Starting a small business in Canada is a dream come true for many Canadians. But is your small business idea viable?

Who doesn’t want the opportunity to be their own boss, to set their own schedule, to make as much money as you’d like and most importantly, to do what you love?

But starting a business isn’t always as easy as just deciding to get into business.

GROW YOUR BUSINESS WITH GRANTS & LOANS

Learn about the funding available for your small business. It just takes a second!

In fact, one of the hardest parts of starting a business is figuring out what the business really is.

While everyone wants to start a business that makes a million dollars right off the bat, it’s not likely that this will happen. It could, but statistically, it’s not very likely.

So instead, you as an entrepreneur have to figure out what it is that you want to do. How it will work, how you will do it, how you will make money, and whether you have what it takes.

Most people, when deciding on a business, often turn to what they have experience in. This could mean doing something similar to what you do in your career, or something that you have as a hobby. Some will switch it up entirely and do something completely opposite of what they are accustomed to.

Whatever the business is that you want to do, the idea has to be explained.

The best way to explain your business idea is to create a business plan.

Creating a business plan—being one of the first steps to get you going in the right direction—will prepare you for what is to come and determine how viable your business idea really is.

One of the main reasons why a business plan is started early on is to use it as a business viability tool.

Does your business work on paper? What are the outcomes?

A business plan is a perfect way to determine the good, the bad, and the shortfalls in order to turn your business into a successful business.

So is your business idea a viable business idea?

Here are the factors we will be looking at in helping you determine that:

Is your business unique?
Do you have the proper funding?
Do you know your customer?
How well do you know the market?
Does the economy have an effect on your business?
Is the timing right?
What’s your marketing like?
Do you need help?

Once you have the above sections covered, only then will you be able to accurately determine if your business has the potential to be a viable business.

While there are factors that can always interfere with your business and goals, preparing the above and understanding your business idea in detail will only help you prepare a more secure position as a business owner.

Is your small business idea unique?

Nowadays, every regular Joe has a business idea. But is it really an idea?

Creating a social network where people get together to talk isn’t exactly unique. Neither is selling books online.

When deciding on a business, while it does not have to be 100% unique or reinvent the wheel, don’t assume that just because somebody else did it, it will work the same for you.

Some of the top CEOs around the world, when asked if they could do it again, said “no chance.”

Sometimes starting a business and having it take off is all about timing, good luck, and being first. But sometimes it’s not!

When you are deciding on your business, be sure that you have a unique twist on what you want to do. Think about answering questions such as:

What makes you stand out from the rest?

It doesn’t mean that you have to reinvent the wheel, but it is highly recommended to set yourself apart from the competition.

Be sure to break down your business idea into simple, clear, and easy-to-understand portions:

Who are you?
What do you want to do?
Why do you want to do it?
Who will benefit?
How will they benefit?
How will you make money?
What does the future hold?
What are the risks involved?
Why you over somebody else?
What makes you special?

Answering these questions will help you understand your business and your vision and guide you in creating a stronger business.

Do you have the proper funding?

What is one thing that every small business needs in order to startup?

MONEY!!!

If you have it, do you know how to use it?

If you don’t have it, how will you get it?

Planning with a properly developed business plan is what will prepare you for your startup and the financial situation.

Starting a small business in Canada costs money.

While some businesses could be started for under a few hundred dollars, an average business depending on its situation (brick and mortar, online, or both) could cost upwards of $50,000 to get started.

Many people think getting into business is quick. While it can be, it is only for those who plan properly.

Since money is required to start a business, you have to consider all of the costs associated with starting and running a business. These costs can be easy to identify—but keep in mind that there are hidden costs many people forget about.

Typical costs include:

Cost to register the business and obtain licenses
Registering and creating a website
Paying yourself and employees
Rent and utilities
Tools, supplies, inventory, and equipment
Marketing and advertising costs
…etc

As a rule of business, when discussing startup and operational costs, it is recommended to have at least 10% of your startup costs saved or readily available for emergencies.

The last thing you want is to spend all of your money and have a problem arise that you cannot afford to fix—leading to the closure of your business.

So do you have the funds?

If yes, do you know how to use them properly?

If you need additional funding, certain sources exist that can help you obtain the funds needed—but you must be proactive and make the necessary moves before you actually need the money.

Who is your customer?

As part of figuring out if your business is viable, knowing who your customer is will play a major role. The fact is, not everyone is your customer. Not everyone will be interested in what you offer. So you must know where to focus your energy and your hard-earned money.

Are your customers professionals, stay-at-home moms, students, kids, retirees?

Defining your customer helps you understand your business and will lead to better decision-making.

For example, if you own a pizza shop and your preferred customer is a student between 16 and 25, you’d want to be near schools—not retirement homes.

Determining your customer helps you with the demographics aspect of business.

Every day, millions of dollars are wasted on ads targeting the wrong audience. Think of YouTube ads that interrupt your video with something completely irrelevant—money wasted.

As a startup, you do not have the luxury to waste money. Knowing your ideal customer BEFORE spending helps you succeed.

Do you know your market?

Just as knowing your intended customer is critical, knowing your market, industry, and competition is equally important.

Why?

Because the market and the competition often determine the success of your business.

Unless you are lucky enough to find a completely untouched market, your business will have competition—direct or indirect.

Know the market. Study it. Understand it.

Competitors can be a great resource. You can learn:

Their pricing
Their marketing strategy
Their location
Their customers
And even try their product/service

When looking at the market, ask yourself: How can I do better?

Does the economy impact your small business?

Many new business owners overlook the economy—but it has a massive impact on your startup, operations, customers, and market.

Example: starting a home renovation business during a housing crisis or during rising mortgage rates.

Increases in minimum wages affect small business ownership. So do politics, foreign relationships, interest rates, and employment rates.

Understanding the economy’s impact is critical.

Is the timing right for your business?

Timing is crucial.

Opening an ice cream shop in January is a bad idea. Opening it just before summer? Perfect.

Seasonal businesses must choose the right launch moment. Non-seasonal businesses must consider customer demand, economy, market, and competition.

Are you a marketing expert?

Everybody is online. Are you?

Do you have a website? Social media? Google presence?

Today’s customers expect businesses to be online. Even grocery stores offer online ordering and pickup/delivery options.

If you understand digital marketing—even a little—you have an advantage.

If your competition is offline, get online immediately. Website + social media + smart marketing can rapidly grow your business.

Do you need help?

There is no shame in getting help with your small business.

If help means the difference between success and failure, why wouldn’t you get it?

Hiring a business consultant can cost thousands, and you may not want to do that. But if it’s necessary, it could be worth it.

Alternatively, we at CanadaStartups.org provide members with step-by-step guidance on starting up, building a business plan, getting funding, and more.

Take action now: call 1-800-288-9691 to speak to a small business expert, a funding counselor, and someone who can guide you through determining the viability of your small business.

Is Your Small Business Idea Viable?