There are many types of businesses in Ontario, but one of the most popular ones is retail business. This type of business sells goods to the consumer and can cover just about every industry in Ontario, from gas to clothing to decorative items to personal care to food and everything in between. Because the possibilities are endless, opening a retail store is an appealing option for new business owners. But where do you begin when starting a local business? How do you learn how to start and open a small retail business and grow your success?
As your retail insurance brokerage, the team at Morison Insurance is well-versed in the rules and regulations for how to start a retail business in Ontario. That’s why we’re sharing the top things potential small business owners like you need to know about starting your retail business and the steps you need to take, allowing for a smoother business start-up for you.
The first step in creating a retail business is researching and writing a business plan. This will ensure you know what your chosen market is like, the local retail industry conditions, projected expenses, business structure, and the profitability of your retail business, as well as answer questions about running a retail shop. Your retail store business plan will give you the credibility that you know how to start a retail business, making it easier for you to apply for a business loan or get others to invest in your business when first starting a business.
Your retail business plan should include the following:
Make sure your business plan is well thought out and researched, encompassing all facets of your plan on how to start a retail business.
Now that your business plan for how to start a retail business is written up and polished, the next step in how to start your retail business is to register your business, either online or in person with ServiceOntario.
Before officially registering your retail business, take the time to do a record search to make sure your business name isn’t taken. While you should have checked this out when researching how to start a retail business, it never hurts to be sure. In the event your preferred business name is taken, have a few backups on hand to use instead.
Once your business is registered and you’ve trademarked your business name, you must get a unique business number from the Canada Revenue Agency (CRA). Registering a business is not only a legal requirement, it also enables you to apply for certain government programs, financing options, and tax benefits that you would be ineligible for as an unofficial business.
Another advantage of registering your retail business is that you will have the legal protection you need to protect your business name and brand. Without completing this step in how to start a retail business, even if you have been operating for years, someone else could come along and register your business name and brand as their own, and sue you to prevent you from using it, taking credit for all your hard work. In this case, you may not be successful in your legal action arguing that this brand belongs to you, as you did not fulfill the legal requirement of registering it. So it is important that you properly fulfill this step in how to start a retail business and register it as required.
Another crucial part of how to start a retail business in Ontario is ensuring you get any necessary permits and licenses. You should check with your local and provincial government authorities, but these include your business operation license, Workplace Safety and Insurance Board coverage if you have employees, and health and safety certificates. You also need to register for any tax requirements, such as HST, which is required for any business that makes more than $30,000/year.
Keep in mind that some licenses or permits will need to be renewed regularly, and those activities and fees should be a part of your overall business plan on how to start a retail business. Failing to have up-to-date permits in place can result in legal consequences, fines, or even your business being shut down, so it’s important to stay on top of them. Reach out to the licensing authority to see what your obligations are in regards to renewals, and what can be done to ensure you can stay up-to-date on them.
You will also need to make sure that you have all the relevant insurance coverage you need. As your business insurance experts, the team at Morison Insurance will help you with your insurance needs, with coverage for product liability, commercial property insurance, commercial cyber insurance, business crime insurance, small business insurance, and more insurance options as you plan out how to start a retail business. Depending on your business needs, you may need different coverage, so be sure to clearly communicate your needs to our professionals.
Even if you do not have a physical storefront, you still need to have a place where you store products and fulfill orders. That’s why the next step in how to start a retail business in Ontario is to secure a location and set up shop.
Consider what your budget and store requirements are for this part of how to start a retail business to determine what the prime retail space would look like. Research different locations, visit them, and evaluate them to ensure they meet your business needs. Once you’ve found a good location, negotiate the lease or purchase terms with the landlord or seller, taking time to review and understand all terms of the lease/purchase agreement, including rent or purchase price, security deposit, lease term, and any additional fees or expenses. Make sure you have the appropriate permits, licenses, and insurance lined up, as some mortgage or lease agreements require proof of insurance as a requirement for the sale.
With the location secure, now is the time to move in and set up your store. Depending on the type of retail business you have, this process may look different. For instance, for a physical retail store, you may be putting in extra effort to make the front of your store look appealing to lure customers into your store while showing off your products, and hiring contractors or designers to get the store layout to look the way you need to. Or, if it’s for a purely online store, you may want a more utilitarian space that organizes and protects your products, along with space for packing containers that will be shipped out to fulfill customer orders. Whatever it looks like, before you can move on to the next phase in how to start a retail business, your retail space needs to be ready to ensure the success of your business.
With the space secure, the next phase in how to start a retail business is to create and implement a marketing plan to get the word out about your business. Consider your branding and budget, set your target market, and consider how you are going to reach them. Do you take out online ads or billboards? Do you offer promotions when maunching your website? What is your social media plan? Remember, marketing strategies need to be able to adapt, so if a business idea you had when you first started looking into how to start a retail business doesn’t work the way you thought it would, don’t be afraid of changing it to better promote your business.
The final step in our guide on how to start a retail business is to launch your business and start selling. Open your doors—physically and metaphorically—and start welcoming customers, holding a grand opening celebration as a way to get the word out and draw people in. As time progresses, make sure to evaluate and make changes as necessary to ensure your retail business may continue to grow and be a success.
The insurance experts at Morison Insurance want to help you open a retail store in Ontario. We will help you get the insurance coverage you need to meet your insurance requirements and give you the financial protection you need in the face of an unexpected event.
Call us at 1-800-463-8074, or request a quote online, to get the insurance help you need to open a retail business.
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.
