Business Start-Up Guide

TABLE OF CONTENTS

1. Before you Start: The Plan
   • What is a Business Plan?
   • Securing Financing
   • Choosing a Business Structure
   • Choosing a Business Name
   • Choosing a Location
2. Getting Started: The Essentials
   • How to Register your Business Name
   • Incorporating Your Business
   • Regulations, Licences and Permits
   • Business Number Registration
   • Taxation
   • Hiring Employees
3. Next Steps: Management and Operations
   • Setting the Right Price
   • Marketing/Advertising
   • Insurance
   • Business Support Services
   • Negotiations
4. Additional Resources
    

1. Before you Start: The Plan

What is a Business Plan?

A business plan is a written document that describes your business objectives and strategies, your financial forecasts, and the market you are targeting. It will help you set realistic and timely goals, secure external funding, measure your success, clarify operational requirements and establish reasonable financial forecasts. Preparing your plan will help you focus on how your new business will need to operate to give it the best chance for success.

Securing financial assistance to start your new business is directly related to the strength of your business plan. To be considered for funding from financial institutions or investors, you must demonstrate that you understand every aspect of your business, and its ability to generate profit.

A business plan is more than just a document that you present to lenders and investors; it also helps you plan for the growth and progress of your business. Proper planning can help your business succeed.

Read online:
Business Planning Success
Business Plans - Templates and Samples

For copies of sample business plans, call the Business Info Line:
1-888-745-8888

Securing Financing

There are many different ways to finance your business. Canada Business can help you find government financing that is available for starting a business.

Search online:
Find Government Grants, Loans and Financing

Contact the Business Info Line:
1-888-745-8888

Choosing a Business Structure

When starting your business, choose the business structure that best suits your needs. The three most common business structures are:

• Sole proprietorship
• General partnership
• Incorporation

To learn more about different forms of business organization, contact Canada Business Ontario through the Business Info Line:
1-888-745-8888
Corporation, partnership, or sole proprietorship?
Business Structures: Which One is Right For You?

Choosing a Business Name

Before registering your business, you should decide what you want your business name to be. The right name can be an effective advertising tool that can help your customers understand what your business does and which market you are targeting.

Some points to consider when naming your business:

• Short names are easier to remember
• Descriptive names can help people understand what your company sells
• Professional names can fit the image you want to project
• Distinctive names can separate you from your competition
• Unique names ensure that the name is not already in use

Your business name is an important part of your business identity. Choose a name that will fit your needs and suit your business image.

Read online:
Choosing a Name…

Choosing a Location

For most businesses, choosing an appropriate location is critical, and the address is often needed for registrations, licences and permits. Your ideal location will depend on your business needs, zoning restrictions, and where your customers and competitors are. Taxes, noise and the local business environment are also important factors to consider when reviewing your options.

If you are considering setting up your business in your home, make sure you know what regulations and restrictions will apply to your home-based business before you start.

Read online:
Choosing and setting up a location 
Home-Based Business

2. Getting Started: The Essentials

How to Register your Business Name

Business name registration applies to entrepreneurs who want to register a sole proprietorship, a partnership or an operating name (trade name) for a corporation. For information on how to set up a corporation, see the Incorporating Your Business section below.

You can complete an optional name search and register your business:

• Through ServiceOntario's website
• In person at a ServiceOntario centre
• By mailing an application to the address indicated on the form

The cost to register your business ranges from $60 to $80. Your registration is valid for five years at which time it must be renewed.

Contact the Companies and Personal Property Security Branch:
1-800-361-3223

Use Online:
Business Name Search, Registration, and Renewal

Incorporating Your Business

A corporation is a legal entity that separates the business from its owner/operator. You can choose to incorporate federally or provincially. Each option comes with its own advantages and disadvantages.

• Provincial Incorporation
  Incorporating your business provincially allows you to do business under a corporate name in Ontario. Corporate name protection applies in Ontario, and you can open offices/stores within the province.
  
  Contact the Companies and Personal Property Security Branch:
  1-800-361-3223
  Ontario Business Incorporation
   
• Federal Incorporation
  If you incorporate your business federally, you can open locations within Ontario and/or in other provinces and territories across Canada. If you open offices/stores in different provinces, you will be required to register your business in those locations. Federal incorporation also provides corporate name protection across the country.
  
  Contact Corporations Canada:
  1-866-333-5556
  Guide to Federal Incorporation 
   
• Professional Corporations
  If you are a regulated professional (e.g. healthcare professionals, socials workers, accountants) you may be able to provincially incorporate your practice as a professional corporation.
  
  Some key features of professional corporations are:
  • Limited liability protection
  • Access to external investment funding
  • Advantages of corporate tax rules
  • Corporate status
  
  Contact the Ontario Ministry of Government Services:
  1-800-361-3223
  
  Read online: 
  Professional Corporations

Regulations, Licences and Permits

Your business may need licences and permits from the federal, provincial, and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL—an online search tool—to find licences and regulations that may affect your business. You can also contact the Business Info Line to speak to someone about starting your business.

Use online:
BizPaL

Contact the Business Info Line:
1-888-745-8888

If you have legal questions, contact a lawyer who deals with business regulations. The Law Society of Upper Canada's Lawyer Referral Service may be able to assist you in finding a lawyer, based on your needs.

Contact the Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service

Business Number Registration

Your Business Number is your single account number for dealing with the federal government regarding taxes, payroll, import/export and other activities. If you plan to hire employees, or if you will be importing and/or exporting products or services, you will need to get a business number.

If you sell goods and services in Ontario, you may need a business number to charge and remit the Harmonized Sales Tax (HST). Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business
Business Number (BN) Registration

Taxation

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may also apply.

Read online:
Taxation Guide 
E-Business and Selling to Customers Outside of Ontario
What's Taxable Under the HST and What's Not?

Hiring Employees

It is important that you know your obligations and opportunities when it comes to hiring employees, and familiarize yourself with current labour market conditions.

Some of the things you will want to consider when hiring staff are:

• Recruitment practices
• Payroll
• Tax returns
• Employment standards

Read online:
Hiring Employees
Employment Regulations Guide: Hiring

3. Next Steps: Management and Operations

Setting the Right Price

Setting the right price is important in ensuring the success of your business. Here are a few questions you may want to consider:

• What is the current price for your range of services in the industry?
• What is your competition charging?
• What is the total cost of running your business?
• What is the minimum acceptable profit you need to generate from your business?
• When determining your fees, make sure you include the cost of your labour, the overhead, and the expenses that will be incurred.

In the end, the right price for the service is the price that the consumer is willing to pay. Correct pricing decisions are often key to successful business management.

Read online:
Pricing

Marketing/Advertising

Marketing can help you determine the value of your product or service and communicate that information to customers. Depending on your market and its size, you can consider using flyers, business cards, brochures, newspapers, radio, TV, the phone book or the Internet. Keep in mind, a satisfied customer or a positive referral is often the best form of advertising.

Read online:  
Developing a Marketing Plan 
Marketing and Sales

When preparing your marketing and/or advertising material, there are regulations to follow. When you promote a product or service, your customers need to have enough information to make informed choices. You can get more information on advertising requirements from the Competition Bureau.

Contact the Competition Bureau:
1-800-348-5358 
Misleading Advertising and Labelling

Insurance

Having the correct business insurance can provide peace of mind. Contact an insurance agent to discuss your business insurance options, or to develop a plan that is right for your business.

You may also wish to contact your local chamber of commerce or industry association, as some organizations offer members lower rates on their business insurance.

The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.

Basic insurance:

• Fire insurance (extended coverage on buildings and contents)
• Liability insurance
• Burglary protection (theft coverage)
• Dishonesty insurance (covers thefts by employees

Read online:
Insurance for Your Small Business

Business Support Services

The use of business support services can be essential to the success of a small business. Professionals can provide knowledge and expertise to ensure your business is operating efficiently.

As an entrepreneur, there are several types of professional business services you can consult:

• Lawyers
• Real estate agents
• Insurance brokers
• Bookkeeper
• Accountants

Negotiations  

Negotiating is part of doing business. You negotiate with suppliers, distributors and customers. Good negotiations can lead to prosperity, while bad negotiations can damage your business profitability. Before you start your business you may want to learn about negotiating.

Read online:
Negotiations

4. Additional Resources

• Small Business Enterprise Centres
  Visit a Small Business Enterprise Centre to speak with knowledgeable general business consultants, attend seminars, and access business publications.
  
  Read Online:
  Small Business Enterprise Centres 
   
• Community Futures Development Corporations (CFDC) 
  Access information and financing for businesses in Northern Ontario and rural areas of Southern and Eastern Ontario.
  
  Contact CFDC:
  1-866-668-2332 
  Community Futures Development Corporation in Ontario 
   
• Ministry of Economic Development and Trade 
  Find information about Ontario's small business community, and connect to the people and resources you need to improve competitiveness and profitability.
  
  Contact the Ministry of Economic Development and Trade:
  1-866-668-4249
  Ministry of Economic Development and Trade 
   
• Business Development Bank of Canada (BDC)
  Access a wide range of business counselling and training programs, including workshops, seminars and business management courses. Program costs will vary.
  
  Contact BDC:
  1-877-232-2269
  Business Development Bank of Canada
   
• Foreign Affairs and International Trade Canada
  Learn how global value chains can improve competitiveness, profitability and long-term sustainability for your business.
  
  Read online:
  Linking In to Global Value Chains

You can also find books, magazines and other relevant print material at business service organizations in your community that provide Canada Business Ontario (CBO) information. Contact us through the Business Info Line at 1-888-745-8888 for a location near you.

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.