Starting your own small business can be exciting, but it isn’t without its challenges. You won’t be able to keep yourself financially afloat if you dive into work without taking key preparatory steps. By not neglecting the following important areas, you can have confidence that you’ll be able to keep your business running properly for many years to come.
While they may not be fun to talk about, taxes are an inevitability for any business owner. When starting a business, it is best to so that you are fully aware of your tax responsibilities.
Visiting a tax consultant can also help you save money — they’ll be able to help you identify which deductions and tax credits you can use to help you keep more of your income. Things like the Apprenticeship Job Creation Tax Credit and Home Business Tax Deduction could help you save thousands of dollars on your taxes.
Permits, Licences & Regulations
Paying taxes isn’t the only thing you’ll need to do to keep your business legally compliant. In Canada, any business that makes over $30,000 per year is required to complete a Federal Business Registration.
Depending on the city or province where you live, additional permits or licences may also be required to operate a business. Certain types of work (such as taxidermy or construction) often require additional registrations or licensing from the government. Taking care of this paperwork now will help you avoid fines and other complications later.
A Solid Business Plan
No business will be successful without a well-thought-out business plan. Even if you don’t need funding to get your business started, you still need to develop a detailed plan for your costs and forecasted revenue. Incorporating sound money management principles from the start will make it that much easier to expand without overspending.
Naturally, a key part of your business plan will involve defining the target audience for your products or services. The better you understand your potential audience, the easier it will be to achieve your marketing goals. Take the time to do your research — poor targeting could spell disaster for your budget.
Preparation Yields Success
It’s understandable that when you have a big idea, your first instinct would be to immediately dive in and start trying to promote your new business. But entrepreneurship is a marathon, not a sprint. As you take the time to research your marketplace and ensure that everything is squared away legally, you’ll build the foundation for a successful business — no matter what type of industry you’re working in.