How do I start planning for my business?
Start by flushing out your idea thoroughly and set time aside to follow planning steps to determine if your idea is viable. Going through the planning process will help you determine whether to move forward with investing in starting a business or decide this is not the best option for you.
Ten steps to starting a business
We have provided ten steps to help you get started. Some steps may take longer than others, but following these guidelines can help you pave the way to a well-planned business.
1. Evaluate your goals
Begin by asking yourself basic questions about your idea to start a new business:
- Why? Explain the purpose of your business or what problem it solves. (You should be clear enough on why you are starting your business that you can describe the purpose in one sentence.)
- What? What is the product or service you will be offering?
- Who? Who is your target customer base or audience? It helps to be specific in describing such demographic characteristics as age, gender, income level, location and other factors.
- How? Describe your plan for developing your product and delivering it to your customers.
2. Start writing your business plan
A business plan serves as a guide for every aspect of your new organization. It is a road map that takes you from a simple, inspiring idea to a successful enterprise. A good business plan will include market strategies, competitive analysis, design and development, operations and management, and financial data. Business plans take time to complete, sometimes as long as a year. Consider your business plan a “living” document. As you move through the process and gain more knowledge, you will make adjustments and expand on certain sections. You can find business plan templates online, but be sure they answer the “What, Why, How and Who” questions above.
You can also brainstorm a business name at this stage, but it is a good idea to consult with a marketing professional later to help you decide on a name, website domain and tagline.
Related: How to Write A Successful Business Plan
3. Conduct market research
Market research is critical to determine whether your idea is viable. It examines customers’ behaviours and economic trends to help you hone your business strategy. This research examines product demand, demographic data, market size, financial indicators, location appeal and pricing. Employ competitive analysis to determine how to focus on a market advantage. You can gather this information through existing sources or get answers by conducting surveys, focus groups and interviews with potential customers. Careful market research can help you figure out your target customer base and how to develop products and services that will sell. Marketing research can also help you determine the name of your business, design colour schemes and other marketing issues. It is helpful to include the results of your research in your business plan and adjust your why, what, who, and how answers if necessary.
Related: Social Media Recruiting Tips and Strategies
4. Business structure and logistics
At this stage, there are several important decisions to consider to set up your business, such as:
- Business name: Consider consulting with a marketing firm to help you choose a unique business name.
- Website domains: Domains are inexpensive, so buy as many as you need to ensure potential customers find you online.
- Business structure: Decide what kind of structure your business needs, such as a sole proprietorship, partnership, limited liability company (LLC), or cooperative.
- Business location: Decide where your business headquarters is and whether it is a mailing address for an online business or a brick-and-mortar location. For a brick-and-mortar location, consider foot traffic, parking, ordinances, utilities, crime, convenience and nearby competition.
- Register your business: You will require a business number (BIN) and may require a GST number.
- Open a business bank account: Consider whether your account should be in Canadian dollars (CAD) or if you also require a US account (USD).
- Apply for appropriate trademarks, copyrights, or patents: Consult with an attorney if necessary.
- Purchase insurance policies: Consult with your broker on what insurance is legally required to run your business.
Related: How to Create a Business Website in Seven Steps
5. Obtain funding
From your business plan, you will have established a budget. Use this budget to determine your operating costs for one year. Include every expense you anticipate, such as costs for overhead, production and marketing. Once you have your annual budget, you can look at other options to fund your business. Some examples include:
- Self-funding
- Borrowing from friends and family
- Small business loan or grant
- Online crowdfunding campaign
- Angel investors (individuals who provide capital in exchange for convertible debt or ownership equity)
- Venture capitalists (for large-scale projects)
- Accelerators (for short bursts of funding)
- Incubators (sustained mentorship network)
6. Design prototypes and get feedback
You may be working with designers and engineers to create product prototypes at this stage. If your business is service-oriented, it may include designing proprietary products used only by your employees in the field. Then, test your designs by setting up focus groups or scenarios in which randomly chosen individuals can put your product to the test and complete surveys about their experience. If you are selling a service, enlist the help of individuals who agree to try it out for free and then give anonymous, unbiased feedback.
7. Put together your leadership team
Consider the team of people who will make your operation successful. They could include partners, employees, contractors and consultants. Your team should decide on an accounting system and develop a plan for manufacturing, choosing vendors and hiring workers and independent contractors. They should also establish communication and reporting protocols and how to respond to employee complaints. Much of this planning will determine what kind of culture your company fosters.
Related: How to Hire Your First Employee
8. Develop your product
Once you have finalized the design of your product, take the necessary steps to create your inventory. That could mean setting up a manufacturing process to create a physical product or installing computers to develop software. Hire specialists, managers and workers, where necessary. Develop policies for quality control and safety.
9. Get the word out
Think about what you need to sell your product. What sort of advertising will you require? Consider whether to advertise on social media platforms or create ads for print. How can you appeal to the media so the public learns about your offering? Ask yourself these kinds of questions to make sure you are connecting with people who are your potential customers through sales, marketing, advertising and public relations.
Related: How to Do Social Media Marketing for Small Businesses
10. Plan for growth
Look ahead and be prepared to make decisions to expand if your business takes off quickly. These decisions may include:
- Studying market trends
- Testing new ideas
- Acquiring another business
- Growing into new markets
- Expanding product lines and services
Read more: How to Grow Your Business
While starting a business can feel exciting, careful planning is required to give you the best chance of success. Start by finding a solid business plan template and following the ten steps outlined above to ensure you consider all the steps to plan and launch a successful business.
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