Everyone needs to start somewhere as an entrepreneur, but knowing the best financial moves to make is what leads a person to success. Be wise with your capital and the first profits you make, maintaining a stable income, as well as holding savings. There is much to consider as an entrepreneur, but the first steps should be dealt with at the beginning of your business. These first steps revolve around money, marketing, and public relations. Let’s look into them.
- Keep track of your expenses, record them in a safe file, either online or in person. This is why bookkeeping comes in, as you will need to hire an accountant or a bookkeeper.
- Taxes and Employee Wages-calculate for about 25% of your expenses.
- Startup revenue is crucial, as is outside investment. Investors may contribute to almost 40% of all capital and transactions in the first year.
- Digital Businesses account for 30% of new startups in Toronto.
Monitoring Cash Flow
Keeping track of your first sales is important, as well as a proud moment in your entrepreneurial journey. Review your income and expenses daily, with a trusted accountant or employee of your business. Separate amounts of money by importance; let’s say, 30 per cent is invested in product manufacturing, 20 per cent is in savings for an emergency, and the rest is left for you, the leader, to decide. Income is diversified, split among funds, by percentage and initial revenue.
Future Statistics
Study business statistics in your line of work. Before you even think of becoming an entrepreneur, consider what type of service/products you wish to lead.
- E-Commerce: Studies have shown that e-commerce businesses in Canada-US market revenue will be worth $1.8 trillion in 2029. Canadian businesses have reported 70 per cent increase in online sales since 2020, proving e-commerce is a true powerhouse for entrepreneurs.
- Digital Marketing: Think of creating your own marketing business, which is expected to grow at a compound annual rate of 11 per cent from 2025 to 2033.
- Virtual Assistance: In Canada, the need for virtual assistance, both from software and in person service, is expected to grow from 10% in 2025 to 24 per cent in 2035. People need as much help as they can without leaving their home or office.
Create a significant ad campaign to attract customers and potential investors. When starting, 50 per cent of the marketing oversight should be done by yourself, and the other 50 per cent by your marketing team. Doing this also proves to the public how serious you are about your new business, earning potential investors. Having investors for your early entrepreneurial days is always important, but it may take time to convince them. Focus on marketing and social media software to intrigue public interest both for investors and clients. These software tools do not have to be expensive, some are free, so consider these options in your early days. About 2 to 5 per cent of your revenue should revolve around marketing, all depending on your company website and online marketing.
Funding
Depending on your line of work, you may receive outside funding at high value. Recent studies have shown that digital entrepreneur start-ups receive more funding than other businesses, increasing the survival rate to 68 per cent. Being an entrepreneur, you need to leverage technology to secure venture capital, especially from outside sources. Government grants and bank loans are one form of funding, with studies showing about 22 per cent of them going to digital-based businesses in Canada. The reason being is that it is a known fact that digital business will be the dominant medium for the future.
The Canadian Digital Adoption Program offers up to $15,000 to small businesses, as long as they prove they have business records and a clear, online strategy.
Sad truth, about 5 per cent of Canadian startups fail in their first year, and about 70 per cent of the time, it is due to management. There are distinct factors attributing to this failure.
About 20 per cent of small businesses with twenty or less employees expect revenue decreases, due to the need of employees and business production. This is why you should consider each employee covering two or more departments in your company, including yourself, splitting department responsibilities by 50 percent. Cut back on costs by multi-tasking.
Babak Eslami | Writer
