Jobs are scarce in tough economic climates, but starting and owning a business is also challenging.
If your clients are considering this path, make them aware of the responsibilities that go along with entrepreneurship.
They must develop a detailed plan, since more than 30% of start-up businesses fail after the first year, says Valley First, a BC-based credit union.
New owners must also unearth hidden costs and secure financing to make sure they succeed.
“Starting a business is more complex than having a good idea,” says Roger Houle, assistant vice-president of commercial banking at Valley First. “There are many unforeseen challenges that can sidetrack and derail an entrepreneur long before sales begin.”
Houle suggests new business owners first get to know their target market and competition well. Deciding on a good marketing strategy and mapping out your cash flow and goals is crucial.
Second, understand capital requirements. Knowing how you’ll manage the bills is as important meeting your sales targets.
Need more tips for new business owner clients? Try these: