5 Steps to Starting a Business (2022)

What You Need to Know When You Are Starting Your Business

Starting a business is both exciting and challenging. If you’re thinking about starting a business, we can help you every step of the way.

Everything you need to know to start.

RBC Starting Your Business Guide

The 5 Steps to Starting a Business

Move closer to being a business owner with the five start-up steps. Each step includes guides, tools, templates and resources to help you implement.

  • Check if Your Business Is Feasible
  • Finding the Money
  • The Legal Stuff
  • Your Best Business Plan
  • Keep Control of Your Cash

Check if Your Business Is Feasible

If you build it will they come?

5 Steps to Starting a Business (1)

Before you quit your job and invest your hard earned savings in a new business, be sure the idea is feasible. Doing your homework now will help you move forward with confidence.

  • Identify your target market and confirm their need for your product or service
  • Conduct accurate market research to estimate demand and market size
  • Develop a clear competitive advantage
  • Have the capacity and capability to start
  • Understand the logistics of your industry

5 Steps to Starting a Business (2)

A checklist to determine whether your business idea will succeed.

Check Your Business Idea

5 Steps to Starting a Business (3)

Key Business Plan questions to consider before you start your business.

7 Key Questions

Additional Resources
  • How to Protect Your Intellectual Property
  • Options to Increase Sales

Finding the Money

Find the funds you need to start and grow.

5 Steps to Starting a Business (4)

Whether you have your own savings, are relying on friends or family, intend to borrow, or possibly a mixture, identify how much capital you will need and the potential source.

  • Calculate how much set up capital you have to raise
  • Determine your working capital needs each month until break-even
  • Decide which is the best source of funding (your own, other peoples, the bank)
  • Identify ways to lower your risk with funding alternatives
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5 Steps to Starting a Business (5)

Determine your start-up costs to help ensure your business is feasible.

Start-up Costs

5 Steps to Starting a Business (6)

Help decide whether your idea will make money before you invest your time and capital.

Startup Costs Calculator

5 Steps to Starting a Business (7)

The Canadian Government wants to help your small businesses succeed. There are programs, loan guarantees, tax breaks and more available to help you successfully launch and grow.

Government Grants

Additional Resources
  • Sources of Funding
  • Finding the Money Checklist
  • GrantMatch offers RBC business clients exclusive offers2 to help navigate government funding options - Learn More

The Legal Stuff

Sleep easy at night knowing you’re covered.

5 Steps to Starting a Business (8)

It can be tricky navigating all the legal requirements if you’ve never been in business before, but if you understand the basics then it’s not as hard as it seems.

  • Find out how to Register or Incorporate Your Business and determine your business structure
  • Learn what you need to know about paying business tax and GST/HST
  • Be aware of any licenses or regulations that you may need to comply with
  • Decide how best to pay yourself and know the tax implications
  • Find out what you need to do when employing others for the first time
  • Access help from professional advisers earlier than later
Additional Resources

Your Best Business Plan

Documenting your brilliant idea.

5 Steps to Starting a Business (10)

A well written business plan helps explain to others what you are doing, and clarifies the business opportunity in your mind. The act of writing down what you want to do, and how you intend to do it, is a key starting point to achieving your business goals.

  • Describe what you do and why it can become a business
  • Outline your strengths, weaknesses, opportunities and threats (SWOT)
  • Forecast cash flow to check the business model works
  • Identify the best channel to market
  • Develop a targeted marketing plan
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5 Steps to Starting a Business (11)

Determining whether you have enough money to manage your business means creating a variety of realistic cash flow projections.

Forecast Cash-flow

5 Steps to Starting a Business (12)

A business plan helps you fully to think through and vet your business idea before you actually start your business, which will improve your chances of success.

Business Plan Builder

Additional Resources
  • SWOT Template
  • How to Complete the Cash Flow Template

Keep Control of Your Cash

Know where your money is.

5 Steps to Starting a Business (13)

Keeping tabs on your cash includes knowing how your business is performing, and making regular changes to enhance your profitability within the context of your business.

  • Set up systems to review your cash position regularly
  • Constantly check your margins and find ways to improve them
  • Understand the impact of offering credit
  • Increase your chance of getting paid on time
  • Be aware of possible fraud risks and how to reduce them

5 Steps to Starting a Business (14)

Learn how to increase profit without increasing prices.

Increase Profit Checklist

5 Steps to Starting a Business (15)

Make sure the price you set for your product or service enables you to make a profit.

Additional Resources
  • Knowing the Difference Between Cash Flow and Profit
  • Tips for Generating a Cash Surplus

Tools & Calculators

Tools to help you find what you need to fund your business start-up, determine your cash-flow and analyze your loan payment options.

Startup Cost Calculator

Cash Flow Calculator

Loan Calculator

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You Might Also Be Interested In:

Register or incorporate your business

With Ownr and get up to $300 back* when you open an RBC business account.

Build your online store

With Moneris Online and Bookmark, and Moneris will waive the Bookmark fees for 6 months1.

Explore RBC Business Accounts

Find a business bank account that can help you start and grow your business.

Learn More

5 Steps to Starting a Business (19)

Start and grow your business with a plan

Try a free tool that guides you through the steps to create your business plan.

Get started

Ready to Get Started?

Your RBC Business Advisor will work with you to;
  • Understand your vision and business goals
  • Help you complete a sound business plan
  • Set up the right financial products and solutions to help you get where you want to be
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5 Steps to Starting a Business (20)

Call our 24/7 Business Helpline

1-800-769-2520

5 Steps to Starting a Business (21)

Locate a Branch Near You

Find a Branch

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All other trademarks are the property of their respective owner(s).

MONERIS and MONERIS & Design are registered trademarks of Moneris Solutions Corporation.

*

For sole proprietorship registration “$89 back” offer is inclusive of any applicable taxes, and for incorporation, “$300 back” offer is inclusive of any applicable taxes (“Offer”). Offer available when you register or incorporate with Ownr and open a new RBC business deposit account (“bank account”) within 60 days (“Qualifying Criteria”). Once you complete the Qualifying Criteria, you must log back into your Ownr account and click ‘Refund Me’. You will receive the refund to your bank account within 7-10 business days of clicking ‘Refund Me’ . To qualify for this Offer your bank account must remain open for a period of 1 year from the date your bank account is opened. If you received this Offer then changed or closed your bank account within 1 year, we reserve the right to debit your bank account for the value of this Offer, plus applicable taxes, even if this places you into overdraft. Offer may be revised or withdrawn at any time without notice. No minimum account balance required.

1

Terms and conditions apply. Promotion runs from July 17, 2020 to May 30, 2021 (“Offer Period”). To be eligible for a 6-month fee waiver on the Bookmark Business Plan (“Offer”), you must be or become a Moneris merchant, have an RBC personal or business bank account for the settlement of transaction proceeds and sign up for a Bookmark Business Plan during the Offer Period. Monthly fee of $39.95 shall apply after the expiry of the 6-month fee waiver period on the Bookmark Business Plan which may be cancelled at any time. Offer is subject to change, cancellation or withdrawal at any time. Please click here(opens to external site) for complete details of offer terms and conditions, including additional restrictions regarding offer eligibility.

2

This offer is only available to Royal Bank of Canada (RBC) business clients and is non-transferable. RBC business clients will receive free access to the GrantMatch Funding Assessment and Strategy Tool (FAST). RBC business clients who wish to access the FAST more than once must contact GrantMatch directly. Upon completing a FAST assessment, RBC business clients can get access to preferred pricing for GrantMatch grant writing services (where GrantMatch personnel will assist with the completion and submission of a grant application) and GrantMatch Premium (where GrantMatch funding specialist will assist in developing long term strategic grant strategy, offer guidance on the grant application process and if a grant is awarded will assist with reporting and compliance requirements) (“Offer”).

Preferred pricing for GrantMatch grant writing services consists of the following which is a 20% discount from GrantMatch’s standard pricing for GrantMatch grant writing services:
(1) Hourly rate $175.

Preferred pricing for GrantMatch Premium consists of the following options which are a 20% discount from GrantMatch’s standard pricing for GrantMatch Premium:
(1) an hourly rate $175; or
(2) a percentage fee model which is based on a percentage of approved funding:
- Up to $250,000 = 20% fee (of the first $250,000 of approved funding)
- Between $250,000 - $499,999 =16% (of approved funding)
- Between $500,000 - $999,999 =12% (of approved funding)
- More than $1mm = 8% (of approved funding)

Preferred pricing does not include HST. This Offer is valid from March 22, 2021 to Jan 31, 2022,. GrantMatch Corp., not Royal Bank of Canada, is responsible for all terms and conditions applicable to your GrantMatch services, which are available at: https://ca.grantmatch.com/gm-terms-of-use-ca. Offer may not be combined or used in conjunction with any other offer(s). GrantMatch and RBC each reserve the right to discontinue or modify this Offer at any time.

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FAQs

5 Steps to Starting a Business?

In conclusion, there are 5 major crucial steps to starting your own business:
  1. Commit to your business.
  2. Choose the best business idea for you.
  3. Differentiate your business and create your strategy.
  4. Get the money you need and learn how to project your finances.
  5. Develop your marketing and find your first customers.

What are the 5 steps to start a business?

5 key points
  • Clearly define your business.
  • Know the rules.
  • Develop a business plan.
  • Decide how you'll cover start-up costs.
  • Check your progress against your plan.
Dec 14, 2018

What are the basic steps of starting a business?

  • Conduct market research. Market research will tell you if there's an opportunity to turn your idea into a successful business. ...
  • Write your business plan. ...
  • Fund your business. ...
  • Pick your business location. ...
  • Choose a business structure. ...
  • Choose your business name. ...
  • Register your business. ...
  • Get federal and state tax IDs.

What are 5 things a person needs before starting a business?

5 Things To Consider Before Starting A Business
  • Research your business idea. ...
  • Understand the basics of business finance and funding. ...
  • Consider the best business structure and selling platform. ...
  • Set your marketing strategy. ...
  • Get expert help.
Aug 12, 2020

What are the steps to start a new business class 10?

These ten steps can help you plan, prepare, and manage your business.
  1. Step 1: Write a Business Plan. ...
  2. Step 2: Get Business Assistance and Training. ...
  3. Step 3: Choose a Business Location. ...
  4. Step 4: Finance Your Business. ...
  5. Step 5: Determine the Legal Structure of Your Business. ...
  6. Step 6: Register a Business Name (“Doing Business As”)

How can I start my own company?

  1. Use the time you have available.
  2. Identify a business idea.
  3. Validate your business idea.
  4. Find a business name.
  5. Make a plan.
  6. Understand business finances.
  7. Develop your product or service.
  8. Pick a business structure.
Apr 3, 2019

What makes a business successful?

Customer service and customer experience are major focuses of the most successful businesses. The first step is creating products and services that customers want. But focusing on customers goes beyond your products. Customers are tired of dealing with companies through phone menus and automated chat bots.

What is the perfect business to start?

What are the top businesses to start?
  • Dropshipping business.
  • Selling print-on-demand shirts.
  • Sell digital products.
  • Become a blogger.
  • Sell freelance services.
  • Create homemade products to sell online.
  • Media (podcast, YouTube channels, etc.)
  • Affiliate marketing.
Feb 12, 2021

What are the four things to consider before starting a business?

Four things you MUST consider before starting a business
  • 1) Plan carefully. Starting a business isn't for the faint-hearted. ...
  • 2) Research your market. ...
  • 3) Expand with care. ...
  • 4) It's all down to you. ...
  • Read these before you start your business.
Nov 2, 2021

What are the 6 factors to consider when starting a small business?

6 things to consider before starting a business
  • Turn your idea into a plan. Every entrepreneurial journey starts with an idea. ...
  • Self-discipline. ...
  • Be flexible. ...
  • Follow your passion. ...
  • Listen to the pros. ...
  • Find a nurturing environment for entrepreneurs.
Sep 22, 2017

What are the best preparation for starting a business Why?

Let's get started.
  • Determine if entrepreneurship is what you want. Before diving into the details of your potential business, it's best to take stock of yourself and your situation. ...
  • Refine your idea. ...
  • Conduct market research. ...
  • Write your business plan. ...
  • Make your business legal. ...
  • Fund your business. ...
  • Pick your business location.

What is the five key business?

Five key dimensions of business for post-growth economic transformations are identified. The dimensions are: relationship-to-profit; incorporation structure; governance; strategy; and size and geographical scope. These five dimensions are presented in one coherent framework.

What are the factors to consider in starting a business?

9 Indispensable Factors to Consider Before Starting a Business
  • A Business Idea.
  • Knowledge or Expertise.
  • Market or Demand.
  • Start-up Costs.
  • Capital and Finance.
  • Competition.
  • Location.
  • Staff.
Oct 17, 2018

What are the 4 types of small business?

Typically, there are four main types of businesses: Sole ProprietorshipsSole ProprietorshipA sole proprietorship (also known as individual entrepreneurship, sole trader, or proprietorship) is a type of unincorporated entity that is owned only, Partnerships, Limited Liability Companies (LLC)Limited Liability Company ( ...

What is your business idea?

What is a business idea? Broken down, a business idea is the reason for setting up a firm. It drives everything about the company, from what products and services are offered to how these products are marketed. This idea doesn't need to be unique, but it must have the potential to capture part of its target market.

What are the five basic issues to consider when starting up a business quizlet?

As a business owner, you should do the following:
  • Know your business. ...
  • Know the basics of business management. ...
  • Have the proper attitude. ...
  • Get adequate funding. ...
  • Manage your money effectively. ...
  • Manage your time efficiently. ...
  • Know how to manage people. ...
  • Satisfy your customers.

What is the most important factor in business?

Most business have the Product thing covered, delivering a good enough product or service to be successful. From countless research results, Marketing and Sales and Money is the small business biggest challenge. But the One key factor responsible for most success and failure is Money management.

How do you prepare a business plan?

Preparation of a Business Plan
  1. Review available business plans.
  2. Draw key business assumptions on which plan is based.
  3. Scan the environment for Strengths, Weaknesses, Opportunities and Threats.
  4. Seek professional advice.
  5. Conduct a functional audit.
Oct 18, 2015

What are the 5 parts of a business plan?

Main Components of a Business Plan
  • Executive summary. This is your five-minute elevator pitch. ...
  • Business description and structure. This is where you explain why you're in business and what you're selling. ...
  • Market research and strategies. ...
  • Management and personnel. ...
  • Financial documents.

What are the 5 aspects of the business plan?

Business Plan Checklist: 5 Key Components to Include
  • Executive Summary. The executive summary is the most important part of the business plan. ...
  • Company Summary. The company summary is the next critical component of any well-formulated business plan. ...
  • Market Analysis. ...
  • Management Team. ...
  • Revenue Projections.
Mar 29, 2018

What are the 4 elements of business?

A successful small business must have 4 things in their corner – product, market, money & people. Whether you're a startup looking for venture capital or you want to become a successful small business all on your own, there are a few basic – but important – components every business must have.

Videos

1. How to Start a Business from Nothing | 5 Easy Steps
(Brand Start)
2. How to Write a Business Plan - Entrepreneurship 101
(Gillian Perkins)
3. 5 Steps to Start a Successful New Business
(Exodus Capitol LLC)
4. Here are 5 steps to starting a business, money is not one of them!
(Simon Squibb)
5. HOW TO START A BUSINESS | 5 STEPS | START YOURS TODAY !
(Boujee Barbiee)

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