How Much Funding Do I Need To Start A Small Business?

Starting a small business is one of the most exciting things you can do as a Canadian citizen. Canada has made it straightforward and easy to register a business and get going on all of your ideas. However, if you are just starting out in the business world, it takes a lot of research and a lot of trying new things in order to gain success. Beginning a business takes money, as it is impossible to run any type of business without the money needed to run daily operations such as building your product or marketing your service.

So how much funding will you need to start a business? This is a tricky question, as I’m sure you know, the price varies depending on what exactly your business is. So in order to gain the knowledge of how much funding you will need, it is up to you to investigate, do your market research, and develop a thorough budget in order to create a funding figure. This can all be done through a business plan.

It is integral for any new business to have a plan in place that is given to all of the employees. Your business plan lays out exactly what you do, who you are, your goals for the future, the current market of your competition, why you are needed, and has a fully detailed operational budget for the year. A lot of entrepreneurs are so excited about their idea that they just want to dive in and skip the planning stage. This is a huge mistake a lot of entrepreneurs do and it will definitely lead to failure. If you are just spending on the fly without really thinking it through it will most definitely lead to rising costs and not enough capital left to save you from bankruptcy.

In order to have a detailed budget you need to assess every single expense you will be having in the year. Factor in travel, materials, building space, salaries, etc. Then you can do the math in order to see how much product (or service) you must sell in order to break even or make a profit. Many new businesses do not break even in the first couple years because it does take a while to get your foot in the door and create a name for yourself. This is expected; so if it happens to you, do not worry! When you create your budget, the final figure of yearly expenses is how much funding you will need. It is difficult to give an exact figure, as every single business is different, that is the exciting part about being an entrepreneur!

The business plan builder tool we have will help you develop a professional looking business plan, with a budget included. It is a resource that every new entrepreneur should take advantage of. We want to see you succeed and have all the things you need in order to obtain funding you run and grow your Canadian business!