There are 187,741 small businesses in British Columbia, making up 98% of the total businesses in the province. Small businesses are the backbone of Canada’s economy, and many Canadians aspire to start their own. However, the process can seem daunting, and some may not know where to begin. So, we’ve broken the steps down in this blog to help aspiring entrepreneurs through the process.

Creating a Business Plan

The first step that future business owners can take is to write a business plan. A business plan tells external parties such as potential partners, investors, and financial institutions about your company’s goals, strategies and financial projections. It is a crucial document to help you secure funding for your business and provides a roadmap for future operations. A good business plan will include the following:

Executive Summary

• Business Overview
• Industry or Market Analysis and Strategies
• Overview of your Products and Services
• Description of your Business Management and Organization Setup
• Sales and Marketing Strategies
• Competitive Analysis
• Request for Funding
• Financial Projection

For a more in-depth guide on how to write a business plan, check out our blog on this topic.

Choosing a Business Structure

Selecting the right business structure is crucial for future operations. When weighing the options, consider factors like personal liability, taxation, control over decisions, funding needs, regulatory requirements, and long-term business goals. Also, assess the costs of setup and maintenance, as well as the operational flexibility. There are a number of different business structures to choose from, so it may be a good idea to seek professional legal and financial advice to ensure the structure aligns with your specific needs and circumstances.

Sole Proprietorship

A sole proprietorship is a business with one owner operator, who has full control of the business. This structure is simple and less costly to set up, and has less regulatory requirements than others. However, a sole proprietorship leaves owners with unlimited personal liability for business debts, adding risk, and making it harder to raise capital.

Partnership

In a partnership, business ownership is shared amongst two or more people. There are a few different types of partnerships to choose from.

General Partnership

In general partnerships, all partners share management responsibilities and liabilities. Partners pool their resources together and split profits or losses depending on their share in the company. Like a sole proprietorship, general partnerships have unlimited personal liability for business debts.

Limited Partnership

Limited partnerships consist of general partners and limited partners who share profits and losses. General partners typically manage day to day operations for the business and own a larger share of the company. They also have unlimited liability. Limited partners typically have less involvement in the business, a smaller share of profits, and have limited liability.

Limited Liability Partnership (LLP)

In Limited liability partnerships (‘LLPs’), two or more individuals or corporations come together to form a partnership. Partners have limited liability for the actions of other partners, so this is often used amongst professionals such as lawyers or doctors.

Corporations

A corporation is a legal entity separate from its owners. It is owned by shareholders, but has some of the legal powers of an individual, such as acquiring assets and debt, and being sued. Corporations provide limited liability protection, protecting the personal assets of business owners.

The above describes the most common business structures used in BC, but for more information, visit the government of British Columbia’s website.

Registering your Business Name

All businesses must register a legal business name with the provincial government. First, conduct a name search to ensure the name you have chosen is unique, and then, register the business name with BC Registry Services. Only corporations, cooperatives or societies can ensure that another business does not use their name in the future. Name protection does not apply to sole proprietorships or partnerships. 

Registering your Business

A Business Number (BN) is required in British Columbia if you need to interact with the Canada Revenue Agency (CRA) for purposes such as collecting GST/HST, payroll deductions, or corporate income tax. This can be done online, by mail, or by fax.

Online:

Visit the CRA’s Business Registration Online (BRO) service and complete the online application form. You’ll need details about your business, including its name, address, and the nature of your business activities.

By Mail or Fax:

Download and complete the “Form RC1, Request for a Business Number (BN) and Certain Program Accounts” from the CRA website. Send the completed form to the address or fax number provided on the form.

You will need to provide the following information:

• Business Details: Business name, address, and contact information.
• Business Structure: Type of business (sole proprietorship, partnership, corporation).
• Business Activities: Description of the primary business activities.
• Ownership Information: Information about the owners or directors of the business.

Receive Your Business Number

After processing your application, the CRA will issue a Business Number. The BN is a unique nine-digit identifier used for all dealings with the CRA. You will receive it by mail or electronically, depending on your method of application.

Permits and Licenses

Bizpal is a free tool to help you find permits that you may need for municipal, provincial, and federal levels of government.

Location:

Permits and licenses may vary depending on your municipal and provincial regulations. Obtain a business license from the local municipal office where your business operates. This license allows you to conduct business within that municipality.

Industry-Specific Permits

Health and Safety Permits: If your business involves food handling, health care, or other regulated activities, you may need specific permits from health authorities or regulatory bodies.

Environmental Permits: Businesses with potential environmental impacts, such as waste disposal or emissions, may require permits from environmental agencies.

Provincial Permits and Licenses

Liquor License: If your business involves the sale or distribution of alcohol, you need a liquor license from the Liquor and Cannabis Regulation Branch.

Special Industry Licenses

Certain industries, such as real estate, financial services, and transportation, require additional provincial licenses.

Federal Permits and Licenses

Import/Export: If your business involves importing or exporting goods, you may need permits from the Canada Border Services Agency (CBSA) and other federal agencies.

Transportation: Businesses involved in transportation may require permits from Transport Canada.

Set Up Your Business Operations

When starting a business in BC, first decide on the location, whether it’s a home-based business, retail space, or office space. Next, set up your business banking by opening a business bank account and obtaining a business credit card if needed. Lastly, organize your accounting and record-keeping by setting up an accounting system to track income and expenses efficiently.

Hire Employees (if applicable)

When recruiting and hiring in BC, start by developing clear job descriptions, posting job listings, and conducting interviews. Ensure compliance with BC employment standards and WorkSafeBC requirements to meet all legal obligations and maintain a safe workplace.

Deploy a Marketing Strategy:

Creating a marketing strategy involves identifying your target audience, understanding their needs, and determining how your product or service meets those needs. You likely will have already done this when creating your business plan. You may need to gather further insights on customer demographics, preferences, and behaviors to develop your marketing objectives. 

Once you have clear, measurable goals aligned with your business targets, you can choose the right mix of marketing channels, such as social media, email, content marketing, and paid advertising, to help you meet those goals. When you are ready, create a budget, implement your plan, and regularly analyze performance data to refine and optimize your strategy for better results.

Ongoing Compliance and Growth

For ongoing compliance and growth, keep your financial records up to date and ensure timely filing of annual reports and tax returns. Continuously assess and adapt your business plan to facilitate growth and stay aligned with your business goals.

Business Financing for Expansion and Scaling

Once your business is in full swing, you may find that you require additional financing for the growth of your business. To secure financing for your business, the first stop is usually the bank. Banks are typically able to offer the best interest rates, but they also have more stringent requirements for loaning money. Unfortunately, not all small business owners will qualify for a bank loan. With lower interest rates comes a greater aversion to risk, resulting in strict criteria for approval. At Merchant Growth, we are able to fund businesses that are unable to qualify for a bank loan, and have funded 10,000+ Canadian small businesses over the past decade. 

Term Financing

We offer term financing for amounts ranging from $5,000 to $800,000, supporting a variety of small businesses across BC and the rest of Canada. Our application only takes a few minutes to complete, and funding is available in as little a 24 hours. Unlike traditional loans, we do not require collateral, and repayment is structured around your business’s cash flow, with flexible terms to suit your needs. 

Business Line of Credit 

Our business line of credit is a flexible financing option designed to provide businesses with fast access to capital when they need it. With a revolving credit facility, you can borrow funds as required and pay interest only on the amount withdrawn. This allows business owners to effectively manage cash flow and reduce over-reliance on credit cards. Our line of credit offers favorable interest rates and repayment terms tailored to your business’s needs, giving you the freedom to borrow, repay, and borrow again as needed.

Minimum eligibility requirements:

• Location: Canada
• Monthly Revenue: $10K
• Time in Business: 6 months

If you are ready to apply today, check out our quick application and see what your business qualifies for!