Starting your own business – Your Google Map

Posted: June 22, 2013 in Business startup
Tags: , ,

The previous posts have all led to this post. Your “Google Map” is your business plan. It should be a written description of where you want your business to be in 3 years.  Why 3 years?

  1. The Canada Revenue Agency (CRA) has ruled that a business must have a reasonable expectation of profit. Simply put: one cannot use business losses continuously to offset other income. The CRA will reverse it.
  2. Most start-up businesses fail within 5 years of start-up. Unfortunately many fail within 3 years.
  3. If you are attempting to generate a full time living from a money losing venture, you will be destitute after 3 years if your business continuously loses money.

You must be a visionary when creating your plan. Your plan will place you on sounder footing than the business that starts without one. The business plan components should be properly researched, and with realistic financial forecasts. The financial forecasts are the acid test of a business plan. If the forecasts (income and cash flow) don’t look reasonable – well – reload and rethink your assumptions.

I have developed a very comprehensive 9 module “Starting Your Own Business 101” course. Check out the table of contents on the front page of this blog.

 

 

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