Many of us dream of starting our own business. We imagine the freedom it will give us and the pleasure of doing something we love. There’s a possibility you’ll succeed if you avoid a few common missteps before taking the plunge.

Your target market isn’t everybody;

When new entrepreneurs are asked who their product or service is for, they often say, “everybody”. It seems logical that the larger your target market, the more sales you’ll make, but for a small business, it’s usually just the opposite. Your resources will be limited. You’ll likely be competing with bigger more experienced players, so don’t spread yourself too thin. Identify a specific target market and focus on serving them. Select a group that is easily identifiable, likely to purchase your product, and inexpensive to reach. For instance, the target market for a new high-end nail salon in Duvernay might be; upper-middle class women, age 30-55, living within a one-kilometre radius. Marketing should be tailor-made for this group ―not for everybody.

Guessing isn’t testing;

You may have been thinking about your business idea for eons, and you’ve probably asked friends and family for their opinion. But, even the best laid plans need to have their assumptions properly validated. Have you surveyed your prospective target market? Tested your product with strangers? There are many low cost ways to do this. Offer your product or service for free in exchange for honest feedback. Solicit specific suggestions for improvement. Create a survey for potential clients, or form a small “focus group” in order to get an assessment of your product or service.

No entrepreneur is an island;

If you’re the entrepreneurial type, you’re most likely pretty independent; this could be one of your strengths, but it could also be a weakness. To succeed, you’ll need a community of support around you. This will include partners and employees (if any), investors, suppliers, customers, and advisors. Quebec has many organizations that provide top notch advice to start-ups. YES, for instance, is a non-profit organization that offers one-on-one coaching and workshops designed especially for entrepreneurs. Their services can be accessed in person or online at www.yesmontreal.ca.

Business planning isn’t optional;

You might ask, “Why bother doing a business plan if you don’t need it for a loan application?” The truth is that the business plan is for you not your lender. Doing a business plan forces you to face a whole host of questions that you may not have even thought of asking. Should you incorporate federally or provincially, or not at all? What permits might you need if you choose to operate your business out of home, let’s say, in Chomedey vs. operating business in downtown Montreal? Should you register to collect the GST/PST? A business plan doesn’t have to be a huge document with loads of financial statements. Even a very basic plan and financial analysis will help you navigate the pitfalls before you stumble. There are several business plan templates online, but it’s best to develop one with a trusted advisor. Organizations like YES are here to help.