Feature -- by Mark Sproxton

Everyone has ideas of what it might be like to start a business. As this extremely complex undertaking requires knowledge in dozens of areas sometimes those initial notions aren't 100 per cent accurate. Self-starters commonly make assumptions not based entirely on reality, especially when it comes to working less and making more cash.

"Some youth and adults think they're going to make more money by working fewer hours, while often it is the opposite, especially when starting a business," said Natalie Forbes, who runs self-employment programs for the Mennonite Central Committee (MCC) employment division.

"There are so many issues," explained Suzanne Ebelher, manager of entrepreneurial services with Meyers Norris Penny. "(What's) the difference between sole proprietorship and incorporating? If you have a retail space, (what are) the things you have to do to get a business licence? What do banks look for? Do you lease or buy vehicles and computers? People have a whole bunch of questions."

Calgary has many places where those inquiries can be answered. Carole Simpson, western vice president with the money-lending Canadian Youth Business Foundation, urges those considering self-employment to take educational programs or entrepreneurial training before starting out. "First and foremost... the self-employment programs are going to give them the extra training they're not going to have time to do on the job," she said. "The second reason is for the benefit of the organization or institution to which they're going to ask for help, whether a bank or an institution like ours. The more they can demonstrate their commitment to the business, the more likely they're going to get the help they need."

Even those who do enrol in entrepreneurial courses sometimes need additional guidance. "Every entrepreneur thinks it's going to happen faster than the reality," Ebelher said. "And they think it's going to cost this... when it'll cost more." Simpson concurs: "They don't leave themselves enough of an opportunity to (grow) the business. They project a quick start-up phase. They plan far too aggressively. Be a bit more conservative and also be able to build in a bit of a cushion."

Often, young entrepreneurs ask about how to find money to start a business, said Trevor Mueller, who also runs business and entrepreneurial programs for MCC. The answer depends on how old the people are, and what resources are available to them. Forbes said those under 15 should look to low-cost, service-related businesses, such as lawn care, that don't require much money or can be run by borrowing equipment. For those 15 and over, loan and mentorship opportunities are available from numerous sources, she added.

And what about registering for a Goods and Services Tax (GST) number? "You don't have to charge GST until you earn over $30,000 a year," Forbes said, so in many cases that step isn't required initially. That leads directly to pricing, which she, Mueller and Katherine Kaut, MCC's business development co-ordinator, see is another problem for young self-starters.

"A lot of entrepreneurs under-price themselves," Forbes said, adding they feel pressured to lower their prices by older clients. "Often times it's better to let a customer go than to lower your price. Treat your business seriously. If you treat it like a hobby, it won't be a viable business. A lot of (youth think) they don't have enough experience or aren't good enough to start a business. Youth can be taken seriously, and are."

Aside from writing solid business plan, staying focussed on the business's key service or services will also help keep it operating, Ebelher said. She knows of cases where businesses take on a project outside their area of concentration simply for money only to find resources stretched too thin and in a direction completely different than originally intended. Setting goals and benchmark levels will help overcome this potential problem as will a plan to manage growth, she added.

Kaut recommends entrepreneurs keep on top of administrative details, such as keeping accounting records and filing. "If you have money coming in, that still doesn't mean you're making money," she said. And just because a business buys advertising in a newspaper, on TV, or wherever, it does not guarantee sales. "A lot of young entrepreneurs don't understand the difference between a list of potential ideas and an actual (marketing) strategy," Simpson added. "Be very specific."

Along with a great business plan, a detailed marketing plan and accurate predictions of cash flows, a successful business of any kind comes down to one thing. "You have to execute," said Ebelher.