Best Start-Up Advice

I had the pleasure today of appearing on Rogers TV In Business, hosted by David Wojcik, to talk about small business month (October, Canada-wide) and small business in general. After an engaging half-hour, the host’s final question was, “What is your best small business start-up piece of advice?” I went blank! Not because I could think of none, but because rush of them came to mind, and on the spot I didn’t know which one to chose. I went with something like this:

“When doing your pro-forma financials, double your estimated costs, slash your estimated sales in half, and then give a good second look at profit potential.”

Here are some of the others that crossed my mind in that split second:
· Open a business in an industry you love – your passion is what will get you through the tough times
· Open a business in an industry you know – your experience will mean you don’t have nearly as many rough operational spots to deal with
· If there is more than one owner, sign a partnership agreement
· Choose a name that tells your customer something about who you are or what you do
· Make sure there is a problem (need/want) in the marketplace that your company can solve
· Figure out your competitive advantage – without one, you won’t be able to lure any customers away from competitors and towards you
· Don’t make low price your competitive advantage
· Choose a niche – you can’t be a big box store in a boutique-sized space (this tip is not just for retailers)
· Don’t conduct market research for your business through friends and family
· You will have to be your company’s best sales person – so take a sales course if you don’t have sales experience
· You can never spend too much on marketing…but you can spend it on the wrong tactics
· Ensure you have a crystal clear picture of who your primary and secondary target markets are
· Provide a customer experience that builds your great reputation from your very first customer
· For the first few years, you are the business’s brand
· Don’t make your spouse keep the books – unless he/she is a bookkeeper
· Address the risks in your business and develop contingency plans before launching

We had already spent a portion of the show talking about the importance of preparing a business plan in advance, so many related ideas had already been covered, but in case you don’t catch the show, here they are:

· Write a business plan, even if you’re self-financing
· Research, research, research
· Write the plan yourself, so the business model is based on your vision, experience, skills, education and passion
· Don’t make any major investments (inventory, lease, employees) until your plan is complete
· Use your plan not just to launch, but as a management tool once you’re operating

And, of course, as my quick-witted counterpart said, visit your local Small Business Enterprise Centre for support!