentage that wants one but doesn’t know what to do about building one. If you’re likely to fall into this bracket, don’t worry because it is easier than you think. There are some pretty amazing web building tools that an absolute beginner will be able to understand. Even if you’re not planning to sell anything online, it is important to have an online presence. So many consumers do their research using their smartphones you’d be mad to miss out on such an opportunity.

What Payment Methods are You Planning to Accept?

This is particularly important if you’re planning to open an e-commerce store. There are a wealth of different payment methods you can choose to accept. However, it’s probably not wise to accept all of them. For example, will you accept credit cards or just debit cards? What kind of card provider would you prefer? Is PayPal going to be an option worth considering? Payments can also be made using:

  • Skrill
  • Bank transfer
  • Cash on delivery
  • Direct debit
  • Amazon payments
  • Payoneer
  • Checks

Do You Have Any USPs?

What are your USPs? They are unique selling propositions or points; it’s what will make you stand out from the competition. Is there anything special about what you’re offering? Are you offering something customers won’t be able to get anywhere else? Maybe the customer service experience you’re planning is what will make you stand out. Think about your angle and make sure everything is true to it.

How Are You Going to Fund Your Enterprise?

The ideal scenario would be for you to have enough money to fund your new business yourself. The truth of the matter is more likely to be that you will need to look for funding. Start with friends and family as they might be willing to help you out in the short term. You’ll also be able to avoid paying huge sums in interest payments. There may be business grants available in your location. If you’re struggling to finance your idea, then start small and prove to yourself that it works before looking further. This will also put you in a better position to approach banks or investors for their support.

There are numerous other things worth considering such as licenses, accountants, insurance, staffing requirements, bank accounts, partners, marketing your business and many more. Starting your own business is a big step to take, but as long as you have your realistic plan, you’re already on the right road to success.

Essential Ingredients Every Business Needs

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StrategyDriven Entrepreneurship Article
 
Unfortunately, you can’t simply launch a company and expect business to be booming overnight. There’s a framework you need to put in place, and essential ingredients you’ll want to include that will help you succeed and get through the rough times.

It’s not a wise idea to move forward blindly without specifics in place from how you’re going to get from one point to the next. Always be forward-thinking and coming up with ideas for how you can be improving as you go. Include the following key requirements you need to experience long-term stability, and you’ll be quickly heading down the right path.

A Solid Business Model & Objectives

If you want to make money with your venture, then you’re going to need to have a sound business model in place with a list of critical objectives you’re going to tackle. Pay attention to what sources of revenue you have available to you and if you feel you’re competitively priced or not as you work on your roadmap. Set goals for what you’re going to work toward in the coming years and include specifics for how you’ll achieve each one. This is an instance where you do want to obsess over the details and make sure you’re putting yourselves on a solid course to victory for the long-term.

Policies, Processes & Procedures

Every business needs to have policies, processes, and procedures in place to function optimally. It’s not a wise idea to launch your company and simply hope for the best without documenting and communicating out your rules and expectations. You’ll need this type of structure in place as you begin to hire on more staff and expand your offerings. Efficiency and speed will become even more important as you grow and the only way to do this is by coming up with a framework of best practices. There will be less confusion on a daily basis and more communication occurring between departments and individuals when everyone’s on the same page.

Technology Solutions

Doing your work manually isn’t a good solution for the future because it slows you down and provides more opportunity for errors to occur. You can read more about what your options are for how technology can improve your business such as tracking time and individual projects. This way you’ll know exactly who’s in the office when you’ll save yourself money and can quickly take note of who’s working on what projects. Adopting more technology solutions will allow your employees to be more productive and you’ll be happier because you’ll be achieving your goals at a quicker rate. Bring more of what you’re doing online, and you’ll likely notice that your business runs a lot more seamlessly and there are fewer complications.

Talented Employees

Every successful business needs to have skilled and talented employees who are ready to work hard each day. Hire wisely by taking the time to come up with specific job descriptions, read through resumes and participate in the interviewing process. Be very careful and mindful of who you hire and bring onboard because it will cost you even more money to keep replacing people. Your company will progress nicely when you can depend on the staff who you’ve hired to complete their tasks correctly the first time around and not have to constantly be babysitting and correcting mistakes. Hold regular company-wide meetings and assign your employees individual coaches to ensure everyone feels valued and connected.

Strong Leadership

No business ever made it too far without having a strong team of leaders and management in place to guide employees and execute on the company’s objectives. Surround yourself with good people who have experience working in high-level positions and understand and can help you achieve your vision. Your company needs direction and people who are committed to building a bright future filled with a lot of positive outcomes. This will be especially important in difficult times or when your staff isn’t feeling very motivated. Your business will require strong leaders who will step up in the face of adversity and never give up or quit.

Paying Customers

Your business won’t survive too long without a long list of loyal and paying customers who you can depend on in good times and in bad. It’s essential you pay attention to your clients and offer them consistent and outstanding customer service. Reach out and seek feedback and listen to their viewpoints so you can make any necessary changes going forward. Focus on delivering quality products or services that are innovative and meet the needs of your customers. Engage with them on social media and be available to answer their questions or talk through any concerns. What will help you out the most is continuously testing out new products or services with small groups of people before you go to market with them, so you can guarantee they’re a hit.

A Plan for Problems

You should never expect all to go smoothly and as planned when you’re running a business. There will always be roadblocks, obstacles and unexpected happenings that you’ll need to deal with and manage. Think ahead by planning for problems and determining what it is that could possibly go wrong, so you’re prepared for these hiccups when they do occur. Always spend within your means and have resources available to you should anything get steered in another direction, and you need to act fast. Focus on problem-solving your way out of sticky situations instead of flying off the handle or giving in to these inevitable issues.

Conclusion

These are just a few of the essential ingredients every business needs to truly thrive in a competitive and cutthroat landscape. Work on achieving success in these areas, and you’ll be a lot better off as you continue to develop your company. What will help you to accomplish this goal is if you make a list and then prioritize what you believe is most important that you get done first and continue to work your way through the remaining items.

Starting Business in Canada? Basic Tips to Follow

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StrategyDriven Entrepreneurship ArticleWhether you are a Canadian or a new immigrant you might want to start your own company and be your own boss.

Statistics Canada showed in 2010 that 5.3% of immigrants started a business after living in Canada for a few years. At the same time, only 4.8% of Canadian citizens owned a private company in 2010. So, everything is in your own hands and all you have to do is to keep in mind the following information.

There are a lot of important things to consider about how to start a business in Canada. In this article, you will find the basic tips from financing and marketing to business planning in Canada.

Build Your Credit Score

If you are new to Canada, you may not have a credit history that banks can rely on to lend you the money for your startup.

There are several fast ways to build up your credit score. One of them is to build up your borrowing potential by signing up for a credit card. Make sure you use it with responsibility and in six months your credit score will slowly start to develop. Later on, you will be able to use it in order to finance your startup.

Pay attention to your credit score even after you’ve been approved for a loan as this is when problems may happen if you fail to repay the loan on time and in full.

Some lenders may approve your application for Canada loans for bad credit customers but it is not guaranteed that you will get the required amount and terms. Such loans are typically issued as personal cash advances rather than business financing options. Although, it may be enough to cover some small current business expenses.

Understand Canadian Culture

If you want your business to be successful in any country, you have to embrace its culture and understand local customers, what they like to purchase and how.

The best way to get immersed in a new culture is to join volunteer organizations and get involved in business associations or any other place where you can easily mix with people who know this country better and have lived here for a longer time.

After you’ve successfully built your local network, you may develop your business and make connections elsewhere.

Make Your Personal and Business Banking Accounts Separate

This piece of advice may seem obvious, yet so many business owners make the same mistake and start their own company not just out of a basement or an old garage, but also out of their personal bank account. Set up a separate business bank account that won’t mix with your personal one.

Also, make sure you have enough money to cover your personal expenses for at least six months while your company is getting started.

It always takes some time before the business becomes profitable so it’s always beneficial to have a good baseline. Even if you don’t have that money at the moment, you can start saving or find a job.

The website of the Government of Canada performs a useful page called Preparing to Work, which provides with additional information on how to land a job in Canada, tips on how to improve your English/French or get your credentials assessed. More than that, familiarize yourself with laws you will be required to follow as an entrepreneur, maybe even consult a business attorney if necessary.

Give your startup a fighting chance by creating a solid foundation with these basic for starting a business in Canada.

Starting Your New Business on a Budget

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While many business owners would love to have enough money to start their business the way they want, the reality is that most companies struggle for capital when they first start. That doesn’t mean that you cannot start your business, it just means you will need to be prudent and cautious when it comes to spending. There are many ways that you can get your company up and running, even on a budget.

Don’t Borrow Unless You Must

While there is a big urge just to borrow the money you need and get the things you want; you need to be careful. You want your business to start earning you money, not generating the money to pay another debt. You must also be aware of the fact that your company might not survive. If that’s the case, then you will be saddled with the repayments for your business loan. If you do have to borrow money, only borrow the smallest amount that you need to get started, that way if your company takes off, you will still get some profit.

Start in a Modest Way

Although you might have the dream of a nice shop or a large office, you should avoid such things until you are on the more stable ground. The best thing to do at first is to start from home to keep costs down, or perhaps share office space with another company. If you need to be out there to sell products, start small by going to fairs and markets and going from there. Once your company is making money, you can rent a small store to sell your products.

Think About Refurbished Items

Buying a new printer, computers and other office equipment can become expensive in a short space of time. To cut down on those costs while still getting the equipment you need, why not consider buying refurbished or used items. Many companies offer used office copiers and other electronics that have been refurbished, so they are working perfectly. You can get desks, chairs and other furniture from used office suppliers. They are usually in good condition, just taken from offices that have been refurbished.

Be Smart with Your Services

To run your business effectively, you will need a phone line with the internet, though getting these set up especially with a business rate can be expensive. Do plenty of research into the best deals you can get for your business, and see if there are deals that offer extras such as a business mobile or free web space for a website. To cut costs further, try to develop your website yourself using the many website building sites that are on the internet. It might not be as polished as you want, but it will be free, and it will be a good start until your business takes off.

By trying to plan your spending and by using used or refurbished goods, you can start your new business with minimum capital.

What Should You Do Before Starting A Business?

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If you like the idea of being your own boss and starting a business, then there are a number of things that you need to think about and do, before you leap right in. Just jumping in at the deep end can mean that you make avoidable mistakes, or even lose a lot of money. Taking the time to step back and think about what you need to do first is always the best option.

Do Your Research

Before you begin any major product, and particularly before you sink your life savings (or someone else’s) into a new business, you need to do your research. You should look into the industry you’re planning to become join, and see how unique your business idea is. You may need to change your plans slightly, or even put things on hold until you can come up with something different. Even if you do have an idea that’s different, it’s always good to be aware of your competitors and keep ahead of them whenever possible. This is also the time to consider your target market. Once you know who they are, you will be able to target your marketing and design ideas towards them.

Legalities

When you start up a business, there will be certain legal aspects that you need to deal with. Firstly, you’ll need to choose what its legal structure will be. That could be a limited company, an LLP, or you might want to work as a sole trader. Each option has different tax implications, and the liability of the owner will change too.

Speak To Consultants

It makes no difference if this is your first company, or whether you’ve run many different businesses before, it’s always worth speaking to consultants about various aspects of your business. Financial consultants and marketing experts such as the ones you can find at http://netwaveinteractive.com/marketing-services/marketing-consulting/ have many years of experience in their sectors, and this kind of investment can pay huge dividends when it comes to an understanding of how business works. Starting off on the right track with a consultant behind you can prove to be an extremely shrewd move.

Look At Your Finances

Starting a business is not a cheap prospect. There are many different start up costs, so understanding where the money for these will come from is the first thing to look at. You might consider asking your bank for money or going to investors. You might want to look at crowdfunding. There will be an option that works for you, so take your time in finding it. Whichever route for funding you choose to take, you will need to write up a detailed business plan. Your business plan will have to include all of your expected costs for running your business including electricity, rental or mortgage costs, staff costs, stock and machinery costs, and more. This is another reason why research is essential; if you can show that you understand how much you will be paying, and why it is worth paying that amount, then it will be far easier to find the capital. As well as that, it means you can budget more easily, and you’ll know how much profit you need to make.