Small Business Startup - Quick Guide

By Staff Reporter - 10 Dec '20 21:40PM

(Photo : https://pixabay.com/photos/business-idea-planning-business-plan-534228//)

So you have your winning idea and now need to get your venture rolling. Starting a business can be a mixed bag of excitement versus fear. Admittedly, there's a lot to navigate in the startup stages, but this guide should help determine the focus areas.

Naming the Company

What should you call the company? A Richard Branson employee conceived the "Virgin" brand name as a tongue-in-cheek nod at their inexperience. It was visionary in that it captured their fresh and innovative approach as they grew across different industries.

Try thinking of names with growth potential, excellent public perception, and that are catchy, memorable, and impactful.

From a uniqueness perspective, you need to check if another company already uses the name by searching the internet locally and globally (for when you expand, of course!). It's worth securing domain names also. Finally, you need to register the name with the government.

Business Plan

Every dream starts with a plan and a goal. The business plan is a must-do for any new venture and will help you when looking to banks and investors for funding. There are handy plan templates online to assist in drafting yours. You'll need to cover potential target markets, initial setup costs, marketing ideas, budget, and cash flow projections for those first crucial years.

Types of Business Ownership

There are three types of business structures to choose from, Sole Proprietorship, Partnerships, or Corporations. You'll have to decide based on how much personal liability you're prepared to take and the best tax options for you.

Sole Proprietor

This simplest form of running a company is owned by one individual who declares their income on their tax return and assumes all the risk.

Partnership

Another relatively simple structure. A partnership is a relationship formed between two or more individuals, corporations, or trusts. The Partners will share the risk and the profits and losses and declare their share of the partnership income on their tax returns.

Corporations

This type is beneficial because it legally separates the individuals from the company, meaning lower personal risk. Expect more costs and red tape in running such a company. The company will declare any profits and losses in their tax returns.

Financing

You might need seed money to get started. There are various ways to source funding through banks, investors, startup incubators, and researching the government website for grant applications. A good business plan should serve you well here.

GST / HST Registration

HST (Harmonized Sales Tax) is a Consumer Tax that combines the GST (Goods & Service Tax) and Provincial Sales Tax (PST). There are variances in provincial treatment, and it would be worthwhile using the services of an HST/GST Lawyer to take you through it and assist with the registration. They can also make sure you're compliant, up to date, and maximizing any credits due.

The registration threshold is $30,000 of annual sales, and a business must register for and charge GST / HST in the year in which they break this amount.

Get Going

Now that you have a better grasp of the requirements, your company should be up and running in no time. You'll be one step closer to fulfilling your entrepreneurial dream.

Remember to seek expert advice and try not to scrimp where possible when it comes to compliance and tax; the 'devil is in the details.' Concentrate on your strengths, learn how to understand your balance sheet, and your company could go far.

If you approach it with small steps and good planning, you'll be fine. Remember, various professionals can assist with all aspects of a startup, from general registrations to GST/HST Lawyers who can save you money and sleepless nights. You can learn more online.