Starting a Business in Ontario: What to Consider?
Several benefits come with living in Ontario. Several benefits come with starting your own business.
As such, why not attempt to merge the two?
Starting your own business in Ontario can be very rewarding; however, it is not without its challenges. These are going to be discussed in a bit more detail below.
Before we go any further, you first need to fully understand exactly what you are signing up for. People who own their own businesses usually encounter financial risk, must work long hours, and need to make plenty of mistakes to properly learn from them.
It is a rewarding process but one that isn’t without a lot of responsibility and hazards and as such, it is important that you plan carefully and put in plenty of research before going any further.
There are several different hurdles that you will need to overcome to own a business in Ontario and all of these are going to be discussed in more detail below. Consider this your step-by-step guide of different things you will need to consider before setting up your business in Ontario.
How Will You Register Your Business?
The first thing you are going to need to do in terms of the legal requirements you are faced with is to determine your business structure. With this, you have three different options.
- Sole Proprietorship – This is the one to go for if you are the sole owner of your business and as such are responsible for all the organization's different assets and liabilities on a personal level.
- Corporation – When you incorporate a business, you are setting your business up as its own legal entity. This means that all the different assets and liabilities are going to be tied directly to the business and will not be tied to you personally. This is the more complex business structure but is also one with several benefits including what you claim on business expenses and the limited risk when taking out loans for your organisation.
- Partnership – This is where you have yourself and one or more partners who all own the business collectively and as such, share the responsibility collectively too. This applies to all the assets and liabilities as well.
Before you can start trading or working under your business's name, you must understand which process seems the most applicable to you. The registration requirements are going to vary depending on the business structure that you pick.
Do You Have a Business Idea?
You are going to need to ensure that you have a business idea you can fully get behind and are passionate about. As stated above, when it comes to running a business, you are setting yourself up for long hours and a great deal of stress, so you should ensure you are working and doing something you’re happy doing.
A lot of the most successful ideas come from people who can identify a problem and attempt to think of a solution for it. As such, if you are struggling with an initial idea but are sure you want to go it alone with work, you should think about everyday issues you face and how you could potentially solve said issues.
Research Your Market
Once you have an idea, it is incredibly important that you are putting enough research into the market that you are considering going in. This is going to help you when it comes to setting your business up and efficiently marketing yourself. Be sure to think about:
- Who are your prospective clients and/or customers?
- Are you going to be providing your clients with a product or service?
- Who are you most likely going to want to sell your product/service to?
- How much are people going to be willing to pay for what you are offering?
- What sets you apart from all your competition?
- Is there enough demand for what you are offering to realistically build a successful business?
If you are wondering where you can gather all your client information, you won’t be surprised to hear that the best place to start is online. On several different websites, you are going to be able to find out many things that pertain to your industry and what you plan on your business doing.
Make a Budget
A lot of new businesses fail because their entrepreneur has been unable to fully appreciate what it is going to cost to get everything up and running. As such, one of the best ways to avoid this is to take the time to put together a well-thought-out budget.
This should first consider all of the outgoings that you expect to incur when you initially start trading. These will involve the likes of safety measures you take such as getting insured with organisations like kbd insurance, the money needed to create your product/service, and the money you might need to market your product. All this needs to be taken into account and added up so you can work out how much you will need to get things off the ground.
You should also start working out what you expect to earn when you first get going. This means that you can fully appreciate whether your business is a profitable one (most aren’t when they first get going) and how you can react to improve the amount of money coming in or limit the amount you are spending.
Starting a business in Ontario is an exciting proposition as the economy is good, it is an excellent place to live and owning your own business can be very rewarding.
If you are interested in starting but need help getting off the ground, then be sure to consider some of the above. Although it’s important to get the formal requirements right, it’s also important that you are doing something you enjoy. So, take the time to make sure you are working in a field that gets you excited.