Starting a business and becoming your own boss can be incredibly empowering and fulfilling. Yet many people never follow through with entrepreneurship simply because they don’t know where to begin.
Ironically, most successful entrepreneurs started with absolutely no idea what they were doing. The difference is that they didn’t let fear of the unknown stop them. Pushing beyond your comfort zone, embracing risk, and giving yourself permission to fail can lead to amazing things. When you are no longer afraid of failure, nothing can stop you.
Being an entrepreneur means continually learning and evolving. As you prepare to build your business, here is some information that may answer a few common questions:
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How can I generate great business ideas?
Great business ideas are everywhere—and they don’t need to be brand new or completely original to succeed. Generally, strong ideas come from either:
- Building something around a passion or skill you already have
- Finding an unmet need and creating a solution to fill it
Consider Uber. The concept of hiring someone to drive you around wasn’t new, but Uber improved the model dramatically. They made transportation more accessible, affordable, and convenient. Simple idea, better execution.
How do I know if my business idea is any good?
Once you have an idea, it’s natural to want feedback. Many brilliant ideas were dismissed or laughed at early on—the famous Pet Rock made over $15 million in six months despite being ridiculed!
Give friends and family your elevator pitch—a 30-second summary of your business idea—and accept criticism openly. They may represent your target customers, and their reactions can provide valuable insight.
Entrepreneurs often worry about being ridiculed or having their idea stolen. Don’t let that stop you. Some people may laugh—but that doesn’t mean the idea won’t work. And the fear of someone stealing your idea is largely overblown. Imagine pitching the concept of a website that simply directs people to other websites—many would have laughed. Yet today, we can’t imagine life without Google.
What do I need to get off to a good start?
Regardless of your idea, all businesses need a few essentials to begin operating legally, open a bank account, and start marketing.
Business Plan
Your first requirement is a complete business plan. This outlines what your business does, how it will generate revenue, who your customers are, and how you will grow. It includes your business model, marketing strategy, management team, and—most importantly—your financial projections.
Your business plan acts as a roadmap during launch and helps lenders evaluate whether you are worthy of receiving funding.
If you need help, the Business Plan Builder makes writing a professional plan simple, using templates and step-by-step guidance.
If you operate in Canada, you may choose either a small business registration or incorporation. Each has advantages and disadvantages:
Name Protection
Small business registrations offer no name protection. Someone else can register a business with the exact same name. Corporations, however, have name protection in their jurisdiction and legal recourse if someone infringes on it.
Always do a business name search before registering.
Costs
Incorporation costs more upfront but is a one-time registration with more flexibility as your business grows. Some provinces require annual returns. Small business registrations are cheaper initially but must be renewed every few years and offer fewer options for changes.
Taxes
Small businesses are taxed personally—business income becomes part of the owner’s personal income.
Corporations are separate entities with separate tax filings. This can be beneficial if you expect higher revenues (generally above $80,000 per year) or want corporate tax advantages. Consult an accountant for specifics.
Liability
Small Businesses: Owners are personally liable for debts, damages, or legal issues.
Corporations: Provide limited liability. The corporation is held responsible—not the owners personally—offering greater protection for high-risk industries.
When you’re ready, Ontario Business Central is an excellent resource for registering or incorporating your business in several provinces.
How can I get my business noticed?
Start by understanding who your customers are. Market research helps you identify your audience and determine how to reach them. You can perform your own research or hire a professional.
The Government of Canada also offers free secondary market research services to help small business owners better understand their market.
An online presence is essential. Gone are the days of Yellow Pages ads—your customers are online. Use social media platforms as marketing tools and communication channels. Social media management tools can help you schedule posts and stay organized.
What if I don’t have the money to start?
You may have a strong idea and a solid plan—but lack the startup funds needed to launch. This is where many dreams stall. But just because you don’t have the money doesn’t mean the money isn’t available.
There is a significant amount of untapped government and private funding available to entrepreneurs. Depending on your location and business type, you may qualify for government grants, loans, tax credits, or private investment.
Don’t let “not knowing” hold you back!
Entrepreneurship is one part knowledge and one part leap of faith. As a new entrepreneur, it’s impossible to know everything from day one. Sometimes, the best approach is to gather the best information you can… then jump in.
You may fail, you may succeed—but every experience becomes a learning opportunity. Use the resources available to you and don’t allow fear of the unknown to prevent you from pursuing your business dreams.