Starting A Small Business In Canada
Category: Business Advice
Tags: business startup, small business, small business start
One of the best aspects of being a Canadian citizen is the positive encouragement by our government and by our fellow Canadians to give back to our society. With the rise of CBC’s hit show Dragon’s Den there has been an ongoing resurgence of Canadians wanting to become small business owners. A few years ago, fresh out of my post-secondary education, I decided I wanted to become an entrepreneur myself. There was just something exciting about starting something myself and being my own boss.
When you look at the most successful people in the country, they are all entrepreneurs and are great inspirations for anyone looking to start a small business. But when you have an idea for a company, where do you start? Where can you register it with the country and what are the logistics of beginning your company?
Before You Start:
Before you begin starting a small business in Canada first ask yourself this question: Do I have what it takes? It may sound like a blunt question, but becoming an entrepreneur is hard as there are many ups and downs. Years can go by without you making any money and working incredibly long hours. Ask yourself if you are willing to make sacrifices because you believe in your business and what it offers the country. Make sure you develop all of your ideas and research the market you are getting into and who will be your biggest competitors.
My biggest piece of advice before starting out is to do a thorough business plan. Look into your short term, mid term, and long-term goals as a company, and how many sales you need to do in order to start your small business. If you don’t have a business plan, I guarantee it will be impossible for you to get any loans starting out, and you will be destined to fail. While it might be tedious to do so much planning, I promise you it will benefit you in the long run!
Business Types:
Once you have your plan and idea, it is time to figure out what type of a small business you want to start. Below I have outlined the options in Canada and the criteria that go with them:
Sole Proprietorship:
In this business model you are the only owner and are completely responsible for all the finances related to your company. This is the easiest and cheapest business to register with the government and you don’t need to raise too much capital to start. However, you are personally liable for everything and if someone sues your business, they can attack your personal assets.
Partnership:
This is when you share your small business with someone else. It is also easy to register with the government and you can share any costs with your partner, or multiple partners. However, like the one above, you are personally legally responsible for your business and are liable if something goes wrong.
Corporation:
You can incorporate your business both provincially and federally. Once incorporated, it is a legal entity and separates you personally from your business. However, it is more expensive to set up and requires a lot more paperwork.
Co-operative:
This small business is owned by a group of members, and can be set up for both for-profit and not-for-profit organization. This takes more time to make decisions and you have to share profits with more people.
Now since you know the various types of businesses in Canada it will be a lot easier starting your very own small business. However, every province has different regulations and criteria so I recommend researching online for your personal business. I wish you all the best and applaud you for starting this journey!
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