I won't lie to you. A business can be a lot of hassle. On the other hand it can be quite prosperous. So long as you're well managed and choose your business wisely, there should be no problem.
There are several forms of ownership. They include:
1. Soleproprietorship: One person and one person alone.
2. Partnership: One or two or more people.
3. Corporation: Publicly owned
Which one should you choose?
1. A soleprorietorship gives you complete control over your business, although you have unlimited liability. That is, your liability or debts, can extend beyond your business.
2. A partnership allows you to pool your resources, usually monetary, together. You can be handicapped by your partner's decision. You are liable for your partner's decisions and vice versa. This also has unlimited liability.
3. A corporation has unlimited liability. The governemnt cannot seize any of your assets or belongings beyond what you have invested in. It is a seperate legal entity from the person who founded it. It is publicly shared. You own it through shares. The more you own, the more say you have. Many more tax advantages than the above two.
The form of ownership you choose is up to you. Whatever suits you is appropriate. Most people choose to be a soleproprietor for first time businesses. Then later when the accumulate money they start a corporation to raise funds, if they wish to expand.
A business can not only make you money, but it can save you money as well. Because of the expenses to operate a business, the government offers tax shelters. Many business related items become tax deductible. These can include things form, "business lunches" to the "company car." Don't feel guilty though, a business is difficult to run, and you're entitled to these tax shelters. After all you are helping the economy. Avoiding taxes is perfetly legal, but evading them isn't. Anyway, in short a business can be a very exciting venture. If you're man, or woman, enough you should seriously consider getting into the business world.
Legal Mumbo Jumbo (very brief)
If you are soleproprietor, a business should be relatively easy to start. You're not required to register your business name, but if you wish to protect the name of your business, you should. This costs $60 or more. Unless you're going into a specialized type of business a license isn't really required. Though if you have more than one business you will have to get a business number. These are easily attainable.
More Information is attainable at www.businessgateway.ca
Don't...
1. Don't hire more help than you need. Employees are roughly half the cost of a business. Don't hire more employees than you need, or you will find it difficult to fire them.
2. Don't buy more things than you need. If it's not broke don't fix it, or in most cases, replace it.
3. Don't forget the customer is number one. Don't ignore him. If you have a bad "customer," forget about him her and concentrate on the good ones.
4. Don't expand too quickly. If may be more than you can handle. Perfect your first business.
Do...
1. Do advertise. You'd be surprised how slow word of mouth can be. You can place cheap ads in newspaper, or you can put posters around town.
2. Do practice frugality. But don't violate any laws or pass it on to the customers.
3. Do take care in hiring good help. Good employees make all the difference.
