How to start a new business in Canada

Opening a new business in Canada can be a very rewarding activity, but there are also risks involved. Boost your chances for success by carefully following these crucial steps.

Research is the first key to running a successful business. Begin with your target market.

• Is there a demand for your product or service in the location where you want to set up shop?
• Can you expand your access to bigger markets by selling online?

Your market research should help you decide what type of business to set up, where to locate your main premises and what range of products and services to offer.

You can access useful demographic and industry sector data, as well as help with designing questionnaires for your own market research, through the Government of Canada's Canadian Business Network listings.

Writing a business plan should be high on your list of priorities when thinking about starting a new enterprise.

• Your business plan will guide your activities over the first few years of trading, so it should be as detailed as possible.
• As well as outlining how you want the business to develop, your plan should include financial forecasts, which will help you to budget appropriately each month.

Every Canadian province has different requirements for the types of licenses and permits that businesses must hold.

• Use the Canadian Business Network website to find out what the requirements are in your province and municipality.
• Applying for licenses often involves paying a fee, so make sure you budget enough time and money for this important stage of starting your business.

The next step is to register your business for both federal and provincial taxes.

• You can register online with the Canada Revenue Agency to receive a Business Number (BN), which you will use to communicate with the federal government about your business taxes and payroll.
• Depending on the type of business you run, you may also have to register an account to administer goods and services tax or harmonized sales tax for your business.

In order to keep track of your finances and the amount of tax your business owes, you will need to keep thorough accounts. If you are not sure how to keep business accounts, an accountant can provide this service for you.