1. Basics to Getting Started
Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. Ask yourself if you are truly suited for entrepreneurship and understand that significant effort may be required. You should thoroughly enjoy the field you are getting into and you must believe in your service; it may consume much of your time, especially in the start-up phase. There are several issues to consider such as regulations, financing, taxation, managing your business, advertising and much more.
For further information:
see these documents:
Checklists for Going Into Business
Business Start-Up Info-Guide
Employment Regulations Info-Guide
Since eldercare is a very demanding multi-disciplinary activity, there are many questions you should ask yourself and others before making a decision to enter this industry. Such questions might include:
- What type of services do I want to provide?
- Can my house be adapted for this business or do I need a new dwelling?
- Are there any competitors in my area and, if so, can my services be distinct?
- How many older people live in my area? How many live alone?
- Do I understand the needs of elderly people?
- Do I know the related services offered in my region?
- How many clients do I want at one time?
- Do I have the time, money and abilities for such a business?
- Is the location appropriate for such a business?
- Should I consult with professionals? Which ones?
- What type of professional help will I need?
- Is there a need to have a market study done?
- What is covered by the Ontario health care system?
- What regulations are involved?
- What happens when a person living under my care dies?
- Is there a public transportation system in my area? Do I want to provide transportation services?
2. Industry Overview
Seniors are one of the fastest growing population groups in Canada. The senior population has grown about twice as fast as the overall population since the early 1980s. The growth is also expected to continue early in the second decade of the new century when baby boomers turn 65. Seniors aged 85 and over are the fastest growing segment of the overall senior population. Consequently, the demand for eldercare services is also growing.
With regards to housing, seniors have to face numerous challenges. More and more seniors share a vast range of interests and needs. They also have variable physical limitations and health conditions. Partnerships between the public, non-profit and private sectors are being organized to offer housing services adapted to seniors' specific needs. Some concerned citizens are looking for means to offer a service in their own community that would allow long-time residents to continue living in their community. Personal care homes for seniors provide a supportive and nurturing environment for their residents. Services may include the following:
- meal preparation
- administration of medication
- surveillance
- secure environment
- assistance with activities of daily living (ambulatory care, bathing, grooming, feeding)
- laundry
- entertainment
Eldercare services are:
- demanding physically - expect long working days, including some part of the nights
- demanding emotionally - you have to deal with often lonely and frequently ill people much of the time
- challenging - you must excel in many areas such as food preparation, services, management, marketing, meeting people, purchasing, inventory control and personnel administration
- often involving numerous disciplines, such as finance, accounting, social work, medicine, psychology, law, fitness, nutrition, recreational, restoration and nursing
- rewarding, but it can be a negative experience if you are not comfortable working with the elderly - especially as their mental and physical health deteriorate
Planning Your Business
What is a Business Plan?
A business plan is a recognized management tool used by successful and/or prospective businesses of all sizes to document business objectives and to propose how these objectives will be attained within a specific period of time. It is a written document, which describes who you are, what you plan to achieve, where your business will be located, when you expect to get under way, and how you will overcome the risks involved and provide the returns anticipated.
Why Do I Need One?
A business plan will provide information of your proposed venture to lenders, investors, and suppliers to demonstrate how you plan to use their money, and to establish a basis for credibility of your project. This plan will serve as a guide to the various areas that you as a manager will be concerned with. As you work through this plan, adapt it to your own particular needs.
For further information:
see the document
Business Plan Guide
Interactive Business Planner (IBP)
The IBP is a computer software program that uses the capabilities of the Internet to assist you in preparing a 3-year business plan for a new or existing business. The IBP will help you write your business plan, provide a format for writing your business plan, and take the information you enter and prepare financial projections for you.
For further information:
visit the Web site
Interactive Business Planner (IBP)
http://www.cbsc.org/ibp
see the document
Interactive Business Planner - IBP
3. Regulations
Ontario Ministry of Health
In Ontario, Nursing Homes, Homes for the Aged and Chronic Care Beds are regulated by the Ministry of Health (MOH). This type of business is subject to standards for the services provided in the Nursing Home Act and the Homes for the Aged Act. Compliance to all regulations is verified by annual inspections by MOH.
For further information:
please call (416) 327-4327 or 1-800-268-1153
visit the Web site
Ministry of Health and Long-Term Care
http://www.gov.on.ca/health
Ontario Ministry of Municipal Affairs and Housing (MAH)
The Ontario Ministry of Municipal Affairs and Housing (MAH) have authority for aspects of this type of business specifically relating to the Landlord and Tenant, Rent Control and Resident Rights Act.
For further information:
please call (416) 585-7041
visit the Web site
Ontario Ministry of Municipal Affairs and Housing (MAH)
http://www.mah.gov.on.ca
The Smoke-Free Ontario Act
As of May 31, 2006, the Ontario government is prohibiting smoking in all enclosed workplaces and enclosed public places. The legislation will also strengthen measures to ensure only those 19 years of age and older can buy cigarettes and will phase out the display of tobacco products, with a complete ban beginning May 31, 2008.
For further information:
please call 416-326-4846
visit the Web site:
Ministry of Health Promotion
http://www.mhp.gov.on.ca/english/health/smoke_free/legislation.asp
Smoke-Free Ontario Act
http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/94t10_e.htm
Municipal Regulations
Each municipal government has the authority to issue its own business licenses within its jurisdiction. Since there is no uniformity throughout Ontario regarding municipal licenses for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses must also meet the zoning by-laws that control property uses in their municipalities.
For further information:
visit the Web site
Association of Municipalities of Ontario
http://www.amo.on.ca//AM/Template.cfm?Section=Home
see the document
Municipal Requirements to Start a Business
Legal Issues
As there may be a number of legal issues involved in business regulations, it can be very important to contact a lawyer or the Law Society of Upper Canada, which offers a Lawyer Referral Service.
For further information:
please call (416) 947-3330 or 1-800-668-7380
visit the Web site
Law Society of Upper Canada
http://www.lsuc.on.ca/
see the document
Legal Issues in Starting a Business
Canada Health Act
The Canada Health Act sets out two major categories of service: Insured Health Services which include hospital care and services provided by physicians, and Extended Health Care Services which are not insured and include nursing homes or long-term residential care, home care, adult residential care and ambulatory health care services and are not insured services.
Health is a provincial responsibility, but the federal government is also involved in the delivery of home care services as part of its obligations under the Canadian constitution, i.e. Veterans Affairs Canada, First Nations and the Department of National Defence.
For further information:
visit the Web site
Canada Health Act
http://laws.justice.gc.ca/en/C-6/
4. Financing
The Canada-Ontario Business Service Centre has created documents, which provide an overview of some of the main financing options for individuals starting and operating a business in Ontario, including programs offered or supported by the government
For further information:
please call 1-800-567-2345
visit the Web site
The Canada-Ontario Business Service Centre
http://www.cbsc.org/ontario
see the documents:
Financing for Starting a Business Info-Guide
Financing for Established Businesses Info-Guide
Business Guides
Canada Small Business Financing Program
Business Financing Program can assist new and existing small businesses with annual gross revenues not exceeding $5 million (excluding farming and charitable or religious enterprises) in obtaining term loans and capital leases of up to $250 000 to help finance fixed asset needs.
For further information :
please call (613) 954-5540
visit the Web site:
Canada Small Business Financing Program
http://strategis.ic.gc.ca/epic/internet/incsbfp-pfpec.nsf/en/Home
see the document:
Canada Small Business Financing (CSBF) Program
Sources of Financing
Sources of Financing is an Internet resource for locating traditional and alternative sources of small business financing. This site provides interactive access to objective information on appropriate forms of public and private sector sources of debt and equity financing.
For further information:
visit the Web site
Sources of Financing
http://strategis.gc.ca/sources
see the document
Sources of Financing
Sources of Micro-credit Financing
"Micro-credit" can be defined as small loans made to individuals to undertake self-employment or to start small businesses. This type of financing may be provided through a number of different sources including independent non-profit organizations, community economic development programs, commercial financial institutions, etc.
For further information:
please call 1-800-567-2345 or (416) 775-3456
visit the Web site
Sources of Financing
http://strategis.gc.ca/sources
see the document
Sources of Micro-credit Financing
Canada Mortgage and Housing Corporation
Home Adaptation for Seniors Independence: Through the intervention of the Canada Mortgage and Housing Corporation (CMHC), the Government of Canada finances a certain number of programs on housing which may be of benefit to the elderly.
Through the CMHC, the Residential Rehabilitation Assistance Program (RRAP) helps low-income Canadians, people with disabilities and Aboriginals live in decent, affordable homes. These programs also support renovations to rooming houses and rental units to increase the availability of housing for those in need.
For further information:
please call (416) 221-2642
visit the Web site
Canada Mortgage and Housing Corporation
http://www.cmhc-schl.gc.ca
see the document
Canada Mortgage and Housing Corporation
Ontario Community Futures Development Corporations (CFDCs)
Through federal support, CFDCs administer local investment funds to help finance new or existing small businesses for start-up, expansion or stabilization plans that help maintain or create jobs. Repayable financing of up to $150,000 on commercial terms through loans, loan guarantees or equity investments is available when financing from other sources is insufficient. All CFDC financing decisions are made at the community level by local boards of directors.
For further information:
please call 1-800-567-2345 or (416) 775-3456
visit the Web site:
Ontario Community Futures Development Corporations (CFDCs)
http://www.ontcfdc.com/frame3.asp?lang=english
see the document
Community Futures Program
5. Managing Your Operation
Dealing with Business Taxes
All businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply.
For further information:
visit these Web sites:
Provincial Tax Forms and Publications
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_9237_1.html
Small Business Tax Help
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_160_1.html
CRA Business Tax Web Page
http://www.cra-arc.gc.ca/tax/business/menu-e.html
see the document:
Taxation Info-Guide
Income Tax Information
Business owners must be aware of the requirements of Income tax that may apply to their product or service. There are different tax implications for incorporated and non-incorporated businesses. For information specific to your organization you should consult an accountant or financial professional.
For further information:
please call: 1-800-959-5525
visit the Web site:
Ontario Income Tax
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_2447_1.html
Corporations Tax
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_2363_1.html
Canada Revenue Taxes Menu
http://www.cra-arc.gc.ca/tax/business/menu-e.html
see the document:
Taxation Info-Guide
Below are links to publications that cover some of the general tax requirements for business owners in Ontario.
Ontario Small Business Guide
This booklet will guide you through various aspects of Retail Sales Tax, Corporations Tax and Employer Health Tax. This booklet also answers some of the frequently asked questions of small business owners regarding tax obligations.
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_24414_1.html
EHT Guide for Employers
Describes the main features of the EHT, including taxpayer rights and responsibilities under the Employer Health Tax Act
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_44509_1.html
For further information:
see the document
Employer Health Tax - EHT
Retention/Destruction of Books & Records
Explains the retention period required for Ontario tax purposes, before books and records can be destroyed.
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_20001_1.html
Voluntary Disclosure
Explains what voluntary compliance is and the basic principles under which Ontario's tax system operates
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_19999_1.html
Insurance
Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, it could be a wise decision to ask other business owners in your area to recommend one. Local seniors' associations or clubs may also have information about insurance packages specifically tailored for eldercare services.
The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.
Basic insurance:
- fire insurance (extended coverage on buildings and contents)
- liability insurance (depending on the type of business)
- burglary protection (theft coverage)
- dishonesty insurance (covers thefts by employees)
For more information:
please call (416) 445-5912
visit the Web site
Insurance Bureau of Canada
http://www.ibc.ca
Marketing/Advertising
Word-of-mouth advertising and good public relations are often the best ways of promoting an eldercare service. Networking, including an open-house day for those in the health field of your region such as employees from hospitals, clinics, pharmacies and community services, can be a useful way to promote your establishment. These employees should be able to answer questions from seniors looking for a home. Also, bear in mind that a happy customer or family is also a very good method of advertising.
You should also:
- spend about one percent of gross revenues on advertising into your target market
- install a brightly-lit sign to attract drive-by traffic
- talk to people in your neighbourhood
For more information:
see these documents:
Signs and Your Business
Plan Your Advertising Budget
Advertising Do's and Don'ts
Ways to Promote Your Product or Service
Marketing Plan Outline
The Marketing Basics section of the Online Small Business Workshop covers the basics from developing your customer profile to promoting your business.
For more information:
visit the Web site
Online Small Business Workshop
http://www.cbsc.org/osbw
The Competition Act governs misleading advertising and deceptive marketing practices for all businesses in Canada. The Act, which is administered by Industry Canada, defines which marketing practices are illegal and the process of complaint investigation.
For more information:
please call ( 819) 997-4282 or 1-800-348-5358
visit the Web site
Competition Bureau
http://www.competitionbureau.gc.ca/internet/index.cfm?lg=e
see the document:
Competition Act - Misleading Advertising and Deceptive Marketing Practices
Market Research
Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your potential clients and competitors is a critical first step in market investigation and development of a marketing plan.
In developing a marketing plan, your primary functions are to understand the needs and desires of your clients, select or develop a service that will meet their needs, develop promotional material that will make them aware and ensure service delivery.
For more information:
see the document
Marketing Plan Outline
Selecting Professional Services
The use of professional services is essential to the success of a small business. Since eldercare service comprises many disciplines, professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently. Under no circumstances should you attempt to render professional services that you are not qualified for, such as nursing, social work and legal advice.
As an entrepreneur, there are professionals which you might want to consult or might need to consult on a regular basis, so have a personal contacts list ready in case of emergency. These may include:
- lawyer (contact a lawyer about legal issues such as proxy, tutor)
- social worker
- dietitian
- doctor
- nurse
- physiotherapist
- occupational therapist
- pharmacist
- ambulance driver
- insurance broker
- accountant
- banker (for tips and pointers on dealing with your bank, see the document Dealing With Your Banker & Other Lenders)
For more information:
see the document
Selecting Professional Services
Setting-Up a Pay System
Pay administration is a management tool that enables you to control personnel costs, increase employee morale and reduce workforce turnover.
For more information:
see the document
Setting Up a Pay System
Profit Watching
Making a profit is important. Profit can be defined simply as revenues - expenses = profit. So, to increase profits, you must raise revenues, lower expenses or both. To make improvements, you must know what is really going on financially at all times.
For more information:
see the document
Checklist for Profit Watching
Employing people
What are the rules on working conditions in Ontario?
The Employment Standards Branch of the Ontario Ministry of Labour is responsible for the administration and enforcement of the Employment Standards Act, which provides for minimum terms and conditions of employment in most industries.
For further information:
please call (416) 326-7160 or 1-800-531-5551
visit these Web sites:
Employment Standards Claim
http://www.labour.gov.on.ca/english/es/claim/index.html
Employee Self Help Kit
http://www.labour.gov.on.ca/english/es/selfhelp/index.html
see these documents:
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide
Are You an Employee or Self-Employed?
Related Legislation:
Employment Standards Act
http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/00e41_e.htm
Staff Training
Provide ongoing training and maintain a library of resource materials. You might want to consider having
- First Aid
- CPR
- injury prevention
- nurturing care
- security
- dieting and meal preparation
The Canadian Red Cross and St. John Ambulance offer courses that might be very useful for you and your personnel.
Choosing Your Location
Choosing the right location for your business is important. Considerations include the needs of your services, the location of your potential clients and competitors and such things as:
- taxes
- zoning restrictions
- accessibility to hospital, transit system, recreational activities and church services
- noise
- secure environment
Layout and Design
It is very important to choose a layout and a design that is appropriate for clients as well as for employees. Convenience and security are two main issues to consider. To be adapted for seniors, a home may need some of the following:
- bath and toilet grab bars
- handrails where needed
- doorways which are accessible
- air conditioning
- dwelling with no stairs, preferably
shower without steps - good lighting
- lever handle on doors
- nonslip, heavy doormats and runners
Selecting Your Menus
It might be wise to have a dietitian prepare a list of meals for your clientele according to their specific needs or as recommended by their doctor.
For further information:
visit the Web site:
Dietitians of Canada
http://www.dietitians.ca
Selecting Your Equipment
Your house might need to be equipped with bathing equipment, toilet seats, walkers, and wheelchairs. These may be purchased, or may be loaned from the Canadian Red Cross. A good first aid kit is also a must - please ask a doctor or a nurse about the most practicable accessories for this kit or verify with the St. John Ambulance in your area.
Leasing Equipment- Another alternative is to lease equipment to help keep start-up costs down.
To obtain financing for capital leasing for new or used equipment for the creation of your business, you may wish to examine the Capital Leasing Pilot Project financing program.
For more information:
please call: participating leasing institutions
visit the Web site
Canada Small Business Financing (CSBF) Program
http://strategis.ic.gc.ca/csbf
see the document
Capital Leasing Pilot Project
For more information on parts and materials, overhead, stock control and pricing, see the document Business Plan for Small Service Firms.
Personal Information Protection
The Guide to Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) helps businesses understand their obligations and comply with the Act. On January 1, 2004, the PIPED Act was fully implemented and covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces that have enacted legislation that is deemed to be substantially similar to the federal law.
For further information:
please call 1-800-282-1376
visit the Web site
Personal Information Protection and Electronic Documents Act
http://laws.justice.gc.ca/en/P-8.6/index.html
see the document
Protection of Personal Information - Your Responsibilities
Personal Health Information Protection
As of November 1st 2004, the Personal Health Information Protection Act will govern the collection, use and disclosure of personal health information. The Act applies to all health information custodians operating within the province of Ontario and to individuals and organizations that receive personal health information from health information custodians.
For further information
please call (416) 326-3333 or 1-800-387-0073
visit these Web sites:
Information and Privacy Commissioner
http://www.ipc.on.ca/
The Health Protection Act
http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/04p03_e.htm
A Guide to the Health Protection Act
http://www.ipc.on.ca/scripts/index_.asp?action=31&P_ID=15447&N_ID=1&PT_ID=11351&U_ID=0
Frequently Asked Questions: Health Information Protection Act
http://www.ipc.on.ca/scripts/index_.asp?action=31&P_ID=15371&N_ID=1&U_ID=0&LG_ID=1
Clients' Record
It would be wise to keep detailed client records. The type of information could be anything pertaining, but not limited, to:
- medication intakes
- name of physician
- hospital preference
- infection control information
- oxygen therapy information
- incidence reporting
- smoking and alcohol consumption
- resuscitation
- family contacts
- medical history
- allergies
- weaknesses
- strengths
- preferences
- injuries
- diseases
Another useful type of reporting is a book to record comments of staff on each client at the end of each shift.
Incidence Reporting/Emergency Situations
You will need to determine the appropriate authorities to contact in case of an accident. You will also need to create your own emergency plan and will have to ensure that all your employees know all the procedures in case of emergency. Information on emergency plan preparation is available by contacting Public Safety and Emergency Preparedness Canada.
For more information:
please call (613) 944-4875 or 1-800-830-3118
visit the Web site
Public Safety and Emergency Preparedness Canada (PSEPC)
http://www.psepc-sppcc.gc.ca/index-en.asp
6. Associations
Ontario Retirement Comminuties Association (ORCA)
http://www.orca-homes.com
The Ontario Retirement Communities Association (ORCA) is a voluntary, non-profit professional association, representing the interests of Ontario residential care and retirement homeowners, operators, staff, residents and families. All ORCA member care homes must pass a comprehensive standards evaluation, which involves the review of all aspects of operations, and care delivery. The Association also acts as a lobbying group for its membership and their residents and regularly cooperates with other professional associations on common issues affecting seniors.
For further information:
please call (905) 403-0500 or 1-800-361-7254
Canadian Home Care Association
http://www.cdnhomecare.on.ca/
Canadian Association of Community Care
http://www.cacc-acssc.com/
The Canadian Hospice Palliative Care Association
http://www.chpca.net/
Canadian Lung Association
http://www.lung.ca/
Canadian Association of Gerontology
http://www.cagacg.ca/
Ontario Association of Non-Profit Homes & Services for Seniors
http://www.oanhss.org
Ontario Long Term Care Association
http://www.oltca.com
7. Resources and Web Sites of Interest
Related Publications
You may find books, magazines and other relevant print material at libraries, bookstores or by visiting the Regional Access Program Location Index for locations throughout Ontario.
Ontario Seniors' Secretariat
http://www.citizenship.gov.on.ca/seniors/index.html
Statistics
Statistics Canada - A portrait of Seniors in Canada
http://www.statcan.ca/english/ads/89-519-XPE/index.htm
Canadian Mortgage Housing Corporation
http://www.cmhc-schl.gc.ca/publications/en/rh-pr/socio/socio03-012-e.pdf
Ontario Long-Term Care Facilities Locator
http://www.ltccareers.com/facilityframe/english/
Web Sites of Interest
Seniors Canada On-line
http://www.seniors.gc.ca/home.jsp?lang=en
Canadian Institute for Health Information
http://secure.cihi.ca/cihiweb/splash.html
Division of Aging and Seniors, Health Canada
http://www.hc-sc.gc.ca/seniors-aines/index_pages/whatsnew_e.htm
Alzheimer Society of Canada
http://www.alzheimer.ca/
Canada Safety Council
http://www.safety-council.org/
Canadian Continence Foundation
http://www.continence-fdn.ca/
Canadian Hearing Society
http://www.chs.ca/
Canadian Institute for Health Information
http://secure.cihi.ca/cihiweb/splash.html
Canadian National Institute for the Blind
http://www.cnib.ca/
Caregiver Network Inc.
http://www.caregiver.on.ca/
Dieticians of Canada
http://www.dietitians.ca
Heart and Stroke Foundation
http://ww2.heartandstroke.ca/Page.asp?PageID=24
Osteoporosis Society of Canada
http://www.osteoporosis.ca/english/home/default.asp?s=1
Victorian Order of Nurses
http://www.von.ca/
Active Living Coalitions for Older Adults
http://www.alcoa.ca
Seniors Canada Online, Veterans Affairs Canada
http://www.gol-ged.gc.ca/pathfinder-expl/summaries-sommaires/3/vac-acc-seniors_e.asp
Canadian Senior Years
http://www.senioryears.com