Opening Your Business

So, you have decided to open your own business… first, congratulations! Opening your own business may feel stressful, confusing, and overwhelming at times. And while it may feel that way, it is an incredibly rewarding endeavor. Once you have realized that you would like to open your own business, you may be confused as to where you need to start. There are many moving parts that go into opening your business, and this guide will help you get there.

Table of contents

1. Step 1: Research and write a business plan

2. Step 2: Determine your costs

3. Step 3: Decide how to structure your business

4. Step 4: Choose and register your name

Step #1: Research and write a business plan

The best way to start your journey into becoming a business owner is create a foundation with a business plan. A business plan will outline each stage of growth you will enter so you know the direction you need to take when that time approaches. It is a way to think through and detail out how you would like your business to run and the important aspects to make it successful. It will also provide an analysis of the present state of your business and outline the future financial projections.

If you feel that your business will require funding to kickstart success, lenders will use your business plan to help them make informed decisions about providing you a loan. It helps lenders understand that you understand your business and its capabilities.

There are many important things to include in your business plan such as what your business is, market research to determine your market position, financial strategies and projections, a risk mitigation plan, and your management credibility. Every business plan is different because every business is unique to itself.

Step #2: Determine your costs

Your goal with your business is to make money and be successful. It is important to be as prepared as possible for the costs to come so you can ensure you will be able to manage it. While it can be difficult to determine the exact cost you will need to account for, an estimate will allow you to budget your finances. The best place to start is to outline each of the needs your business requires and research the operational costs. Keep note of the costs of products, daily operations, employees, insurance and marketing.

The Canadian government offers a number of business grants and aids that you can apply for. Visit the website here to learn more about how they can help your business.

Step #3: Decide how to structure your business

Choosing your business structure is one of the bigger decisions you have to make when opening your business. Luckily, you are not locked into the type of business structure you choose, and it can be changed as your business grows. You can choose from sole proprietorship, partnership, and corporation. See below for the advantages of each structure or learn more about the different structures.