There are lots of tips out there on how to start your own business.  But how do you know if the source of those tips is reliable?  Luckily in our province, women can turn to one of the most trusted business resources available--the Women Entrepreneurs of Saskatchewan (W.E.).  For more than 15 years, W.E. has been working together with women entrepreneurs to help them achieve success.  W.E. CEO, Laura Small, and Communications & Events Coordinator, Katelyn Cholowski, give us some things to consider when starting a business.

(Intro by Jenelyn Santos Ong)

How do I know if I'm ready to be an entrepreneur?

Building your own business can be a very rewarding experience.  In some instances, you may even be able to become a role model or mentor to others.  However, with reward comes risk.  When starting your own business you must contribute some of your own money.  For some people, this may be their savings.  If you are employed, you also give up the security of receiving a regular pay cheque.

How do you know if you're ready to be an entrepreneur?  Only you can answer this question.  To help you determine if you are ready, evaluate your personal strengths and weaknesses.  Take the time to learn the skills and qualities that make for a successful entrepreneur, as well as those that can hinder a business.

To learn more about your strengths and weaknesses, you may want to complete a Self-Assessment Workshop offered by W.E.

Where do I start?

Determine the viability of your business idea through market research.  Take a good, unbiased look at the demand for your product or service.  Ask yourself who your potential customers are.  Are there enough customers to support your business idea? 

Identify your competitors.  Evaluate what they do well.  What don't they do well?  Finally, how will you differentiate your company from your competitors in the market place?

Once you understand your industry, your customers, and your competitors, you can then decide if there is enough room for you in the market place, and how you will make your business different from what already exists.

What do I need to start?

A business plan outlines the strategy for your business.  Many people get frightened when they hear the words "business plan" and images of thick, complicated documents come to mind.  Contrary to popular belief, a business plan does not have to be a painful experience.

A business plan has two purposes.  It explains how you intend to start and operate your business, and is the blueprint of your operation.  Second, it is required by all financial institutions to determine if they can invest in your venture.  The purpose of a business plan is to thoroughly plan every aspect of your business.  It should include short-term and long-term goals and how you intend to achieve them.

How much money do I need to start up a business?

Before you can start your own business, you need to secure the necessary financing.  Your business plan should clearly indicate how much money is needed to start your business.

First, assess your personal finances.  Create a personal balance sheet that lists your assets and liabilities.  When starting your own business, it is best to contribute as much of your own money as possible.  Equity is your contribution to the business and can be a combination of unencumbered cash and contributed assets.

Generally, you will need to put forward 20 percent of the total value of the business before you will receive financing from financial institutions and other lending agencies.  Lenders will also want to know your personal worth to judge your ability to repay the loan and to meet your financial obligations.

What about the kids?

Many women start their own business to provide the flexibility required to meet the needs of their family life.  While owning your own business may provide flexibility in when you work, it may not be the answer to your needs.  Owning a business takes commitment, hard work and more often than not, a lot of time.  On the other hand, a business that involves your family could provide you with the best of both worlds.

Finding the right balance between work and family is an individual issue.  The right solution for one, may not work for another.

Women Entrepreneurs of Saskatchewan Inc. (W.E.) is a non-profit membership organization that works with women who are considering starting a business, purchasing a business, or who are operating an existing business.  W.E. serves to complement, rather than duplicate, the services of other organizations in supporting women entrepreneurs and in promoting entrepreneurship as a career option for girls and women. 

More info:
www.womenentrepreneurs.sk.ca