Important Steps You Should Take When Starting a Business

Starting a new business can feel a little overwhelming, especially at the beginning. However, there are steps you can take to make it a little easier. By preparing and doing certain things, you can negate some of the risks and lay a strong foundation for your company.

Here's a step by step guide to talk you through some of the most important things you should do.

Start with an Idea and a Plan

Before you can start a company, you need an idea and a plan. A quick-start business plan can help you test and validate your idea. Does it meet a need? Is there a market for it? These are things you need to know before you invest any serious money into it.

Once you've decided on the best service or product, you need to create a thoroughly detailed business plan. It's a vital step because this tool will help you get financing for your venture later.

Naming Your Business

It might sound easy, but there are several legal and marketing elements to consider. Make sure that the name hasn't been registered yet. It's also good practice to make sure your name communicates what you do, is visually interesting and positive, and that you can build it into a brand.

Ownership and License Registration

There are different forms of ownership: sole proprietorship, partnership, and corporation. There are a few other sub-options, but these are the main umbrellas. The type of business you register will affect your liability and tax.

Depending on your type of business, you may also need other licenses or permits, so do your research.

Financing and Preparation

While some people can finance a start-up out of pocket, many of us can't. There are several options, including business loans or finding investors, to help you get the money you need. Ensure that you research each option and be aware of your obligations in each case.

It's also important to note that you should keep thorough records of your finances. Keep your personal and business finance separate and keep receipts whenever possible. You'll thank yourself for it, come tax season.

Register for GST/HST

Depending on your business income, you may need to register for GST or HST. Depending on what your company does, you might have to register for tax immediately.

Depending on your area, you might also need to pay provincial tax. According to the Good Services Tax website, a good tax lawyer can advise you on the different tax issues, and protect you against legal action.

Get Business Insurance

While you may be legally required to get some forms of insurance, you might want to consider additional policies. Liability, business interruption, and key people insurance are just some of the plans that can protect you.

Market Your Business

Now that everything else is in place, it's time to market your goods and services. You should already have started preparing for this step when you did your business plan, but now you need to turn your plan into action.

Final Advice

Starting a new business isn't easy, and it carries its fair share of risks. Remember, preparation is key. Having your company named and registered is the first requirement, but you also need to have a solid business plan. It's especially important if you're going to apply for financing.

Keep financial records right from the start so that, when you've registered for tax, you've got half the battle done. Finally, you can't generate a profit without marketing and advertising your services or products. Don't forget to invest in marketing and advertising, and you'll be well on your way to running a successful business!