Factors to Consider for a Successful Business Start-up
Starting a new business can be a good thing. But before you dip yourself entirely into the venture, it is good to understand what it entails in order to have a successful start-up. Should you want your startup to succeed, you have to have a concrete business plan. Here are some of the basics you need to know before you venture into your startup business.
A business plan is the most basic thing in any startup. This is a written document that stipulates your business’ goals, objectives, strategies, financial projections and target market(s). It assists one set timely and realistic goals as well as get funding for the business. A business plan also helps one be able to measure success, get clarity on operational requirements and also establish the tone for the business success.
If one needs external funding, the amount of funding they will be advanced is dependent on the business plan. In order for any financial institution to extend their credit to you for your start-up, you must demonstrate the ability of your business to make profit for an extended period of time.
A business plan is not just a paper about your business heart upon which the success of your start-up rests. It helps you set the stage for the business. Proper preparation is the path to success.
You need to understand the sources of funding your startup. Is it private finance or will you seek outside funding? Bearing this in mind, one is ready to secure the finances. In Canada, there is lots of government programs geared towards funding business startups. You can also seek out financing from friends banks or other financial institutions. Whichever source of funding you decide to choose, you need to determine on how you are going to pay back the loan.
Kind of Business
When starting a company, one is faced with about three types of business structures to choose from. These include sole proprietorship, incorporation and general partnership. It’s wise to decide on a company structure which is most appropriate for you. If you want to go solo, sole proprietorship is most appropriate, but if you want to share the risks with another party then you can enter into a partnership with a colleague or any business oriented individual. For those who want their business to be a separate entity from them, then incorporation is necessary.
Choice of Business Name
It is important to pick the right business name. The right business name can be an effective marketing tool on its own. Be sure that your business name is not in use elsewhere so as to avoid ambiguity. There are several ways to determine whether choice of business name is already in use. You can use websites such as business name search Canada to determine whether the name is currently being used.
The place where your business will be established is an important determinant of your business’s success rate. Location determines the availability of raw materials, market, licensing requirements, operation costs, availability of labor and applicable taxes.