{"id":266936,"date":"2025-06-01T11:40:56","date_gmt":"2025-06-01T11:40:56","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/nine-steps-to-starting-your-small-business\/"},"modified":"2025-06-01T11:40:56","modified_gmt":"2025-06-01T11:40:56","slug":"nine-steps-to-starting-your-small-business","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=266936","title":{"rendered":"Nine Steps to Starting your Small Business"},"content":{"rendered":"


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Related Post: <\/strong>Items you need for your new small business<\/strong><\/a><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Create a business plan<\/strong><\/h2>\n

There are numerous opinions on whether you need to set up a business plan and how much value this adds to your business.\u00a0 The answer is that even if you don\u2019t need an official business plan (for financing etc.) it helps you to set goals for your business and give you a realistic and thoughtful understanding of the challenges, obstacles, competition and how you are going to differentiate your business from your competitors.\u00a0 Additionally, a financial forecast will give you a sense of your cash flow requirements<\/a> and profitability (among other important financial metrics<\/a> that might relate to your business).<\/p>\n

Whether you should register as a sole proprietorship, partnership or incorporate<\/a> can be a difficult one.\u00a0 Often if you are small and just starting out it might make sense to just register your business rather than incorporate to keep costs down. However it is important to consider whether you want brand protection, limited liability, or if incorporating might seem more professional to your customers.\u00a0 <\/p>\n

Tax deferral opportunities are also available with corporations, however, usually this is if you plan to leave funds in the corporation.\u00a0 If you are a startup and need an equity structure for future funding, it might also make sense to incorporate. <\/p>\n

It is also important to ensure that you are aware of any potential regulatory requirements that might apply to your business.<\/p>\n

Even though you don\u2019t have to register for GST\/HST\/QST in Canada until you reach $30k<\/a> in annual sales (for most businesses),\u00a0 it makes a lot of sense to register immediately if you have high start-up costs since you can claim back the sales taxes paid on expenses relating to the business. If your customers are primarily other businesses (B2B) then they can usually claim back the sales taxes on their side and therefore there is no financial impact to them. <\/p>\n

Also, retail and non business customers generally expect to pay GST, HST and QST. If you don\u2019t charge GST up front and have to register for sales taxes down the line since your sales have exceeded $30k, your customers will be exposed to a price increase of between 5% and 15% depending on the sales tax rates in your province. <\/p>\n

Once you have registered your business, setting up a separate business bank account<\/a> as well as a separate credit card before you start processing business transactions significantly facilitates future accounting.\u00a0 Also, most accounting software<\/a> (both online and desktop) allows for downloading of transactions which can be a great time saver.<\/p>\n

5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Have a website<\/strong><\/h2>\n

Once you have dealt with the administrative issues above, you can start focusing on making your business known to your many potential customers.\u00a0 Building a website is an important step as even though it will take some time to actually appear meaningfully in google results, it is the face of your business.\u00a0 You can send a link to your website to potential customers and link to it in your social media profiles (see below) which increases the perception of your professionalism.\u00a0 Your website should focus on your target market, which should be outlined in your business plan, and include keywords for which you want to rank, although the writing should seem natural (it can be very offputting to see websites stuff keywords into their content in the hopes of ranking).\u00a0<\/p>\n

Local businesses often rank more quickly and have less competition. You should also set up a google business account<\/a>. This is free and remarkably effective in bringing in customers particularly for local businesses. Remember that the more specific you make your keywords the easier it is to rank.\u00a0 There are numerous tools, both free and paid, that can help you with your website as well as commerce add-ons that will allow you to sell products and services directly. <\/p>\n

6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Set up social media profiles<\/strong><\/h2>\n

While there are numerous social media sites, it is easy to get overwhelmed or spread yourself too thin.\u00a0 It is important to focus on the ones that make most sense for your business and ensure that you are able to provide updates regularly. <\/p>\n

If you are a design studio it might make sense to have an Instagram account whereas a consulting services provider might be more active on LinkedIn. \u00a0 Your social media posts shouldn\u2019t only focus on your own business but should provide useful information about your niche to potential and current customers.<\/p>\n

7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Set up a marketing plan<\/strong><\/h2>\n

In addition to your website and social media, you should have a plan to market and advertise your business<\/a>.\u00a0 You will have to do some research to see what is best suited to your business. There are various types of social media marketing including Facebook, Google, Instagram, Pinterest advertising. <\/p>\n

Networking can be one of the best ways to spread the word and get potential customers and investors to know you better. A website, as discussed above, which targets specific keywords and where you maintain a blog showcasing your expertise can be very helpful. <\/p>\n

There has been a proliferation of accounting software that you can use either on your desktop or in the cloud<\/a>, most of which offer free trials. Many accounting software allow for downloading of bank statements, sales tax reporting and payroll as well as essential accounting features like tracking your customer receivables<\/a> and supplier payables, inventory and banking.\u00a0 I<\/p>\n

n addition to these features, an accounting system provides you with a picture of how your business is doing in real time (assuming that transactions have been entered and allocated) which allows you to focus on key financial metrics<\/a>, assess profitability, determine your breakeven point<\/a>, ensure your cash flow is adequate and analyze your return on investment.<\/p>\n

Finally, a good accounting system is essential for your income tax, and sales tax (if applicable) filings.<\/p>\n

In the early stages of your business, you as the business owner will be wearing many hats<\/a>.\u00a0 However there are services that need to be outsourced depending on your own competencies and how much available time you have.\u00a0 Some of these include IT, legal and accounting. <\/p>\n

While some functions might be easier for the business owner to take on in the early stages, there are other services, such as legal advice, which may not be worth trying to do yourself <\/p>\n

Successful small business owners tend to be patient and persistent in the face of adversity.\u00a0 Adequate preparation, outlined in the steps above, can be the difference between success and failure.\u00a0<\/p>\n<\/div>\n