My Top 3 Tips For Startup Businesses
Starting a business is a big deal. Whether you are truly starting up from scratch, or relaunching your current business in a new way, there is a lot going on. From previous blogs,
you know that I think that just like it takes a village to raise a family it is also true that it takes a village to run your family business. So to go on and on about finding the right financial partner doesn't make sense....you've heard that message.
Instead, I am going to provide you 3 things that new/startup businesses need to think about. I know I already acknowledged that you have a lot going on. But, I want to make sure you have the right "lots" going on.
Even though the CRA does not require you to register for HST/GST until you have an annual revenue of $30,000 or more, I think it is worth registering right away.
1) It allows you to "look" like a bigger company. (And if you are selling B2B they can claim the HST so should not mind paying it).
2) It gives you a way to claim your own ITC (Input Tax Credits - the HST you pay to your suppliers). Keep your cash!
Get an accounting software. In my own business, I work exclusively with Quickbooks Online.
The important point is to pick something. This will help you to ensure:
1) That you have your records in one place (instead of under your mattress)
2) Automations (like invoice payment reminders) will help ensure you don't lose out because you forget to do something.
Don't undersell yourself.
It is scary in those first few weeks/months when you are trying to attract the right clients to your business. Offering some promotion or discounts for initial services may be a good way to get some early traffic. But, as you are pricing out what you are going to charge for your product, don't keep pricing low.
The clients you identify as your ideal client will be willing to pay market price. If your competitors are charging more, then why aren't you?
Your long-term profitability is the number one thing you need to keep in mind. Setting the trend of being the "cheapest" will stick and may prevent you from earning what you deserve. It may take longer to get the quality clients you are looking for - but will be worth while as it will set you up for long term success.