Demolishyour start-up: Smart businessplanning should transformstartups intoviablebusinesses

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Founding a startup has become a cultural phenomenon as much as a way of doing business. There’s something cool and exciting about using limited resources and brainpower to take a revolutionary idea from concept to marketable product or service. However, while the start- up model offers a unique approach to developing an idea, all successful companies need to consider basics like establishing a business plan, assembling a business team, developing good financial habits and managing cash flow.

People often describe businesses like uber or Airbnb as start-ups. That was true when they were founded a decade or more ago. They’re now established businesses that applied high-tech solutions to customer needs. Their start-up phase allowed them to test markets, fine-tune their product offerings and build sustainable business models.

So what makes a start- up different from any other new business? They’re not necessarily tech companies, but often find competitive advantage by using a unique application of technology to succeed in their markets. Successful start-ups often employ lean startup principles to move quickly in order to develop new products or services, test and validate them with customers, fine tune those offerings and then develop a scalable business model. Speed is critical and start-ups need to quickly pivot when the company’s business proposition is challenged by realworld results.

But even the most revolutionary startups require their founders to develop solid business plans and build good financial habits. If a startup fails, it should fail efficiently, using the fewest resources possible. If it succeeds, it will soon cease to be a start-up and will depend on a solid business foundation to guide its growth.

So where do you start? Begin by creating a business plan that defines your competitive advantage and sets your objectives. you can use that plan to share your vision, and demonstrate the viability of your business idea to others to help earn their investment or support. Part of that plan will involve creating need to incorporate, business milestones and no legal distinction to track your between yourself success. and your business;

Build a team of advisors you’ll account for and mentors your business in your early on. As an entrepreneur, personal tax return. you’re calling you can also form a the shots, but partnership without it pays to know the having combining toincorporate,your value of advice. At a minimum, every business financial resources can use a good into the business and lawyer, accountant establishing agreement apartnership and banker, and a trusted mentor who that outlines how can share personal insights you’ll share profits or or experience. losses. business Anincorporatedisalegal

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Business Network for a corporation by yourself help and information as the or soleshareholder,can you about government services for entrepreneurs. form a corporation. multi-shareholder The Canadian

Association of Business Each of these Incubation offers choices offers unique a guide to about risks, advantages and 130 non-profit business tax consequences. and technology Consult with tax or aprofessional legal incubators in Canada that are ready to help advisor who can help new business owners. determine which one

decide on a business suits you best. structure that develop good fifits your enterprise. nancial habits that you have three main are critical to start-up choices. As a sole proprietor, there’s no

success. By staying organized, you can keep your accounting up to date, plan better, measure your progress, make more accurate forecasts and use your cash more wisely (see infographic: maximizing your cash flow). A professional accounting service can not only help you establish good bookkeeping practices — it can help a start-up capture all of the eligible grants and business tax credits available to new companies.

Many start-ups also find that online banking can open a realtime window on their b u s i n e s s balance sheet, and help them keep track of their finances 24/7.

For start-ups, success means ceasing to be start-up. Laying down the business foundations for that success can make the transition easier, allow you to devote more time to the business and to more fully enjoy the business journey.

For startups, success means not being a start-up forever.

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