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The 'Ultimate Startup Guide' takes you through
the initial steps in starting your business. Save time, money and
avoid headaches while following our framework and turn your business
idea into a reality.
| | Step 1: How do I start a company? | | | First you need a business idea. The single most successful new ventures are those that are modeled almost exactly after already existing successful businesses. You need to study the existing success stories in great detail and use the lessons learned and best practices to ensure your own corporate success. Amazingly, companies that are first to market are almost never the long-term winners!
Read an important related article titled Getting the Business Model Right and Pixie Dust"
A comprehensive startup checklist provided by the SBA can be found here. | | Top | | | Step 2: What do I have to consider when selecting a company name? | | | First off, you want a memorable name that in some way reflects the nature and/or the ideals of your company. Your company name is often your main 'brand' that when developed, takes on value in itself. Depending on your desire to operate as a sole proprietorship, a partnership, or as an incorporated company, your company name must be acceptable in that it cannot conflict with existing corporate, proprietorship, or partnership names.
Lastly, but no less importantly, you should ensure that you can also get an exact or relevant domain name. If you don’t consider your domain name availability up front, you may find yourself with a company that has to settle for a very awkward domain name that your potential clients will have difficulty finding.
How do I find out if a domain name is available?
You can conduct free domain name searches at NobleOak Domain Names.
We can also help you to find variations of any word or domain name using our Advanced Domain Name Search tool. After you submit a domain name for a regular search, scroll down on the search results page and click on the DynaGen Advanced Search to help you find a suitable domain name. We will intelligently return multiple results for many related variations thereby expediting your search for the perfect domain name.
| | Top | | | Step 3: How do I write a business plan? | | | There are a number of resources that provide fantastic information about writing business plans. In keeping with our philosophy of not reinventing the wheel, we recommend the following links to get you started on your business plan:
Business Plan Basics
General Business Planning
Essential Elements of a Good Business Plan
Preparing Your Business Plan
A Sample Business Plan
| | Top | | | Step 4: How do I select my corporate structure? | | | Selecting your corporate structure is very important for tax and liability reasons. It requires an informed and well thought out decision. The basic structures include: sole proprietorship, partnerships, and corporations. Each has its own advantages and disadvantages. Learn more about Canadian legal structures here. Learn more about US corporate legal structures here .
One important note is that that the earlier you set up a company, the quicker you can establish credit. Most suppliers will may make you personally liable for credit if your business is under two years old even though you are incorporated. The quicker you register your company name, the quicker you can establish credit. | | Top | | | Step 5a: How do I incorporate in the United States? | | | We recommend American Incorporators to incorporate your company or to form your Limited Liability Corporation (LLC). They also include a great deal of information about the different legal structures helping you to select the optimal legal structure for your business.
Once again, buy your domain name prior to beginning the incorporation proceedings. A domain name costs $9.95/year and goes as low as $7.95/year for longer registration periods. Don't sabotage your future web presence by incorporating a new company that does not have an available corresponding domain name. | | Top | | | Step 5b: How do I incorporate in Canada? How do I register my business in Canada? | | | You can complete a Federal incorporation in Canada for under $250! It takes two simple steps:
i. Complete a name availability search, technically known as a Newly Updated Automated Name Search (NUANS). You can use a service such as OnCorp Direct.
Remember, each NUANS search costs approximately $50 while a domain name registration through NobleOak costs $9.95 or lower. Buy your domain name first!
ii. Complete your federal incorporation directly with Industry Canada at Industry Canada.
If you are not planning to incorporate, you must then register your business with the Ministry of Consumer and Business Services within 60 days of startup. Registration can be done online at the Canada Business Service Centres website. | | Top | | | Step 6: When should I open up my bank account? | | | Quick answer - as soon as possible!
Although the motivation behind your desire to start your own business is likely to be personally challenged, engaged, and to be your own boss - making a little (or a lot) of money along the way wouldn't hurt!
Your bank account is a key resource that allows you to deposit revenue, take care of expenses, and to create a credit worthy entity. Open a commercial bank account early on in the process that is linked solely to your new business entity. This will help you to keep track of your financial transactions which is crucial for financial year end reporting.
Be prepared to show the bank a clearly defined business plan (although not always required). You must also decide on who will have signing authority for your company. Will your company require a single signature, two signatures, or something more complex where two or more signatures are required if the particular expense is greater than a certain amount? You may need to show the bank a copy of your executed corporate resolutions.
These are all important considerations because you need to balance convenience and practicality with the protection of your company's assets.
One final note on banking is to seek out a bank branch that has more of a small business focus than a non-commercially focused bank. Just call your bank branch and ask them outright if they have a commercially focused branch. It will be very beneficial to speak with a bank representative who is well versed in commercial banking. | | Top | | | Step 7: Do I need a web presence? What is a web presence? | | | Without a doubt, establishing your web presence is a requirement in today's internet aware society. Without a web site and internet presence, your company truly risks getting left behind.
Your web presence is comprised of three main areas: your domain name, hosting, and e-mail.
Establishing your web presence means that the domain name (that you recently purchased, right?) resolves to your company web site where current and potential customers can find more information about your company including but not limited to the following areas: product information, sales, customer service, investor information, news, upcoming events, and contact information.
The way that you get your domain name to resolve to a web site is called 'hosting your domain'. Think of your domain name like a TV channel that you own. You may own the channel but unless you are broadcasting entertaining and engaging programming, the channel surfer will probably skip along with the press of a button. Similarly, you can think of 'hosting' as the act of continually broadcasting eye catching programming about your company. We'll get to marketing soon, but suffice to say, your website is an invaluable tool in marketing your company. You can add hosting to your domain name at NobleOak Hosting.
Along with your domain name and hosting, you can also add e-mail. Adding e-mail means that you can add valid e-mail addresses that are based on your company's domain name. You can use any of the popular e-mail interfaces such as Outlook or Eudora to read your e-mail. bob@mygreatcompany.com looks a great deal more professional than bob12345@freemail.com. As you expand, you can also add additional e-mail addresses giving you the flexibility to grow your company at your own speed. You can add e-mail at NobleOak E-mail. | | Top | | | Step 8: How do I assign shares, designate directors, and assign corporate positions? | | | Once you have determined the who and how many, you make your assignment of shares, director positions and corporate positions official through a document you can title 'Resolutions of the Directors of MyCompany Inc.'. Your bank will also be interested in the areas regarding Banking Signing authority and Directorships of your company.
Your document may include the following sections:
- Designation of Offices
- Duties and Powers of Officers
- Appointment of Officers
- Execution of Documents
- Class A Share Certificates
- Banking Resolution
- Financial Year End
- Appointment of Auditors
- Allotment and Issuance of Shares to PersonOne
- Allotment and Issuance of Shares to PersonTwo
- Allotment and Issuance of Shares to PersonThree
Dated and Signed by
PersonOne, Director
PersonTwo, Director
PersonThree, Director | | Top |
If you can't find an answer here, use the form below to ask a question.
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