With a variety of thriving sectors, Toronto is an excellent place to launch a new business. From aerospace and engineering to film and tech, there are plenty of incentives for entrepreneurs to set up shop in Canada’s largest city.
Before you get started, however, there are some key checks all budding entrepreneurs should run through. Although it’s tempting to rush your brand to market, you can protect your new business – and yourself – by doing a little due diligence first. To ensure you’re well-prepared, consider these three must-do steps to take before launching your business.
1. Market Research
If you’ve got a brilliant idea for a new product or an idea for an epic new brand, there’s no way it can fail, right? Well, there needs to be a market for it if you want to succeed. No matter how great you think your business idea is, it’s important that your target audience agrees with you!
One of the steps to take before launching your business (and spending all your time and money!) is to undertake thorough market research. Your market research may include market segmentation, product testing, advertising testing, usability testing, awareness and usage research, and pricing research. As well as confirming there’s a market for your new enterprise, this may give you an idea of additional revenue sources you can tap into.
Furthermore, market research gives you a great insight into how your target market thinks, feels, and shops. When it comes to branding your business and marketing your products or services, this initial research will help to increase your long-term success.
2. Business Structure
Choosing the right business structure can be tricky, particularly if this is your first enterprise. However, the business structure you choose can have far-reaching consequences. If you’re a sole trader, for example, you are personally liable for any debts the business incurs. This means your assets, such as your home, are at risk.
By selecting the right business structure, you can separate your personal finances from the business’s accounts and create separate entities. Alternatively, you can join forces with someone else and create a business partnership. With so many different types of business structures out there, it’s important to think carefully about which one is best for you.
Remember – business structure reflects ownership, liabilities, and management, so always seek professional advice if you want to ensure you’re making the right decisions.
3. Investors and Partners
Not many people have the funds they need to launch or grow a business from scratch. While some entrepreneurs rely on business loans or crowdfunding, others seek out private investors or work with a business partner.
Although this can be a great option, it’s essential to know with whom you’re working. If you’re considering working with investors or business partners, you might find it useful to run a bankruptcy check first. This will enable you to access crucial information about their business history and determine whether they’re the right partner for you.
What Is Bankruptcy?
Individuals, businesses and even towns and cities can declare themselves bankrupt. Typically, this happens when you can no longer pay debts that are outstanding. If a business doesn’t have any customers, for example, it may be unable to pay its suppliers, rent or taxes. As a result, it might petition for bankruptcy.
Although bankruptcy can be a sign of poor money management, this isn’t necessarily the case. In fact, the most common cause of personal bankruptcy in the U.S. is medical expenses. In Canada, however, because health care is free, the number one cause of bankruptcy is overextension of credit and overspending. Whatever the cause of their bankruptcy, many people feel embarrassed about being made bankrupt, so they choose to keep the information to themselves.
What Is a Bankruptcy Check?
Bankruptcy processes are handled by the courts, which means that every bankruptcy is on public record. Although people may not voluntarily tell you if they’ve been made bankrupt, you can find out by carrying out a bankruptcy check.
If you’re starting a business and you’re relying on partners or investors, it’s important to know whether they’ve been made bankrupt before and, if so, why. With a site such as publicrecordsreviews.com, you can access bankruptcy records, as well as further details about why they were made bankrupt. If you want to run a bankruptcy check on someone you know, use this search tool now. You can access the results instantly, so it’s never too late to find out more about your potential business associates.
Most provinces and states keep bankruptcy information on file for seven years, although it extends to up to 10 years in some states. This means you’ll be able to confirm whether a potential business partner has been declared bankrupt in the recent past. While their bankruptcy may have been unrelated to their business prowess, it’s still important to ascertain when and why their bankruptcy occurred.
When your business and your future is dependent on the honesty of other people, it never hurts to verify the information you’re being told. With a simple bankruptcy check, you can access the information you need in seconds.
You might be interested in reading, “Tips for Choosing the Best Small Business Insurance“.