Starting a business in Ontario is an exciting opportunity to turn your passion into profit. Whether you’re launching a side hustle, transforming a hobby into a full-time career, or building the next big company, entrepreneurship offers endless possibilities. But success doesn’t happen overnight. From registering your business and managing finances to protecting yourself with the right insurance, there are several important steps to take before you open your doors. This guide will walk you through what you need to know to start a successful business in Ontario and set yourself up for long-term growth.
Do Your Business Research
Before you begin the journey of starting a successful business, there is some research to be done first. It is smart to begin with some market research to understand the area in which you will be operating. Take the time to figure out who your target market is, who your competitors are, and what the best location will be. During this time, you also get to make decisions, such as choosing a name for your business and creating a website.
During this step, it is also crucial to conduct a business plan. This will generally consist of both your short- and long-term business goals. On top of this, it is a good idea to begin thinking about different resources you can use to give yourself a head start. Talk to your local bank and see what tools they have to help you (such as a loan), or visit a local Small Business Enterprise Centre for help on writing a plan!
Determine Your Business Ownership Structure
Generally, people will have their ownership structure figured out early on. However, if you haven’t yet, now is the time to do so! Ontario has three main types of business structures: Sole proprietorships or partnerships, corporations and co-operatives. Since you are just beginning, you will likely start as a sole proprietorship/partnership. Each has different pros and cons. Additionally, they will also bring different legal and tax needs. It’s a good idea to think through how you want to move forward. Some pros and cons of sole proprietorships and partnerships are as follows:
Sole Proprietorships
A business owned by one person. Generally, this is the most common, as it is the easiest! It is also beneficial because you have the option to incorporate people or expand in the future. This offers you full control of the company, with all profits going to you. However, you are also responsible for all debts and losses you may incur.
Partnerships
This is basically a business run by two or more people. These are easy and affordable to set up, and your debts and losses will be shared between you and your partners. However, it can sometimes prove difficult to find the right partner who will agree on business decisions with you.
Register Your Business and Licenses
So, you’ve got a name, plan, and maybe a partner, too! Congratulations, it is time to register your business. This is mandatory in Ontario if you have employees, facilities or offices within the province. Luckily, this can be done online. All you need is a valid email address or a credit/debit card to pay the fee. You can register online through the province’s website!
Once you are registered, it is a good idea to get your permits and licenses in order. In many cases, you will require one or the other depending on federal, provincial, or municipal regulations. There are many online tools, such as BizPal, that can help you determine which licenses and permits are required for your business.
Learn Business Regulations
When opening a successful business in Ontario, many different regulations must be followed. Please familiarize yourself with accessibility regulations, employment standards, and workplace health and safety.
Accessibility Regulations
In Ontario, more than 25% of people are living with a disability. As a business owner, it is your obligation to make your business accessible to them. This is done by identifying and removing any barriers for people using walkers, strollers or wheelchairs. By removing these barriers, you make people with disabilities feel welcomed and thus, urge them to return to your business for the products and services they need.
Employment Standards
As a business owner, it is mandatory to familiarize yourself with and follow the Employment Standards Act. By doing so, you will familiarize yourself with topics such as minimum wage, limits on hours of work, and termination of employment. You will also learn about parental leave, which public holidays you must observe, and how to provide your employees with a fair and legal work environment.
Workplace Health and Safety
It is also crucial that you familiarize yourself with the Ontario Occupational Health and Safety Act. By doing so, you will familiarize yourself with what is needed to make your workplace safe and healthy for people to visit and work in. The Health and Safety Act will cover topics such as how to behave properly in case of a fire and how to address and prevent workplace hazards. Not only is this mandatory, but it also provides you (and your workers) with the comfort of knowing they are in a safe environment.
Business Insurance is Essential
Although business insurance isn’t mandatory, it is absolutely recommended! Even if you operate a business from your home, some business insurance policies can protect you and your business’s operations and income. You don’t take risks with your family, so why take them with your business? Also known as commercial insurance, this refers to an insurance policy and coverage designed specifically for businesses. This can help protect you and your business from potential loss due to unexpected events. Start a successful business and protect yourself, your employees, and your assets with adequate insurance coverage.
Starting a Business: Conclusion
At isure, we believe that all businesses are unique and should be treated as such! We help you find an insurance policy that fits you and your needs, so you are secure and protected. On top of this, we have some of the cheapest premiums on the market along with top-tier customer service. So, if you are a new business owner looking into insurance or want to learn more about what isure has to offer, contact us or request a quote today!
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