Jack D. James - Starting a Successful Business in Canada Kit

You will see numbers throughout this book. Numbers in balance sheet samples, numbers in estimates of office running costs, and numbers in break-even estimates. The numbers your business will generate will be different!

If you rent office space, for instance, in downtown Toronto or Vancouver, you will not be paying the $750 a month we show in one example, you will be paying a lot more. In many small towns and suburbs, $750 a month might rent you more office space than you need.

Our samples are just that samples. They are there to help you understand the topic being discussed; they are not our estimate of what your business numbers will be!

Most people, when asked this question, will automatically answer: To make profits. Well, profits sounds nice and rates a pass on any business exam you might take; however, in reality, profits is very far from the real reason why people go into business for themselves.

Some simply have to start a business because they cant hold a job anywhere else. Others are driven by some compulsion for power and feel that running a business is the most expedient way of obtaining that power. Still others have such a craving to be independent that they have to be free to make their own decisions in all aspects of their lives, including how they earn their livings. People with inherited money often need something simply to play around with. Some use their businesses as a way to make them feel more secure or wanted by their employees, suppliers, creditors, or whomever. And the list goes on and on.

As a matter of fact, people who are truly successful at running their own businesses are those who profit from the things they enjoy doing most because then profits and their ambitions and lifestyles go hand in hand. Work becomes play, or at least it does not become distasteful or boring like a lot of jobs that are available today. In this category are such people as skiing or sailing instructors, pilots, hobbyists who turn their hobbies into businesses, and so on.

What enjoyment can I possibly get out of selling a hamburger? you might ask. Well, perhaps there is not much intrinsic value in what you do, but there may be plenty of trade-offs that make the role of an independent business person worthwhile.

A big business is not necessarily a good business. The right size, from my point of view, means that it suits the needs of the people working within the organization. In fact, you can truly be called a successful business person if your business suits your lifestyle not just if your business is large. I believe this could be true even if the business loses money, although because of the lack of profits you may have a dispute with the traditionalists on this point. But keep this in mind: If you are truly happy doing what you are doing, who can challenge the fact that you are successful?

The only problem with losing money is that over a period of time you will have to cease doing the activity you like so much because, no matter how much you enjoy something, there are certain other basic things you need, such as food and shelter. Therefore, over the long run, for a business to be truly successful, there has to be more money coming in than going out.

The point is, while you may be happy running a certain kind of business, regardless of its profit picture, sooner or later you must pay attention to the bottom line. Running a business for reasons that do not coincide with the financial health of a business will sooner or later lead to disaster. At this point you are far better off to step out of the picture and let someone else run the business. Both you and the business will be happier.

You must plan for success and follow your plan. The old adage plan your work and work your plan is even more true today. It is strange how most people spend more time planning vacations than they do planning to pay for vacations! In other words, they put the cart before the horse. In business, you must have a horse (product, service, or skill) before you worry about the cart (capital, methods).

Furthermore, try to use your own skills and talents. You are a human being with special traits, skills, talents, experience, and life needs. Dont sell yourself short.

I remember a former air force pilot and glider enthusiast who was working in a warehouse. It bored him, and the pay was poor. Finally, he analyzed his situation, quit his job, formed a gliding club, charged reasonable membership fees and instruction rates, and is now rich, happy, and doing what he loves. He even designs and builds personalized gliders and makes lots of money doing it! Can you see now how doing what you like best can pay off in profits?