How to Start a Small Business in Canada
There is no great or best time to start a small business. Every successful business starts with an idea, and if you have one, think how it can impact other lives. Then, make a calculated plan for its success. A small business is simple to start; simultaneously, it takes lots of planning to make it successful. Let’s get started!
You’ve dreamed about starting a new business as part of your life journey, and you have a great idea that you want to make successful. Every small business has its pros and cons; it’s up to you how you deal with them.
There could be other reasons you want to start the business, either for survival or to support your family. Whatever the case may be, a small business has a huge impact on the lives of people, and it is the backbone of any country’s economy.
Do Research and Fact Finding
You've identified your big idea. Now it's time to balance it with a little reality. Are you really ready to start a business? Take this starting a business quiz to gauge your readiness and see what you need to prepare yourself for business ownership.
You have decided for a new business, but before that, you did your research about the potential it holds for success. Many small or startup businesses make the mistake of not researching how things should take place before they invest money in a new business. Ideally, you should spend some time to find out the problems. The obstacles can come from anything like government approvals, technology, location, finance or growing the business.
For a small business to be successful, it is imperative that you have a plan to solve problems. Identify the needs of the market and your competition, and your research can give you more insights for you to make informed decisions.
You can conduct some market research to sample size by using a free service.
Make a Business Plan, But Don’t Take the Plunge
It’s always a good practice to have a formal written document for your business plan. Then, if you seek financial support from a bank or an investor, it will be helpful for you to produce your plan and a proposal for approval.
Even if you don’t seek financial help, this will help you to target your business goals, motivations and aspirations.
What Should Your Business Plan Contain?
Overall, you need to outline your business and what it is intending to achieve. Like some of the points below, these points are general and vary with each business requirement.
- Brief information about your business
- Your business goals
- How you want to achieve them
- Team
- Finance
- Market research
- Future plans
Funding Your Business
Starting a small business is possible with limited money. However, a good business plan can help you get funding from financial institutions. Obtaining good investments will kickstart your business and let you do a lot of activities to achieve business success faster than ever.
Some institutions that provide support to small businesses are:
- Financial institutions
- Small business loans
- Small business grants
- Private investors
You can also kickstart your business by bootstrapping, using as little money as necessary to jumpstart your business.
Different Types of Business Structures
There are many ways you can set up your business. Based on your business’ structure, your taxes may need to be assessed, as well as other factors that could impact its future course.
- A Sole proprietorship
- A Partnership firm
- A Limited Liability Company (LLC)
- A Corporation
You can change the business’ structure based on your business’ requirement and reevaluate how you want to operate your business.
Registering Your Business’ Name
A business’ name plays a vital role in almost every facet of its work, so you should diligently choose it.
Once you have finalized a name for your business, you have to check if it's trademarked or used by someone else. Then, you can register it. A sole proprietor must register his or her business’ name with either the province or county clerk.
Corporations, LLCs or limited partnerships typically register once their completed paperwork has been filed for their business.
Go digital; it’s advised to register your domain name with your business name.
Licenses and Permits for Small Businesses
Small business registration is easy and simple, and its cost is very low. Owners will be held responsible for all debts and obligations of the business.
A handy reference for any business name search is Canada's Business Registries
A Business’ Location Is Critical
Setting up your place of business is important for its operation, whether you’ll have a home office, a shared or private office space, or a retail location. It’s critical that you choose your business location carefully. For a retail business, location is the backbone of a business.
Choose Your Accounting System
Small businesses have to be run by limited staff; you need to create systems in place for your business success. One of the most important systems for a small business is an accounting system. Checkmark fulfills this need with a special focus on accounting software and has developed Checkmark MultiLedger Canada.
Accounting software helps you to organize your business effectively. Simultaneously, you must pay your employees’ salaries on time. Many small businesses find it difficult to cope with tax tables and painstaking statutory changes. Fortunately, you can rely on Checkmark Canada Cloud Payroll, which is the most advanced payroll software in the market.
Position Your Small Business in the Market
Now your business is all set, but wait – how will you find clients? It’s not rocket science. You’ll need to position your business in your market with a unique selling preposition or the best offers that you can provide at the time of your business launch. On a regular basis, plan how to retain your clients as loyal customers.
Finally, to retain clients, explore small business marketing ideas.
