Starting your own business is exciting. Getting to the point in life where you’re your own boss and call the shots is something many people aspire to reach. And the planning and idea stage can be intoxicating.
But once the daydreaming stops and reality kicks in, you’ll discover that there’s often a whole world of complexities and legal hoops to jump through to make your dream a reality. And it’s these points that aren’t glamorous enough to make it to the marketing messages on social media.
The paperwork, the permits, compliance, etc, are all essential and boring details people gloss over when realizing their dream of becoming a business owner. But these are what will make or break your business and are aspects you need to be clear on and proactive about completing to help save you time, money, and stress before you even begin trading.
License and Registration
Before you can sell any products or services, you need the paperwork that proves you’re able to do so. It might be registering your business name, trademarking ideas, or getting health and safety permits.
Many places, like Chambers of Commerce or the local Small Business Development Centre, are great starting points for helping you uncover the legal process for your particular business.
Zoning and Conditional Use
This isn’t applicable to all businesses, but if you’re opening a physical space, you need to be aware of zoning laws. Some neighborhoods restrict what types of businesses can operate in certain areas, while others have limits on business-related activities, e.g., no late-night deliveries or opening after a certain time.
You need to work with your local planning office to get the right paperwork and experts who can help you submit a conditional use permit for a greater chance of acceptance, so your dreams aren’t quashed by missing a piece of paperwork or incorrect details.
Insurance and Protection
Protecting yourself, your employees, as well as customers is an important step not to be missed or thought of as an extra. The right insurance coverage is non-negotiable, and if you’re signing leases, hiring staff, or developing products, you need adequate insurance coverage in the event things go awry. It’s not about just protecting your business assets; it’s about being professional and doing your part to protect everyone engaging with your business.
Financial Readiness
We’ve seen the stories online about people starting with little to no money and are now making 6 figures. And while these are indeed inspirational, they’re not the norm. And before you even start your business planning, you need to understand what finances you need and what systems need to be in place before you get up and running. From bookkeeping software to separate business and personal accounts and tax planning, you need to be aware of the financial aspects of the business, not just where the money is coming from, to make things a success. This is even more important if your organization is applying for funding, as you’ll need to prove you’re ready to get operational and all your ducks are in a row.
