An Investor's Guide to Starting a New Business
If you are thinking of starting a new business, then there are several things you will need to consider. To start, you will need to register a new business and also implement a comprehensive business plan. For those unaware, a business plan is a written description or report that outlines your plans for your new business going forward.
Many business plans are used by entrepreneurs looking for new partners to invest in their startups. A thorough business plan can serve as a means to convey their business strategy to their prospective investors. Here, I will provide an investor's guide to starting a new business.
Financial Assistance for Starting a Business
If you would like to obtain financial assistance for your new business, then there are many avenues that you can take. For example, you can try and obtain a capital loan. This can be used to repair equipment, buy new land, or even renovate your building before you set up shop. Furthermore, you can also opt for a vendor of record, as the Government of Ontario works with a myriad of different vendors.
As such, they can aid not-for-profit enterprises that are eligible to save on everything from telecommunications equipment to office supplies. Your new business may also qualify for grant funding. If your business is in the Arts and Culture sector then you may be eligible to receive a Seniors Community Grant or a Culture Development Fund grant from the Ministry of Ontario Seniors’ Secretariat or the Ministry of Tourism, Culture, and Sport respectively.
Small Business Ideas
The key to starting a business is tapping into your unique skills and experience and turning these into income opportunities. As we move towards the gig economy, small businesses are becoming highly profitable as customers look towards a diverse range of providers selling good and services at highly competitive prices. This doesn’t come as a surprise, though, as small businesses have grown to become the backbone of the Canadian economy. In fact, more and more people are now employed in this market.
Source: Ontario Business Central
Find a Structure for the Business
That is, you must have a clear idea of the location, services, products, and name of your business before you register a new business in Ontario. This is because, from a legal standpoint, there are three conventional business types; namely, a Corporation, Partnership, and Sole Proprietorship. Given the fact that each has its own unique implications in regards to succession, taxation, and liability, you will need to develop the right structure for your new business before going forward with the registration process.
Registering a New Business
To register a new corporation, you will need to incorporate it first. You will then need to obtain a Corporation income tax account from the CRA as well as a federal business number from the Canada Revenue Agency. In addition, you will need to register as either an extra-territorial or extra-provincial enterprise in all the other jurisdictions in the country in which you plan to perform business. Finally, you may also need to apply for specific licenses and permits, depending on your business type.
As for a partnership or sole proprietorship, you will need to register your company with the territories or provinces where you plan to perform business activities. You will also need to obtain tax accounts and obtain a business number from the federal government. In some cases, you may also need to apply for specific licenses and permits that your company may need to operate legally.
As for a cooperative, you will need to submit a cover letter, outlining whether or not your cooperative is a worker or non-profit housing cooperative. You will also need to fill out, sign, and submit copies of Form 3001 (Articles of Incorporation) and Form 3002 (Initial Registered Office Address and First Board of Directors). What’s more, a Nuans name search report of the proposed name of your business (that is not more than ninety-days old) will also need to be submitted, and you will need to pay a filing fee
Incorporating the Business
First and foremost, you will need to come up with a name for your new corporation. Step 2 involves devising a formal corporate structure for your company. However, you can opt to revise it in the future as your business continues to run. You will then need to establish a registered office address which will serve as the place where you house all of your official company documents and corporate records. Step 4 involves filling all the necessary forms and paying the filing fee while the final stage will require that you process your incorporation application documents in full.
Business Number Registration
You can register for a unique business number by fax, mail, telephone, or online. For instance, you can use Business Registration Online to obtain a new business number for your company. You can also register for a Canada Revenue Agency account by phone at 1-800-959-5525, which you can also call if you simply want to get a business number.
Regulations and Permissions
If you need more information on which permits, regulations, and licenses you will need to obtain or be aware of then you can use BizPal. BizPal allows you to go through a step-by-step process to find the licenses and permits you may need before you start a new business. You can also accelerate the search by entering specific keywords into the system.
How to Hire Employees
To hire new employees, first, you should perform a job analysis. This involves understanding the job, identifying key performance mannerisms, and only selecting the most critical criteria to demonstrate optimal performance. You should also write persuasive and detailed job descriptions that will help your business stand out from your glut of competitors. You will also need to set up a streamlined yet effective system to screen all of your job applicants.
Pre-employment evaluation and testing are also highly recommended. Some people may lie on their resumes; so you need to make sure that they have the skills that they claim to have during the interview.