Starting a new business is one of the most exciting things you can do in your career. When you start a business in Ontario, you get to decide things like what products and services your company makes, what the hours of operation are, what the dress code is, and many other things you have little to no control over as an employee. However, when you open an independent business, you also take on a lot of new responsibilities. Lots of the overhead that you might have taken for granted when you worked for someone else, like ensuring everyone is paid correctly, doing taxes, ensuring your company is fulfilling its legal obligations, and many other tasks, are now up to you to either do yourself or delegate to someone who can.
One of the most challenging tasks any successful business owner faces is simply beginning the business. Those who don't know how to start a business in Ontario can easily underestimate the work needed. After a while, they see that what they thought was a molehill of paperwork and file sorting has somehow turned into a Mount Everest of jargon-filled papers and planning they must overcome. If you're afraid of this or want some help, this business guide is here to help, walking you through the steps of your entrepreneurial journey and helping you get to the top of your profession.
Any small business owner familiar with how to start a business in Ontario knows the importance of creating a business plan. A business plan contains information on a business's day-to-day operations, how it plans to make money, its budget, its target market, and more. It is designed to give a solid foundation when you start a business in Ontario. Please note that this is not just a brief elevator pitch; a good business plan is usually over 10 pages long.
You might think that you have things figured out and all the answers in your head, but plenty of situations could come up that show otherwise. Some of the reasons entrepreneurs will want to create a business plan include:
Please note that these are just a few reasons to create a business plan. There are many more reasons to create one when you start a business in Ontario.
Anyone who knows how to start a business in Ontario knows that a good business plan is organized and has the right information on how the business functions. An effective business plan will include the following:
Please note that this is not a complete list. Much more is needed for a business plan when you start a business in Ontario.
Not all companies are run the same way. When determining how to start a business in Ontario, you should know which type of business structure your company will follow. The three most common business structures are sole proprietorship, partnership and corporation. Note that the amount of time business registration can take depends on the type of business structure you are requesting.
Keep in mind that although there is paperwork involved, it is possible to move from one business structure to another if you feel the needs of your business have changed, so don't feel pressured to look a decade into the future to decide on whether your business structure will still be viable.
Whether it be money the owner already had, money from a loan, funding from a business partner, or government grants, businesses need money to start. Many businesses need a location to rent, whether a storefront or a simple head office. If you're a contractor who stores all their tools and equipment at home, you will still need a company vehicle and specialized tools and equipment. Even someone who can work and meet with all clients remotely, like a freelance graphic designer, will need a relatively up-to-date computer and subscriptions for specific software. When figuring out how to start a business in Ontario, you must determine your financing options.
The most accessible funding option a business owner can use is money they already have saved. However, there are other ways to get startup capital. You can get a loan, get financing from a business partner, apply for a small business grant, or a combination of these three.
You can get a business loan from a financial institution such as a bank if you want a short-term cash infusion. However, this usually has strings attached. First, there is no guarantee that you will even get the money. If you do not have a business plan, have one that the financial institution either doesn't think is realistic or they don't think is profitable enough for you to pay them back, you will likely not get the loan. Second, if you do get a loan, you will need to pay it back, and if you can't, you will have to pay some collateral, so be careful when trying to get a loan.
You can also get funding from another business partner, where you get upfront funding and often advice from someone who already has a lot of success in the business world. In exchange, this person receives partial ownership and, as a result, some of the profits from your company. This is the type of deal contestants on the CBC show Dragon's Den attempted to make with wealthy business owners. The pros to this are similar to those of a loan in that you can get immediate cash, but you also need a solid business idea and business plan; there's no guarantee that you'll get the money, and even if you do, you will need to pay a portion of your profits back to your new business partner.
Another way those who know how to start a business in Ontario often advise you to get money is by trying to take advantage of one of the many funding programs and get a small business grant. Small business grants can also be a way to get instant cash, but in this case, you don't need to pay it back. You do, however, need to spend a lot of time applying for them, and often these need to be spent in specific ways. For example, some act only as wage subsidies, while others require you to use a particular technology or for certain aspects of your business. Ensure you understand every type of grant you apply for to ensure eligibility.
Registering your business is a needed step when you want to start a business in Ontario, and it refers to getting your business to exist legally, according to the Ontario Government. It can be done through the Ontario Business Registry or Service Ontario.
You must also give your business a unique name. A unique business name makes it recognizable and unique to Ontario customers. A name also can not break most rules for proper grammar, deceive people as to what the business is or is qualified to do, infringe on work owned by another person without their consent, belong to any existing business entities, or be deemed offensive to a reasonable person.
When you want to start a business in Ontario, it is vital that you get the best location that you possibly can to help you reach the right people for the right cost. Here are some factors to keep in mind when determining a business location:
Please note that many of these guidelines will often be at odds. For example, if there are lots of your most successful competitors at a particular location, there are also likely tons of customers there. If there are no competitors for several miles, there might be no demand for your product or service. 100% of a market with zero demand still means you'll have zero customers. This means you might not get a place that checks every box. If this is the case, try to find the best possible place.
In business, several things could go wrong outside of your control. Business insurance is designed to provide liability protection and reimbursement for losses outside your control. Some of the most common types of protection on a business insurance policy include the following:
Please note that these are not the only types of business insurance that are available if you want to start a business in Ontario, and you can have a broker help you through the process of creating a customized business insurance plan. If you would like to know more about business insurance or how your policy can be fitted to your needs, your Morison Insurance broker will be happy to help you.
It's possible that when you start a business in Ontario, your industry might legally require that you have specific permits to run your business or if you serve certain products. Some of the most common business licenses in Ontario are listed below:
Please note that this is just scratching the surface, as you might need various permits and licenses to operate legally, and there is not nearly enough room here to get into every industry's needs. You should research your specific industry to find out which permits and licenses are needed.
Something you need to start a business in Ontario is the right equipment. Some companies need more equipment than others. A photographer will need photography equipment and some computer equipment to store files properly. If they go to a client's place, they will need a vehicle; if they have a set location, such as a studio, they'll need a location. A retail store owner will need a location, shelves, anti-theft devices, tables, counters, and more. Any online business will almost certainly need a powerful computer. It is up to you to determine which equipment is vital to your business and to get it.
If you want to start a business in Ontario, there is a good chance you're going to need to hire some employees who will work for you. The number of people that you need will depend heavily on the type of business that you run. Depending on the type of business you run, you might be able to show openings by attending job fairs or posting job ads online.
Planning your business is vital, but you can't do it forever. If you want to make money off your business, you must open your doors at some point. For places such as brick-and-mortar stores, having a grand opening can be a great way to attract customers immediately. For other businesses, you can attract customers with paid ads. Either way, you will almost certainly need an online presence, which will at least include a company website. However, you choose to let the world know your services are now available, make sure you're ready for the demand of living up to the promises you made to your customers.
When you start a business in Ontario, getting caught up in all the little details is easy. While seeing many little things early on is great, paying too much attention to smaller details can lead you to lose track of the bigger picture. Remember that your business exists to meet your customer's needs and help make a living for you and your employees. If you’re able to make the right decisions when you start a business in Ontario, you should easily be able to get ahead in the corporate world.
This content is written by our Morison Insurance team. All information posted is merely for educational and informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information in this article, you do so at your own risk. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors.
