Many entrepreneurs will tell that there is no perfect formula for starting a small company. The best advice you can give to a small business is sometimes to challenge the way you think. Recently, we spoke to several successful business people and asked them for their advice and tips on starting a new business.
Tips on Starting a Small Business
When starting your own company, it’s normal to learn on the job. You’ll have a better chance of success if you start your business with smart decisions. Here are 9 tips from experts.
1. Address Excuses
Trevor Haywood, the President & Chief Executive Officer of Haywood Hunt & Associates Inc. a private investigative agency based in Toronto, provided this insight:
Many people have dreams of becoming entrepreneurs, but they never do. People are often burdened with excuses and the fear of failing. There are a million reasons why you shouldn’t start a new business. These include time, money and responsibilities.
Being your own boss is scary. The majority of new business owners don’t know their chances of success, and they have a great deal at stake. Normal to be concerned about the risks of business ownership.
Excuses only prevent you from reaching your goals. You must eliminate all the excuses that prevent you from starting a business. Instead of letting the problem stop you, find a solution.
2. Absorb Everything
Rupin Bal is a Punjabi criminal attorney with Rupin Bal Law Professional Corporation, located in Toronto:
Listen to other people’s opinions, including your friends, family, and experts. When it comes to your entrepreneurship goals, be a sponge. As you learn, start developing the idea. Take notes on everything. Make notes about all the resources you come across to develop a detailed plan.
When you tell someone about your startup, pay attention to their body language. Does the person you are talking to like your idea or not? Do they just want to be nice or are they really convinced that you’re going the wrong way? Encourage your listeners to be honest. By observing your peers, you can get an idea of how consumers react.
Don’t ignore the advice from experts and business owners with experience. They know what works, and what does not. Smart entrepreneurs learn by the mistakes of other business owners.
3. Be a Solution
Danny Porter, President of Homebase Mortgages Toronto and Home Equity Loan specialist, shared the following insights:
Start by thinking of what your product will solve. It’s easier to attract customers when your business is solving a specific problem. Your startup needs to be able fill a niche or market gap.
Patriot Software wasn’t created because I am a software lover. I wanted to solve the problem faced by small business owners. After doing some research, I found that I could provide payroll software and accounting software that was both affordable and easy to use.
You should focus on your motivations for starting your own business. Understanding your motivations can help you create a brand and market for your business. Your customers should be able to tell you what their problems are, and how they can be solved.
4. Keep it Simple
Lori Blair, owner of Toronto’s Urban Tail, is a dog walker. She shared some of her insights:
Like many entrepreneurs, you may have an idea and be ready to start a business. Do not let your business idea become a complicated project. You could end up with an expensive, complex product that nobody wants.
As a small business owner, focus on less. Test out your business ideas. Create a quality, simple product or service. A successful business plan will exceed the customer’s expectations and keep all of their promises.
Reduce features that are not necessary. They will cost you money and reduce the value of your product. You do not have to be as extravagant and expensive as large corporations. It will become easier to expand your business as it grows.
5. Calculate Your Costs
Toronto Criminal Lawyer Ahmad Karzai from Ahmad Karzai Law Professional Corporation offers the following advice:
As soon as you start developing your business plan, add up all costs. You will need to include your expenses in order to launch and run your company. Consider your location, rentals, supplies, and advertising.
Multiply that number by 4. Quadruple the amount. Do not forget to quadruple your amount. Unexpected expenses will occur everywhere. It’s better to be prepared than run out of cash when the bills start coming in.
When you calculate the cost of starting a business, don’t forget to include your personal budget. You should also consider how much money you will need to pay for food, gas and rent. List your expenses from those you must pay first (e.g. List these expenses in order of importance, starting with the ones you have to pay (e.g. entertainment).
Once you have figured out your expenses, create a budget. To cover your initial expenses, you may need external capital such as a loan for small businesses. Consider all of your options before investing in a new business.
6. Imagine a World Where You Have No Money
AJ McPhee is the CEO of Mortgage Central Nationwide and the Second Mortgage expert at Mortgage Central Nationwide . He shared his insights:
I mean zero. It is very likely that this will happen. Over the years, I’ve watched several of my business ventures fail. I’ve come close to bankruptcy.
Many entrepreneurs are faced with the reality of starting a business and having it fail. Over half of new businesses fail within the first five-year period. What would you do without money?
It is important to have a backup plan in place “just in case”. You might need to move back in with your parents or find a new job fast. You may need to sacrifice comforts that you’re used to. What would you do if your business plan failed?
What is your current source of income? What is your income today? How long would you be able to live off your savings, if you quit your job? What unexpected events could derail your plan? (e.g. (e.g., your car breaking or your furnace breaking) Prepare yourself for the worst case scenarios that could occur if you fail to achieve your goals.
7. Earn While You Build
Malerie Rose, a Mississauga-based family lawyer and owner of Rose Family Law, shared her thoughts with us:
If you plan to start your own business, don’t quit your current job yet. It takes time to build a successful business. Transition from employee to entrepreneur by building your business slowly.
As a brand new business, it will take some time to build a steady income. You can work your regular 9-to-5 job and focus on your business during your free time to be able to make money in those first difficult stages. Once you have a regular income from your business, you can become a full-time owner.
8. Speak Out about Your Business
Calvin Barry, an acclaimed Toronto DUI lawyer and owner of Calvin Barry Professional Corporation, shared his insight:
Many business owners have a difficult time selling. It can be intimidating to announce your business as a new owner.
Stop worrying about what other people think about your business. You will struggle to earn money if your customers don’t support you and purchase from you. You’re not outgoing enough. Fake it till you make it. If you want to be successful in business, you can’t be shy.
My first public speech was in my early days as an entrepreneur. In my early years as an entrepreneur, I was required to give my first public speech. I had no experience or training in speaking to large groups of people.
To see my business succeed, I needed to get out of my comfort zone. I had to plan and host nearly 70 3-day conferences.
The fear I felt is hard to put into words. After I spoke at conventions, my confidence in front of other people increased. I am an introvert but I needed to “put myself out there” to grow my business.
Even if it makes you uncomfortable, prepare yourself to speak confidently about your business. As a new business owner, you will need to market and network your company constantly. Communication is essential, whether you’re networking with clients or discussing payment terms with suppliers.
9. Start a Small Business Legally
Michael Caride, owner of Toronto SEO Company Brushfire Marketing Solutions, recently gave us this advice:
Starting a business is exciting. Laws are boring. It is important to understand the rules that come with starting a new business. If you don’t follow government regulations, you could face harsh penalties.
You must obey the laws. Register your business. Be sure to understand your business’ tax obligations. When you hire new employees, it is important to follow all laws that govern employers.
You’ll have different rules based on your location, business structure and industry. Speak to a small business accountant as you launch your new venture.
