From developing your business idea to registering your business, these are 10 recommended steps to follow when starting a small business.
1. Choose A Business Idea
Many people think that all you need to start a business is one good idea. While that can sometimes be true, the best foundation for business success is to have several possibilities for creating profits. It is a worthwhile exercise to explore additional products, services, procedures and processes that may enhance your initial idea.
2. Conduct Market Research
Market research provides you with an understanding of your customers, your competitors, and your business environment to help you start your business. Market research is the process of getting the information to help you develop your business plan.
3. Understand Government Regulations & Licenses
All entrepreneurs have general rules they must follow to operate their business, including government regulations and taxes. Some businesses may have additional requirements and licenses for their industry, location, and/or profession.
4. Determine Your Staffing Requirements
Every business will have different staffing requirements. Looking at your sales forecast will help predetermine your staffing needs. When hiring employees, business owners must consider how they will recruit employees, what payroll costs they need to pay, and what associated labour regulations they are required to follow.
5. Choose Your Business Location
Choosing the the right location for your business will depend on the type of business you plan to operate. It is important to review the regulations and needs of your business, and outline them in your business plan, to determine the right location.
6. Develop Your Business Plan
The success of your business depends on your clear vision of the future. A business plan is a written document to help map out the vision of your business during start-up and a valuable reference document when operating and/or expanding your business.
7. Determine Your Financing Options
To successfully start or grow your business, it is important to know how much money you will need and what financing options are available. There are a variety of financing options available for small business owners.
8. Determine Your Business Structure
Ownership will depend on the structure of the company and there are a number of options available. The type of structure you choose for your business effects the way you report your income. how you will file tax returns each year, and many other matters.
9. Register Your Business
A business name registration refers to a registration under the Business Names Act. It applies to small business owners who want to register a sole proprietorship, a partnership or an operating name (trade name) for a corporation.
10. Ready, Set, Launch
If you have any questions about starting your business, the Mississauga Business Enterprise Centre can help!