Wise Wednesdays - Step-by-Step to Success

Here is an example of a conversation I regularly get:

Client: I want to start a business. I know you have to register to start a business?

Me: In the province of Ontario you don’t have to register a business to start a business if you use your own personal name.

Client: But I have a great business name. I want to protect it so I want to register my business name as a sole proprietor.

Me: That doesn’t protect you. An incorporated company has precedent over a sole proprietorship.

Client: Then I guess I’ll incorporate.

Me: That will cost you ($350 - $1,000)and you will have more paperwork to do.

Client: I hear if I patent or trademark my name I will be protected fully?

Me: That will take at least a year, a lot more money, paperwork and time.

Client: Isn’t this important to do?

Me: How much business have you done?

Cleint: Very little.

Me: May I suggest that you have other bigger concerns to think about.

The reason I bring this up is that too many people worry about things like branding, getting the right name, getting that website up when there are far more important things to do in getting your business up an running.

More important concerns include test marketing your product or service; doing an extensive survey with potential buyers (family members a few friends don’t count); gaining experience in the field; knowing who the key players are in the field and how they market; making sure your finances are in order.

Getting the right name and branding are steps that companies usually GROW into. The media has led us to believe that success is at hand instantaneously with a great idea. The businesses that I’ve seen succeed do so one day at a time. Step-by-step.

Last week’s Wise Trivia question: Where do most business start-ups get their financing from?

1st From their own savings
2nd Family and Friends
3rd Their bank
4th place Other lending institutions
80th place Government grants (rare)
100th place Angel investors (very rare)

Anyone who is lending you money will ask what you have financially invested in the business? If the answer is nothing or very little why should they?

Next week’s Wise Trivia: What is the education level of people who start a business in Canada? (Find out next week).

Cheers,

Dominik