Quick Overview - (starting a new business)

This Infosheet gives a brief overview of starting a small business in Manitoba. It provides a quick snapshot of eight areas you should start thinking about when launching a business venture. For more information, refer to individual Infosheets on each topic.

You and Your Ideas  
     
The first stage in starting a new business, begins with the two most important ingredients in any business venture, you and your ideas. There are many self-evaluation guides, books, and workshops available on these subjects alone. In general, this stage involves:

• Taking stock of your skills, experience, and situation. Entrepreneurship is not for everyone. Determine first if you have what it takes.
• Looking for, and evaluating business ideas. An important part of this is assessing opportunities in light of current trends in society and the marketplace.
• Protecting ideas through patents, copyrights, trademarks, or industrial designs.
• Depending on your ideas, analyzing the various ways of getting into business, such as starting from scratch, purchasing a franchise, or buying an existing or ceased business.
  For more information, see the Infosheet 'You and Your Ideas' .

Forms of Business Organization

There are four legal forms of business organization for small businesses: sole proprietorship, partnership, corporation, and cooperative. When starting a business, you must choose one of these forms. The appropriate choice depends on many factors, such as the type of business you want to start, and how many people are involved.

After selecting a legal form of organization, most new businesses must register with Manitoba Consumer and Corporate Affairs (Companies Office). This process involves two steps. You reserve the name you want to call your business so that the office can check to ensure no other businesses are using a similar name. You then complete a registration form to officially register your business. For more information, see the Infosheet Forms of Business Organization (Choosing a Form and Registering Your Business) .

Licences

One area of rules and regulations that all new businesses must comply with is that of licences and permits:

• In Winnipeg, new businesses must inquire about city zoning requirements, assessments, taxes, and licences.
• Outside Winnipeg, every municipality, local government district, and incorporated town has its own zoning and licencing requirements.
• Regardless of location, there are also many provincial licencing requirements which all Manitoba businesses must obey. These apply to specific types of businesses for reasons of safety, health, or environmental protection.
  For more information, see the InfoSheet ' Licenses (Municipal and Provincial Licenses and Permits) '.

Taxes

A second area of rules and regulations is that of taxes. Depending on the type of business you start, various tax regulations can apply:

• Provincial taxes include retail sales tax, corporation capital tax, health and education tax, and other taxes for certain types of operations.
• Federal taxes include the goods and services tax (GST), excise tax, and customs duties.
• Both the provincial and federal governments impose taxes on personal and corporate income.
• If you hire employees, you must deduct Employment Insurance premiums, Canada Pension Plan contributions, and Income Tax from remuneration paid to employees.
  For more information, see the Infosheet Taxation Info-Guide .

Human Resources

In small business, where only a few people often conduct the main duties of an operation, attention to human resources is especially crucial, employees can make or break a business:

• Hire employees carefully. Use a well-planned process for developing job descriptions, recruiting, screening, and interviewing.
• Keep excellent employees by implementing a fair compensation and benefits package, clear personnel policies, and an employee evaluation process.
• Provide training, and encourage staff to continually upgrade their skills through related courses and programs.

In addition, both the provincial and federal governments have specific laws dealing with the hiring of employees. These laws set standards for safe and healthy workplaces, and deal with labour issues such as wages/workers compensation. For more information, see the InfoSheet Human Resources - Hiring Employees and Related Regulations .

Marketing

One of the most important stages in starting a new business focuses on the product or service you want to sell. This involves:

• Conducting market research by gathering, recording, and analyzing information about potential customers, competition, markets and the environment.
• Armed with this information, you can then develop a marketing strategy and establish a 'marketing mix' by providing the right product or service, at the right price, in the right place, with the right promotion.
• Once established in business, marketing is an ongoing activity. You should regularly evaluate whether or not you are meeting customer needs and adjust your marketing mix accordingly.
  For more information, see the Infosheet ' Marketing - Conducting Market Research and Developing a Strategy '.

Financing Your Business

All enterprises usually need help with financing at some point in time. When starting a business however, financing is often needed to cover:

• One-time expenditures that must be incurred before a business opens its doors, such as buying furniture or equipment (start-up capital).
• Ongoing day-to-day expenses such as payments to employees, for rent, or if applicable, to purchase inventory (working capital).
• Figuring out how much money you need involves preparing statements which project your expected net income, cash flow, balance sheet, and completing a breakeven analysis. Based on the projections and your current financial situation, you can then analyze what type of financing you need (debt or equity) and where best to look for it (from within the business or from an outside lender).
  For more information, see the InfoSheet, Financing Your Business (Projecting - Acquiring and Managing Your Finances) .

Business Plan        

Small or large, simple or complex, all businesses must develop a business plan.  A business plan represents the bringing together of all your hard work, research, and analysis, and marks the FINAL stage in preparing to go into business. In general, a business plan:

• Describes all aspects of your proposed venture, including information about you, your product or service, your customers and competition, your marketing strategy, your management team, and your finances.
• Becomes an operating tool for managing the business, and a tool for promoting the business to those outside, especially when seeking financing.
• Should be comprehensive but brief, and presented in a polished, professional format. Depending on the nature of your business, a business plan may take several weeks to several months to complete.
  For more information, see the InfoSheet,  'Business Plan' .

For more information contact:
Canada/Manitoba Business Service Centre
P.O. Box 2609, 250 - 240 Graham Avenue
Winnipeg, MB    R3C 4B3
Phone: (204) 984-2272 or Toll free in Manitoba:  1-800-665-2019

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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