Step 1: Investigating the Market, Checking Out the Competition, and Getting To Know The Field

First, do your homework. Just because you'd rush to a store that sells only heated toe socks doesn't mean everyone else will. Determine if there is a need for your protect or business, and evaluate the competition. If there are ten other business out there (or even a thousand online) offering the same product or service that you plan to, figure out what makes your business unique. Once you know why or how your business would stand out, you should have an idea on if your business can succeed in the market.

Decide who your main target is and know your demographics. Will you aim to sell to mothers of small children, or is your goal to reach college students in their late teens and early 20s. It is never too early to think of ways on gaining your audience's attention. Knowing your target audience and how you're going to grab their attention will come in handy later when you're creating your business plan.

Determine if the government would regulate your business. Regulated businesses are those that require specialized education, meeting set standards, licensing, or those that must follow strict guidelines in order to operate. See the Canada Business Network Government Service for Entrepreneurs website for more information and a list of business by providence that are regulated. (http://www.canadabusiness.ca/eng/page/2842/)

The most common types of regulated business include:

• Businesses that offer financial services, think loan brokers, payday lenders, collection agencies and private lenders.
• Businesses related to agriculture and food, including restaurants. 
• Child care centers, schools (public and private), and educational institutions such as those that offer second educated or training services.
• Mining business.
• Businesses that create electronic products.

When in doubt, reach out to a business attorney for advice or a business consultant. You can also contact the Canadian Business Network toll free at 1-888-576-4444 and ask if your type of business would be regulated.

Decide what type of business you will have. There are four main types, and each is very different with their own perks and drawbacks; sole proprietorship, partnership, corporation, cooperative. Keep in mind that each province can have their own rules and regulations for each type.

• A sole proprietorship is for one individual owner. A perk is that start-up is less expensive with this type of business, you as the owner have all control,  there is the lowest amount of regulatory burden with this type, there are personal tax breaks (such as subtracting losses from your person income), and all profits can go directly to you. Disadvantages include being personally and solely responsible for business debts, and finding it harder to qualify for loans. This type of business cannot be sold or transferred, and if you die the business dies with you.
• A partnership is owned by partners who share the profits in a business. Start-up costs are typically shared, and losses can be claimed on your personal taxes. Disadvantages include that you and your partner are responsible for business debts, and that you can be held responsible for the actions of your partner. 
• With a corporation, the business stands on its own. It is a legal entity separate from the owners and shareholders. This is an advantage, as you can't be held personally responsible for business debts, however legal advice is a must. A corporation can be sold and obtaining loans can be much easier than with a sole proprietorship. The disadvantages include tight regulations and government monitoring and it can be expensive to incorporate. 

Step 2: Create a Business Plan

Business 101 states that every business needs a business plan. You will be told repeatedly that a business plan is like a blueprint for your business; it helps you build it properly, gives it a strong foundation, and can evolve as your business grows. Another way to think of it is like a map. You're at the starting point, and your goal is to find your way to the treasure (aka success). Without a map, you can easily find yourself up a creek without a paddle.

With a written business plan you can:

• Show investors and banks that you're serious, you've done your homework, you have a plan of action, and you will follow through.
• Make decisions that will help lead you to your goal of success. Before buying assets, hiring employees, and so on, go back to your plan and decide if the decision you make is going to push you one step farther to your goal or get you off-track.
• Decide if you need to apply for funding, figure up all start-up costs involved, and allocate where money is to come from and go while your business grows. Your plan with show when the business is expected to be profitable, and how money goals will be reached.
• Know your plan B! A business plan should include a backup plan for financial binds. Emergencies happen, even with the best laid plans. With a thorough business plan you will know where you can pull emergency funds from, what resources you have, and how you can get back on track after a setback.
• Show others your mission statement. You need to know what your company stands for and its goals. It's a common practice for a company to share their mission statement on websites, mailers, and with potential employees. It is important that every single person on your team knows the direction your business is aiming to go and its goals so that you are all on the same page.

Don't let this plan intimidate you! There is software available that can walk you through step-by-step in creating a one-of-a-kind plan for your business. Many junior colleges and universities offer a class that includes instruction on writing this plan. Last but not least, your local library and the internet are a wealth of free information. The Canada Business Network website has amazing tutorials, a wealth of information on creating plans, FREE templates, and FREE sample plans! (http://www.canadabusiness.ca/eng/page/2752/)

Step 3: Registering Your Business 

Registering your business should be done early on in the process and should not put off until the last minute. As soon as your plan is written, go ahead and register as so many things can get hung up if you don't have your business number and GST/HST account early on.  Registering your business can be a multi-step process, as you may need to register with several different offices depending on your situation.

In order to register you need to have the following information handy:

• The name of your business.
• The type of business you plan to register as (sole proprietorship, partnership, corporation, cooperative).
• The address where the business will be located.
• Your social insurance number.

To obtain a Business Number (BN) call the Canada Revenue Agency's Business Enquires line at 1-800-959-5525 or apply online on the official website. Make sure you have the information above handy. If you wish to register by mail or fax, you will need to print out the PDF version of Form RC1, fill it out, and determine which office to send your form to.

Information on registering by province can be found on the Canada Business Network website. Each area is listed separately, along with the link needed to register in that territory.

Step 4: Hiring and Maintaining Staff 

Hiring and maintaining staff means letting go of some of the control, while at the same time growing your business. By delegating tasks to others, you can focus on tasks that only you as the owner can handle. Having others handle day-to-day activities, such as payroll, taxes, and standard management takes some of the stress off your shoulders, and can keep your business running smoothly. Hire staff that you can trust and that is qualified in the areas that you need them. Not relying on others means you will never get a vacation and you will probably go bald early from being so stressed you pull your hair out. Visit the Canada Business Network for the latest rules and regulations on hiring employees. Information covered includes minimum wages, regulations by territory, information on hiring foreign workers, and more.

Taxing and Payroll

Taxing and payroll is a major area that the business owner should leave to a professional. It can get complicated quickly, and if you don't know what you're doing you could easily end up in hot water. It's smart to hire a payroll service immediately, even before starting your business or before you hire your first employee. Hiring a payroll company will help you deal with the various challenges you will need to overcome with employees. These companies can not only handle payroll, but can also take the stress out of dealing with employee taxes and withholdings. All you have to do is submit weekly time sheets and someone else does the math and dirty work!

Step 5: Applying for Benefits for a Canadian Business

The Canadian government has set money aside to help businesses who need a hand when starting up. Will your business qualify for this assistance? The only way to know is to search for programs that match your need and to apply. It's important to note that your business plan will come in handy when applying for these benefits.

Types of financial assistance available from the government include:

• Grants, contributions and financial assistance are lovingly referred to as free money. These types of funds don't usually have to be paid back, as long as the money is used for its intended business purposes.
• Loans and cash advances from the government are available for new and established companies. The money does have to be repaid.
• Loan guarantees are helpful when a business is having a hard time obtaining bank loans. A government-backed loan guarantee could help you obtain a loan for your business. This type of fund has to be repaid.
• Tax refunds and credits and credits are like cash back from the government on your purchases and expenses. Tax benefits can also help reduce overhead.
• Wage subsidies are government programs that can make hiring an employee affordable. Part of the employees earnings are paid by the government or refunded to you.
• Equity investments are long-term financial investment for a business. This is a type of loan based on your businesses potential.

Support and Helpful Links

When in doubt, ask a business attorney or professional. Many times you can get free advice just by calling your local government offices that pertain to your questions.  One valuable resource that everyone should know about is Service Canada. A wise businessman once said, "What Canada lacks in sunny weather, it makes up for the sunny disposition of their Service Canada staff. Their sole purpose in life is to make the job of setting up a business in Canada a piece of cake." Questions or comments? The Service Canada general inquiry contact number for the US and Canada is 1-800-622-6232.

Helpful Links:

• Industry of Canada: http://www.ic.gc.ca/eic/site/icgc.nsf/eng/home
• The Canada Revenue Agency: http://www.cra-arc.gc.ca/
• Canada Business Network: http://www.canadabusiness.ca/eng/
• Service Canada: http://www.servicecanada.gc.ca/eng/home.shtml

Auhor Bio:
Brandy Davis is the marketing maven for WagePoint, a Canadian based payroll service company. The WagePoint team works magic for companies in the US and Canada, handling the math and taxes, so that business owners can focus on the big stuff.