Running your business in a country like Canada can be an exceptional and rewarding career choice. Starting your business and embracing the idea of entrepreneurship can help you build a lasting source of income for yourself, your family, and even the community at large.
Starting any business is not a walk in the park. Without proper knowledge, you might end up wasting your money away. Almost 40% of new businesses with about one to four employees don’t usually make it to their fifth year in business. Not experiencing that in your baby business will require you to act smart as you start your own business in Canada.
This article reveals the best ways to start a business in Canada. You will become familiar with the basic steps to keep your business up and running despite the hassles, building confidence and the skills needed to take your business further.
Starting a Business in Canada
1. Have a Business Idea
It is almost impossible to start a business with absolutely no idea in mind. After the business idea comes the business plan. This is a document that describes the vision of the business and also outlines how it will be accomplished in vivid detail. A good business plan should comprise of:
- Executive plan
- Company plan or business overview
- Marketing and sales plan
- Operations plan
- Human resources plan
- Action plan
- The financial plan
Assembling this information in one piece will help you create an authentic roadmap for your business’s future. It will also provide lenders and investors with every bit of information they need to decide whether to finance your company.
Choose a good location for your business and also research your target market. Good knowledge of your target market will help you know how to strategically position your business.
2. Choose a Good Business Name
Talking about how to start your own business in Canada, the choice of a good business name cannot be ignored. This might be more difficult than it appears because you have to choose an accurate, catchy, and, most importantly, name that any business has not used before. It has been proven beyond doubt that a company’s name will always be its first impression to customers. I guess that means you have to choose smartly and wisely.
Hints on choosing a business name
- Choose a name that reflects your business and what you sell
- Go for a name that can easily be remembered. People already have a lot to recall; your business name should be simple and easy to remember.
- Keep it unique and outstanding.
According to the law, your business name should not be identical to an existing trademark or corporate name. Hence, it is important to carefully search for existing names before selecting one for your business.
3. Register Your Business with the Government
As you start your own business in Canada, It is important to register your business before it can start operating. Before registration, you will have to know the following:
- The location of your main office
- The provinces and territories you plan to operate within
- The proposed name for your business
- The type of business you want to venture into
Most companies have to register their business names with the government. Still, you don’t generally have to register a sole proprietorship, especially if it operates under a personal bank account and legal name.
Decide on Your Business Type
As you start your own business in Canada, you will have to choose your business type/ structure for your new company. In Canada, there are three types of business structures, each with its pros and cons.
- Sole proprietorship
- Partnership
- Corporation
- Sole proprietorship: This business type is common and easy to create, which is why it is the most common structure chosen by new and intending entrepreneurs in Canada. The business and the operator are the same in a sole proprietorship before the law and tax authorities.
Cons of Sole proprietorship
However, the downside of this business structure is that the owner is responsible for all the business’s functions and debts.
- Partnership: A partnership shares almost close similarities with sole proprietorship, but here, instead of one proprietor, there are rather two or more. Partners usually have some sort of contractual agreement among themselves that governs the sharing of expenses, tasks, and revenues. You could go for this business type as you start your own business in Canada.
- Corporation: When a business is incorporated, ownership shares are also created, which establishes a taxation and legal distance between a company and its shareholders. This has advantages on tax for its owners, with the provision of liability protection from the corporation’s debts while offering a good measure of protection for a company’s name.
Downside of Corporation
- Setting up a corporation involves initial and ongoing legal/accounting fees costs.
4. Apply for Business Permits and License
You can’t miss out on this if you are looking to start your own business in Canada. It is necessary to apply for the permits and licenses you will need for your business from all three levels of government. BizPaL will help you find the permits and licences you may need to start or operate your business in Canada.
5. Get business support and Financing
Most entrepreneurs start with bootstrapping, meaning they use their money to finance their business. But with growing businesses, you will need other options sooner or later. For getting financing, there are two broad categories:
- Debt financing
- Equity financing
Other sources of financing as you start your own business in Canada include Personal investment, love money, business loans, angel investors, business incubators, grants and subsidies, etc.
- You can use the Benefits Finder to get a personalized list of programs to help your new business, or consult the organizations listed below for help.
- Support in specific regions
- British Columbia
- Alberta
- Saskatchewan
- Manitoba
- Ontario
- Quebec
- New Brunswick
- Prince Edward Island
- Nova Scotia
- Newfoundland and Labrador
- Yukon
- Northwest Territories
- Nunavut
Support across Canada
- Indigenous businesses
- Social enterprises
- Co-operative businesses
- Veteran entrepreneurs
Support in specific regions
British Columbia
- Pacifica
- Small Business BC
- Western Canada Business Service Network
- Community Futures British Columbia
Alberta
- Prairies Economic Development Canada
- Business Link
- Prairies Business Service Network
- Community Futures Alberta
Saskatchewan
- Prairies Economic Development Canada
- SK Startup Institute
- Prairies Business Service Network
- Community Futures Saskatchewan
Manitoba
- Prairies Economic Development Canada
- World Trade Centre Winnipeg
- Prairies Business Service Network
- Community Futures Manitoba
Ontario
Related Articles:
- FedDev Ontario – Small Business Services (Southern Ontario)
- FedNor support for businesses (Northern Ontario)
- Community Futures Ontario
Quebec
- Canada Economic Development for Quebec Regions
- Réseau des SADC et CAE (Community Futures / Community Business Development)
New Brunswick
- Atlantic Canada Opportunities Agency
- Network of Community Business Development Corporations (CBDCs)
Prince Edward Island
- Atlantic Canada Opportunities Agency
- Network of Community Business Development Corporations (CBDCs)
Nova Scotia
- Atlantic Canada Opportunities Agency
- Network of Community Business Development Corporations (CBDCs)
Newfoundland and Labrador
- Atlantic Canada Opportunities Agency
- Network of Community Business Development Corporations (CBDCs)
Yukon
- Canadian Northern Economic Development Agency
- Yukonstruct
Northwest Territories
- Canadian Northern Economic Development Agency
- Northwest Territories Business Development and Investment Corporation
- Northwest Territories Community Futures Association
Nunavut
- Canadian Northern Economic Development Agency
- Baffin Business Development Corporation
- Kitikmeot Community Futures Incorporated
- Kivalliq Business Development Centre
6. Focus on Growing Your Business
After all that has been said and done, you will have to put in effort and time to grow your business. No empire was built in a day. Keep a close eye on your daily operations as you also plan the future growth of your company. Learn to manage your cash and make informed decisions about your business.
Conclusion
Have you been looking for a guide on how to start your own business in Canada? I hope this meets your every need to start a business in an amazing country like Canada. Don’t feel discouraged because of what someone else encountered in the course of running their business. Trace your baby steps right and watch your business in Canada blossom with this ultimate guide.
