Youth Entrepreneurship Guide

Table of Contents

Introduction
Getting Started
Regulations
Taxation
Programs and Financing
Managing Your Operation
Next Steps

Introduction

Entrepreneurship can start at any age. This guide will introduce you to the basics of starting a business, and the government programs available to young entrepreneurs in Ontario.

The age range for youth programs varies from 15 to 39 years old. Refer to the individual program descriptions in this guide for more information.

There is no minimum age for starting a business. However, you need to be at least 18 years old to sign contracts or legal documents. If you are under 18 and starting a business, you may need someone who is over 18 to sign legal documents on your behalf. Discuss your business ideas with a parent or guardian before you start.

Legal Questions

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

Getting Started

When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to complete a minimum of three basic steps:

• Find out what licences and regulations apply to your type of business
• Choose a business structure and register or incorporate
• Determine if you will need to collect and remit HST

Our business start-up guide will give you more information on these steps and other basic requirements for starting a business in Ontario.

Read online:
Business Start-Up Guide

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 starting your business.

Use online:
Permits and Licences Wizard

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

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 collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12 month period are not required to charge HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business

Programs and Financing

Canada Business can help you find government financing options for your business. There are programs that apply to businesses across Canada, and others that apply only to businesses in Ontario. Use the Canada Business financing search tool or browse by type of financing.

You can also access Canada Business information through the ONe-Source online financing wizard. The wizard guides you through 3 easy steps to create a personalized list of results for Ontario business financing programs.

Search online:
Canada Business: Government Grants and Financing
ONe-Source Ontario Business Financing Guide

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

The Ontario Business Program Guide (OBPG)

You can find Ontario-specific assistance for your business including advice, financing options, tax incentive programs and more using the Ontario government’s free online directory of support programs for business.

The OBPG provides:

• An at-a-glance directory designed for quick and easy scanning
• Programs and services for Ontario businesses
• Basic information on programs as well as links you can follow for more detailed information

Search Online:
Ontario Business Program Guide

Some of the programs and financing options specifically for young entrepreneurs include:

Canadian Youth Business Foundation (CYBF) Start-Up Program

You may be eligible for a loan of up to $15,000 from CYBF.

To be eligible, you should:

• Create a business plan for a business that will employ you full time
• Work with a mentor for two years
• Own at least 51% of your business

If you are approved for funding from CYBF, you may also be eligible for additional funding of up to $30,000 through a special partnership with the Business Development Bank of Canada (BDC).

For more information or to apply for the loan, visit the CYBF website or call them to find your nearest CYBF office.

Age range: 18 to 39

Contact CYBF:
1-800-464-2923
CYBF Start-Up Program

Northern Ontario Young Entrepreneur

If you plan to start a business in Northern Ontario, you can apply for a grant to fund up to 85% of your start-up costs, to a maximum of $25,000.

You may be eligible if you:

• Live in Northern Ontario
• Can make a cash investment equal to 10% of the funding
• Will operate your business full-time, creating at least one new job
• Propose a business that is not an extension of a similar business owned by you, your family, or relatives

Age range: 18 to 29

Other conditions apply.

Contact the Northern Ontario Heritage Fund Corporation:
1-800-461-8329
Northern Ontario Young Entrepreneurs

Summer Company

If you are a current student returning to school in the fall, you could get up to $3,000 to help you start and run a summer business.

You may be eligible if you are:

• Proposing a new business
• A resident of Ontario
• A Canadian citizen or landed immigrant
• Committed to working an average of 35 hours per week
• Not operating a business or working elsewhere for over 12 hours per week during the program
• Not a past participant of Summer Company

Other conditions apply.

Age range: 15 to 30

Contact the Ministry of Economic Development and Innovation:
1-888-745-8888
Summer Company

Young Entrepreneur Awards

If you have a plan that will put your business on the path toward growth, you may be eligible to apply for the Young Entrepreneur Award. First prize is worth $100,000, second prize is worth $25,000.

To qualify, your business should be:

• Registered in Canada
• In operation for at least two years
• Financially healthy

You will need to make a video submission of your plans and complete the online application.

The deadline to apply is April 2nd 2013 at 12:00 noon Eastern Daylight Time.

Other conditions apply

Age range: 18 to 35

Contact the Business Development Bank of Canada (BDC):
1-877-232-2269
2013 BDC Young Entrepreneur Award

Canada’s Outstanding Young Farmers’ Program

If you are a young entrepreneur interested in farming, you may be able to access mentoring, scholarships and other resources through Canada’s Outstanding Young Farmer's Program (OYF).

Age range: 18 to 39

Read online:
Canada’s Outstanding Young Farmer's Program

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 your 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.

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

Marketing and 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

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

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 business before you start.

Read online:
Choosing and Setting Up a Location
Home-Based Business

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

Contracts

A contract is a legally enforceable agreement between two or more parties. Your contracts will vary based on the nature and the complexity of your projects. They can help you outline the terms of payment, ensure understanding of the project and protect you in case of disagreements. When dealing with legal documents like contracts, you may also want to speak with a qualified lawyer for advice.

Read online:
Contracts

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

Writing a Proposal

Whether you are responding to a call for proposals from the public, the private or the non-profit sector, there will be selection procedures to follow. These procedures will vary from one organization to the next, so gather all the required information before submitting your proposal. You may also consider getting help from professionals such as accountants or lawyers.

Read online:
How to prepare a bid

Next Steps

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

• Business Planning
• Market Research and Statistics
• Starting Your Business
• Grants and Financing
• Taxation Guide
• Employment Regulations Guide: Hiring

Additional resources that may be of interest to you include:

ACE-Canada

If you are currently enrolled in a college or university program, you can access networking opportunities, awards, and valuable resources through ACE-Canada (Advanced Canadian Entrepreneurship Inc.), a national not-for profit, campus-based organization dedicated to fostering entrepreneurship in Canadians.

Read online:
Advancing Canadian Entrepreneurship Inc

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.