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      07-26-2012, 09:42 PM   #2
sawzall
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Assuming you choose to start your own company rather than be an employee, my general recommendation is to keep overhead as low as possible during the startup phase.

1. Get incorporated, and register for GST. This shouldn't cost you more than a few hundred dollars. Don't worry about getting registered for payroll, WCB and insurance unless you're planning to hire people right away or work in a high-accident environment, and at the very least until you've got point 2 handled.

2. Concentrate on nailing down your agreement with the manufacturer or distributor. Your whole business model hinges on the pricing, territory exclusivity (if that is possible), termination clause(s), and support (pre/post sales) you get from them, so until you've got this nailed down, don't spend money anywhere else. Also make sure you've got some sort of delivery timeline commitments so you don't end up selling stuff your manufacturer/distributor can't deliver on. Do not accept verbal commitments, make sure everything is in your agreement.

3. Once you've got your terms, put together a financial projection based on your margins and expected sales, costs of goods sold etc. Once you've got that in hand, you'll be able to figure out how much to spend on what and when. Do not spend money on offices, inventory etc., until you've got this worked out.

I hope this helps, and good luck with your new venture!

Last edited by sawzall; 07-26-2012 at 09:50 PM.
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