Starting a business can be an exciting undertaking. After all, the entrepreneurial spirit is very much alive and well in Calgary.
Many businesses have promising beginnings. However, according to one source, 30% of them will not make it beyond 5 years. There is something wrong with this picture. Contact a small business consultant in Calgary to help you start your business right.
Businesses can fail for several reasons, but many experts agree that it all boils down to lack of planning which can manifest itself in several areas. So we will examine a few critical areas to help you start your small business right.
3 Simple Yet Effective Steps to Start Your Small Business Right!
Step 1: Business Plan
Would-be entrepreneurs often dive into business with no direction or vision. They think only about the money they could make. But you cannot get to the money without a path to it. You can ask any qualified accountant in Canada; a thoughtfully drafted business plan is the way to get you there. You will be outlining how the business will run and who will be running it. You will also decide who will be handling your payroll, yourself or will you be hiring a payroll agency.
A business plan will increase your chances of success. If you don’t think you can do it yourself, get help. There are plenty of experienced companies that can assist you.
If you ever need financing down the road, you will need a business plan to show your banker. He or she will decide if it’s worth the risk to loan you the money. They will consider the business plan as a whole, but they will be paying particular attention to the next item.
Step 2: Market Research
If you plan to sell any product or service, remember one thing: without market research, you’d only be gambling at best. You need to know if there is a market for your product or service. Better yet, market research tells you and potential investors what buyers are hungry for in your marketplace.
So do you want to gamble your resources, or put them to good use? Your accountant can be a must-have advisor here. They can help you determine the financial impact of any of your business decisions.
Step 3: Financial Planning
Most people who enter business know little or nothing about accounting, tax planning or financial management in general. It would seem natural to consult an accountant in Calgary. However, this step is mostly avoided – often with disastrous consequences.
When it comes to tax compliance, it becomes a chore, wading through endless pages of tax laws, which change every year. A tax consultant should be one of your most trusted professionals. You should plan to have one for your business.
It’s not enough to know how much money you need personally to live; you also need to know how much money you need for your business to run. You need to bring in enough money to cover all of your operating expenses, including paying anyone who helps you get it all done. For that, you may have to hire an individual or company to handle payroll.
Here again is where Calgary-based tax accountants can be a great help. Getting accounting help is common sense and sound financial planning.
Summary
As we mentioned, starting a business in Calgary can be an exciting undertaking. To ensure your chances of success, however, don’t dive in without planning first. You will need a business plan, marketing research and some solid financial planning. Take care of these things, and you will have a great foundation to start your business right.
