Starting a Business

Going Into Business Why start a business Be your own boss Financial independence Use your own talents and be creative

Questions to Ask What are my skills best suited for? Opportunity to put your skills to work Where can I find information about businesses of this kind? Libraries, existing businesses, trade associations, government resources, internet http://www.city.ottawa.on.ca/business/starting/entrepreneurship_en.html http://www.canadabusiness.ca/eng/ http://www.ic.gc.ca/eic/site/ic1.nsf/eng/h_00140.html http://ottawa.ca/business/starting/bizpal/index_en.html

What are the startup costs? Many expenses to pay for (rent/mortgage, salaries, advertising, goods needed for sale, day-to-day operations, debts) Debt Financing: Borrow money to run your business Perhaps difficult to repay Equity Financing: Use money from savings or investors Might need to give up ownership of part of the business

Where can I find financing? Banks, trust companies, credit unions Credit history analysis Business plan examined Owner judged for skills What level of risk can I expect? Payment refusal Partner does something unacceptable Terminating employees may lead to legal action Supplies not arriving on time Damage to customer goods

What steps are involved in running the business? Hire a staff with necessary skills to start/run Determine the right number of employees What resources would I need? Cash, inventory, supplies, furniture, fixtures, computer hardware/software, equipment, tools, vehicles, buildings… Forecasting: Determining what resources will be required Determine revenue (money gained from the sale of a product) and compare with expenses and costs Review every 3 months (every quarter)

Should my business be home-based? Computers, scanners, video equipment, camcorders, access to Internet make running a business from home much easier Fewer meetings, less office politics, less time on the phone, less running around, jeans and t-shirt?!

Class Work Page 50 Numbers 2b, 3b,