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How To Start an Artisan and Craft Business in Ontario

Last Verified: 2007-12-01

This guide has been designed to help you navigate through the different government programs, services and regulations and identify those of interest to potential entrepreneurs wishing to start an artisan or crafts business.

TABLE OF CONTENTS

  1. Basics To Getting Started
  2. Industry Overview
  3. Financing
  4. Associations
  5. Other Resources 

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. There are several issues to consider such as regulations, financing, and taxation, managing your business, advertising and much more.

Market Research

It is essential that you know who your customers are, what they need or want, and how to reach them. You should have solid understanding of these if you are going to run a successful business.

For further information:
see the documents:
Market Research for Your Business 
Exporting - Preparing for World Markets Info-Guide 
visit these web sites:
Study of the Crafts Sector in Canada   
Guide to Culture Statistics
Canadian Fine Craft Niche Market Study   
Study on International E–Commerce Sites   
Travel Activities and Motivations Survey (TAMS)   

2. Industry Overview

The crafts sector is made up of a range of artistic disciplines that includes the creation of decorative items such as jewellery, ceramics and textiles to more mechanically complex, utilitarian items such as hand-made musical instruments, custom-designed vehicles and intricate, hand-crafted mechanisms. The common thread that connects the varied types of products made by artisans is the sense of "the personal touch."

According to Trade Team Canada - Cultural Goods and Servicesthe Canadian, the craft sector generated $727 million in economic activity in 2001, including over $100 million in exports. The majority (73%) of craft-producing members of the provincial craft councils (PCC) operates as individual craft persons while 10% have formed partnerships with others; and the remaining 17% have employees, ranging from a single part-time employee to over 30 employees." Cultural Goods and Services also reports that ten percent of people responding to the survey had craft revenues in excess of $120,000.

For further information:
see the web sites:
Trade Team Canada - Cultural Goods and Services
Craft International Trade Action Plan  

Counted among the artisan and crafts fields are:

  • jewellery making
  • spinner
  • bookbinder
  • stained glass maker
  • weaver
  • carver
  • leather worker
  • stringed instrument maker
  • ceramist
  • doll maker
  • metalworker
  • glassworker

Certain businesses might require specific training or certification, such as:

  • carpentry
  • interior design
  • masonry
  • glass blowing
  • metal working
  • ceramics
  • jewellery making

This is not an exhaustive list and different organizations and agencies would add to and subtract from as well as make finer distinctions among these groupings. This inconsistency in categorizing artisans makes the gathering of complete data on this part of the economy difficult.

Note: This guide does not address the specific requirements for starting and running a business for artisans that work in the field of specialty foods or grooming. The COBSC has created documents that may prove useful starting points for finding further information on these industries.

For further information:
see these documents:
How to Start a Restaurant or Catering Business in Ontario  
How to Start a Spa or Salon in Ontario 
How to Start a Pet Business in Ontario  
Business Licences 
visit the web site: ServiceOntario - Business information by industry  

3. Regulations

For regulatory or legal questions, it may be useful to contact a lawyer through the Law Society of Upper Canada's Lawyer Referral Service.

Please note that this is a toll service: phoning the Lawyer Referral Service line will automatically generate a $6.00 charge on your phone bill, in the month following your call. You must be 18 years of age to access this service. The toll number is 1-900-565-4577.

For further information:
Please call 416-947-3300 or 1-800-668-7380
visit the web site: The Law Society of Upper Canada  
see the document Selecting Professional Services 

Business Regulations Info-Guide 

This document will assist you in navigating federal, provincial and municipal regulations that apply to a number of industries and businesses in Ontario.

For further information:
see the document Business Regulations Info-Guide    

ServiceOntario - The Entertainment & Creative Industry Information Bundle

This Entertainment and Creative Industry Information "Bundle" provides information about the legislation and by-laws that pertain to the entertainment industry, focusing on many provincial and municipal requirements.

Of particular interest to artisan and craft businesses on this web site are the acts listed under the sub-heading "Designated Substances Regulations" in the section "Industry Employers".

For further information:
visit the web sites: 
ServiceOntario - The Entertainment & Creative Industry Information Bundle
ServiceOntario - Industry Employers  

Labelling

Most goods produced domestically or imported into Canada require some form of consumer package labelling. Retailers should become aware of these requirements before offering goods for sale in Canada. The Labelling act(s) are enforced and administered by the Competition Bureau.

For further information:
please call 819-997-4282 or 1-800-348-5358
see the document Retail Business Info-Guide 
visit the web sites:
Competition Bureau  
Guide to the Textile Labelling and Advertising Regulations  

Environmental Assessment

You might be required to have your premises undergo an Environmental Assessment from the Ministry of the Environment. The Environmental Assessment Act applies to all public sector projects and some types of private sector waste management projects. Other private sector projects may be subject to this act when designated by the provincial government. For more information on municipal requirements, contact the clerk of the city, town, village or municipality where your business will be located.

For further information:
see the document Environmental Assessment and Approvals Branch
visit the web sites:
Environmental Assessment Act   
Association of Municipalities in Ontario    

Precious Metals Marking

The Precious Metals Marking Act provides for the uniform description and quality marking of precious metals articles (articles made with gold, silver, platinum or palladium) to help consumers make informed purchasing decisions.

For further information:
consult the document  Precious Metals Marking 
visit the web site: Precious Metals Marking Act

Hazardous Products Act

Some consumer products such as cosmetics, toys, and children's clothing are regulated by Health Canada through the Hazardous Products Act. The Regulations specify the requirements for labelling and instructions for assembling, design, construction, finish, performance, flammability and toxicity. Businesses that manufacture, retail or import consumer goods should be aware of all labelling requirements regarding their product.

For further information:
See the documents:
Products Banned Under the Hazardous Products Act
Products Regulated Under the Hazardous Products Act
Non Regulated Items of Concerns Under the Hazardous Products Act 
visit the web site: Hazardous Products Act .

Technical Standards and Safety Act, 2000

The Technical Standards and Safety Act, 2000 regulates items such as stuffed furniture, mattresses, bedding products, clothing materials, toys, and miscellaneous items such as pet items, sports equipment and backpacks. The filling materials used for these items are inspected for compliance with safety regulations, and samples are tested for proper filling in regard to quality, quantity and cleanliness. This regulation registers renovators, manufacturers and retailers, and inspects their premises.

For further information:
please call 416-325-2000 or 1-877-682-8772
visit the web site:
Technical Standards and Safety Act, 2000   
Technical Standards and Safety Authority  
see the document  Technical Standards and Safety Authority - Services 

4. Financing

Grants, Subsidies and Contributions - Arts and Media

This Info-Guide provides an overview of grant and subsidy programs potentially available for businesses involved in arts and media, including programs offered or supported by the governments of Canada and Ontario.

For further information:
see the document Grants, Subsidies and Contributions - Arts and Media  

Jean A. Chalmers Fund for the Crafts

The Jean A. Chalmers Fund for the Craftsfund assists non-profit organizations to undertake projects that contribute to the advancement of the crafts in Canada, and Canadian visual arts organizations to undertake projects that contribute to the advancement and understanding of the fine crafts in Canada.

Individual fine crafts professionals are also eligible to apply, but only to the Research and Policy Development Assistance component of the program.

For further information:
please call 1-800-263-5588 or 613-566-4414
visit the web site: Jean A. Chalmers Fund for the Crafts  

Arts and Cultural Industries Promotion Division

The International Cultural Relations Division at Foreign Affairs and International Trade Canada (DFAIT) provides support to the cultural sector through a grant program and business development program. The grant program provides funding to Canadian artists and arts organizations for the promotion of Canadian culture abroad, in alignment with Canada's foreign policy and trade priorities.

For further information:
please call 613-995-0674 or 1-888-757-7752
visit the web site: Arts and Cultural Industries  

Ontario Crafts Council (OCC)

Ontario Crafts Council offers approximately $15,000 through an annual program of awards, scholarships and supply grants to student and craft professional members. Grants are organized into scholarships, grants for excellence in any craft discipline and for specific craft disciplines.

For further information:
please call 1-866-811-0055 or 416-954-0395 
visit the web site:  Ontario Crafts Council (OCC) - Grants   

Business Support for Young Artists – The Summer Company Program

The Summer Company program provides hands-on business training and mentoring – together with awards of up to $3,000 – to help enterprising young people (students aged 15-29) start up and run their own summer business.  Many participants of the program successfully started and managed an arts-based business (e.g., fashion design, drama programs, music instruction, etc.)

For further information:
please call 1-800-387-5656
visit the web site: Summer Company
see the document  Summer Company 

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 information specific to your organization you should consult an accountant or financial professional.

For further information:
please call 1-800-959-5525
visit these web sites:
Ontario Income Tax
Ontario Corporations Tax
Canada Revenue Agency - Topics for businesses
see the document Taxation Info-Guide

For  federal tax information that may be specifically applicable to the art-based business owner please see under the taxation section (No. 6) in our  Arts and Artists Info-Guide.

Selecting Professional Services

The use of professional services is essential to the success of a small business. 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.

For further information:
see the document Selecting Professional Services

Accounting/Bookkeeping

A good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.

Note: All staff working with cash should be trained to recognize counterfeit currency.

Setting-Up a Pay System

Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce workforce turnover.

For further information:
see the document Setting Up a Pay System

Setting the Right Price

Setting the right price can influence what consumers will buy, which in turn affects total revenue and profit.

For further information:
see the document Setting the Right Price

Profit Watching

Making a profit is the most important -- some might say the only objective of a business. To make improvements, you must know what's really going on financially at all times.

For further information:
see the document Checklist for Profit Watching 

Intellectual Property

Creativity is the bread and butter of all artistic endeavour. An understanding of intellectual property rights is essential for an arts-based business to thrive. Intellectual property rights that directly concern artists and arts-based businesses are trademarks, copyrights (which provide protection for artistic, dramatic, musical or literary works -including computer programs - and performance, sound recording and communication signal) and industrial designs. The Canadian Intellectual Property Office (CIPO), a Special Operating Agency (SOA) associated with Industry Canada, is responsible for the administration and processing of the greater part of intellectual property in Canada.

For further information:
visit these web sites:
Canadian Intellectual Property Office (CIPO)    
Intellectual Property - IP Toolkit  
Intellectual Property Institute of Canada (IPIC)
Canadian Heritage Information Network (CHIN) – Intellectual Property
Innovation Canada - Intellectual Property
Industry Canada – Intellectual Property
Intellectual Property Law Server  

Intellectual Property Info-Guide

This document is intented to provide intellectual property information, including trade-mark, copyright and patent information, to businesses in Ontario.

For further information:
see the documents: Intellectual Property Info-Guide   

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 the web site: Ministry of Labour     
see the documents:Ministry of Labour
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide 

Workplace Safety and Insurance

Most industries in Ontario are covered by the Workplace Safety and Insurance Act. Employers must pay into the insurance fund of the Workplace Safety and Insurance Board (WSIB) through assessments on their payrolls.

For further information:
please call 416-344-1000 or 1-800-387-5540
visit the web sites:
Workplace Safety and Insurance Act  
Workplace Safety and Insurance Board (WSIB)       
see the document Workplace Safety and Insurance Board - WSIB

Training And Professional Skills Development

Artisans seeking training in their respective disciplines can find sources of instruction through the traditional artisan guilds and associations.

Some of the basic technical skills needed by anyone starting an artisan business can be acquired not only from a master craftsperson but also through training offered to apprentices in the related industry, i.e. glass and metal sculptors could benefit from apprenticeships that target the skilled trades in the construction sector.

Collegiate schools, and private and public, postsecondary institutions provide relevant instruction in these fields too.

Ontario Ministry of Training, Colleges and Universities

The Ministry of Training, Colleges and Universities’ web site has information on Ontario’s publicly funded universities as well as a list of other educational institutions that can grant degrees and a list of private career colleges that offer courses in the applied arts.

Ontario Ministry of Education

The Ministry of Education web site is also a good source of information on arts and arts-related courses offered through your local school board.

For further information:
visit these web sites:
About Ontario Universities   
About Ontario Colleges  
Private Career Colleges (PCC)   
Minister of Training, Colleges and Universities – Apprenticeship  
Ministry of Education (MTCU) schools  
Apprenticeship Opportunities  

Cultural Human Resources Council (CHRC)

The Cultural Human Resources Council (CHRC) focuses on the area of cultural human resources development. CHRC aims to draw together members of the arts disciplines and cultural industries in the cultural sector to address the training and career development needs of all cultural workers from the artists, technical staff, to everyone involved in the sector in a professional capacity whether as an employee or the self-employed.

For further information:
please call 1-877-699-5559 or 613-562-1535
visit these web sites:
Cultural Human Resources Council (CHRC)
CHRC - Frequently Asked Questions  
CHRC - Careers in Culture
CHRC - HR Tools
CHRC - Youth Internship Program (YIP)  
CultureWorks.ca  

Cultural Careers Council Ontario (CCCO)

The Cultural Careers Council Ontario addresses human resources and career development needs and issues for Ontario's arts and culture community.  CCCO develops, facilitates and promotes human resources and career development programs, publications, services and partnerships.

For further information:
please call 416-340-0086
visit these web sites: Cultural Careers Council Ontario (CCCO)  

6. Associations

Professional Associations and Organizations

Artisan guilds, associations, groups, clubs and circles and other arts associations give workshops and provide other means to contact, work with and learn from experienced, professional artisans and artists. 

These associations can also assist you in connecting with local, national and international craft and trade fairs that are important venues to display and sell you products.

Examples of associations include, but are not limited to:

7. Other Resources

Need more information?

Click: Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit:  our Regional Access Program Locations page to locate an office near you


Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.

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.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.