Knowing business startup rules helps you transform a creative idea into reality.
The general steps for starting a small business are universal: think of an idea, develop a business plan, secure funding and register your business. However, the details explaining complete each step are linked to country and area-specific regulations. Getting your idea off the ground requires knowledge of local requirements. To successfully start a small business in Ontario, Canada, work through the general process for launching a small business with an eye on provincial and Canadian laws and regulations.
Instructions
1. Decide what product or service you want to offer. Make sure you understand the regulations that affect you before you jump in with both feet. According to Canada Business, key regulated sectors in Ontario include the agriculture and agri-food industries, licensed professions and trades (e.g. doctor, lawyer, electrician), financial services, childcare and education. If you plan to manufacture and sell an electrical product, make sure it complies with the Ontario Electrical Safety Code. Auto body repair shops should consult Ontario's Auto Body Repair Compliance Information Centre to ensure operations align with provincial regulations.
2. Write your vision into a business plan. Creating a business plan won't only help you to work out the details of what you want to do, but will also help you get the resources you need to start your venture. You need a solid business plan to secure funding from third parties, including private lenders and the government. According to Canada Business, every effective business plan includes a few key sections. An executive summary summarizes your entire business plan; the business opportunity section describes who you are, what product you offer and your target market. A marketing section should discuss your competition, your planned marketing strategy and your pricing; an operations section outlines daily operations details, facilities required and IT needs. Finally, you need to complete a financial forecast that projects your business' income three to five years into the future, offering the most details for the first year of operation. In this section, you'll also anticipate and record your need for external funding.
3. Once you know how much outside funding you need to get started, investigate your potential sources of capital. The Canadian and Ontario governments each offer a number of grants to help entrepreneurs get started, many of which don't have to be repaid. Use the Canada Business website to search for grants you qualify for, based on the product or service that your business plans to offer. You can also consider private sector loans and lines of credit, or seek out the help of angel investors and venture capitalists, who will lend you money in exchange for control over business operations and a cut of your profits.
4. Search for the proposed name of your business to make sure that it doesn't already exist, using ServiceOntario's online resource. Register your business name with the Ontario government through ServiceOntario. It will cost you 60 Canadian dollars to complete the registration process.
5. Read and understand regulations for hiring and keeping employee information, if you plan to hire employees other than yourself. Use the resources provided by Canada Business to ensure that your hiring process isn't discriminatory, that you give your employees the right Canadian and Ontarian tax forms to complete and that you protect social insurance numbers and other private employee information adequately.
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