How to Start a Business in Canada

the traditional method

Most businesses start out small and grow with hard work and dedication. The most basic steps you should follow to start a business in Canada are investigating and sizing the market you will operate in, building a formal business structure, selecting an accounting method and setting your budgets. Starting a business in Canada may seem overwhelming at first; however in the past decade online resources have made information easier to obtain, and therefore the process is much easier to comprehend. Although there are several tips and opinions readily available, for someone who wants to start a business today, the most obvious and required steps are the following:

1) Formulate a Good Business Idea

Whether your business will be based in Canada or in another country, you will first need a good business idea. If you already have an idea established you may proceed to step two. If not, search online to find collections of small and home-based business ideas. You will be amazed at the plethora of options available: you can even learn how to come up with winning business ideas of your own!

2) Create a Business Plan

Within your business plan, you should include an overview of the industry sector that your business will be a part of.  Include industry trends, major competition, and estimated industry sales. Analyze the primary target market, and include demographics, location, and the needs of your target market. Within your business plan you should also include a detailed explanation of your sales strategy, pricing plan, and proposed advertising and promotion activities. Finally, a description of your business’ physical location, facilities, equipment, employees needed, and any other applicable operating details, such as financing should be thoroughly laid out.

3) Choose Your Form of Business Ownership

Sole proprietorship, partnership and corporations are the main categories of business ownership in Canada. Research your options, and decide which is ideal for your business before registering.

4) Choose a Marketing Structure

Create a business name, logo, colours in which you will market with, slogan, and any other important marketing elements. Once this has been established, you must register your business name with the provincial business registry. When choosing a business name, consider the business name’s marketing potential and legal elements.

5) Inquire About Financing

Decide whether you will be financing your new business on your own, or if you will need funds from an outside source. Grants, loans and investors are some options you may want to consider if you are in need of extra money to start your business in Canada.

When learning how to start a business in Canada, keep in mind that all businesses have risks; however they all should have plans as well. By documenting and collecting information about your business, strategies, competition, target market, etc., you will decrease the risks, and increase your ability to make wise decisions. Keep in mind that the businesses plan is simply the starting point; the launched and evolving business is the goal.

By Stephanie Stover