In Small Business

Getting Started

in Small Business

Planning and preparation can make all the difference.

On behalf of the banking industry, the Canadian Bankers Association has embarked on a program called Building a Better Understanding. This is our commitment to try and communicate better and to provide useful financial information to Canadians.

As part of the program, we are offering a free series of publications, ranging from money management, to mortgages, planning for your retirement, and saving for your children's education. To obtain copies, call toll-free 1-800-263 0231 or visit our web site at cba.ca. You can also order by writing to Building a Better Understanding, c/o Canadian Bankers Association, P.O. Box 348, Commerce Court West, 199 Bay Street, 30th Floor, Toronto, Ontario M5L 1G2.

Published by the Canadian Bankers Association July 1998. Third edition, October 2004.

Copyright Canadian Bankers Association 2000. All rights reserved.

These publications are also available in alternative formats for people who are partially sighted or have limited vision.

La version fran?aise de cette brochure est disponible sur demande.

This booklet gives information of a general nature and is not intended to be relied on by readers as advice in any particular matter. Readers should consult their own advisors on how this information may apply to their own circumstances.

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Planning for a Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Know Yourself . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Finding a Business That's Right For You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Know Your Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Planning Your Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Setting Up Your Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Which Structure is For You? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 How Will You Operate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Your Roadmap: The Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 The Money You'll Need . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Debt Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Equity Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Maintaining A Healthy Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 You Are Not Alone - Information Sources . . . . . . . . . . . . . . . . . . . . . . . . 22 Glossary of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

1

Did You Know?

There are approximately 2.4 million people who are self-employed in Canada

Source: Industry Canada, Small Business Quarterly, August 2004 (for Q1 2004)

Introduction

It's an exciting time to start a new business in Canada. As our economy evolves and society changes, new markets and opportunities open up every day. At the same time, there has never been so many resources to help get your business off the ground.

? understanding your market and the importance of planning a marketing strategy

? the value of a business plan ? sources and types of financing for a new business ? what you'll need to get your business up and running

Everyone has a different reason for starting a business, but one fact remains the same ? creating and running a successful enterprise is hard work. Perhaps you're in school, just finishing your studies, well into a professional career or looking to re-enter the workforce. Whatever your situation, if you are planning to go into business for yourself, remember that it takes time, planning, discipline, money and perseverance.

Before striking out on your own, one thing is clear, there's a lot to consider. Published by the Canadian Bankers Association, Getting Started in Small Business will give you an idea of what's involved in the planning and preparation stage.

The booklet offers information on: ? things you should consider from a personal

perspective

Throughout you'll find checklists and tips, and a glossary of terms.

Keep in mind that this piece is not the final word on starting a new business. There are books, courses, and web sites devoted to this subject, and these should be explored. Talk to entrepreneurs who can give you personal insights into the dynamic world of small business. At the back of the booklet, we have provided a listing of some helpful resources ? from financial institutions and government agencies to associations ? to help get you started.

Consider this a first step in the process of building a new business. We want to get you thinking and asking yourself some basic questions. But most of all, we want to point you in the right direction. Good luck with your business idea.

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download