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Great question. I'm in the middle of doing just that. It's not hard to do, but it is hard work. Everything depends upon what kind of business you're looking to set up and your personality. Depending on what kind of business you're looking to set up, financing may or may not be required. Not all businesses need financing. If you're looking to set up a restaurant, retail or anything that requires a storefront, then you probably require a lot of money. Home based and consulting businesses need little or no money to start. Access to financing should be acquired from various sources but your friends and family are best to start with, they have the best interest rates and longest terms. Government grants are good to apply for and government loans usually have good interest rates. However government loans usually require you to provide half or more of the finances yourself and they will match what you bring to the table. Banks are the most expensive and the hardest to get financing from. You need to have reasonably good credit. You should also have a well prepared business plan ready to show banks and government if you're going to borrow money. Most won't give you a penny without it. If you don't know how to do a business plan get help in doing it. It will help you to figure out whether your business is worth doing and your chances of success in your particular market. Banks need to be certain as well that your business is viable and a business plan will show them your reasoning behind it. You shouldn't try to start a business without out it. Be prepared to spend atleast a month or two researching and writing your plan. The more work you put into it the more likely you will succeed in getting financing and have success with your venture. Regarding personality, it takes courage to take a leap into the world of small business. You have to be able to put in long hours and dedicate yourself to the success of your venture. You have to be prepared for very lean times in the first year as you build your business. Not everyone is suited to work for themselves. But if you think you can tough it out through thick and thin then you might just be a success story. If you don't already have a business education, it's important to have atleast a basic knowledge about how to run a business successfully. There's a lot involved, from basic management, effective marketing and sales, to filing taxes, getting the proper insurance, negotiating contracts, and so on. There are people who try without it but have also have a high rate of failure. After all, you're probably not starting a lemonaid stand on the corner of your street. Government programs and colleges offer both full term courses and short term programs and evening courses. In Canada the federal government has a "Back To work Program" where they pay you to take a business course which is based on the MBA courses colleges provide but it's compressed into about two months - if you don't know what a migrane is you'll get one by the end of it. At the end of it you will have made a valid business plan and will have all the practical knowledge about how to run your business and give it the best chance for success. And they continue to pay you monthly to help you while you set up and get your business running. It's not a lot of money but it helps you stay afloat at home while you're building your business.

by Osku

3 years ago

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