Canada is a great country for entrepreneurship. There’s a thriving business community, government support, and best of all, consumer demand for all sorts of things. If you are sick of your 9 to 5 job at a boring company, perhaps it’s time to start your own business. However, it’s much easier to decide to start a business than to actually do it. So, here’s a mini guide on how to start a small business in Canada!
Starting a Small Business in Canada
Starting a small business in Canada can be an exciting and rewarding venture. You might even want to consider starting an ecommerce business. To embark on this journey successfully, there are several important steps to consider.
1. Come up with an Idea Backed by Research
You certainly will need a business idea to start a company of your own. Now, just any idea wouldn’t do. You could decide to start a soda company, but how would you get people to drink your soda instead of Pepsi or Coca Cola? First, you get a generic idea for a business, and then dig deeper by consulting market research. Going back to the soda company idea, you might want to research areas where there might be unmet consumer demand. For example, many people have given up drinking soda because it contains a lot of sugar. So, there’s a demand for sugar-free, healthy soda that a company you create might be able meet. Likewise, do your market research thoroughly.
2. Draw a Business Plan
Once you have a business idea and market research to support that idea, you will need to draw up a good business plan. If you are going to start that healthy soda company, you will need to find scientists, a location for headquarters, a lab to test products and people to like them. Your business plan should include an analysis of the existing industry, research on the competition, a marketing strategy and how to manage and operate the business. Search online for samples of a good business plan. Then, make a small presentation on the basic points of your plan to show for banks and financiers who provide small loans for business start-ups.
3. Find a Source of Funding
Financing your business will be the hardest part. No matter how good your business idea might be, you will encounter a lot of skepticism, ignorance and even bewilderment when you try to pitch your idea to potential investors. There are several ways to finance your business. The most conventional is to seek potential investors, dip into savings or to apply for a business loan at a financial institution or a bank. These days you can also try pitching your idea on a crowd funding platform like Kickstarter.
4. Register Your Business and Get a License
Finally, you will have to officially register your business with the Canadian government. You will need to apply at the municipal, provincial and federal government divisions to get a registered business name, a business number and a GST/HST account that are necessary to conduct business in Canada. Visit the official Government of Canada website for valuable information on starting and running a business in Canada.
Once you have the above basics covered, you will be ready to hire employees and start advertising to market your products countrywide.
Research is crucial! Businesses that don’t do their research are much less likely to succeed…
This advice will come in very handy for those thinking of opening up a small business. It’s not an easy process but it all needs to be done.
This has always something I’ve wondered about. Thanks for sharing!
Such a scary time for so many!! Thanks pointing in the right direction on what to do 🙂
I would also suggest acquiring proper Commercial General Liability insurance in the event a third party sues you and your business for some reason; this way your personal assets are partially protected.
This is very good advice to use when opening a small business in Canada.