Instead of looking for another job, you could start your own small business. And, contrary to popular belief, becoming the boss doesn’t require much cash at all.
Self-employment is a wonderful solution for anyone who has suffered a job loss in this recession, and it’s a chance to take control of your economic future.”
With 2.65 Million Canadians already self-employed, we can expect to see thousands more starting up small businesses. With twenty percent of the workforce expected to be self-employed by 2010, Entrepreneurship is clearly Canada’s hottest career choice today.
However launching a business requires more creativity than money. Spend your money on things that will get you up and running easily, help you to look professional and start to generate income quickly.
Assuming you want to launch a service-based business (like 75 percent of Canadian small businesses) and already own a working computer, I would recommend spending your $1000 startup investment as follows:
- $99 to register a business name. “Most small businesses in Canada start as sole proprietorships registered with the government,” comments Pierce. “Choose a good business name and register it to obtain your Master Business License, which you can use to open a bank account.”
- $12 to open a commercial bank account. “Separate your business and personal affairs – otherwise you’ll create an accounting nightmare,” cautions Pierce. “You’ll also be able to accept payments made to your business name which looks more professional.”
- $200 for graphic design. “Your brand begins with a memorable business name, a catchy slogan and an attractive logo, all designed together to create your business identity,” comments Pierce. “Hire a freelance professional designer and negotiate a good price.”
- $50 for 250 two-colour business cards. “Your business card may be the only marketing piece your prospect sees so invest in good quality card stock,” suggests Pierce.
- $15 to register a domain name. “Choose a simple one or two-word domain name that is memorable and clearly communicates what your business does. If available, grab both the dot ca and dot com addresses.”
- $20 monthly on a website. “A website lets your prospects check you out 24 hours a day,” says Pierce. “Everyone needs a basic website for credibility, and it should be built before you print those business cards. Go online to find a do-it-yourself website builder offering customizable design templates and hosting.”
- $67 monthly for a business telephone line, Internet access and voicemail bundle. “Everyone you call will see your business name in the call display, which looks more professional than if you just use your home line,” notes Pierce. “Business lines also contribute to your marketing because they are listed in both the White and Yellow Page directories.”
- $150 for a smartphone. “Create a competitive advantage by responding immediately to any customer inquiries by phone or email, no matter where you are.”
- $200 on business clothes and a hair stylist. “You are your business brand, so you must look sharp while you’re out there drumming up customers,” says Pierce.
- $100 to register for five networking events. “Find out which events your prospects attend and plan to be there. Rehearse your 30-second introduction, listen more than you talk, take detailed notes…and bring breath mints.”
- $50 for office supplies. “Stock up on paper, ink, pens, pencils, file folders, sticky notes or whatever else your business needs to get organized.”
- $0 on a Media Release. Write something newsworthy about your business and send it to your local newspaper, radio station and TV station. Follow up with each media contact to get them interested in doing a story about your business, what you do for customers or how you’ll change the world.
I recommend earmarking any remaining dollars for transportation and coffee. “If you have more time than money to spend, use it to get out there and meet with potential customers, suppliers or colleagues,” he encourages. “You build a business by building relationships.”
Photo credit mandiberg
