Wednesday, October 18, 2006 · Page 21 Get the right coverage The Essex business community is all about opportunity. It employs thousands of local workers, supports dozens of local charities, sports teams and organizations, and offers residents a wide range of products and services to choose from. In celebration of Small Business Week October 15 to 21 the Essex Free Press offers an expanded business section devoted to small business success. The Co-operators Pat Mahon 12 Talbot St. N., Essex, ON pat_mahon@cooperators.ca to protect your business. (519) 776-7342 Build the business of your dreams (O.P.S.) You've always dreamed of having your own business so how do you make your dream come true? "Plan well ahead and do your homework," says Chartered Accountant Vinod (Vic) Arya, Partner, Collins Barrow Region of Waterloo in Cambridge. "The failure rate for small businesses is very high - 60 to 70 per cent close within the first year. Determine what business you want to establish, survey the market, and consult the experts before you take the plunge into self-employment." "Don't quit your day job," advises Chartered Accountant David Trahair of Toronto, author of a forthcoming book about what starting a small business is really like. "Stick with the business you know, go step by step, and use your current job as a launching pad. There's no substitute for experience you can start your business on a shoestring, in your spare time." How do you identify the business that's right for you? "Do some soul searching this is an essential first step that helps determine where you go from here," explains Arya. "What is your vision for this business? Do you envisage a company that provides employment for your family, or do you want a small consultancy in which you are the only employee? There's a big difference between being a consultant who charges an hourly rate and doesn't have to rely on marketing, and owning your own business with its own clients. Perhaps you want to build a company with potential to be sold later." According to Trahair, starting and running your own company involves juggling different responsibilities and skill sets. "You must have the knowledge and ability to manage three key areas: operations, finance/administration, and selling/marketing. "People skills are number one. You have to enjoy working with people, or you have to be willing to team up with who does. someone Networking ability is fundamental to building your market and making sales. If you decide to open a business that's outside your own expertise, then team up with someone who has industry experience." What's next? Arya lists some other steps that will help move you closer to your goal. "Timing is crucial. You don't start making money from Day One. Can you afford to risk not making any money in the first year? Look at your present salary, including benefits such as medical, unemployment, CPP and any group benefits. Can you make this in your own business? Then look at your current expenses ... how much growth do you need to survive? Do you have enough financing in place? Determine how much you can charge for your services or products by researching the market. Develop a marketing plan. Prepare a financial projection to ensure that you will be rewarded for taking the financial risk in the long term. "Consider incorporating your business, especially if you might have liability concerns with your products or services. Incorporating can also have certain tax advantages. "Finally, don't do it all Know your yourself. strengths and weaknesses, and hire the right people," advises Arya. Setting up a financial plan is also essential, Trahair explains. "Your financial plan should include forecasts and various probabilities. It should also set specific financial objectives, such as the amount of sales you want to reach within two years. "Make sure you have a good accounting system in place and, to maximize your tax deductions, separate business from personal finances. You need to know where you stand every month, and this isn't possible if your finances are mixed. "Even though having the right systems in place is critical, there is one key ingredient that will help you succeed - the desire to have your own business. So give yourself a chance. Don't give up. Remember that starting your own business is full of risks, but there are also many advantages. Once your business is established, it can offer you the best security you could ever have," says Trahair. There are also many administrative details to consider, including obtaining a business number from the Canada Revenue Agency and registering a business name. Depending on the size of your company, you may have to register with other organizations including the Insurance Board and Workplace Safety. Both CAs agree. Consult the experts right from the start. Then get out there and build the business of your dreams. For more information contact a Chartered Accountant. Brought to you by the Institute of Chartered Accountants of Ontario. WHO'S ON THE WEB? BDO Dunwoody . . . . . . . . . . . . . . . . . . . www.bdo.ca Billy Boston's . . . . . . . . . . . . . . . . . . . . . . www.billybostons.com Cooperators . . . . . . . . . . . . . . . . . . . . . . . www.cooperators.ca Countryside Chrysler Dodge . . . . . . . . . . www.fivestardealers.ca/countryside Dave Hitchcock Chevrolet . . . . . . . . . . . . www.davehitchcockchev.gmcanada.com DPM Insurance Group . . . . . . . . . . . . . . . www.dpmins.com Essex Animal Clinic . . . . . . . . . . . . . . . . . www.essexanimalclinic.com Essex Appliance Centre . . . . . . . . . . . . . . www.essexappliance.com Essex Auto Sales . . . . . . . . . . . . . . . . . . . www.essexautosales.com Essex Feed Warehouse . . . . . . . . . . . . . . www.essexfeed.ca Essex Flower Basket . . . . . . . . . . . . . . . . www.essexflowerbasket.com Essex Free Press . . . . . . . . . . . . . . . . . . . essexfreepress.reinvented.net Essex Home Furnishings . . . . . . . . . . . . . www.essexhomefurnishings.com Essex Stained Glass . . . . . . . . . . . . . . . . . www.essexstainedglass.com Forsyth Travel . . . . . . . . . . . . . . . . . . . . . www.forsythtravel.com Ives Insurance Brokers . . . . . . . . . . . . . . www.ivesinsurance.com Jones Fine Furniture . . . . . . . . . . . . . . . . www.jonesfinefurniture.com Just Cork-It . . . . . . . . . . . . . . . . . . . . . . . www.justcorkit.com Ken Knapp Ford . . . . . . . . . . . . . . . . . . . . www.kenknappford.com Labonte Music . . . . . . . . . . . . . . . . . . . . . www.labontemusic.com Lavin Realty . . . . . . . . . . . . . . . . . . . . . . . www.lavinrealty.com Paul Foster C.A. Professional Corporation . www.thebusinesstherapist.com Reid Funeral Home . . . . . . . . . . . . . . . . . www.reidfuneralhome.ca Royal Lepage . . . . . . . . . . . . . . . . . . . . . . www.royallepage.ca Schinkels' Meat Market . . . . . . . . . . . . . . www.schinkels.com Souled-Out Christian Books . . . . . . . . . . . www.souledoutchristianbooks.com Stationery & Stuff . . . . . . . . . . . . . . . . . . www.stationeryandstuff.ca Southland Travel . . . . . . . . . . . . . . . . . . . www.southlandtravel.ca Suchiu Galleries . . . . . . . . . . . . . . . . . . . . www.suchiu.com Unity Group . . . . . . . . . . . . . . . . . . . . . . . www.unitygrouponline.com Wine O'Willie's . . . . . . . . . . . . . . . . . . . . . www.wineowillie.com Woodslee Credit Union . . . . . . . . . . . . . . www.woodslee.com 47 Arthur Ave. Essex (Southland Plaza) (519) 776-4009 www.computerhounds.net Many area businesses are doing business on the Web or establishing a Web presence. Why not join them?