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How to Start an Artisan and Craft Business in Ontario

TABLE OF CONTENTS

  1. Introduction
  2. Basics to Getting Started
  3. Regulations
  4. Taxation
  5. Financing
  6. Managing Your Operation
  7. Associations
  8. Next Steps

1. INTRODUCTION

The artisanal and craft industries are comprised of many disciplines, and can include everything from a sculptor or a quilter, to a jewellery-maker or a mechanic who custom-designs vehicles. Artisanal businesses and craft businesses produce a wide variety of products ranging from unique handmade artistic items to mass-produced collectibles or specialty items. In fact, any business creating and selling products made with a “personal touch" could be defined as an artisanal or craft business.

Note: This guide does not address the specific requirements for starting and running an artisanal food business. However, Canada Business Ontario has created a guide to give you more information about the food services industry.

Read Online:
How to Start a Restaurant or Catering Business in Ontario

2. BASICS TO GETTING STARTED

Before starting a business in Ontario, there are several issues to consider, such as regulations, financing, and taxation. Read our start-up guide to learn the basics.

Read online:
Business Start-Up Guide

3. REGULATIONS

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 startingyour business.

Use online:
BizPaL

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

Common regulations that can apply to an arts business include:

Intellectual Property
Intellectual property refers to the legal rights to ideas, inventions and creations in the industrial, scientific, literary and artistic fields. It also covers symbols, names, images, designs and models used in business.

  • Trade-marks and Copyright
    If you want to protect an artistic, dramatic, musical or literary work - including computer programs and performance or sound recordings - you may wish to apply for a trade-mark or copyright.

    Read Online:
    Trade-marks
    Copyrights

Product Safety and Labelling
When you are selling, importing/exporting, or manufacturing products, you are responsible for ensuring safety standards are met and your products are labelled properly.

  • CanadaConsumer Product Safety Act
    If you manufacture, import, distribute or sell goods in Canada, find out what you need to do to ensure that your products are safe.

    Read Online:
    For Industry: Canada Consumer Product Safety Act
     
  • Labelling
    You will need to be aware of the regulations for business owners if you are labelling goods produced domestically or imported into Canada.

    Contact the Competition Bureau:
    1-800-348-5358
    Competition Bureau
     
  • Hazardous Products
    If you manufacture, sell or import consumer goods such as (but not limited to) products for children, textiles for clothing or flooring, or paints and modelling materials, you need to be aware of your legal responsibilities.
     
    Read Online:
    Quick Reference Guide to the Hazardous Products Act
    Marketing, Advertising and Sales Regulations 
     
  • Technical Standards and Safety
    You need to be aware of your legal responsibilities if your business deals with items such as (but not limited to), amusement devices or upholstered and stuffed articles. The Technical Standards and Safety Authority (TSSA) regulates these types of products and also performs inspections of your premises and registers renovators, manufacturers and retailers.

    Contact the TSSA:
    1-877-682-8772
    Technical Standards and Safety Authority

Precious Metals and Stones

Anyone creating products that contain precious metals and/or stones should be aware of the regulations for marking and selling them.

  • Precious Metals Marking
    Make sure any products you create with precious metals (articles made with gold, silver, platinum or palladium) meet the requirements for marking. Precious metals marking help consumers make informed purchasing decisions.

    Read Online:
    Guide to the Precious Metals Marking Act and Regulations
     
  • Dealers in Precious Metals and Stones
    If you buy and sell precious metals and stones, you may have obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. To find out what requirements may apply to you, contact the Financial Transactions and Reports Analysis Centre of Canada, (FINTRAC).

    Contract FINTRAC:
    1-866-346-8722
    Information for Dealers in precious metals and stones

Importing/Exporting Products
If you plan to import or export goods from Canada, you need to be aware of the regulations for international trade.

Contact Canada Business:
1-888-745-8888
Exporting Regulations
Importing Regulations

Music License

When your business uses recorded music, you are responsible for obtaining the right licence(s) for that use. The Copyright Board of Canada works with individual copyright collective societies who provide music licensing. Contact the following two organizations for more information.

  • Society of Composers, Authors and Music Publishers of Canada (SOCAN) Music Licence
    SOCAN is a not-for-profit organization that represents the performance rights of music creators and music publishers. They can help you learn about your obligations and obtaining the required license(s).

    Contact SOCAN:
    1-800-557-6226
    Society of Composers, Authors and Music Publishers of Canada
     
  • Re:Sound Music Licensing Company
    Re:Sound is the Canadian not-for-profit organization that represents the performance rights of artists and record companies, and provides the legally required license(s) for businesses. You can get help determining what licence(s) will be required, what the licensing process will be and how much it will cost.

    Contact Re:Sound:
    1-877-309-5770
    Re:Sound

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

Your arts or crafting business could also access legal help through Artists' Legal Services. If you qualify for Legal Aid, you can receive in person legal advice in Toronto free-of-charge. The service is free, but you are encouraged to make a contribution of $7.00 per appointment.

Contact Artists' Legal Advice Services:
416-367-2527
Artists’ Legal Advice Services

4. TAXATION

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

Read online:
Taxation Guide

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

5. 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

Grants, Subsidies and Contributions - Arts and Media
Find grant and subsidy programs available to businesses involved in arts and media, including programs offered or supported by the governments of Canada and Ontario.

Read Online:
Grants, Subsidies and Contributions - Arts and Media

Other common sources of financing for arts and craft business include:

  • Ontario Ministry of Culture and Tourism
    If you are a member of the creative industries, or an Arts and cultural group, you can access funding and operating grants to help your business grow.

    Contact the Ontario Ministry of Culture and Tourism:
    416-326-9326
    Funding and Awards – Ontario Ministry of Culture and Tourism
     
  • Jean A. Chalmers Fund for the Crafts
    Your non-profit organization may be eligible for funding to develop projects that promote the fine crafts industry in Canada.

    Contact the Jean A. Chalmers Fund for the Crafts:
    1-800-263-5588
    Jean A. Chalmers Fund for the Crafts
     
  • OntarioCrafts Council (OCC)
    As a member of the OCC, you could be eligible for up to $15,000 through an annual program of awards, scholarships and supply grants for students and craft professionals.

    Contact the OCC:
    1-866-811-0055
    Ontario Crafts Council (OCC) - Awards & Scholarships
     
  • Business Support for Young Artists - The Summer Company Program
    If you are a student between the ages of 15-29, you could receive up to $3,000 to start and run your own business.

    Note: The Summer Company program is now closed for 2011. To sign up for alerts about the 2012 program, you can visit the Summer Company website.

    Contact Summer Company:
    1-800-387-5656
    Summer Company

6. MANAGING YOUR OPERATION

The success of any business starts by setting goals and managing the ups and downs of daily operations. Here are some key factors to consider when starting arts or craft business.

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.

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

Certification

Keep in mind that certain industries will require additional training or certification, including:

  • Carpentry
  • Interior design
  • Masonry
  • Glass blowing
  • Metal working
  • Ceramics

To learn more about trade certification, contact the Ontario Ministry of Training College and Universities:
1-800-387-5514
I want to work in the trades – Employment Ontario

Professional 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
  • Bookkeepers
  • Accountants

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

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

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

Choosing a Location

For most businesses, choosing an appropriate location is critical. 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 arts or craft business before you start.

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

Furnishings and Equipment

Your business will need equipment and furniture, and it's important to decide what you need and how much you want to spend.  Some common ways to save money on furnishings and equipment are:

  • Buying used equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a arts or crafts business that is closing or a second-hand equipment store. Keep in mind the cost of maintenance and repair in the overall costs when buying used equipment.
  • Leasing equipment - Another alternative is to lease equipment to help keep start-up costs down. If you choose to lease equipment remember to include interest in your overall cost.

7. ASSOCIATIONS

There are many associations that may be of interest to an arts or craft business. It is not necessary to join an association, but some of the advantages include:

  • Promoting and exchanging marketing and promotional ideas among members
  • Establishing and encouraging high standards of quality and professionalism

Examples of associations for an arts or craft business include:

  • OntarioCrafts Council
    You can search for financial awards and grants, and take advantage of professional development resources from this provincial organization.

    Contact the Ontario Crafts Council:
    416-925-4222
    Ontario Crafts Council
     
  • The Sculptors Society of Canada (SSC)
    Professional development activities and access to galleries and exhibitions may be available to your sculpting business through this charitable organization.

    Contact the SSC:
    416-533-0126
    Sculptors Society of Canada (SSC)
     
  • The Canadian Gift & Tableware Association
    As a member of this association, you can access market intelligence reports, mentorship programs, and group discounts for the gift and tableware industry.

    Contact the Canadian Gift & Tableware Association:
    1-800-611-6100
    Canadian Gift & Tableware Association
     
  • The Society of Graphic Designers of Canada
    If you are a graphic designer you may be able to take advantage of free online portfolio hosting, member discounts and group rate insurance plans by joining this society.

    Contact the Society of Graphic Designers of Canada:
    1-877-496-4453
    Society of Graphic Designers of Canada
     
  • The Ontario Clay and Glass Association
    Access professional development resources for the clay and glass industry and take advantage of supplier discounts by becoming a member.

    Contact the Ontario Clay and Glass Association:
    416-438-8946
    Fusion: The Ontario Clay and Glass Association
     
  • The Canadian Craft and Hobby Association
    Members can find market information, professional development resources, supplier discounts and group insurance rates.

    Contact the Canadian Craft and Hobby Association:
    519-940-5969
    Canadian Craft and Hobby Association

8. NEXT STEPS

For other information that relates to starting your business, you can read the following guides:

Additional resources that may be of interest to arts and crafts business owners include:

Websites of Interest

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.

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.

Date Modified: 2012-04-30

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