Starting a business can be a very rewarding and desirable option for many people. It can also be a very daunting process because when you start a new business there are many regulations and laws that you must make sure you abide by whenever you are starting out. On top of the laws, you need to make sure your product or service is within the requirements of law. This article will discuss some of the things you should have ironed out before you start a business in Canada.
The first thing you need to decide is what type of business you are starting. Are you going to be creating a product, distributing a product, or performing a service? You can get pretty unique here, and you’ll really want to think outside of the box. Businesses like this exotic car rental company in California demonstrate you can have some fun with your idea too! There are many different types of businesses that are profitable, so be sure you really research what you’re chosen path is before you get started.
Another thing to think about is if you should start your own business or if you are going to purchase a franchise. Starting your own business means you have full control over all aspects of the business, but having a franchise can give you immediate brand recognition and a proven framework to start.
After you decide what type of business you want, you should see how profitable it is. What are you selling and what are the costs included within it versus what you can sell it for?, asks Robert Dloren of NexCen. Be sure to do a lot a market research to see who else is selling what you’re wanting to sell, and see if you can compete with their prices or service levels.
Once you have the basics outlined of what the business will sell, you need to decide how it will be set up for Canadian taxes. There are three main ways to set it up: corporation, sole proprietorship, and partnership.
A sole proprietorship is the most common, as it is a single person setting up a business. This means only one person is responsible for all debt associated with the business, and all profits are theirs to keep. A partnership is when two people share responsibility, and it is not incorporated. A corporation is when the business is set up as its own legal entity, and the owners are not personally responsible for any debts acquired by the corporation.
Once you have all of that squared away, you need to register your business. Most Canadian provinces require that you register your business with the government for that province. This is especially relevant for sole proprietorships and partnerships. If you are setting up a corporation, you need to register your corporation federally so that you can do business across multiple provinces.
Once you are ready to begin selling goods or services, it’s time to find out what permits or licenses you may need. These can vary greatly depending on your province or city you live in. For instance, you must ensure that if you’re selling alcohol that you have all required licenses or you could see harsh fines and penalties.
From here, you’ll want to focus on growing you business, advised Steve Weiss. You have all types of options available to you. There are print, newspaper and phone book ads, but those are kind of going by the wayside these days. With mobile phones becoming such a huge part of our society, digital marketing is one key area where you’ll more than likely need to focus your marketing efforts.
Starting a business in Canada can be a scary task, but it is also very rewarding once you are done going through the entire process of setting it up. There are many laws and regulations that you must adhere to, but once you get past the initial setup phase it is much easier to maintain what you are doing to stay within the guidelines. Always be sure to check with a business lawyer before selling your products or services.