At one time the biggest stumbling block for those who wanted to open a small business was usually the capital it would take to get it started. In today’s world there are many more decisions that have to be made and hurtles to jump to get a business going.
Any new business owner of course still has to do their research before actually opening the doors of the Company. They have to know that there is a demand for what they are offering. They have to know who their target market is going to be and how they are going to best reach them. Then there has to be enough funds in place to carry the business through the start up growing pains.
That’s just the very beginning of planning for a business, but now added to this should be a close look at the Ontario budget, and if it is carried out according to plan what impact could it have on a new Company that is about to open.
Of course the budgets change on an ongoing basis and not everything that is outlined in them always becomes a reality, but it is still wise to take a close look at it and plan accordingly.
In the latest Ontario budget it is proposed that higher taxes will be levied against tobacco and fuel for airplanes. No doubt these industries will be passing down their higher costs to their customers. If either of these industries could have any impact on the type of business you are contemplating then you will want to take this into account.
Another proposal in the budget is the infusion of cash through a jobs and prosperity fund. This is going to be used to entice other businesses to move to Ontario in order to stimulate the economy. It will also assist some Ontario businesses with their expansions. You will want to compare your new business to any potential businesses that could make use of this plan and how it would affect yours. For example, do you have current competitors who may qualify for expansion funding which in turn would make it more difficult for you to compete on your start up level?
It used to be that there was plenty of room in Ontario for new businesses pertaining to a buyer’s market but this doesn’t seem to be the case anymore. Competition is stiff in many industries. You need to not only research the present competitive market, but also give some thought to the future as to how future competition would have an effect on your new Company. If your business is offering something unique, or in high demand then you may have less to worry about. Your main focus will be on building a good customer relationship plan with the best pricing.
Now more than ever it is important to keep track of every dollar that comes in and goes out of the business, to ensure you are following rigid accounting practices, which is most valuable for showing you how your business is faring. This along with a quality accountant will allow you to stay in tune with the financial position of your business.
