9 Steps to Starting a Business on PEI
-- www.peibiz.com --

One of the questions I am asked the most has to be "what are the steps I need to take in order to start a business?"  Although every business is different in nature, the process when starting a business generally remains the same.  Below I provide a list of steps you should consider when starting your business.  Each step contains web links which will assist you along the way.
 
 

Step 1 - Do You Have What it Takes:
The first step when starting a business is to determine whether you have the characteristics and skills shared by most entrepreneurs. The section entitled "Do You Have What it Takes" identifies many attributes of an entrepreneur. The assessments will help you to pinpoint your strengths and weaknesses.
 

Step 2 - Decide on a Business Idea:
If you have what it takes to be an entrepreneur, the next step in starting a business is to decide on a business idea. If you don't already have a business idea, click on "Finding a Business Idea" to help you come up with one.
 

Step 3 - Acquire Information Specific to Your Business Idea:
There's a great deal of information available today on starting a business. Most of these resources provide only a general overview which probably does not relate directly to your particular business idea. If you want to save yourself hundreds and hundreds of hours in research time (and ultimately money), you can purchase resources/information on starting a business specific to your idea. For example, if you want to start a catering service, you can purchase a "Start-up Guide" that details everything you need to know about planning and starting a catering business.

One of the best creators of customized "Business Start-up Guides" is "The Entrepreneur Magazine Group".  They have created several in-depth Guides, each discussing all critical aspects to starting a specific enterprise:  Topics include: marketing issues, finance, location analysis, operational needs, inventory requirements, personnel, record keeping, taxes, and advertising approaches, to name a few. 

Step 4 - Seriously Consider Using the Internet to Increase Sales:
No matter what type of business you plan to start, the internet can dramatically improve your odds for success.  Most people just don't realize how important it is to have their business online (on the internet).   Let me give you an simple example of how a business owner can use the Internet to increase sales.

Let's assume you own a Hair Salon in Charlottetown.  Therefore, you would cater to a local market and not a global market which the internet is mistakenly known for.  The question is... how can you use the Internet to Increase Sales and improve the chances of staying in business. 

If you are a smart business owner, every time a customer comes into your salon to get their hair permed, for instance, you would get their email address as they are paying (please note: there are hundreds of strategies to collect the customer's email address).  You would also write down the date the customer used the salon and what service he/she received.  So what can you do with this information?

Well, in three weeks when business slows down, the smart entrepreneur would send an email to customers that might say something like this..... 
 

Dear (customer's name goes here):

I just wanted to send you a short note to Thank You for visiting our hair salon to get your hair colored on November 9, 2006.   I truly appreciate your business!.  I also wanted to let you know that we are offering a special 15% discount to our valued customers from December 18 through December 22.  To qualify for this special discount, you must book your appointment within the next 48 hours. This will guarantee a time and date that best suits your schedule.

Once again, thank you for your business and I look forward to seeing you between December 18 and December 22.

Kind Regards,

(Your Name)
(The Name of the Hair Salon)

 

That's it.... Now in the next 48 hours, do you think the phone will ring of the hook?  Of course it will because you would have sent this email to all your "valued" customers.

Think about it, these new sales would not have been made without the use of the internet.  And most importantly, this approach doesn't cost a red cent.  Furthermore, the hair salon owner wouldn't have to place an expensive ad in the newspaper or on the radio in order to generate these new sales.

This example illustrates only one of hundreds of ways to use the internet to increase sales.  "The Insider Secrets to Marketing Your Business on the Internet"  and "Secrets to Email Marketing",  written by the Internet Marketing Center, are two of the best Internet resources I've ever come across that outlines everything you need to know about using the internet to make your business succeed by dramatically increasing sales.  Further, these two (2) resources describe hundreds of strategies and techniques that will help increase your overall sales, no matter what type of business you own or plan to own!  

For your convenience, I have also identified other highly useful Internet Tools and Resources under the section entitled "Getting Your Business on the Internet".   These internet tools and resources will kept you in business and ahead of the Competition!   I use them each and everyday!   --- Karl Johnston - www.peibiz.com ---

Step 5 - Develop a Business Plan:
Once you have decided on a business idea and have obtained customized information on your particular enterprise, the next step is to create a Business Plan around your idea. No matter what type of business you plan to start, you will need to develop a business plan. Not only is your plan necessary to acquire financing through a bank or government organization, but the business plan, if developed properly, can be used as a road map to guide you and your business through the difficult periods.

Basically, the process of Business Planning involves further researching your idea to determine whether it is feasible in the proposed city/region. In a nutshell, the business plan will help you decide if the enterprise will generate enough money to cover all the business expenses and pay you an adequate wage in order to cover all your personal obligations (such as your mortgage payment, car payment, heat, electricity, cable, home insurance, groceries, etc...).

You have three (3) options when creating a business plan.

1) You can create the business plan yourself which generally involves a great deal of time and effort; or

2) You can spend between $2,000 and $10,000 to have an accounting firm prepare your plan for you; or

3) If you don't have a lot of time to create a business plan or if you can't afford to have it professionally prepared, the best option would be to purchase an inexpensive software package which prepares much of the plan for you.

One of the best computer programs I've come across to create a business plan is called "Business Plan Pro".  It helps you create a professional plan by asking you a series of questions. When you answer the questions, the software compiles the information and creates the business plan for you.  In addition, "Business Plan Pro" comes with over 500 pre-written sample business plans in every industry imaginable. If you choose, you can easily edit any one of the 500 sample plans to suit the way you intend to operate the business.

 "Business Plan Pro" comes in a Canadian version and a United States version. The "Standard Edition" costs $99.00 (USD) while the more impressive "Premier Edition costs $199.00 (USD). Each edition is extremely easy to use and each comes with tutorials, should you experience any problem. You can even download "Business Plan Pro" over the interest, thus, giving you immediate access to the software along with all 500 sample business plans. Here is the web link for additional information on "Business Plan Pro".

Biz Plan Builder is another great business planning software program which tells you everything you need to know about starting a business and preparing a superior business plan. I have used Biz Plan Builder in the past and it thoroughly explains precisely the KEY ingredients to writing a perfect business plan. The software allows you to easily create a business plan as well as detailed forecasted financial statements. It also comes with a number of professionally developed sample business plans which will help get the financing you need to start or expand your business. For additional information on Biz Plan Builder and the other helpful business resources they have developed, click here.
 

Karl Johnston - www.peibiz.com