Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Québec, it is wise to do your research. You should also make sure you are suited for entrepreneurship and understand that significant effort may be required.
This Info-Guide will take you step by step through the major decisions you must make in bringing your business idea from vision to reality. It constitutes a good starting point for planning your business and it informs you about the various resources available.
However it cannot deal with every detail involved in establishing your business and because of this, we strongly recommend that you seek the professional assistance available from the public and private sectors. Their assistance will make it easier for you to start your business and increase your chances of success.
You have made a very important decision, but have you really considered all the implications?
Many people have thought about the benefits of starting a business: the independence it would bring; the chance to be your own boss; and the opportunity to earn profits. All of these are good reasons for getting into business. But, are you really ready for the changes it will bring in your life? How much risk are you willing to take?
Why do you want to get into
business?
To be an entrepreneur is to be a risk-taker.
At the heart of every new business is an entrepreneur: someone not content to
leave things as they are, but wanting to strike out on his or her own. You, as
an entrepreneur, bring two important ingredients to your new business: your
confidence in your idea and your willingness to accept the hard work and long
hours necessary for success.
Before setting the wheels in motion it is important for you to evaluate your reasons for getting into business and your capabilities. Our documents Checklists for Going Into Business and Points to Consider When Starting Your Own Business will help you make this evaluation.
Assessing your personal
strengths and weaknesses
Running a business
requires skills in management, organisation, accounting, marketing and
economics. Few managers possess all of these skills. You must carefully
review your own strengths and weaknesses and develop strategies for overcoming
areas where you may be weak. Here are useful tests and self-assessment
tools:
Entrepreneurial self-assessment – Business Development Bank of
Assessing your financial
resources
Since you now know why you want to get
into business, you must take stock of your financial resources.
You must estimate:
Estimating the income
needed to meet your living expenses
Your minimum
monthly draw from the business must allow you to cover your living expenses.
Include expense items such as:
Subtracted from:
Estimate your capital assets
Your next step will be to determine the capital (money,
property and effort) you are willing to invest in your business. You may need to
sell some of your personal assets to obtain the cash needed to start your
business. In undertaking this assessment, you must determine your net assets –
what you own less what you owe.
What you own:
Less what you owe:
You will find an example you can follow on the Web at http://www.nbc.ca/WebInfoWeb/DispatchRequest?aliasDispatcher=finStatement&lang=en
How to recognise the
risks
Businesses fail for a variety of reasons
and it is important to recognise the risks. Some common reasons for failing
are:
Strategies for reducing risk:
Your challenge is to decide on the level of risk you are willing to assume and understand the consequences of that choice.
Feasibility Checklist for Starting a Small Business (document)
SME direct – Industry Canada
For businesses just starting out or well on their way,
this site contains diagnostic and benchmarking tools, links to informative Web
sites, relevant databases and other resources to assist you in your
decision-making. http://strategis.ic.gc.ca/epic/internet/indir-ect.nsf/en/Home
The Entrepreneurship Assistance document for your region contains contact information for organisations that can provide you with valuable information about planning your business. In most cases, it will cost you nothing but the time and energy required to contact these organisations and request information. Consult this document on our Web site or contact one of our agents.
It is possible to start a business with one idea. It's also common for someone to want to start a business without knowing exactly what they would like as a business. However, it has been proven that most successful businesses are built out of several ideas which open doors to several possibilities. This means that if one project doesn't turn out as you hoped, you will have all those other possibilities to draw from. A good business should:
We have put together some ideas that can help you get started:
Contact or Visit Capitalise on Trends or
Fads |
Read Improve or Replace |
Exploring your opportunities
Having an idea is not enough to start a business. The idea is
only good as long as it is possible to turn it into a profitable business
opportunity. It also has to be a good "fit" for you if you are going to make it
work. There is a tendency for new entrepreneurs to start a business in a field
they know well. However, you should not limit yourself to what you know. It is
also just as important to look at what you like. Exploring ideas outside your
present line of work may help you find the right opportunities.
Look very closely at what is going on around you. Fads and trends can be good business opportunities. Be careful, however. A fad is short-lived and can generate quick money and a trend may last longer but a business cannot solely be based on fads and trends. This is why having more than one idea is apt to bring you longer success. You have to follow your opportunities and your markets. A successful business is not a stagnant business; it is constantly changing to meet the needs of the market.
Discussing your idea with
others
You may now be at a point where you should
discuss with others the information you have found on your own. This will
help you to evaluate the impact of your new business on your community. Family
and close friends could certainly give you valuable feedback but you will also
need to contact professionals who could eventually become your most important
colleagues throughout your business career such as your accountant, your banker
or your lawyer.
Stating your idea
Now is the time to start putting your ideas down on
paper. Write a concise summary of your business idea in one or two sentences.
This may seem to be a rather trivial thing to do but a short, clear summary of
your business is a must before you begin to design a business plan. It will
focus your efforts. You may be surprised how difficult it can be to sum up your
entire business venture in a single sentence. An example of a statement
summarising a "gadget" production operation might be as follows:
"Atlantic Gadget Corporation is a provincially incorporated company engaged in the design, manufacture and marketing of third-generation gadgets for the computer industry."
Market research
Your next task will be to do some preliminary market
research. Many people believe that if they have a "good" product or service it
will "sell itself". This is very seldom true.
Prospective entrepreneurs should first conduct a very careful assessment of the market for the goods or services they plan to offer. Market research will play an important role in determining whether your business idea is viable. It can be a very simple and straightforward exercise. Basically, it will involve asking your potential customers whether they will buy or use your products or services. How you do the research will really depend on the type of business you want to start and who your customers are.
The market research should help you answer some very important questions such as:
Market research should be brief and to the point. You don't have to ask many questions but the questions you ask must be relevant. A good market survey can contain as few as four to six questions and take less than 10 minutes to complete.
Numerous market studies on various subjects are available at our documentation centre. For more information, contact one of our agents or consult our catalogue on the Web at http://catalogue.infoentrepreneurs.org/&lang=fr
Canadian Company
Capabilities – Industry Canada
Canadian Company Capabilities (CCC) is an online
database which thousands of profiles of Canadian companies. This database
contains vital company information that can be searched to locate Canadian
suppliers and distribution channels, to determine competition, to form
partnerships and to uncover export ventures. The registration is free. For more
information, consult our document
Canadian Company Capabilities,
call 1-800-328-6189, or visit
http://www.ic.gc.ca/epic/site/ccc-rec.nsf/en/home
iCRIQ – Centre de
recherche Industrielle du Québec (CRIQ)
icriq.com gives you free access to the most accurate data
bank of Québec manufacturers and wholesalers-distributors. The purpose of the
data bank is to make structured information available on industrial and
commercial establishments in order to promote business development in Quebec.
For more information, call 418 652-2214 or 1-888-594-7170, or visit at http://www.icriq.com/en/index.html
You have taken the first steps towards getting into business. You are now ready to take the next steps before developing your business plan. Your next decisions are:
There are three common ways to begin a business – starting from scratch, buying an existing business, or buying a franchise. A key factor in choosing what type of business you want to begin is risk, or your perception of risk. If you are an experienced businessperson, you may want to start from scratch. If you are inexperienced or do not want to take risks, you may want to buy an existing business or a franchise.
Starting from scratch
This is the route chosen by most first-time
entrepreneurs. Risks tend to be highest in a new business, but so are the
potential rewards. Starting a business often means long hours doing everything
from waiting on customers to filing, bookkeeping and sweeping the floors.
During your start-up phase, you will be doing things you never dreamed you would, yet the satisfaction you get from a successful start-up will make that effort worthwhile.
Starting from scratch | |
Advantages
|
Disadvantages
|
Buying an existing
business
If you are a first time business owner,
buying an existing business offers an excellent way to reduce risk. However, you
must be very careful to pick the right business for the right reason at the
right time. Before purchasing a business you must answer the following
questions:
To make sure you make the right decision, you should do the following:
Buying an existing business | |
Advantages
|
Disadvantages
|
Buying an existing
business
According to the Canadian Federation of
Independent Business, the vast majority of SME owners who recently acquired
their business though a succession agree that succession planning on the part of
previous owner yields significant benefits. It :
Business owners should start to plan early for succession, and early inclusion of the future successor in the plan is likely to help maintain stability within the business. For more information, visit http://www.fcei.ca/default_e.asp
Succès-Relève program, the
choice of business buyers
This program is
designed for people willing to acquire an existing business. The goal is to
educate, train and equip the young business buyers to acquire the coveted
existing companies. This program offers the knowledge required (training,
advisers, coaches and mentors) along the transfer process to make their
acquisition a success. This program is available thanks to our financial partner
the "Forum jeunesse de l’île de Montréal" and offered by the "Service
d'aide aux jeunes entrepreneurs Montréal Métro (SAJE)". For more information,
call 514 861-SAJE or visit http://www.succesreleve.com (In French only)
To find available financing programs for business succession, consult our document Financing a Business.
Franchising
Franchising has become a very successful way for
many entrepreneurs to get into business because most franchises are based on a
winning formula. Franchises work because market assumptions have been proven.
Supplier and distribution networks are normally in place, as are training and
orientation programs.
The arrangement is covered by contract. The franchiser usually charges an initiation or start-up fee, plus royalties on sales. The package may include such items as:
The degree of control retained by the franchiser is not the same for all franchises. Before entering a franchise agreement, you should make the same careful analysis that you would for any other type of business. You must bear in mind that although franchise owners are self-employed, they must conform to someone else’s pattern of doing business. Franchising works because the formula or package has been tested in a variety of situations. There are no guarantees, but if the formula is followed, risks should be minimised.
This adherence to a formula may limit personal freedom and business experimentation. You should know in advance if your personality and motivation are consistent with such a structured form of doing business. The Association of Canadian Franchisers (most of
Franchising | |
Advantages
|
Disadvantages
|
Some key
considerations
In making your choice, you should
consider the risk/return trade-off (the higher the risk the greater the return)
and your personal risk tolerance. A business start-up takes the most time and
entails larger risks, but the returns may be higher. Be sure to assess the
following when making your decision:
Buying a Business (document)
Checklists for Franchisees (document)
Êtes vous prêt à reprendre une
entreprise?
This twenty-question quiz will help you
decide if you are ready to take over a business.http://dev3.vortexsolution.com/releve/reprendre-form.cfm (In
French only)
Releve.ca
http://www.releve.qc.ca/index.htm (In French
only)
Le petit guide de la franchise: This guide, made available by the Quebec Law Network, is for people already belonging to a franchise network or just learning about them. It is a reference tool explaining the basics of franchising and helping people to make a preliminary decision. http://www.avocat.qc.ca/english/index.htm
Canadian Franchise Association
(CFA)
The Canadian Franchise Association (CFA) is the
national voice of Canadian franchising. http://www.cfa.ca/
Quebec Franchise Council
(QFC)
The Quebec Franchise Council (QFC) is an
association regrouping franchisors, franchisees and suppliers of the franchise
industry in Quebec. The QFC promotes franchising as a business model to future
franchisors and franchisees. The QFC offers its expertise to existing
franchisors, franchisees and is also the spokesperson of the industry to the
municipal, provincial and federal governments. For more information, call
514 340-6018 or visit http://www.cqf.ca
Franchises et franchisage – MDEIE
http://www.mdeie.gouv.qc.ca/index.php?id=2305 (In French
only)
Where to buy or sell a
business
http://www.acquizition.biz/prod/home-en.html
One of the more important decisions you will have to make is choosing the legal structure of your company. Your lawyer or your accountant can help you make the right choice. There are four basic types of business organisation: sole proprietorship, partnership, corporation and co-operative.
Sole proprietorship
A sole proprietorship is a business owned by a
single person. It is the most basic business structure and is usually
owner-operated. It is the easiest and simplest form of business to set up,
organise and manage, and is not subject to as many regulations as the more
sophisticated business structures. A business license is required, which can be
obtained from the city, town or village office.
A sole proprietorship may be operated under the owner’s name without registering the name with Legal Registries. If you wish to operate an individual company under a name which does not include your family name or first name, you must registrer at Registraire des entreprises. The sole proprietorship is subject to the rules of the Civil code of Québec.
Sole proprietorship | |
Advantages
|
Disadvantages
|
Partnership
There are two forms of commercial partnership:
general partnership and limited partnership.
General
partnership
A general partnership is formed when
two or more people pool their resources and abilities in a joint business
venture. The following terms should be set out in a partnership agreement:
You must register the same way as a person operating alone and renew the registration whenever a new partner joins the company.
Partnership | |
Advantages
|
Disadvantages
|
Limited Partnership
This is a special arrangement where a person may
contribute financially to the partnership but is not involved in managing the
day-to-day affairs of the partnership. A limited partner is normally only liable
to the firm or its creditors to the extent of the capital he or she has agreed
to contribute towards the partnership. It is most important to define the
particular requirements in a contract.
Corporation or limited company
A corporation is a business which is a legal entity
separate from the owner or owners of the business. The act of incorporation
gives life to that entity. The terms corporation, incorporated company, limited
company all mean the same thing. A corporation has the same rights and
obligations under Canadian law as a natural person. A corporation can acquire
assets, go into debt, enter into contracts, sue or be sued, and even in some
situations be found guilty of committing a crime. A company may incorporate
under the laws of Québec or of Canada.
If a company is planning to carry on business in more than one province or outside the country, federal incorporation should definitely be considered. The enhanced protection provided to federal corporations is often a selling point for choosing incorporation under the Canada Business Corporations Act (CBCA). This is seen as an important element of the right to carry on business in Canada. Once a company is federally incorporated, the corporate name has a protected status second only to trade-mark protection. For more information, consult our document Federal Business Incorporation - Canada Business Corporations Act (CBCA).
Corporation | |
Advantages
|
Disadvantages
|
Co-operative
A co-operative is a special type of business that
is owned and controlled by its members. Each member pays a membership fee or
purchases a membership share and has one vote regardless of how much money they
have invested in the co-op. Some co-operatives may pay out patronage dividends
according to the amount of business done by the member.
The purpose of a co-operative is to unite those in similar circumstances and with common goals to gain the advantages of large-scale operations. A co-operative will need to be incorporated either provincially or federally. It may be formed in accordance with a provincial co-operative statute setting out its corporate form and mode of operation or in accordance with the Canada Co-operatives Act when the co-operative has a place of business in at least two provinces.
Co-operative | |
Advantages
|
Disadvantages
|
Provincial Incorporation | |
Registraire des entreprises (REQ) |
Registraire des entreprises (REQ) |
Points of Service for Registration: http://www.registreentreprises.gouv.qc.ca/en/no The financial institutions surveillance and control component (Autorité des marchés financiers) http://www.lautorite.qc.ca/accueil.en.html | |
Federal Incorporation | |
Industry Canada | |
Register your business online: Corporations Canada
On-Line Filing Centre |
Forms of Business Organization
(document)
Info-Guide – Cooperatives
(document)
Starting an Early Childhood Centre (document)
Starting a Convenience Store
(document)
Starting a Personal Care Home for Seniors (document)
Starting a Bed and Breakfast
(document)
Starting a Restaurant
(document)
Starting a Beauty Salon/Barber Shop/Esthetics/Tanning (document)
Starting an Alternative and Complementary Health Care Business (document)
Starting a Consulting Business
(document)
Publications du Québec brochure: Les principales formes juridiques de l'entreprise au Québec available on the Web at http://www.pubgouv.com/justice_com/principales_formes.htm (In French only)
Winning Retail 2nd Edition
This manuel is a useful "how to" publication aimed at
the retail industry. It contains practical ideas from the real world of retail
to help the student of retail form an understanding of the business. For those
exploring the possibility of establishing their own retail store, this
publication presents an opportunity to assess the strengths and weaknesses of
their concept and their state of readiness. For more information, consult our
document
Winning Retail (2nd Edition) or visit http://www.ic.gc.ca/epic/site/retra-comde.nsf/en/h_qn00034e.html
Self-employed – or independent – workers are people who:
To confirm your status as a self-employed worker, you may ask the Ministère du Revenu du Québec or the Canada Customs and Revenue Agency to determine your status. Forms are available for this purpose.
Employee or Self-employed ? –
Canada Revenue Agency
http://www.cra-arc.gc.ca/E/pub/tg/rc4110/
Employee or Self-Employed Person?
– Revenu Québec
http://www.revenu.gouv.qc.ca/eng/publications/in/in-301-v.asp (document
PDF)
To learn about the various tax liabilities and deductible expenses related to the status of self-employed worker, consult our Info-Guide – Taxation (available soon)
To find available financing programs, consult our document Financing a Business.
Aide au travailleur autonome –
Emploi Québec
Emploi Québec assesses your file. Then,
if applicable, it offers financial or technical assistance to draft and
implement your business plan in cooperation with your local development centre.
For more information, call 1-888-367-5647 or visit http://www.emploiquebec.net/francais/entreprises/autonome.htm
(In French only)
Affaires et développement
québécois (AEDQ)
http://www.aedq.org/index.php (In French
only)
Agentsolo.com
http://www.agentsolo.com (In French only)
Canadian Federation of
Independant Business
http://www.fcei.ca/default_e.asp
Répertoire Travailleurs autonome
et Micro-entreprises – STIQ
http://www.stiq.com/francais/autonome (In French
only)
Répertoire des travailleurs
autonomes du Québec – REPTAQ
http://www.reptaq.com/reptaq.php?language=f (In French
only)
Self-employed persons – Revenu
Québec
http://www.revenu.gouv.qc.ca/eng/travailleur_autonome/index.asp
Travailleursautonomes.com
http://www.travailleursautonomes.com/
Training is one of the best ways to ensure the growth of your business, and mentoring is an interpersonal relationship providing support, discussion, and learning opportunities, wherein an experienced businessperson shares their knowledge to increase the know-how and knowledge of a new entrepreneur.
Lancement d'une
entreprise – Ministère de l'Éducation (MEQ)
While maintaining its modular approach, Lancement d’une
entreprise is a flexible program that is very appealing to entrepreneurs.
Applicants decide themselves when they want to begin their training and the time
they want to devote to it each week. For more information, consult our
document
Starting a Business – Training or visit http://www.lancement-e.com/ (In French only)
Meilleures pratiques d'affaires –
Ministère du Développement économique, de l’Innovation et de l’Exportation
(MDEIE)
The ministry has developed a training program
on best business practices (Formation MPA). Designed for company leaders and
strategic workers, the program’s training sessions focus on specific subjects
adapted to the needs of SMEs. For more information, visit http://www.mdeie.gouv.qc.ca/index.php?id=2253 (In
French only)
Entrepreneurship Mentorship
Program – Youth Employment Services (YES)
The YES Entrepreneurship Mentorship Program aims to
increase the success rate of start-up entrepreneurs by providing them the
knowledge and expertise they need to make good business decisions on their own.
Novice entrepreneurs are matched with experienced business people who can
provide support, guidance and encouragement. The program is goal-based, which
means that mentees work toward achieving specific goals established at the start
of the relationship.
http://www.yesmtl.org/yes.php?section=entrepreneurship/services/mentorship
Mentoring service – Fondation de
l'Entrepreneurship
The mentoring network comprises
local groups of mentors supervised and supported by organisations accredited by
the Foundation (CAE, CLD, Chambres of Commerce, SADC, etc.). For more
information, call 418 646-1994 or visit http://www.entrepreneurship.qc.ca/fr/accueil/mentorat.asp (In
French only)
Mentorat Québec
http://www.mentoratquebec.org/index.php (In French
only)
All companies must fulfill certain basic requirements, and some business activities require permits that must be renewed each year with provincial or federal agencies or departments.
Business licencing and zoning
regulation
Consult your City Hall for
information on zoning regulations, city permits, construction permits, water
tax, business tax, school and property taxes. For more information, consult the
Directory of Regions, MRC and
Business Number (BN)
The Business Number (BN) is a reference numbering system
that replaces the multiple numbers businesses required to deal with the federal
government. The number is composed of 15 digits: the first 9 digits are the
registration number and the next 2 letters and 4 digits identify the different
accounts: Corporate Income Tax, Importer / Exporter Account Number, Payroll
Deductions, Goods and Services Tax (GST). In Québec, the GST is managed by
Revenu Québec. For more information, consult our document
Business Number - BN, call
1-800-959-7775, or visit http://www.cra-arc.gc.ca/tax/business/topics/bn/menu-e.html
Register with Revenu Québec for:
For more information, call 514 873-4692, 418 659-4692, or
1-800-567-4692, or visit http://www.revenu.gouv.qc.ca/eng/entreprise/de
marrage/demarches/inscription/index.asp
Register with the Commission de la
santé et de la sécurité du travail (CSST)
Any
business person who employs at least one full-time or part-time worker must
register with the CSST and make contributions. The registration and the
management of files can be done online at: http://www.csst.qc.ca/portail/en/
For more information, call 514 906-3000, 418 266-4000 or
1-800-668-6811.
Commission des normes du
travail
An entrepreneur who has employees, must
comply with the Act respecting labour standards which sets the rules governing
working conditions, including the minimum wage, holidays, special leave and
dismissal. The employer must make contributions to the Commission des normes du
travail. For more information, call 514 873-7061, 418 646-1262 or
1-800-265-1414, or visit http://www.cnt.gouv.qc.ca/en/index.asp
Others considerations
There may be further permits and licenses required
depending on the type of business being established. For more information on
specific permits, consult our document
Info-Guide – Permits and Licences Required for Certain Types of Businesses
A business plan, if done thoroughly and honestly, will become an important guide or reference during the initial stage of setting up your business and for making strategic decisions later on. Depending on the nature of your business, your business plan need not be elaborate. Bankers, suppliers and other important contacts may want the assurance of a business plan before doing business with you. It is important to them because they are putting other people’s money at risk with your idea. It is important to you because you are putting far more at risk: your financial stability, your reputation and your status in the community. It is far easier and less costly to correct your mistakes on paper before you are in business.
Your business plan
There are several ways to develop your business plan. If
you wish to do your business plan on a computer, the Canada Business Interactive
Business Planner is an easy-to-follow source. You can save your plan and
retrieve it by using your own password, so you can work on it any time you
like. You can reach at Interactive Business Planner at http://www.cbsc.org/ibp/
Business Plan Guide (document)
Venture Checklists
(document)
Setting the Right Price (document)
Profit Pricing for the Costing of a Service (document)
Business Plan for Small Manufacturers (document)
Business Plan for Retailers (document)
Business Plan for Small Service Firms (document)
Business Plan for Small Construction Firms (document)
Marketing Plan Outline
(document)
Our documentation centre offers several business plan models in various sectors of activity as well as start-up guides. Consulting them will help you to formulate your own plan. For more information, contact one of our agents or consult the catalogue on our Web site.
If you have followed the previous steps, you should now have a good idea of the capital you will need for your business. However, you will also have to consider more than just the start-up costs. It will be necessary to look at long-term financial obligations such as debt servicing and contingency allowances.
The first step in your search for financing is to learn and understand the pros and cons of the various types of capital required in your business. Capital comes into your business in two ways: as equity capital or as debt capital.
With your business plan in hand, you can approach lenders to secure the capital required. This section provides you with the information needed to do that.
Equity capital
As the owner/operator of the business you will have to
provide capital. If you cannot provide the entire amount required for your
business, the balance will have to be borrowed. Lenders will be much more
confident when they know that you have invested in the business. Your
investment, also called 'equity capital' can take the form of money, other
personal assets (i.e. land, buildings, equipment), or 'sweat equity'
(contributed labour). More often, equity capital is a combination of all of
these.
Private sources of funds
Private sources usually refer to friends, family or
business associates who might invest in your business. It is important to
provide these lenders with the same information that you would a commercial
lender. A common form of private financing is to share ownership of your
business. You need the assistance of your lawyer and accountant before entering
into such an agreement. It is advisable to ensure that all parties in a private
financing agreement are adequately protected from potential losses or
obligations that may arise from the operation of the company.
Government financial assistance
There are many financial programs available through the
governments. For more information on key programs, consult our document
Financing a Business
Commercial loans
Businesses’ first choice in obtaining financing
should be to go to a banker. Banks generally offer a wide variety of loan
programs with varying interest rates, dependent upon risk. In selecting a bank,
you may wish to contact several and choose one that you feel will best meet your
particular needs. You may also wish to discuss with others what their experience
has been.
Before you approach any lending institution looking for money for your business, you should have a very clear idea of exactly what the money will be used for. If you have completed your business plan, you will have this information readily available.
Generally, loans fit into one of the following
categories:
Short term – Anything that can be repaid in one
year is considered short term, i.e. financing inventory, accounts receivable, or
general operating. Generally known as a 'line of credit', these short-term
financing loans fluctuate with your need and are generally available from banks
at current interest rates.
Long term – Debts that will not be paid off within one year, i.e. financing fixed assets. Financed through a lending institution, the loan (known as a 'term loan') will be at a fixed term with interest rates determined by your particular circumstances.
Collateral accepted
by a lender
To protect their investment, lenders
will require collateral – something you pledge to the lender, which can be
liquidated to meet your repayment commitment should the need arise.
Common restrictions imposed
on borrowers
Lenders may also impose some
restrictions or requirements on your business to further protect their
investment in your company that may include the following:
Requirements:
Restrictions:
Other sources of
funding
Organisations, such as the Business
Development Bank of Canada, the Sociétés d’aide au développement des
collectivités (SADC) and the Centres locaux de développement (CLD), will provide
funding to new businesses.
Most lenders, whether they are banks, government organisations or private investors, require the same kind of information in your financing proposal. In most cases, the more information you provide, the better the chance that you will obtain financing quickly, which can be crucial in making the most of a business opportunity. If you have completed a business plan, you will be able to meet the requirements of most lenders.
Lending - The Basic Criteria (document)
Dealing With Your Banker & Other Lenders (document)
To learn about the pros and cons of various types of
funding and to consult a self-training guide outlining the steps to obtaining
growth capital, consult the following Web site http://strategis.ic.gc.ca/sc_mangb/ste
pstogrowth/engdoc/step2/ssg-2-4.php
There are many regional resources available. To find out more, consult the Entrepreneurship Assistance document for your region.
Québec’s tax system is based on the principle of self-assessment – you must declare your income and calculate the taxes to be paid. If your business income exceeds $30 000, you will probably also have to collect GST and QST; if you have employees, you must declare what they are paid, make the necessary payroll deductions, and send Revenu Québec the amounts collected on their behalf within the specified time frame. To learn more about your various tax liabilities and deductible expenses, consult our Info-Guide – Taxation. (available soon)
Guide for Canadian Small
Businesses – Canada Revenue Agency
To order this
guide, call 1-800-959-3376 or visit http://www.cra-arc.gc.ca/E/pub/tg/rc4070/
Obligations
You are
generally considered to be an employer if:
As an employer, you have to:
Labour standards
In Québec, the Commission des normes du travail
enforces the Act respecting labour standards,
which establishes the minimum conditions of employment in the absence of better
conditions provided for in a collective agreement, a contract of employment or a
decree. For example, there are standards concerning:
To learn about these standards and their application, consult the Web site of the Commission des normes du travail at http://www.cnt.gouv.qc.ca/en/index.asp
Workers’
compensation and occupational safety
The
Commission de la santé et de la sécurité du travail (CSST) administers the
occupational health and safety plan for the Québec Government. In particular, it
enforces two laws:
Employer’s Guide – Payroll Deduction and Remittances –
Guide for Employers: Source
Deduction and Contributions – Revenu Québec
http://www.revenu.gouv.qc.ca/eng/formulaires/tp/tp-1015_g-v.asp
Intellectual Property
Intellectual property (IP) refers to the creations of
the mind, such as inventions, literary and artistic works, as well as symbols,
names, pictures, designs and models used in business. Patents, trade-marks,
copyrights, industrial designs, integrated circuit topographies and plant
breeders' rights are referred to as "IP rights." Just as rights are acquired
when a building or land is purchased, IP rights are "property" in the sense that
they are based on the legal right to exclude others from using the property.
Ownership of the rights can also be transferred. [Source : Canadian
Intellectual Property Office (CIPO)]. For more information on IP, visit the CIPO
Web site at http://cipo.gc.ca/ or consult the following
documents:
Trade-marks
Copyrights
Patents
Industrial Designs
Intellectual Property - IP Toolkit
Labelling
Most products sold to consumers in
Labelling Claims
Labelling - Packaging Consumer Products (Non-Food)
Labelling - Textiles
Food Labelling
Labelling Fact Sheet
CA Number Registration and Database
Labelling Assessment Tools
Fair Labelling Practices Program
Guide to Canadian Consumer Chemical Product Assesment
Some consumer products, such as cosmetics, toys and children's clothing, are regulated by Health Canada through the Hazardous Products Act. Businesses that manufacture, sell or import consumer goods should be aware of all labelling requirements regarding their products. For more information, consult the Quick Reference Guide to the Hasardous Products Act for Manufacturers, Importers, Distributors and Retailers.
Guide to the Consumer Packaging and Labelling Act and Regulations http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=1248&lg=e
Accuracy Requirements for Net
Quantity Declarations
http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=1232&lg=e
Chosing the
location
Most
businesses initially start out from leased premises rather than incurring the
major capital investment of buying or constructing a new building. However,
leases still constitute one of your largest expenses and usually represent a
long-term commitment. As such, your signed lease agreement is a very important
legal document.
Leases can vary from a simple one-page agreement to a lengthy complex document, depending on the space you are renting (e.g. mall space vs. separate building).
While your realtor can assist you in understanding the costs and basic terms of a lease, it is advisable to have a lawyer explain the legal ramifications before you sign on the dotted line. For more information, consult the following documents:
Store Location - "Little Things" Mean a Lot
Questions to Ask Before You Sign a Lease
Legal Issues in Starting a Business
Subscribing to public services
Electricity, gas, and telephone companies generally
require a security deposit from those wishing to use their services. However,
they offer special rates and services for their business clients. Many telephone
and telecommunication companies also offer specialised products and services as
well as business solutions adapted to your needs.
Bonds and other types of business
insurance
As a safety precaution and to avoid nasty
surprises, insure your company against fire and theft as soon as possible. Bonds
and other types of business insurance can protect you from unexpected problems
and damage. Most companies with assets should carry insurance. You should think
carefully about the type of insurance you need and the amount of protection
required. Be sure to do business with a company or insurance agent familiar with
this type of coverage. For more information, consult our document
Bonding.
Implementing a management
system
Your company’s success will depend largely on
your ability to efficiently manage your project. To plan and monitor your
company’s activities, you should implement a management system including the
following elements:
Depending on the type and size of your company, other elements may be added, including:
Managing for Business Success (document)
Selecting Professional Services (document)
Basic Bookkeeping (document)
Info-Guide –
Management and Growth (available soon)
In business, advertising is an investment that can increase your sales. The growth of your company will be affected by your ability to plan and implement an effective advertising program. To learn more about planning an advertising budget and to obtain a list of promotion strategies, consult the following documents:
Business Promotion Idea List (Web page)
Ways to Promote Your Product or Service (document)
Plan Your Advertising Budget (document)
Advertising Guidelines for Small Retailer Firms (document)
Marketing Checklist for Small Retailers (document)
Profit by Your Wholesaler's Services (document)
Do You Know the Results of Your Advertising (document)
Invite Your Trade Show Prospects (document)
Guidelines for Developing a Company Brochure (document)
Signs and Your Business (document)
The Signet entrepreneurial is an initiative from the Association des centres locaux de développement du Québec, the ministère du Développement économique, de l'Innovation et de l'Exportation (MDEIE), the Fondation de l'entrepreneurship and Mouvement Desjardins. This tool helps entrepreneurs by guiding them towards essential Web sites for starting or running a business. http://www.entrepreneurship.qc.ca/fr/accueil/signet.asp (In French only)
eBusiness has the potential to help you improve your business processes through accelerating and enhancing customer service, increasing sales by providing alternative sales and marketing channels, promoting product, service and company information, and by reflecting a modern image. To find out more about setting up an eBusiness, consult our document Info-Guide – eBusiness.
Online Small Business
Workshop (OSBW)
The Online Small Business
Workshop (OSBW) is a Web-based workshop designed to provide you with techniques
for developing your business idea, starting a new venture and improving your
existing small business. For more information, consult our document
Online Small Business Workshop - OSBW or visit Online Small Business Workshop.
Business Start-up Assistant –
Canada Business
This service provides information
about essential points that will help you develop your business, including
market research, business name and structure, preparing a business plan,
financing, taxation, hiring employees, and doing business on the Internet. http://sade.rcsec.org/gol/bsa/site.nsf/en/index.html
Cheminement de démarrage – Québec
Government
This section of the Québec Government
Services for businesses portal provides a list of the steps necessary to start a
business as well as a list of specific requirements for various sectors of
activity. http://www.entreprises.gouv.qc.ca/portail/quebec/?lang=en
Consulting – Business
Development Bank of (BDC)
The Business Development
Bank of Canada (BDC) provides customised consulting solutions to meet the
complex challenges faced by today's Canadian entrepreneurs. Whether it's through
individual consulting, group training, or a combination of both, BDC's
Consulting Group (CG) helps innovative Canadian businesses succeed. These
services are often combined with financial services to help Canadian businesses
prosper in today's global economy. For more information, consult our
document
BDC Consulting, call the BDC at
1-877-232-2269, or visit the Web site at http://www.bdc.ca/en/home.htm
We hope the information provided in this Info-Guide has been helpful to you. Many other interesting documents, tools and links may be found on our Web site.
If you need more information about business-related subjects, our agents are available to provide you with free information about federal, provincial, and municipal government programs, services, and regulations as well as some programs and services offered by the private sector.
We offer you a free library research service as well as access to data bases and Web sites of interest to business people. Our information specialists are at your disposal to answer your requests for strategic information.
Don’t hesitate to contact Info entrepreneurs at 514 496-4636 or Ressources Entreprises at 418 649-4636. In the regions, call 1-888-576-4444.
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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