Starting up a new business venture requires dedication, skill, consistency, and, most notably, the correct planning. Due to the pandemic, however, it is not that easy to start a small business in Ontario. Since the situation is grim this year, the government has declared financial support to help companies during this calamity.
This is going to happen through the Ontario Small Business Support Grant. The OSBSG provides a minimum of $10,000 and up to $20,000 to help cover multiple costs required in the business venture.
Let’s throw light on the steps required for starting a small business in Canada.
STEPS IN STARTING A NEW BUSINESS VENTURE
1. Make a Plan
To start a small business in Ontario, we need to have the correct road map. Planning is essential, and there are a few factors that need to be looked into. It is necessary to have guidance on how to make a business plan in Canada. The essential parts of the plan are
- Find your target market
It is necessary to know what kind of business is most in demand. You need to know your consumers and their requirements. It is also essential to check who your competitors are and what advantage you can get over them. To start a small business in Ontario, evaluate and analyze the products or services you will offer to the customers.
- ATTRIBUTES OF A SUCCESSFUL ENTREPRENEUR
Competition is increasing daily. To start your own small business in Ontario, you need to follow the lead of successful entrepreneurs. Study them and try to imitate their footsteps. See the kind of traits required to start a small business in a populated place like Ontario.
https://www.sciencedirect.com/science/article/abs/pii/S0883902697000700
- FIND THE APPROPRIATE LOCATION
The following important point is to see where it would be ideal to start up the business. You have to look up the correct location and find the suitable land. That is important because if not chosen wisely, there’s the risk of a business failure.
2. Select a Name
Before visiting the location when you decide to start your own small business in Ontario or, for that matter, anywhere at all, people shall be familiarized with the name of your venture. Choose that after thorough research. It should be catchy and also unique.
There’s no point if someone else has already got a set up with the same or a similar name. Your brand name represents your entire business. People see advertisements everywhere. It is up to you to grab their attention by startling them with something that stands out in the business world.
You may have started a small business in Ontario, but the entire country should remember how you advertise or present your products!
Related: How to Choosing a Business Name Made Easy
3. How to Register a Small Business in Canada
Now, when you have decided on the basics, you have to make the business official. For that, there are a few more decisions to make. The most crucial one being the form or structure of the venture when you open a new business in Ontario. You have to choose three types of systems from when you plan to start a small business.
- Sole proprietorship
- Partnership
- Corporation
Related: How to Register a Business in Canada?
4. Apply for Ottawa Business License
To start a small business in Ontario, you need some permits and licenses after getting registered. These permits are important for legal formalities when owning a business in Canada. For instance
- You need the general business license
- Then comes the state tax identification number
- A sales tax permit is required
- Professional license
- Construction or building permit
- Environmental permit
- Health permit
Related: Best Summer Business Ideas
5. Find Support And Finances
Finances are required in starting a company in Ontario because you are just an entrepreneur. These finances can be divided into two categories.
- Initial costs
- Operating budget
- INITIAL COST
When you want to start a small business, you need a startup cost. These include
- Cost of equipment
- Incorporation
- Land
- Construction
- Employees
- Inventory
- Advertisement
- Website
- OPERATING BUDGET
- Employee wages
- Rent
- Repairs
- Utilities
- Marketing
- Travel
These are the costs that are to be regularly considered when you start a small business in Ontario.
6. Taxes
When you start a small business in Ontario, Canada’s federal tax rate has dropped from 10% to 9% up to the first $500,000 of income.
https://ontariobusinessgrants.com/start-a-business/small-business-taxes-ontario/
In a business startup in Ontario, small business provincial income tax falls between 3.2% and 11.5%.
For self-employed people as when starting a home business in Ontario, the tax is equivalent to the individual tax rate. That ranges between 5.05% and 13.16% when you own a business in Ontario.
7. Employer Identification Number
EIN is also termed as Federal Tax Identification Number, which is to identify a business entity. When you start a small business in Ontario, the EIN comes in handy for
- Opening a business bank account
- Applying to get business licenses
- For filing your tax returns in business
When you open a business in Ontario, the IRS assigns the EIN, a nine-digit number. This number helps identify the people who have to file their tax returns when they own a business in Canada. Set up your business account right away and keep an organized track of your receipts if you start a small business in Ontario.
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8. Hire Employees
The salient task is to hire trustworthy and devoted employees when you start a small business in Ontario. This is quite a tedious process. For hiring for a small business startup in Ontario, you have to register for the payroll account, job descriptions are created and positions advertised, and then the interviewing can commence! The terms should be defined in writing for legal reasons.
9. Advertise
Now it’s time for you to publicize the small business you have started. Make ads, catchy ones! Brochures are a sure short method to reach out to people. SEO your company website. Start a blog with an alluring niche.
The way you made a plan when you started your small business in Ontario, you can also head towards making a marketing plan. The success of your business depends on how well and how much you publicize it.
There are new features on social media platforms like Facebook, which help people who are starting a business in Ontario and anywhere else to “boost” their page and posts. Facebook can help reach a certain number of people for a certain number of days to advertise the new business in a fixed amount.
10. Website
Gone are the days when newspapers were sufficient for publicity when you started a business in Ontario and worldwide. These days starting a company in Ontario requires having a well-prepared website. Various applications can be used to create an eye-catching website.
When you start a small business in Ontario, hire the best website creators to give your business the flourishing start it requires. The average cost for creating a website when you start your own small business in Ontario will be $2000 to $10,000.
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The cost to create such a site also depends on the site’s features.
There are multiple advantages of having a website when you open a small business in Ontario. You get to have a wider audience because the website is accessible 24/7. You can also get customer insights as there are ways to track user behavior on the website. The presence of a website for a business you have set up in Ontario also gives credibility to your product/service.
It is also incumbent upon you to start a company in Ontario to stay updated with the latest technology, social media applications, and advancements in the products/services you offer. It would be effortless for a competitor company to move ahead of you if you are not vigilant enough.
11. Brace Yourself For Risks
Once you start a small business in Ontario, you should also be prepared for the risks this venture brings with itself. Let’s jot some of them down.
- There’s always an economic risk as the market fluctuates, like in 2021 when the conditions are unstable.
- Financial risks are there.
- Reputation could come at stake with a slight error
- Operations could fail or not perform well due to any reason
- The risk of a competitor going ahead
- The risk of fraud even within the company is also there.
12. Brace Yourself For Risks
Risk management is a crucial part of business planning when you open a business in Ontario. Risk management means the process needed to identify, gauge, and handle risks that could affect the business operations. These processes are vital because without considering them, an entrepreneur would be unable to define its future goals when starting a small business in Ontario.
Risk management strategies:
- Avoidance – refrain from participating in activities that can harm when opening a business in Ontario.
- Retention – an acknowledgment that certain risks are inevitable
- Loss prevention and reduction – used to minimize the risks.
