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EDL FAQ Q: I am thinking of starting a business but, not sure whether or not my idea is a good one. A: You should first find something you are passionate about – something you look forward to waking up to every morning. Do you have the time to invest in the business? It is important to invest in things you feel comfortable with. However, it is also important to have an open mind and review opportunities that have the same underlying principles, but may be in an area of business that you are unfamiliar with. If you are a good business manager, then you should be able to make a qualified decision based on the viability of any attractive business model. Q: Can EDL Consulting Services assist me in determing the right business to engage in? A: EDL Consulting Services will sit down with you and prepare an outline of your idea and will conduct the necessary research for your target market in order to determine whether there is any demand for it. You will be asked a number of questions such as: Who are likely customers? How can you reach these customers? How much will these customers pay for your product or service? How should the product or service be marketed? Who is the competition? Q: Do I need to conduct due diligence? A: Yes, always complete your own research and investigation. If you have no idea how to conduct your own research, EDL Consulting Services is here to help you. Q: Do I need a business plan? A: Yes, you need a business plan. If you are planning to apply for any government loans or grants, bank loans or investor capital, you will need a business plan. You may know in your head what your business is going to be like but, the banks, government and investors need to see the blue print.
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Q: What kind of financing will I need? A: You can look to traditional bank term loans, operating lines of credit or credit cards. Choosing your financing options will depend very much on the kind of support you will need to get started and the amount required.
Q: What are some of the common types of business organizations? A: The most common forms of business organizations include: (1) Sole proprietorship (2) Partnership (general or limited) (3) Corporation (private or public) Q: What is a sole proprietorship? A: A sole proprietorship is you doing business as yourself. It is simple, but affords no asset protection. Anything you do in business as a sole proprietorship -- is your personal liability and this exposes your assets to liability. Q: What is the advantage of incorporating over a partnership? A: There are advantages and disadvantages to both. The following list is not an exhaustive list.
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