You’ve decided that you want to go into business for yourself, but where do you start? The question that pops into most investors heads at the beginning is how to start your own business. Whilst the process for starting your own business may seem confusing at first, the process is actually fairly simple once you begin looking into it. However there are some decisions that you have to make early on that could have a long-term impact on your business in the future, so you’ll want to ensure that you get these steps correct.
The best way to really find out how to start your own business is to write a business plan for your new business. This business plan will map out the strategies and financial aspects of your business idea and will quickly tell you whether the business is likely to be a success or not.
The next step is to decide what type of company that you want to set up, In Canada this can come on a few different forms, such as a Limited Company, a LLP (Limited Liability Partnership) or a Sole Trader. This is an area that will have a long-term impact on your business if you get this wrong so it is a good idea to put a lot of thought into this step.
You will need to arrange a business bank account and also arrange the finance that you require. Finance can be raised through a wide variety of means- perhaps you have your own start-up capital or you are thinking about borrowing this from friends or family. More often than not entrepreneurs will either look to the bank, venture capitalists or angel investors for money. If you are launching a business that will relatively small initially then sometimes the bank or venture capitalists will not be interested in helping you, especially if you do not have an established track record as an entrepreneur. In these instances new businesses can look towards private investment for help as this type of financial support can be great for launching a business.
Remember also that in Canada you will also have taxation requirements that you will need to take care of. You will need to inform the HMRC for tax purposes and you should also remember that you will need to pay National Insurance and PAYE for yourself and if you have employees working for you. It may be a good idea to get an accountant to help you with all the financial paperwork so you can concentrate on running your new business, this will help free up your time and ensure no mistakes are made.