Starting your own business can be one of the most exciting and rewarding experiences in your life, regardless of where you live and the industry you choose. However, before launching a business in Canada you should get well-prepared in advance to tackle challenges and obstacles that can appear along the way and can easily frustrate you.
The Canadian business climate offers great opportunities for entrepreneurs who want to find stability and have a steady source of income but navigating the process of establishing a company can be confusing for many.
Below, we offer a guide that provides direction and prepares you to get your new business off the ground.
Write a Well-Structured Business Plan
One of the key factors to success in Canada is being realistic about your projections and business goals and including them in a well-structured business plan.
A business plan is a roadmap that shows how the company should achieve its goals. In essence, the business plan lays out your visions of entrepreneurship and the strategy to get there.
The challenge of creating a business plan does not lie in following a template that results in several pages of text. As with all reports, it requires commitment because only then will the business plan become significant.
The actual work of creating the business plan is an important part of how it will be kept alive. Properly invested, the time spent creating a business plan can strengthen the cohesion of the business, create common goals, generate new ideas, and contribute to the commitment required for it to be an interesting document even after it is completed.
Obtain Proper Business Insurance
The need for business insurance varies depending on the industry, but it is required nonetheless. Besides the legally required employment insurance, your newly-opened business might need additional protection as well.
There are various policies and various insurance providers that cover property, general liability, business interruption, and disability and by discussing these options with reputable Canadian insurance brokers you will be able to determine which ones suit your business best.
Each company has its unique needs and the right insurance plan will take into account, among other things, the type of business activity, the size of the company and it will help cover the costs associated with any property damage, liability claims, make you look credible before your customers and ensure that the business is protected and runs smoothly.
Name Your Business
Choosing a name for your business is one of the first things you’ll need to do. The name should be reflective of the products or services you’ll be offering. Before you choose one, think of how you want your business to be perceived by others. Remember to pick a name that’s unique and distinctive enough to avoid any confusion or legal issues, as Canadian laws have made it clear that a business name can’t be the same or much similar to an existing corporate name or trademark.
Conduct a general internet search to check whether anyone else is using the name. You can also search with the two national databases (New Upgraded Automated Name Search and Provincial and territorial trade name databases), depending on where you want to open your business. Afterwards, you can proceed by registering your business name with the government.
Get a Business License
Although this step isn’t necessary for all businesses, many businesses will still be required to obtain business licenses before they can operate legally within their municipalities. So you need to make sure to check with your local authorities whether you need one before you start operating.
Depending on what kind of business you plan to open, you might also need other licenses and permits. Canada offers great online sources of information about business documents for all levels of government which can be helpful for future business people who’re looking to find out more about the permits and licenses they’ll need to do business in their respective industries.
Set Your Records Straight Early
If you keep good records as soon as you open your business, tasks like accounting and paying taxes will become much simpler and easier.
Open a separate business bank account and do your best to keep your business receipts, as this will help you stay organized and scale your business as it grows. Lastly, don’t forget to promote your business with a previously planned marketing strategy. Put those strategies into concrete actions and get your business off to a great start.
Even though setting up a business in Canada may seem daunting at first, with the right guidance, focused plan, and assistance, you can start and grow a profitable business with ease and confidence.
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