Everything You Need To Know When Setting Up Your Own Business In Canada
Are you considering setting up your own business? If you are, there are a few important details you will need to know to help you get off to the best start. The following post will cover some of the essentials of setting up a new business, such as hiring employees, marketing your business, and calculating your business tax. Keep reading to learn more.
Where To Start When Setting Up A Business
The first steps you will need to take when thinking of setting up a business are important as they will be some of the most important choices you will make. For example, if your business has a physical setting, you will need to choose where you want to be and research the best areas for your business. When you’ve created a shortlist of different areas from which to potentially base your business, then you can start looking at appropriate properties in those areas.
Consider aspects such as the scale and size of your business, how many employees you will be hiring, and the type of business you will be operating. Will you need to prioritize office space? Or storage space for stock and supplies? If you’re hiring a large number of employees, try and base your business somewhere with sufficient parking or access to public transport. Networking with other business owners will help you to learn more about setting up your own business and meeting like-minded people.
Investment
If you’re going to require more money to get your business started, you will need to seek outside investment. An essential part of this is having a strong business plan and budget plan (we will discuss how to do this later in the post). Private investors will want to be able to see that you have a solid plan for your business, how it will succeed, and where you envision it going in the future. You will also have to come across as confident in order to pitch your business in the best light, so it’s worth practicing what you will say to make sure you cover everything you need to. You can also apply for a business loan through the bank.
Creating Your Business Plan
A business plan is useful both for investment and for helping to keep you on track when setting up and launching your business. Some of the things you need to include in your business plan include:
— A description of your business and how it will operate
— Market analysis
— Hiring employees
— Future goals and targets you want your business to reach
— A separate budget plan
Establishing A Business Budget Plan
A business budget plan helps you keep on track of your finances and plan how you will distribute investment if you have it. You will also need to include all the fixed costs involved in the business, predicted revenue, as well as variable costs, and predicted one-off costs. Further along in time, you can things such as profits and cash flow. Reviewing a budget plan is essential for you to be able to assess the progress of your business. Of course, if your business is building in profit then this is a good indication of a successful business. However, it’s normal to not see much progress in profit during the first few years of setting up a new business, as you will probably have to reinvest a lot of money back into the business to help it to progress.
Calculating Your Income Tax
When running your own business, you will be responsible for calculating your taxes and filing a tax return each year. It can help you to calculate your business taxes by using online calculators such as this income tax calculator in Ontario provided by Wealthsimple. Financial institutions such as this can help provide your new business with the knowledge it needs to survive. Business income is based on net income, and the rate of tax you pay is based on the size of your business. The rate for small businesses in Canada is 9%, with this rising to 15% for larger businesses.
Identify Your Competition
When first setting up your business, you will need to identify your competition early. Competitors are fellow businesses that operate in a similar field or offer similar services. Once you’ve identified your competitors, you can research them and find out what they offer that your business does not currently. You will also have a better idea of how much to charge customers based on being competitive with other providers. Knowing your competitors will also benefit you regarding aspects such as marketing, especially designing your website and including keywords. You should conduct regular analysis of your competitors in order to make sure your business is keeping up and adjusting your marketing.
Hiring Employees
If your business will be hiring employees, then you need to ensure you’re aware of the process and prepared for it. This includes creating job advertisements, filtering applications, and holding interviews. Even if you already have managers or HR employees in place for hiring other employees, it’s a good idea for you to be involved in the hiring process. It will allow you to get to know your employees and become a familiar face to them. Employees are more likely to respect an employee with whom they know and have a good rapport. When creating job adverts, make sure to give a clear description of the role, the qualifications and experience you’re looking for, as well as the type of person who would fit well into the business environment. It’s important not to be too focused on the professional qualifications for the role.
While these are important for knowledge and experience, it’s also important that you find someone that will work well with the existing team you have in place, and the type of business you run. Look for individuals who are positive, friendly, and have a good work ethic. You can advertise jobs on your business website, but it’s a good idea to also have job adverts placed on other sites such as job search sites. This will allow you to reach a wider audience of candidates for the role. You could also consider hiring a recruitment consultant. This is an agency worker who will search for potential candidates for your business on your behalf, as well as acting as a form of communication between you both. They can help to negotiate terms for the role.
The Interview Process
The interview process is often a nerve-wracking process for candidates, and they will work hard to ensure they do everything right. So, it’s important that you also make the effort to ensure the process is as smooth sailing and professional as possible. Many candidates will be nervous about being interviewed, so try not to come across as intimidating. Being friendly and approachable will help to put them at ease and they will be more likely to relax and show their true character. Make sure to give the candidate all the information they need to decide on taking the role and avoid painting an unrealistic picture of the job and duties involved. Make sure you’re prepared for the interview, and you’ve gone over the way the interview will be held with the person interviewing with you. Your plan should include the questions you want to ask the candidate, and these will need to be tailored to each one. Make sure to refresh your memory of the candidate and their application so you can ask them personalized questions about their work history and experience. You could ask scenario questions, in which you would create a scenario common in your business practice and ask the candidate what they would do in this situation. This will help you to get a good impression of whether they can think quickly and fit well into your business.
Understanding Your Target Audience
A key part of a successful business is having a good understanding of the audience you’re trying to appeal to. Conduct market research and find out what your potential customers will be looking for. You can then tailor your business around this and make more informed product choices. The kinds of things you need to research include, what products or services your customer wants, the prices they will be looking for, and the type of service they expect. Look for gaps in the market from your competitors to help give you an edge and stand out.
How To Reach New Customers
If you’re trying to reach new customers, you need to look at investing in things such as marketing and the location of your business. Are you based somewhere where there is high traffic for potential new customers to find you? Is there enough awareness of your brand and what you have to offer? Increasing awareness of your business may initially require some investment into marketing and building a high-quality website for your business. Although this may dent your business’s finances initially, it will boost your business in the long term and help get your name out there.
