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Using a Business Plan to Decide if a Business is Good For You

Starting a New Business with a Plan

Perhaps you are one of the many individuals who is sick of working for someone else. You figure you have a lot of talent and skills, and the money you are putting in your bosses pocket would be better off in yours. This is a very common thought but before taking the plunge of quitting your job and starting your own company there are a lot of things to consider. It may be that you have not seen the other side of what your boss is up against and have only been concentrating on the raw profits that seem to be generated from your hard work.

Before putting yourself in a potentially bad situation of becoming unemployed and starting a business that just isn’t going to make it, you can sort of test the business waters by developing a business plan.

The Industry:

First you need to determine what industry your business would be categorized under. Then you want to do some research concerning this specific industry. What are the current trends and do your skills match this. Will you be able to get additional help as your company grows to meet the demand.

Who Will You Service?:

This is your target market. You need to know who they are, where they are located, how you will reach out to them to sell your services, and then your ability to provide the service. This is where geographical location is important.

Your Competition:

You need to really know who you are going to be competing against. It could not only be the employer you are now thinking of leaving, but many others as well.

How Are You Going to Turn a Profit?

It isn’t a matter of you just showing up for work at 8am and completing your tasks for the day, like you have been doing. Now you have to go out and get the clients, so you need a plan as to how are you going to do this. You are going to need marketing and advertising material, and time for the sale approach.

Your Administrative and Operational Plan:

In your present job you are paid for the specific number of hours that you do your work. In your own company especially if you are the only one in the beginning performing the services, you are also going to have to complete the administrative tasks. If you are looking at time is money, then remember your company is going to place a lot of demands on your time.

The Start Up Costs:

You may have the skills and you may have the tools, but you will soon discover that you are going to need more than this for your new company.

You also have to be really careful that the tax department doesn’t consider your new company as a personal business services entity which could create some serious tax considerations.

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Contact

Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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