Are you contemplating the idea of launching a small business in Ontario or any other region in Canada? If so, you’ll be joining a vibrant community that plays a pivotal role in Canada’s economy. Small businesses are the backbone of the Canadian business landscape, with 1.19 million such enterprises, employing 98% of the workforce as of December 2021.
From dropshipping, selling online, and offering digital products to venturing into commercial cleaning, repair services, or food trucks, Canada offers a wealth of entrepreneurial opportunities. This step-by-step guide will help you navigate the process of starting a small business in Canada.
The first step is to craft a business idea with profit potential. Think about your passions and how they can be transformed into a profitable endeavor. Conduct thorough market research to understand local trends and identify areas where you can introduce innovative solutions. Your business plan should address aspects like target customers, unique selling points, and marketing strategies.
Select a business name that’s concise, memorable, and easily spelled. It should reflect what you sell and create a positive image for your brand. Prepare a list of up to three names in case your first choice is unavailable. Utilize Canada’s Business Registries to check name availability.
Choose the business structure that aligns with your objectives. The three primary business structures in Canada are sole proprietorship, partnership, and corporation. Ensure your chosen business name is legally and virtually available for use.
Determine the permits and licenses required for your specific business. Utilize tools like BizPal to identify the necessary permits at provincial, municipal, and federal levels. Engage with your local municipality to discuss zoning, building permits, and other requirements for your proposed location.
If you’ve incorporated your business, it’s mandatory to establish a business bank account under your registered business name. This separation of personal and business finances is crucial for proper accounting and financial management.
A business credit card simplifies managing startup expenses and building credit. Provide personal and business details to apply for one.
Consider different sources of funding, such as personal investment, loans, equity financing, or government grants, to support your business’s growth.
Register for Goods and Services Tax (GST) and Harmonized Sales Tax (HST) numbers if your business exceeds the income threshold. Additionally, comply with provincial sales tax requirements if applicable.
While not mandatory, business insurance is vital for managing risks and protecting your enterprise. Explore options like commercial property insurance, general liability insurance, and cybersecurity insurance to safeguard your business.
Implement accounting software to streamline bookkeeping tasks, ensuring compliance and freeing up your time for business operations. Consider factors like cost and features when selecting the right software.
A website is an indispensable tool for marketing your business and engaging with customers. You can opt for a free website or hire a professional. Additionally, leverage social media to increase brand visibility and reach your target audience.
