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Maurice

Nova Scotia Small Business: Complete Guide for Entrepreneurs

by Maurice | February 12, 2023

Nova Scotia is known for lobster, blueberries, and the stunning Cabot Trail.

But did you know Nova Scotia also has a growing population and some unique business opportunities?

In this guide we cover everything you need to know about business in Nova Scotia - from major industries to how to start a business in Nova Scotia resources to support your business.


Table of Contents
Major Industries in Nova Scotia
Best Business to Start in Nova Scotia: 11 Promising Industries
How to Start a Business in Nova Scotia: Step-by-Step Instructions

Small Business Grants Nova Scotia: X Top Grants to Start & Grow Your Nova Scotia Business
Business for Sale Nova Scotia: Business Opportunities in Nova Scotia
Small Business Resources in Nova Scotia

Nova Scotia is known for lobster, blueberries, and the stunning Cabot Trail

But did you know Nova Scotia also has a growing population and some unique business opportunities?

In this guide we cover everything you need to know about business in Nova Scotia – from major industries to how to start a business in Nova Scotia to resources to support your business.

Major Industries in Nova Scotia

Nova Scotia’s economy has traditionally been resource-based, consisting of fishing, coal mining, paper, mining, and agriculture. In the past several decades, offshore oil and gas has also contributed to the economy.

Newer industries in Nova Scotia include defence and aerospace, filmmaking, and information & communication technology.

Rounding out the province’s industries is tourism, which contributes over $2.5 billion to the provincial economy.

Best Business to Start in Nova Scotia: 11 Promising Industries

In addition to the traditional industries mentioned above, Nova Scotia has 11 priority sectors that build on the province’s existing strengths and are promoted by the provincial government:


     

      • Ocean industries

      • Seafood

      • Agri-Food

      • Naval defence

      • Information and Communications Technology

      • Digital media

      • Film & television production

      • Advanced manufacturing

      • Clean technology

      • Financial services

      • Life sciences


    These industries take advantage of the labour force’s existing skill set, the knowledge base of local universities, as well as funding programs offered by the provincial government.

    If you’re thinking about starting a manufacturing business (especially one that’s focused on exports), these 11 industries are an excellent place to start. If you’re thinking about starting a services business, consider how you can serve existing businesses that operate in these industries.

    How to Start a Business in Nova Scotia: Step-by-Step Instructions


     

    1. Brainstorm the basics:


       

        • The niche (industry) you want to be in

        • The offer(s) that you will sell to your customers

        • Brainstorm solutions to pressing problems

        • Decide if you will manufacture a product or provide a service

        • Which business channel you want to operate in (online or in-person)




       

      2. Understand government requirements


         

          • The type of business you should register (sole proprietorship, partnership, or corporation)

          • The licenses & permits you’ll need to operate your business

          • Regulations that apply to your industry

          • Taxes that your business will have to pay

          • Insurance to protect your business




         

        3. Write a business plan.


        A good business plan will give you a clear vision of the path you need to take to start and grow your business. Elements of a good business plan include a description of your:



           

            • Target audience and their needs

            • Competitive landscape

            • Planned products and/or services (offers)

            • Value proposition

            • Financial projections

            • Start-up costs




           

          4. Get funding.


          Start-ups need money! There are grants, loans, and many other types of funding available for businesses in Nova Scotia




           

          5. Find business advice and support.


          Mentors and professionals such as accountants and lawyers can provide invaluable advice on the steps to set up your business and the mistakes to avoid.



          Small Business Grants Nova Scotia: X Top Grants to Start & Grow Your Nova Scotia Business

          Did you know there are X grants available for businesses in Nova Scotia?

          How about X low-interest loans, wage subsidies, tax credits, and other types of financial incentives?

          Our database of financial incentives for Nova Scotia businesses in the largest, most complete on the market. Here is just a small sample of the incentives available right now:


           

          Start-Up Grants for Nova Scotia Businesses


          There are dozens of start-up grants available to aspiring entrepreneurs in Nova Scotia, including grants offered by the provincial government, federal government, and non-profits. Here’s a sample:



             

              • Small Business Reopening and Support Grant Nova Scotia

              • Nova Scotia Small Business Impact Grant

              • Etc.

                   

                    •  

               

              Learn More




               

              Business Grants for Women in Nova Scotia


              Women entrepreneurs have lots of places to find support for their start-ups or growing businesses. Here’s a sample of financial incentives from our database



                 

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                Learn More




                 

                Grants for Black Business Owners in Nova Scotia


                There are many federal and provincial programs available to black Nova Scotians to start and grow a business. Here are a few:



                   

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                  Learn More




                   

                  Small Business Loans Nova Scotia: X Best Loan Programs to Start & Grow Your Nova Scotia Business


                  Sometimes a loan is the quickest and easiest way to get funding to start or grow a business. Even better, there are low-interest (and no-interest) loans available to Nova Scotia entrepreneurs. Here are a few of the best loan programs:



                     

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                    Learn More



                    Business for Sale Nova Scotia: Business Opportunities in Nova Scotia

                    Once you’ve decided the industry you’d like to enter, how do you get started?

                    One option is to buy an existing business. While it will cost you more upfront than starting a business from scratch, buying a business will get you up and running faster.

                    There a several places to find a business for sale in Nova Scotia:


                     

                    Online Business Marketplaces


                    An online business marketplace is basically an online classified ads website specifically for businesses. The most popular businesses-for-sale websites include the following:



                       

                        • BusinessesForSale.com Nova Scotia

                        • Dealstream.com Nova Scotia

                        • BuyAndSellABusiness.com Nova Scotia




                       

                      Real Estate Brokerages


                      More and more real estate brokerages are adding businesses for sale to existing inventory of homes for sale. Here are some online brokerage sites to check out:



                         

                          • Realtor.ca Nova Scotia Businesses for Sale

                          • Point2Homes Nova Scotia Businesses for Sale




                         

                        Online Classifieds (For Sale by Owner)


                        Business owners who don’t want to pay a commission will often advertise on classified ads sites. Here are the most popular:



                           

                            • Kijiji Nova Scotia Businesses for Sale

                            • Craigslist Nova Scotia Businesses for Sale




                           

                          Business Brokers


                          A business broker is the equivalent of a real estate agent – they act as a middleman between buyers and sellers.

                          The benefits of using a business broker to buy a business include:



                             

                              • Tailored service. A business broker can quickly target a business using your precise criteria

                              • Find businesses not on the market. Through their word-of-mouth network, a business broker might know of a business that isn’t yet listed for sale.



                            Here are some top Nova Scotia business brokers to check out:



                               

                                • Gateway Business Brokers

                                • Murphy Business Brokers

                                • Sunbelt Business Brokers

                              •  

                              Learn More




                               

                              Business Registration in Nova Scotia


                              Registering a business in Nova Scotia involves the following steps:



                                 

                                  1. Choose a legal structure (proprietorship, corporation, or partnership)

                                  1. Choose a business name

                                  1. Do a name search (to confirm that the name is available)

                                  1. Reserve your business name

                                  1. Register your business (online or in-person)



                                Answers to FAQs:



                                   

                                    1. Do I need to register my business in Nova Scotia?

                                    1. Registering a business name in Nova Scotia

                                    1. Business name search NS

                                    1. Nova Scotia business registry

                                    1. Nova Scotia business entity search   


                                   

                                  Learn More



                                   

                                  Business Licenses in Nova Scotia


                                  Depending on the industry you’ll be operating in, you might need specific licenses and permits to run a business in Nova Scotia.

                                  You can find out which licenses and permits you need from the following websites:



                                     

                                      1. BizPal allows you to do an online search for the permits and licenses you’ll need for your Nova Scotia business

                                      1. Nova Scotia Permits Directory is a 1990s-era web page (but it still works!) that is organized by industry



                                    Answers to FAQs:



                                       

                                        1. What is a business license?

                                        1. What types of business licenses are there?

                                        1. How do I know what licenses I need for my business?

                                        1. What is the cost of a business license in Nova Scotia?


                                       

                                      Learn More



                                       

                                      Business Insurance in Nova Scotia


                                      Business insurance might seem like a boring topic, but it’s critical for avoiding financial ruin (who hasn’t heard about a small business being sued when a customer slips on the ice outside their premises?).

                                      While the Nova Scotia government does not require most businesses to have insurance, there are several types of insurance that are recommended to protect your business:



                                         

                                          • General liability insurance, which protects against on-premise accidents and other claims

                                          • Business property insurance, which protects against damage to your property

                                          • Product liability insurance (if you manufacture a product)

                                          • Errors and omissions insurance (if you operate a professional services business)


                                         

                                        Learn More



                                         

                                        Business Laws in Nova Scotia


                                        You might be disappointed to learn that there are laws and regulations that businesses in Nova Scotia must follow. The main laws are:



                                           

                                            • Corporations Registration Act (Nova Scotia)

                                            • Nova Scotia Labour Standards Code

                                            • Occupational Health and Safety Act (Nova Scotia)

                                            • Trade Union Act (Nova Scotia)


                                           

                                          Learn More



                                           

                                          Business Taxes in Nova Scotia


                                          Business tax is an important and complicated topic, and we recommend you seek the help of a professional to sort through it.

                                          Here are some resources to get you started:



                                             

                                              • What Do I Need to Know About Taxes? (Government of Nova Scotia)

                                              • Free Tax Help for Small Business Owners (Government of Canada)

                                              • Corporation tax rates across Canada



                                            Current corporation tax rate in Nova Scotia: 2.5% – 14%.




                                             

                                            Nova Scotia Business Immigration


                                            Nova Scotia has seen a record number of immigrants recently, including economic immigrants.

                                            Part of that surge has been through the Nova Scotia Entrepreneur Stream of the Nova Scotia Nominee Program. 

                                            To learn more about how to migrate to Nova Scotia as an entrepreneur, read our guide to Nova Scotia Business Immigration.



                                            Small Business Resources in Nova Scotia

                                            There are lots of support resources for small businesses in Nova Scotia. Here are some of the best ones:


                                             

                                            General Business Directories


                                               

                                                • YellowPages.ca Nova Scotia

                                                • Better Business Bureau Atlantic Provinces Business Directory

                                                • 411.ca Nova Scotia Busines Directory




                                               

                                              Indigenous-Owned Businesses Nova Scotia


                                                 

                                                  • Indigenous Services Canada’s Indigenous Business Directory

                                                  • Canada Council for Aboriginal Business (CCAB) – Business Directory




                                                 

                                                Black-Owned Businesses in Nova Scotia


                                                   

                                                    • AfroBiz.ca Halifax Black Owned Business Directory

                                                    • Black Business Initiative Business Directory

                                                    • Black Business Direct – Nova Scotia Businesses




                                                   

                                                  Nova Scotia Business Associations & Organizations


                                                     

                                                      • Business Navigators Nova Scotia help you “navigate” the process of starting a business in Nova Scotia

                                                      • Nova Scotia Association of CBDCs (Community Business Development Corporations) provides financial support (loans, loan guarantees and equity financing) and in-kind support (advice, training, etc.) to small businesses in 13 communities throughout Nova Scotia.

                                                        You can find the contact info for all 13 Nova Scotia CBDCs here.

                                                      • Nova Scotia Business Federation offers marketing services and employee group benefits for small businesses in Nova Scotia




                                                     

                                                    Nova Scotia Business News


                                                       

                                                        • Global News – Nova Scotia Business News Stories

                                                        • AllNovaScotia.com

                                                        • Saltwire – Halifax Business News



                                                      How to Start a Business in New Brunswick: Step-by-Step Guide for New Entrepreneurs

                                                      by Maurice | February 12, 2023

                                                      New Brunswick has plenty of natural beauty and natural resources. Many people who start a business in this province will choose to focus on industries centred on these areas. However, because of the overall business-friendly environment in New Brunswick, you don’t have to limit your business ideas to these areas.

                                                      When you work in New Brunswick, you can take advantage of traditional industries, or you can focus on areas that are emerging. Many different business ideas can have success here.

                                                      If you would like to start a business in New Brunswick, exploring all your options and obtaining some advice is never a bad idea.

                                                      Our step-by-step guide for New Brunswick entrepreneurs hopefully gives you the basic information you need to begin to make your dream come true! (We do not have steps for helping you tell your current boss that you’re leaving, though; the tone and words you decide to use are up to you.)


                                                      Table of Contents

                                                      Step #1: Brainstorm Possibilities for Your New Brunswick Business

                                                      Understanding New Brunswick’s Largest Industries

                                                      Best Small Business Ideas to Start in New Brunswick

                                                      Best Place to Start a Business in New Brunswick

                                                      Step #2: Select Your Preferred Type of New Brunswick Business

                                                      Goods or Services … or Both?

                                                      Online Store or Brick-and-Mortar Store?

                                                      Examples of Physical Location Businesses in New Brunswick

                                                      Things to Think About for a Physical Location Business in New Brunswick

                                                      Considerations for Digital-Only Businesses in New Brunswick

                                                      Examples of Digital-Only Businesses in New Brunswick

                                                      Finding Online Business Development Help

                                                      Managing Social Media and Digital Marketing for Your Business

                                                      Step #3: Determine Your Preferred Method of Becoming a Business Owner

                                                      Starting From Scratch

                                                      Buy a Franchise Business

                                                      Operate a Side Hustle Business

                                                      Step #4: Adhering to Government Regulations in New Brunswick

                                                      Determining Your Business’ Legal Structure

                                                      Selecting a Name for Your New Brunswick Business

                                                      Determining Your Business Taxes

                                                      Required Businesses Licences and Permits in New Brunswick

                                                      Required Business Regulations in New Brunswick

                                                      Step #5: Determine the Costs of Starting Your Business

                                                      Projected Startup Costs for Certain Types of Businesses

                                                      Business Costs You Could Encounter in New Brunswick

                                                      Step #6: Develop Your Business Plan

                                                      Why Do You Need a Business Plan?

                                                      Step #7: Seek Out Financing Options

                                                      Contribute Your Own Money

                                                      Funds With No Strings Attached

                                                      Business Loans

                                                      Equity Financing

                                                      Step #8: Seek Help Where You Need It

                                                      Step #9: Seek Out Inspiration and Advice

                                                      Business Startup Resources in New Brunswick

                                                      Business Networking Opportunities in New Brunswick

                                                      Business Directories Serving New Brunswick

                                                      Business Associations and Organizations in New Brunswick

                                                      Business Awards and Competitions in New Brunswick

                                                      Business Owners Immigrating to New Brunswick

                                                      Step #10: Figure Out How to Avoid Pitfalls

                                                      Checklist for Starting a Business in New Brunswick

                                                      Buy a Franchise Business

                                                      Operate a Side Hustle Business

                                                      Step #4: Adhering to Government Regulations in New Brunswick

                                                      Determining Your Business’ Legal Structure

                                                      Selecting a Name for Your New Brunswick Business

                                                      Determining Your Business Taxes

                                                      Required Businesses Licences and Permits in New Brunswick


                                                      Required Business Regulations in New Brunswick

                                                      Step #5: Determine the Costs of Starting Your Business

                                                      Projected Startup Costs for Certain Types of Businesses

                                                      Business Costs You Could Encounter in New Brunswick

                                                      Step #6: Develop Your Business Plan

                                                      Why Do You Need a Business Plan?

                                                      Step #7: Seek Out Financing Options

                                                      Contribute Your Own Money

                                                      Funds With No Strings Attached

                                                      Business Loans

                                                      Equity Financing

                                                      Step #8: Seek Help Where You Need It

                                                      Step #9: Seek Out Inspiration and Advice

                                                      Business Startup Resources in New Brunswick

                                                      Business Networking Opportunities in New Brunswick

                                                      Business Directories Serving New Brunswick

                                                      Business Associations and Organizations in New Brunswick

                                                      Business Awards and Competitions in New Brunswick

                                                      Business Owners Immigrating to New Brunswick

                                                      Step #10: Figure Out How to Avoid Pitfalls

                                                      Checklist for Starting a Business in New Brunswick

                                                      Buy Someone Else’s Business

                                                      Buy a Franchise Business

                                                      Operate a Side Hustle Business

                                                      Step #4: Adhering to Government Regulations in New Brunswick

                                                      Determining Your Business’ Legal Structure

                                                      Selecting a Name for Your New Brunswick Business

                                                      Determining Your Business Taxes

                                                      Required Businesses Licences and Permits in New Brunswick

                                                      Required Business Regulations in New Brunswick

                                                      Step #5: Determine the Costs of Starting Your Business

                                                      Projected Startup Costs for Certain Types of Businesses

                                                      Business Costs You Could Encounter in New Brunswick

                                                      Step #6: Develop Your Business Plan

                                                      Why Do You Need a Business Plan?

                                                      Step #7: Seek Out Financing Options

                                                      Contribute Your Own Money

                                                      Funds With No Strings Attached

                                                      Business Loans

                                                      Equity Financing

                                                      Step #8: Seek Help Where You Need It

                                                      Step #9: Seek Out Inspiration and Advice

                                                      Business Startup Resources in New Brunswick

                                                      Business Networking Opportunities in New Brunswick

                                                      Business Directories Serving New Brunswick

                                                      Business Associations and Organizations in New Brunswick

                                                      Business Awards and Competitions in New Brunswick

                                                      Business Owners Immigrating to New Brunswick

                                                      Step #10: Figure Out How to Avoid Pitfalls

                                                      Checklist for Starting a Business in New Brunswick


                                                      Step #1: Brainstorm Possibilities for Your New Brunswick Business

                                                      Although coming up with an idea for your business feels incredibly exciting, it also can be a bit frightening. You don’t want to make a mistake when developing your business idea, leading you down the wrong path. The best advice is to come up with a few potential business ideas and then to research them thoroughly.

                                                       

                                                      Understanding New Brunswick’s Largest Industries

                                                      Many entrepreneurs start the process by studying industries that are already strong or growing in New Brunswick. By tapping into one of these industries with your new business, you may have a better chance at success.

                                                      You should have access to a larger number of potential customers when you stick with an industry that is thriving and well-known. New Brunswick has many established industries, including:

                                                         

                                                          • Exports

                                                          • Agriculture

                                                          • Fishery

                                                          • Mining

                                                        Additionally, the New Brunswick provincial government has compiled a list of six priority industry sectors where investment and growth are likely to occur in the near future, including:

                                                           

                                                            • Advanced manufacturing

                                                            • Agritech

                                                            • Cybersecurity

                                                            • Digital health

                                                            • Energy innovation

                                                            • Information and communications technology

                                                           

                                                          Best Small Business Ideas to Start in New Brunswick

                                                          Once you have an idea about the industry in which you want to work, you then can focus on a specific business idea. Your idea may fit inside your preferred industry in a general way, or you may want to work toward starting a New Brunswick business that fits into a niche area of the industry.

                                                          For a general business idea inside the agriculture industry, maybe you would start a trucking company that moves several kinds of agricultural products from the farms to processing centers or exporters. You wouldn’t necessarily have an area of specialty. However, if you wanted to focus on a niche area of the agricultural industry, maybe you would manufacture packing materials that help blueberry farmers transport their product safely. By focusing on blueberries, your New Brunswick business would only serve a narrow area of the ag industry in the province.

                                                           

                                                          Best Place to Start a Business in New Brunswick

                                                          Although finding just the right type of new business to start in New Brunswick can occupy quite a bit of your time, don’t forget to think about the location of your new business. You might have the best business idea New Brunswick has ever seen, but if you are in the wrong location, your chances of success will plummet.

                                                          If your business will focus on New Brunswick’s natural resources or on an industry that deals with natural resources, you may want to place your business in a rural area. However, if you start a business that exports ag products from New Brunswick, you may need to be near a port city, rather than in a rural area.

                                                          If you are running a tech business or a business that needs a lot of employees, sticking with a major population center in the southern half of New Brunswick may be the better option. Moncton, Saint John, and Fredericton each have a population of greater than 58,000 people.

                                                          For a business that needs easy vehicular access to Quebec and other areas of Canada, you may want to consider locating in the rural northwest area of New Brunswick.

                                                          Step #2: Select Your Preferred Type of New Brunswick Business

                                                          With a business idea in mind, you are ready to focus on the type of business you’d like to run. Deciding to focus on an ag-related business, for example, still leaves you with many possibilities in determining the specifics related to your business idea.

                                                           

                                                          Goods or Services … or Both?

                                                          Start narrowing the focus of your new business by deciding whether you want to offer goods or services. (Or, if you’re feeling especially adventurous, you might choose to offer both!)

                                                          If you choose to focus on offering products, you will be selling tangible items to customers. These could be products that you make, harvested ag products, or products that you source from another business. You could even purchase parts from multiple sources and assemble the products you want to sell.

                                                          You also could choose to provide services, where you perform tasks for your customers. These tasks may show off your unique skills, such as repairing small engines or performing coding on network software. If you want to offer services you cannot perform yourself, you could hire a third party to offer these services on your behalf.

                                                          You might even decide to offer both goods and services in New Brunswick. Perhaps you will sell parts for repairing machines in manufacturing centers, and you will install the parts, too.

                                                           

                                                          Online Store or Brick-and-Mortar Store?

                                                          Another way to narrow your business’ focus is by deciding whether to start an online-only store or a store with a physical location.

                                                          New Brunswick easily supports both types of businesses. Plenty of real estate options are available throughout the province for starting businesses, including surplus commercial property. For online businesses, the federal government recently announced a funding plan to improve broadband internet availability in rural areas of New Brunswick.

                                                          With an online store or with a website offering services, you likely would not have a physical location where customers would visit you. They would select products in your digital store. Customers could make appointments to receive your services through a website. You still might visit customers at their location to repair on-site machinery or to offer consultancy services.

                                                          With a physical store in New Brunswick, customers would visit you. They might bring you items to repair, visit your retail store to purchase items, or hold meetings with you at your location. You may need a physical site to serve as an office building where your employees can work.

                                                           

                                                          Examples of Physical Location Businesses in New Brunswick

                                                             

                                                              • Accountants

                                                              • Food processors

                                                              • Refineries

                                                              • Trucking businesses

                                                              • Repair shops

                                                              • Retail stores

                                                              • Grocery stores

                                                              • Child care centers

                                                              • Medical facilities

                                                              • Pet groomers

                                                             

                                                            Things to Think About for a Physical Location Business in New Brunswick

                                                            Even though you could start a business that has a physical location almost anywhere in New Brunswick, finding the best possible location is a key consideration. You can set yourself up for success if you are in a location that encourages customers to visit you.

                                                            If you have a specific type of customer for your niche business, you will want to open as close as possible to that customer base. If your potential customers drive past your location almost every day, they’re more likely to stop in and purchase something than if they may only drive past one or twice a month.

                                                            When you have a brick-and-mortar location, you need to think about things like property insurance, liability insurance, security, inventory tracking software, point-of-sale equipment, and utilities. If you will be open to the public, you also may have to adhere to local or provincial regulations and standards for your building.

                                                            Building maintenance and property maintenance costs must be part of your business’ budget when you have a physical location. You may need to maintain exterior lighting for a parking lot or a sidewalk to keep your customers safe. Snow and ice removal from areas open to the public are a must to prevent slip-and-fall accidents for visitors.

                                                             

                                                            Considerations for Digital-Only Businesses in New Brunswick

                                                            Some entrepreneurs in New Brunswick prefer having an online-only business because they don’t need to rent or purchase a separate building. They may be able to run the business from a spare bedroom or basement office inside the home.

                                                            However, running a business that must carry large amounts of inventory may be challenging at your home. You also have to adhere to residential ordinances related to noise generation or to storing potentially dangerous chemicals if working out of your home.

                                                            You need an extremely reliable and fast internet connection to run an online store or a business that relies on making video calls. If visitors find slow loading webpages or frequently dropped Zoom calls, they may lose trust in your business.

                                                            To run a digital-only business, you may want to rent office space for employees to work or a warehouse to store your products. If you have a poor internet connection at your home, renting office space where high-speed internet is available may be a smart investment for your digital-only business in New Brunswick.

                                                             

                                                            Examples of Digital-Only Businesses in New Brunswick

                                                               

                                                                • IT consultant

                                                                • Offering digital marketing services

                                                                • Freelance website development services

                                                                • Freelance writing

                                                                • Freelance photography or artwork

                                                                • Virtual customer service agent

                                                                • Online store offering local products

                                                                • Offering online training classes

                                                                • Offering online tutor programs

                                                                • Freelance app development

                                                               

                                                              Finding Online Business Development Help

                                                              When you are running an online-only business, your website serves as the equivalent of a physical store location for your customers. You need to have a professional-looking website that makes customers trust your business.

                                                              Whether you want to run an online storefront, or you need a website hosting service that represents your business, you can find these services for reasonable prices. Such services allow you to take as much or as little control over the design process as you want. They even help you sign up for a website address.

                                                               

                                                              Managing Social Media and Digital Marketing for Your Business

                                                              Whether you are running an online-only business or a business with a physical location, digital marketing and social media marketing are extremely important. Many potential customers are going to research your business online before they even think about purchasing goods or services from you.

                                                              Maintaining a social media presence that draws customers to you and that portrays a professional appearance will give you the best results. If you can mesh your social media plan with your website’s design, customers will easily understand how you operate and what you represent.

                                                              If you plan to use multiple social media platforms – and you should – make sure they all carry the same core message. Display your social media messages on your website, too. Regularly update your social media accounts and your website with the latest information, so your customers know that you are active.

                                                              Cloud software is available to help you with social media marketing. It can measure the types of messages that are resonating with your customers, allowing you to focus your efforts and to make the most of your time.

                                                              Step #3: Determine Your Preferred Method of Becoming a Business Owner

                                                              Deciding to start a business in New Brunswick typically takes on one of four paths.

                                                               

                                                              Starting From Scratch

                                                              Because New Brunswick has so many business resources available and is a friendly environment for new business owners, many entrepreneurs focus on starting a business from scratch.

                                                              Pros:

                                                                 

                                                                  • You get to make all the decisions when starting your own business.

                                                                  • You can receive quite a sense of pride when building your business from nothing.

                                                                  • You may be eligible for startup grants in New Brunswick or tax breaks with a new business.

                                                                Cons:

                                                                   

                                                                    • The amount of work to create a business from scratch can be overwhelming at times.

                                                                    • You may have to deal with quite a few items that are outside your areas of expertise.

                                                                    • Finding funding can be challenging.

                                                                     

                                                                      • Gateway Business Brokers

                                                                      • Sunbelt Network Business Brokers

                                                                    Additionally, multiple websites exist that can help you find businesses for sale inside the province, including:

                                                                       

                                                                        • Businesses for sale by owner through online classifieds in New Brunswick, including Kijiji Businesses for Sale, Craigslist Businesses for Sale, and Business Sell Canada Businesses for Sale.

                                                                        • Online marketplaces listing businesses for sale in New Brunswick, including BusinessesForSale.com, Dealstream.com, and BuyAndSellABusiness.com.

                                                                        • Online real estate brokerages that list businesses for sale in New Brunswick, including Realtor.ca Businesses for Sale, Fundy Bay Real Estate Businesses for Sale, Point2Homes Businesses for Sale, and SoldWell Businesses for Sale.

                                                                       

                                                                      Buy a Franchise Business

                                                                      If you want the ability to start a business from scratch, but you don’t want to spend all the hours required to set up the business, you might consider purchasing a franchise. Starting a business in this manner gives you access to an existing brand name, but you run the business.

                                                                      Pros:

                                                                         

                                                                          • Your business has a brand that customers probably already know.

                                                                          • The franchiser gives you instructions for setting up the business, saving time.

                                                                          • The franchiser often handles advertising and marketing, saving you time and money.

                                                                        Cons:

                                                                           

                                                                            • The cost of the franchise will be higher than starting your own business from scratch.

                                                                            • The franchiser likely will have many rules you must follow for setting up and running the business.

                                                                            • Some franchise opportunities are scams.

                                                                          The New Brunswick Financial and Consumer Services Commission has advice and information on purchasing a franchise safely.

                                                                           

                                                                          Operate a Side Hustle Business

                                                                          You may want to try to operate your new business idea on a part-time basis at first – sometimes called a side hustle – while keeping your current full-time job. If the side hustle takes off, you may be able to make it your new full-time job, running it as a full-fledged new business.

                                                                          Pros:

                                                                             

                                                                              • You can test your business idea to see if it’s viable and if you like it.

                                                                              • You don’t have to risk giving up your full-time job and its income until you’re sure the side hustle business will support your financial needs.

                                                                            Cons:

                                                                               

                                                                                • Trying to run a business on a part-time basis can be extremely difficult, because you aren’t giving the business your complete attention, reducing your chances at success.

                                                                                • Some business ideas simply don’t work as side hustle opportunities.

                                                                              Step #4: Adhering to Government Regulations in New Brunswick

                                                                              When starting and running a business in New Brunswick, you likely will need to follow multiple regulations the provincial government has. Local governments may also have regulations in place that you need to follow, depending on the type of business you are operating.

                                                                              Some government regulations may feel unfair or may cost you some extra money when setting up your business, which is frustrating. However, adhering to regulations is a necessary part of starting many types of businesses in New Brunswick or anywhere in Canada.

                                                                               

                                                                              Determining Your Business’ Legal Structure

                                                                              Registering your business and specifying its legal structure is a key part of legally operating in New Brunswick. Typically, the majority of New Brunswick new business owners will choose among:

                                                                                 

                                                                                  • Sole proprietorship

                                                                                  • Partnership

                                                                                  • Incorporated company

                                                                                OpportunitiesNB has advice for selecting the right business structure for your needs. Additionally, BizPaL offers the Business Structures Wizard that can walk a New Brunswick business owner through the process of selecting a legal business structure.

                                                                                 

                                                                                Selecting a Name for Your New Brunswick Business

                                                                                New Brunswick’s provincial government has a number of resources to help you select and register your business name. Some of the rules for selecting a business name in New Brunswick include:

                                                                                   

                                                                                    • The name must be different from other business names in New Brunswick.

                                                                                    • It must not be misleading to potential customers.

                                                                                    • It cannot include words considered obscene.

                                                                                    • The name should describe your business’ purpose.

                                                                                    • You must use certain words if you are naming a corporation.

                                                                                  You can search for currently registered business names in New Brunswick, so you know whether the name you want to use is too similar to another name. If you use a name that’s similar, the other business could sue you later, forcing you to change your name after you start running the business. This can be a problem, leading to confusion for customers.

                                                                                   

                                                                                  Determining Your Business Taxes

                                                                                  The business structure you select will play a role in the types and percentages of taxes you must pay. (Yes, you must pay business taxes; no one said all aspects of starting a business would be enjoyable.) Some resources to help you understand common taxes for New Brunswick businesses include:

                                                                                     

                                                                                      • Corporate income tax law from New Brunswick government

                                                                                      • Free tax help for small business owners from Canadian government

                                                                                      • Federal and provincial corporate income tax rates in Canada

                                                                                    Additionally, depending on the type of business you are running, you could be subject to other New Brunswick business taxes. The good news? You may also qualify to receive tax credits.

                                                                                     

                                                                                    Required Businesses Licences and Permits in New Brunswick

                                                                                    Another form of government regulation for New Brunswick businesses occurs in the form of licences and permits. Local, provincial, and federal government officials may require these permits and licences.

                                                                                    The best place to search for necessary permits and licences is BizPaL. This is an online database that is a helpful resource, explaining what you need to operate your business properly. In addition to your provincial licences and permits, you may need local permits and licences in the major cities in New Brunswick, including Saint John, Moncton, and Fredericton.

                                                                                     

                                                                                    Required Business Regulations in New Brunswick

                                                                                    Businesses must follow regulations when operating in New Brunswick, especially if they will be employing people. These laws include:

                                                                                       

                                                                                        • Business Corporations Act

                                                                                        • Industrial Relations Act

                                                                                        • Occupational Health and Safety Act

                                                                                        • Workers Safety Legislation

                                                                                        • Employment Standards Act

                                                                                      Ensuring that you are following these laws – and any other laws that may be particular to your type of business – can be confusing for a new entrepreneur. If you have legal questions, hire a lawyer to protect yourself and your business.

                                                                                      Step #5: Determine the Costs of Starting Your Business

                                                                                      Starting a business from scratch can involve significant expenses. Some of those costs relate to the items you need to actually operate your business. Others relate to the cost of operating the business legally in the eyes of the New Brunswick provincial government.

                                                                                       

                                                                                      Projected Startup Costs for Certain Types of Businesses

                                                                                      The costs required to start operating your new business in New Brunswick vary greatly, depending on the type of business you want to try to operate. Here are some extremely broad estimates for several types of new business ventures.

                                                                                         

                                                                                          • Large agricultural farm: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                          • Small agricultural farm: Up to $10,000 in startup costs and variable ongoing costs.

                                                                                          • Consultant: Up to $1,000 in startup costs and about $100 per month in ongoing costs.

                                                                                          • Ecommerce retailer: Up to $5,000 in startup costs and about $250 per month in ongoing costs.

                                                                                          • Export business: Up to $25,000 in startup costs and variable ongoing costs.

                                                                                          • Commercial fishing business: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                          • Freelance writing: Up to $200 in startup costs and about $40 per month in ongoing costs.

                                                                                          • Grocery store: Up to $100,000 in startup costs and variable ongoing costs.

                                                                                         

                                                                                        Business Costs You Could Encounter in New Brunswick

                                                                                        Some one-time costs that typically occur at startup include:

                                                                                           

                                                                                            • Building a site for your operations

                                                                                            • Remodeling a site for your operations

                                                                                            • Inventory

                                                                                            • Website design

                                                                                            • Telephone system

                                                                                            • Tools

                                                                                            • Machinery

                                                                                            • Vehicles

                                                                                            • Furniture and desks

                                                                                            • Computers

                                                                                            • Software

                                                                                            • Registering the business

                                                                                            • Licences and permits

                                                                                            • Legal advice

                                                                                            • Accounting firm

                                                                                          You also will have ongoing costs to run your business, including:

                                                                                             

                                                                                              • Inventory restocking

                                                                                              • Rent for your operation

                                                                                              • Utilities

                                                                                              • Advertising

                                                                                              • Marketing

                                                                                              • Insurance

                                                                                              • Interest on business loans

                                                                                              • Employee costs

                                                                                              • Licence renewals

                                                                                              • Taxes

                                                                                              • Payroll generation

                                                                                              • Business organization memberships

                                                                                              • Maintenance

                                                                                              • Upgrades and remodeling

                                                                                              • Shipping

                                                                                              • General office expenses

                                                                                            Step #6: Develop Your Business Plan

                                                                                            A business plan fleshes out the specifics behind your business idea.

                                                                                             

                                                                                            Why Do You Need a Business Plan?

                                                                                            Properly creating a business plan takes quite a bit of time and research on your part. However, it is a vital aspect of giving your business the best chance at success. Additionally, to obtain business loans, business grants, or financing from venture capitalists, you almost certainly need to have a business plan. Some of the benefits of creating a business plan include the following.

                                                                                               

                                                                                                • Verify your idea: A business plan forces you to take a realistic look at your business idea, removing emotion from the equation and verifying that it is a profitable idea.

                                                                                                • Understand the market: By researching the industry or market you want to join, you may learn something that’s important to making your business a success. You also may learn that the market is not conducive to your idea just yet.

                                                                                                • Calculate startup costs: Create a list of items you need to have on hand before you can open the business, including employees, along with estimated costs.

                                                                                                • List potential locations: Put together a list of locations where you may want to operate the business. Determine whether you’d prefer to rent or buy a location.

                                                                                                • Project your results: As part of the business plan, you will make projections about sales and income, helping you set goals and determining the viability of the business.

                                                                                                • Selling your idea: You may feel strongly about your idea. However, trying to encourage that same feeling in other people can be a challenge. The business plan lets you sell your idea, backed up by facts and statistics.

                                                                                                • Develop a marketing plan: You can list your plans for marketing and advertising your business as part of the business plan.

                                                                                              New Brunswick’s provincial government does not require new businesses to submit a business plan during registration. However, you can use the New Brunswick business plan template to help you formulate a plan. The CBDC also provides help with business plan development.

                                                                                              Step #7: Seek Out Financing Options

                                                                                              Financing is the key to any small business option in New Brunswick (or anywhere else). If you don’t have financing to purchase new equipment or to start the business, it will never get off the ground. If you don’t have some money in reserve to help you work through the first several months while you try to establish an income stream, it can leave your business in trouble. Some of the financing sources that you should consider include the following.

                                                                                               

                                                                                              Contribute Your Own Money

                                                                                              The majority of entrepreneurs in New Brunswick will contribute at least some of their own money to a new business venture. This shows that the owner is serious about the business.

                                                                                              You might pull money from your savings, your retirement accounts, or your credit cards. Some people may start the business on a limited basis as a side hustle to begin generating some money that can fund the business full time later.

                                                                                              Perhaps you can take out a personal loan against some of your other assets, or you can sell personal items.

                                                                                               

                                                                                              Funds With No Strings Attached

                                                                                              Maybe you can find some financing options that don’t require you to pay them back. Obtaining at least some money that is “free” money can be the difference between success and failure as a business owner. (No pressure!)

                                                                                              New Brunswick business grants from the provincial government, local government, charitable organizations, or corporations may be a source of free money. You may seek donations from crowdfunding or from the 3Fs – family, friends, and “fools.”

                                                                                              New Brunswick business tax credits and rebates, wage subsidies, equipment rebates, and utility rebates all may help you with startup funding as well.

                                                                                               

                                                                                              Business Loans

                                                                                              It can be a challenge to qualify to receive loans for your New Brunswick business. However, when you need large sums of money for a certain type of business, a loan may be the only option for gathering enough money.

                                                                                              Loans potentially are available from traditional banks, government (federal and provincial), alternative lenders, and equipment providers. Some people may try purchase order financing.

                                                                                               

                                                                                              Equity Financing

                                                                                              Some business owners obtain financing by selling shares in the ownership of the business. Understand, however, that someone who purchases shares probably will also want a say in how the business operates.

                                                                                              Step #8: Seek Help Where You Need It

                                                                                              Because starting and running a business has so many different angles to it, you may have some aspects of the business that you do not feel comfortable making decisions about. You may not fully understand financing requirements or legal aspects of operating the business, for example.

                                                                                              You can always hire people to help you with some of these areas. Some of the experts you may want to hire include:

                                                                                                 

                                                                                                  • Lawyer: Have an attorney look over all legal documents and regulations that affect your business.

                                                                                                  • Accountant: A bookkeeper or an accountant will ensure your finances are in order and that you are calculating taxes accurately.

                                                                                                  • Banker: Have a banker give you opinions and advice on when it’s a good time to seek out a business loan.

                                                                                                  • Insurance agent: Insurance works as a safety net, so you can operate the business without risk of a catastrophic event wiping you out. It also protects you from a liability standpoint.

                                                                                                  • Mentor: A mentor is someone who started a business in the past and can give you advice on how to work through areas where you are struggling.

                                                                                                Step #9: Seek Out Inspiration and Advice

                                                                                                When you’re in the midst of starting a new business, it’s easy to lose sight of the reasons why you decided to make this move in the first place. You can become so wrapped up in the day-to-day decisions and obligations that you stop enjoying the process.

                                                                                                Don’t be afraid to stop occasionally and take note of your accomplishments. (You have our permission to feel proud of what you’re doing!)

                                                                                                One way to find inspiration is to seek advice from others. Advisors can show you areas where you are making good progress, giving you extra confidence. And they can keep you from making disastrous mistakes. We’ve listed some resources in New Brunswick you can use to find advice and inspiration to help you make it through the startup process successfully.

                                                                                                 

                                                                                                Business Startup Resources in New Brunswick

                                                                                                The New Brunswick provincial government has a number of new business resources aimed at those considering becoming an entrepreneur.

                                                                                                Opportunities New Brunswick is another option for business startup resources. Many of its resources are aimed at those looking to immigrate to the province to start a new business.

                                                                                                Consider contacting the New Brunswick Association of the CBDC for additional information, including when looking for help from a business expert.

                                                                                                 

                                                                                                Business Networking Opportunities in New Brunswick

                                                                                                Networking with other business owners may be a way to spark ideas for your new business. Some options for finding networking opportunities in New Brunswick include:

                                                                                                   

                                                                                                    • Black Business and Professional Network Inc.

                                                                                                    • Fredericton Chamber of Commerce Networking Events

                                                                                                    • Saint John Networking Business Events

                                                                                                    • Women in Business NB

                                                                                                   

                                                                                                  Business Directories Serving New Brunswick

                                                                                                  Business directories are online lists of businesses in a certain region, such as New Brunswick. Potential customers may find you on these directories, so it’s important to try to have an accurate listing on as many of them as possible.

                                                                                                     

                                                                                                      • New Brunswick Business Directory

                                                                                                      • Yellow Pages Business Directory

                                                                                                      • CanPages Business Directory

                                                                                                      • Dun & Bradstreet Manufacturing Business Directory

                                                                                                     

                                                                                                    Business Associations and Organizations in New Brunswick

                                                                                                    When you start your New Brunswick business, joining local organizations and associations can help you connect with fellow business owners and can show legitimacy in the eyes of your customers.

                                                                                                       

                                                                                                        • New Brunswick Business Council

                                                                                                        • The Saint John Region Chamber of Commerce

                                                                                                        • The Chamber of Commerce for Greater Moncton

                                                                                                        • Fredericton Chamber of Commerce

                                                                                                       

                                                                                                      Business Awards and Competitions in New Brunswick

                                                                                                      Several organizations in New Brunswick sponsor awards for business owners. Receiving a nomination for some of these awards – or even winning some of them – may help your business gain notoriety. Display these awards prominently at your business location or on your business website.

                                                                                                      If you belong to professional organizations, some of them may sponsor awards that are only available to members. Some awards that New Brunswick businesses may want to try to win include:

                                                                                                         

                                                                                                          • Canadian Tourism Awards

                                                                                                          • Expansion Dieppe Awards

                                                                                                          • Fredericton Chamber of Commerce Business Awards

                                                                                                          • Junior Achievement NB Business Hall of Fame

                                                                                                          • Moncton Chamber of Commerce Business Awards

                                                                                                          • New Brunswick Export Awards

                                                                                                          • Saint John Chamber of Commerce OBA Awards

                                                                                                         

                                                                                                        Business Owners Immigrating to New Brunswick

                                                                                                        For those immigrating to New Brunswick with the hope of starting a business, the New Brunswick Business Immigration Stream provides the necessary resources.

                                                                                                        New Brunswick also has hints and tips for immigrants who want to start a business, as well as a detailed guide for entrepreneurs who want to immigrate.

                                                                                                        Step #10: Figure Out How to Avoid Pitfalls

                                                                                                        Although most people focus on trying to succeed when they start a business, another useful strategy is simply trying to avoid making a serious mistake. Here are 10 common mistakes that New Brunswick business owners make when starting a new business venture.

                                                                                                           

                                                                                                            • Failing to plan: Deciding one day to start a business and then opening the doors the next day simply isn’t going to happen. You need to put together a plan and take your time to give yourself the best chance at success.

                                                                                                            • Not creating a business plan: The business plan forces you to look in depth at your business idea. Your research may show that what sounds like a good idea at first requires some tweaking to make it a viable option as a startup business.

                                                                                                            • Not considering buying a business: Most people simply assume that opening a new business requires starting from scratch. As other options, though, you could purchase an existing business or a franchise. This gives you a head start toward having success, but you do lose some control over the process.

                                                                                                            • Not finding enough funding: Even if you research your business idea’s startup costs thoroughly, surprises may appear along the way. Try to find a little extra startup money than you think you’ll need to help with emergencies and unforeseen circumstances.

                                                                                                            • Not taking advantage of government research: The New Brunswick provincial government offers some free research that you can use for your business. For example, those exporting seafood can use the research to anticipate market conditions.

                                                                                                            • Not considering a niche industry: Sometimes, a niche industry is the best place to start a business. You’ll have fewer competitors versus trying to start a business with a general focus. However, you likely will have fewer customers, so research the market first to understand how many potential customers are available.

                                                                                                            • Choosing the wrong legal structure: The legal structure for your business determines your tax status as well as any fees you must pay. Some legal structures are far more complex than you may need. If choosing a legal structure for your business is confusing to you, consult with an attorney.

                                                                                                            • Not understanding what investors want: When someone offers your New Brunswick business some investment money, it’s important to fully understand what the investors want in return. Some investors want to buy a piece of your business. Others are offering a loan (with interest). Put any agreements with investors in writing.

                                                                                                            • Not buying insurance: Property insurance protects your business investment from a catastrophe. Should someone sue you, having liability insurance for the business can protect you from significant losses in a judgment.

                                                                                                            • Trying to do too much yourself: Starting a businessis hard work. Doing too much of the startup work yourself can leave you burned out before you even have your first customer. While it is satisfying to do a lot of the setup work on your own, seeking help for areas where you are struggling is a good idea.

                                                                                                          Checklist for Starting a Business in New Brunswick

                                                                                                             

                                                                                                              • Brainstorm Possibilities for Your New Business Venture – Take the time to research your options for starting a New Brunswick business

                                                                                                              • Select Your Preferred Type of Business – Decide whether to offer products, services, or both

                                                                                                              • Determine Your Preferred Method of Becoming a Business Owner – Consider options other than starting a business from scratch

                                                                                                              • Adhering to Government Regulations in New Brunswick – Decide whether you need to follow local, provincial, or federal laws

                                                                                                              • Determine the Costs of Starting Your Business – Make an estimate of what it will cost to start your business

                                                                                                              • Develop Your Business Plan – Research the market for your business and make estimates of how it will perform

                                                                                                              • Seek Out Financing Options – Look for startup money for your business

                                                                                                              • Seek Help Where You Need It – Hire professionals who can perform tasks outside your areas of skill

                                                                                                              • Seek Out Inspiration and Advice – Find others who share your vision and entrepreneurial spirit

                                                                                                              • Figure Out How to Avoid Pitfalls – Protect yourself from suffering common mistakes that cause new businesses to fail

                                                                                                             

                                                                                                              • Gateway Business Brokers

                                                                                                              • Sunbelt Network Business Brokers


                                                                                                            Additionally, multiple websites exist that can help you find businesses for sale inside the province, including:



                                                                                                             

                                                                                                              • Businesses for sale by owner through online classifieds in New Brunswick, including Kijiji Businesses for Sale, Craigslist Businesses for Sale, and Business Sell Canada Businesses for Sale.

                                                                                                              • Online marketplaces listing businesses for sale in New Brunswick, including BusinessesForSale.com, Dealstream.com, and BuyAndSellABusiness.com.

                                                                                                              • Online real estate brokerages that list businesses for sale in New Brunswick, including Realtor.ca Businesses for Sale, Fundy Bay Real Estate Businesses for Sale, Point2Homes Businesses for Sale, and SoldWell Businesses for Sale.




                                                                                                             

                                                                                                            Buy a Franchise Business


                                                                                                            If you want the ability to start a business from scratch, but you don’t want to spend all the hours required to set up the business, you might consider purchasing a franchise. Starting a business in this manner gives you access to an existing brand name, but you run the business.

                                                                                                            Pros:



                                                                                                             

                                                                                                              • Your business has a brand that customers probably already know.

                                                                                                              • The franchiser gives you instructions for setting up the business, saving time.

                                                                                                              • The franchiser often handles advertising and marketing, saving you time and money.



                                                                                                            Cons:



                                                                                                             

                                                                                                              • The cost of the franchise will be higher than starting your own business from scratch.

                                                                                                              • The franchiser likely will have many rules you must follow for setting up and running the business.

                                                                                                              • Some franchise opportunities are scams.



                                                                                                            The New Brunswick Financial and Consumer Services Commission has advice and information on purchasing a franchise safely.




                                                                                                             

                                                                                                            Operate a Side Hustle Business


                                                                                                            You may want to try to operate your new business idea on a part-time basis at first – sometimes called a side hustle – while keeping your current full-time job. If the side hustle takes off, you may be able to make it your new full-time job, running it as a full-fledged new business.

                                                                                                            Pros:



                                                                                                             

                                                                                                              • You can test your business idea to see if it’s viable and if you like it.

                                                                                                              • You don’t have to risk giving up your full-time job and its income until you’re sure the side hustle business will support your financial needs.



                                                                                                            Cons:



                                                                                                             

                                                                                                              • Trying to run a business on a part-time basis can be extremely difficult, because you aren’t giving the business your complete attention, reducing your chances at success.

                                                                                                              • Some business ideas simply don’t work as side hustle opportunities.



                                                                                                            Step #4: Adhering to Government Regulations in New Brunswick

                                                                                                            When starting and running a business in New Brunswick, you likely will need to follow multiple regulations the provincial government has. Local governments may also have regulations in place that you need to follow, depending on the type of business you are operating.

                                                                                                            Some government regulations may feel unfair or may cost you some extra money when setting up your business, which is frustrating. However, adhering to regulations is a necessary part of starting many types of businesses in New Brunswick or anywhere in Canada.


                                                                                                             

                                                                                                            Determining Your Business’ Legal Structure


                                                                                                            Registering your business and specifying its legal structure is a key part of legally operating in New Brunswick. Typically, the majority of New Brunswick new business owners will choose among:



                                                                                                             

                                                                                                              • Sole proprietorship

                                                                                                              • Partnership

                                                                                                              • Incorporated company



                                                                                                            OpportunitiesNB has advice for selecting the right business structure for your needs. Additionally, BizPaL offers the Business Structures Wizard that can walk a New Brunswick business owner through the process of selecting a legal business structure.




                                                                                                             

                                                                                                            Selecting a Name for Your New Brunswick Business


                                                                                                            New Brunswick’s provincial government has a number of resources to help you select and register your business name. Some of the rules for selecting a business name in New Brunswick include:



                                                                                                             

                                                                                                              • The name must be different from other business names in New Brunswick.

                                                                                                              • It must not be misleading to potential customers.

                                                                                                              • It cannot include words considered obscene.

                                                                                                              • The name should describe your business’ purpose.

                                                                                                              • You must use certain words if you are naming a corporation.



                                                                                                            You can search for currently registered business names in New Brunswick, so you know whether the name you want to use is too similar to another name. If you use a name that’s similar, the other business could sue you later, forcing you to change your name after you start running the business. This can be a problem, leading to confusion for customers.




                                                                                                             

                                                                                                            Determining Your Business Taxes


                                                                                                            The business structure you select will play a role in the types and percentages of taxes you must pay. (Yes, you must pay business taxes; no one said all aspects of starting a business would be enjoyable.) Some resources to help you understand common taxes for New Brunswick businesses include:



                                                                                                             

                                                                                                              • Corporate income tax law from New Brunswick government

                                                                                                              • Free tax help for small business owners from Canadian government

                                                                                                              • Federal and provincial corporate income tax rates in Canada



                                                                                                            Additionally, depending on the type of business you are running, you could be subject to other New Brunswick business taxes. The good news? You may also qualify to receive tax credits.




                                                                                                             

                                                                                                            Required Businesses Licences and Permits in New Brunswick


                                                                                                            Another form of government regulation for New Brunswick businesses occurs in the form of licences and permits. Local, provincial, and federal government officials may require these permits and licences.

                                                                                                            The best place to search for necessary permits and licences is BizPaL. This is an online database that is a helpful resource, explaining what you need to operate your business properly. In addition to your provincial licences and permits, you may need local permits and licences in the major cities in New Brunswick, including Saint John, Moncton, and Fredericton.




                                                                                                             

                                                                                                            Required Business Regulations in New Brunswick


                                                                                                            Businesses must follow regulations when operating in New Brunswick, especially if they will be employing people. These laws include:



                                                                                                             

                                                                                                              • Business Corporations Act

                                                                                                              • Industrial Relations Act

                                                                                                              • Occupational Health and Safety Act

                                                                                                              • Workers Safety Legislation

                                                                                                              • Employment Standards Act



                                                                                                            Ensuring that you are following these laws – and any other laws that may be particular to your type of business – can be confusing for a new entrepreneur. If you have legal questions, hire a lawyer to protect yourself and your business.



                                                                                                            Step #5: Determine the Costs of Starting Your Business

                                                                                                            Starting a business from scratch can involve significant expenses. Some of those costs relate to the items you need to actually operate your business. Others relate to the cost of operating the business legally in the eyes of the New Brunswick provincial government.


                                                                                                             

                                                                                                            Projected Startup Costs for Certain Types of Businesses


                                                                                                            The costs required to start operating your new business in New Brunswick vary greatly, depending on the type of business you want to try to operate. Here are some extremely broad estimates for several types of new business ventures.



                                                                                                             

                                                                                                              • Large agricultural farm: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                                              • Small agricultural farm: Up to $10,000 in startup costs and variable ongoing costs.

                                                                                                              • Consultant: Up to $1,000 in startup costs and about $100 per month in ongoing costs.

                                                                                                              • Ecommerce retailer: Up to $5,000 in startup costs and about $250 per month in ongoing costs.

                                                                                                              • Export business: Up to $25,000 in startup costs and variable ongoing costs.

                                                                                                              • Commercial fishing business: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                                              • Freelance writing: Up to $200 in startup costs and about $40 per month in ongoing costs.

                                                                                                              • Grocery store: Up to $100,000 in startup costs and variable ongoing costs.




                                                                                                             

                                                                                                            Business Costs You Could Encounter in New Brunswick


                                                                                                            Some one-time costs that typically occur at startup include:



                                                                                                             

                                                                                                              • Building a site for your operations

                                                                                                              • Remodeling a site for your operations

                                                                                                              • Inventory

                                                                                                              • Website design

                                                                                                              • Telephone system

                                                                                                              • Tools

                                                                                                              • Machinery

                                                                                                              • Vehicles

                                                                                                              • Furniture and desks

                                                                                                              • Computers

                                                                                                              • Software

                                                                                                              • Registering the business

                                                                                                              • Licences and permits

                                                                                                              • Legal advice

                                                                                                              • Accounting firm



                                                                                                            You also will have ongoing costs to run your business, including:



                                                                                                             

                                                                                                              • Inventory restocking

                                                                                                              • Rent for your operation

                                                                                                              • Utilities

                                                                                                              • Advertising

                                                                                                              • Marketing

                                                                                                              • Insurance

                                                                                                              • Interest on business loans

                                                                                                              • Employee costs

                                                                                                              • Licence renewals

                                                                                                              • Taxes

                                                                                                              • Payroll generation

                                                                                                              • Business organization memberships

                                                                                                              • Maintenance

                                                                                                              • Upgrades and remodeling

                                                                                                              • Shipping

                                                                                                              • General office expenses



                                                                                                            Step #6: Develop Your Business Plan

                                                                                                            A business plan fleshes out the specifics behind your business idea.


                                                                                                             

                                                                                                            Why Do You Need a Business Plan?


                                                                                                            Properly creating a business plan takes quite a bit of time and research on your part. However, it is a vital aspect of giving your business the best chance at success. Additionally, to obtain business loans, business grants, or financing from venture capitalists, you almost certainly need to have a business plan. Some of the benefits of creating a business plan include the following.



                                                                                                             

                                                                                                              • Verify your idea: A business plan forces you to take a realistic look at your business idea, removing emotion from the equation and verifying that it is a profitable idea.

                                                                                                              • Understand the market: By researching the industry or market you want to join, you may learn something that’s important to making your business a success. You also may learn that the market is not conducive to your idea just yet.

                                                                                                              • Calculate startup costs: Create a list of items you need to have on hand before you can open the business, including employees, along with estimated costs.

                                                                                                              • List potential locations: Put together a list of locations where you may want to operate the business. Determine whether you’d prefer to rent or buy a location.

                                                                                                              • Project your results: As part of the business plan, you will make projections about sales and income, helping you set goals and determining the viability of the business.

                                                                                                              • Selling your idea: You may feel strongly about your idea. However, trying to encourage that same feeling in other people can be a challenge. The business plan lets you sell your idea, backed up by facts and statistics.

                                                                                                              • Develop a marketing plan: You can list your plans for marketing and advertising your business as part of the business plan.



                                                                                                            New Brunswick’s provincial government does not require new businesses to submit a business plan during registration. However, you can use the New Brunswick business plan template to help you formulate a plan. The CBDC also provides help with business plan development.



                                                                                                            Step #7: Seek Out Financing Options

                                                                                                            Financing is the key to any small business option in New Brunswick (or anywhere else). If you don’t have financing to purchase new equipment or to start the business, it will never get off the ground. If you don’t have some money in reserve to help you work through the first several months while you try to establish an income stream, it can leave your business in trouble. Some of the financing sources that you should consider include the following.


                                                                                                             

                                                                                                            Contribute Your Own Money


                                                                                                            The majority of entrepreneurs in New Brunswick will contribute at least some of their own money to a new business venture. This shows that the owner is serious about the business.

                                                                                                            You might pull money from your savings, your retirement accounts, or your credit cards. Some people may start the business on a limited basis as a side hustle to begin generating some money that can fund the business full time later.

                                                                                                            Perhaps you can take out a personal loan against some of your other assets, or you can sell personal items.




                                                                                                             

                                                                                                            Funds With No Strings Attached


                                                                                                            Maybe you can find some financing options that don’t require you to pay them back. Obtaining at least some money that is “free” money can be the difference between success and failure as a business owner. (No pressure!)

                                                                                                            New Brunswick business grants from the provincial government, local government, charitable organizations, or corporations may be a source of free money. You may seek donations from crowdfunding or from the 3Fs – family, friends, and “fools.”

                                                                                                            New Brunswick business tax credits and rebates, wage subsidies, equipment rebates, and utility rebates all may help you with startup funding as well.




                                                                                                             

                                                                                                            Business Loans


                                                                                                            It can be a challenge to qualify to receive loans for your New Brunswick business. However, when you need large sums of money for a certain type of business, a loan may be the only option for gathering enough money.

                                                                                                            Loans potentially are available from traditional banks, government (federal and provincial), alternative lenders, and equipment providers. Some people may try purchase order financing.




                                                                                                             

                                                                                                            Equity Financing


                                                                                                            Some business owners obtain financing by selling shares in the ownership of the business. Understand, however, that someone who purchases shares probably will also want a say in how the business operates.



                                                                                                            Step #8: Seek Help Where You Need It

                                                                                                            Because starting and running a business has so many different angles to it, you may have some aspects of the business that you do not feel comfortable making decisions about. You may not fully understand financing requirements or legal aspects of operating the business, for example.

                                                                                                            You can always hire people to help you with some of these areas. Some of the experts you may want to hire include:


                                                                                                             

                                                                                                              • Lawyer: Have an attorney look over all legal documents and regulations that affect your business.

                                                                                                              • Accountant: A bookkeeper or an accountant will ensure your finances are in order and that you are calculating taxes accurately.

                                                                                                              • Banker: Have a banker give you opinions and advice on when it’s a good time to seek out a business loan.

                                                                                                              • Insurance agent: Insurance works as a safety net, so you can operate the business without risk of a catastrophic event wiping you out. It also protects you from a liability standpoint.

                                                                                                              • Mentor: A mentor is someone who started a business in the past and can give you advice on how to work through areas where you are struggling.


                                                                                                            Step #9: Seek Out Inspiration and Advice

                                                                                                            When you’re in the midst of starting a new business, it’s easy to lose sight of the reasons why you decided to make this move in the first place. You can become so wrapped up in the day-to-day decisions and obligations that you stop enjoying the process.

                                                                                                            Don’t be afraid to stop occasionally and take note of your accomplishments. (You have our permission to feel proud of what you’re doing!)

                                                                                                            One way to find inspiration is to seek advice from others. Advisors can show you areas where you are making good progress, giving you extra confidence. And they can keep you from making disastrous mistakes. We’ve listed some resources in New Brunswick you can use to find advice and inspiration to help you make it through the startup process successfully.


                                                                                                             

                                                                                                            Business Startup Resources in New Brunswick


                                                                                                            The New Brunswick provincial government has a number of new business resources aimed at those considering becoming an entrepreneur.

                                                                                                            Opportunities New Brunswick is another option for business startup resources. Many of its resources are aimed at those looking to immigrate to the province to start a new business.

                                                                                                            Consider contacting the New Brunswick Association of the CBDC for additional information, including when looking for help from a business expert.




                                                                                                             

                                                                                                            Business Networking Opportunities in New Brunswick


                                                                                                            Networking with other business owners may be a way to spark ideas for your new business. Some options for finding networking opportunities in New Brunswick include:



                                                                                                             

                                                                                                              • Black Business and Professional Network Inc.

                                                                                                              • Fredericton Chamber of Commerce Networking Events

                                                                                                              • Saint John Networking Business Events

                                                                                                              • Women in Business NB




                                                                                                             

                                                                                                            Business Directories Serving New Brunswick


                                                                                                            Business directories are online lists of businesses in a certain region, such as New Brunswick. Potential customers may find you on these directories, so it’s important to try to have an accurate listing on as many of them as possible.



                                                                                                             

                                                                                                              • New Brunswick Business Directory

                                                                                                              • Yellow Pages Business Directory

                                                                                                              • CanPages Business Directory

                                                                                                              • Dun & Bradstreet Manufacturing Business Directory




                                                                                                             

                                                                                                            Business Associations and Organizations in New Brunswick


                                                                                                            When you start your New Brunswick business, joining local organizations and associations can help you connect with fellow business owners and can show legitimacy in the eyes of your customers.



                                                                                                             

                                                                                                              • New Brunswick Business Council

                                                                                                              • The Saint John Region Chamber of Commerce

                                                                                                              • The Chamber of Commerce for Greater Moncton

                                                                                                              • Fredericton Chamber of Commerce




                                                                                                             

                                                                                                            Business Awards and Competitions in New Brunswick


                                                                                                            Several organizations in New Brunswick sponsor awards for business owners. Receiving a nomination for some of these awards – or even winning some of them – may help your business gain notoriety. Display these awards prominently at your business location or on your business website.

                                                                                                            If you belong to professional organizations, some of them may sponsor awards that are only available to members. Some awards that New Brunswick businesses may want to try to win include:



                                                                                                             

                                                                                                              • Canadian Tourism Awards

                                                                                                              • Expansion Dieppe Awards

                                                                                                              • Fredericton Chamber of Commerce Business Awards

                                                                                                              • Junior Achievement NB Business Hall of Fame

                                                                                                              • Moncton Chamber of Commerce Business Awards

                                                                                                              • New Brunswick Export Awards

                                                                                                              • Saint John Chamber of Commerce OBA Awards




                                                                                                             

                                                                                                            Business Owners Immigrating to New Brunswick


                                                                                                            For those immigrating to New Brunswick with the hope of starting a business, the New Brunswick Business Immigration Stream provides the necessary resources.

                                                                                                            New Brunswick also has hints and tips for immigrants who want to start a business, as well as a detailed guide for entrepreneurs who want to immigrate.



                                                                                                            Step #10: Figure Out How to Avoid Pitfalls

                                                                                                            Although most people focus on trying to succeed when they start a business, another useful strategy is simply trying to avoid making a serious mistake. Here are 10 common mistakes that New Brunswick business owners make when starting a new business venture.


                                                                                                             

                                                                                                              • Failing to plan: Deciding one day to start a business and then opening the doors the next day simply isn’t going to happen. You need to put together a plan and take your time to give yourself the best chance at success.

                                                                                                              • Not creating a business plan: The business plan forces you to look in depth at your business idea. Your research may show that what sounds like a good idea at first requires some tweaking to make it a viable option as a startup business.

                                                                                                              • Not considering buying a business: Most people simply assume that opening a new business requires starting from scratch. As other options, though, you could purchase an existing business or a franchise. This gives you a head start toward having success, but you do lose some control over the process.

                                                                                                              • Not finding enough funding: Even if you research your business idea’s startup costs thoroughly, surprises may appear along the way. Try to find a little extra startup money than you think you’ll need to help with emergencies and unforeseen circumstances.

                                                                                                              • Not taking advantage of government research: The New Brunswick provincial government offers some free research that you can use for your business. For example, those exporting seafood can use the research to anticipate market conditions.

                                                                                                              • Not considering a niche industry: Sometimes, a niche industry is the best place to start a business. You’ll have fewer competitors versus trying to start a business with a general focus. However, you likely will have fewer customers, so research the market first to understand how many potential customers are available.

                                                                                                              • Choosing the wrong legal structure: The legal structure for your business determines your tax status as well as any fees you must pay. Some legal structures are far more complex than you may need. If choosing a legal structure for your business is confusing to you, consult with an attorney.

                                                                                                              • Not understanding what investors want: When someone offers your New Brunswick business some investment money, it’s important to fully understand what the investors want in return. Some investors want to buy a piece of your business. Others are offering a loan (with interest). Put any agreements with investors in writing.

                                                                                                              • Not buying insurance: Property insurance protects your business investment from a catastrophe. Should someone sue you, having liability insurance for the business can protect you from significant losses in a judgment.

                                                                                                              • Trying to do too much yourself: Starting a businessis hard work. Doing too much of the startup work yourself can leave you burned out before you even have your first customer. While it is satisfying to do a lot of the setup work on your own, seeking help for areas where you are struggling is a good idea.


                                                                                                            Checklist for Starting a Business in New Brunswick


                                                                                                             

                                                                                                              • Brainstorm Possibilities for Your New Business Venture – Take the time to research your options for starting a New Brunswick business

                                                                                                              • Select Your Preferred Type of Business – Decide whether to offer products, services, or both

                                                                                                              • Determine Your Preferred Method of Becoming a Business Owner – Consider options other than starting a business from scratch

                                                                                                              • Adhering to Government Regulations in New Brunswick – Decide whether you need to follow local, provincial, or federal laws

                                                                                                              • Determine the Costs of Starting Your Business – Make an estimate of what it will cost to start your business

                                                                                                              • Develop Your Business Plan – Research the market for your business and make estimates of how it will perform

                                                                                                              • Seek Out Financing Options – Look for startup money for your business

                                                                                                              • Seek Help Where You Need It – Hire professionals who can perform tasks outside your areas of skill

                                                                                                              • Seek Out Inspiration and Advice – Find others who share your vision and entrepreneurial spirit

                                                                                                              • Figure Out How to Avoid Pitfalls – Protect yourself from suffering common mistakes that cause new businesses to fail


                                                                                                             

                                                                                                            Buy Someone Else’s Business

                                                                                                            You might prefer to buy a business that another entrepreneur is selling. People sell businesses for a variety of reasons, including retirement. Just because someone is selling a business, it doesn’t mean the business is failing.

                                                                                                            Pros:

                                                                                                               

                                                                                                                • Someone else did all the legwork to set up the business, saving you time.

                                                                                                                • You have built-in customers and employees who can help you have success faster.

                                                                                                                • The business’ previous owner may be willing to stay on for a few months and aid in the transition.

                                                                                                              Cons:

                                                                                                                 

                                                                                                                  • For a while, you have to live with some of the decisions the previous owner made, such as location, customer contracts, and employee choices.

                                                                                                                  • Verifying the business’ value and previous financial results can be challenging.

                                                                                                                Finding businesses for sale in New Brunswick is easier than you may think. One of the best options for finding help with buying an existing New Brunswick business is by working with a business broker. Such brokers know the market inside and out, and they can help you with negotiating a purchase price, too. Some top New Brunswick business brokers include:


                                                                                                                 

                                                                                                                  • Gateway Business Brokers

                                                                                                                  • Sunbelt Network Business Brokers


                                                                                                                Additionally, multiple websites exist that can help you find businesses for sale inside the province, including:



                                                                                                                 

                                                                                                                  • Businesses for sale by owner through online classifieds in New Brunswick, including Kijiji Businesses for Sale, Craigslist Businesses for Sale, and Business Sell Canada Businesses for Sale.

                                                                                                                  • Online marketplaces listing businesses for sale in New Brunswick, including BusinessesForSale.com, Dealstream.com, and BuyAndSellABusiness.com.

                                                                                                                  • Online real estate brokerages that list businesses for sale in New Brunswick, including Realtor.ca Businesses for Sale, Fundy Bay Real Estate Businesses for Sale, Point2Homes Businesses for Sale, and SoldWell Businesses for Sale.




                                                                                                                 

                                                                                                                Buy a Franchise Business


                                                                                                                If you want the ability to start a business from scratch, but you don’t want to spend all the hours required to set up the business, you might consider purchasing a franchise. Starting a business in this manner gives you access to an existing brand name, but you run the business.

                                                                                                                Pros:



                                                                                                                 

                                                                                                                  • Your business has a brand that customers probably already know.

                                                                                                                  • The franchiser gives you instructions for setting up the business, saving time.

                                                                                                                  • The franchiser often handles advertising and marketing, saving you time and money.



                                                                                                                Cons:



                                                                                                                 

                                                                                                                  • The cost of the franchise will be higher than starting your own business from scratch.

                                                                                                                  • The franchiser likely will have many rules you must follow for setting up and running the business.

                                                                                                                  • Some franchise opportunities are scams.



                                                                                                                The New Brunswick Financial and Consumer Services Commission has advice and information on purchasing a franchise safely.




                                                                                                                 

                                                                                                                Operate a Side Hustle Business


                                                                                                                You may want to try to operate your new business idea on a part-time basis at first – sometimes called a side hustle – while keeping your current full-time job. If the side hustle takes off, you may be able to make it your new full-time job, running it as a full-fledged new business.

                                                                                                                Pros:



                                                                                                                 

                                                                                                                  • You can test your business idea to see if it’s viable and if you like it.

                                                                                                                  • You don’t have to risk giving up your full-time job and its income until you’re sure the side hustle business will support your financial needs.



                                                                                                                Cons:



                                                                                                                 

                                                                                                                  • Trying to run a business on a part-time basis can be extremely difficult, because you aren’t giving the business your complete attention, reducing your chances at success.

                                                                                                                  • Some business ideas simply don’t work as side hustle opportunities.



                                                                                                                Step #4: Adhering to Government Regulations in New Brunswick

                                                                                                                When starting and running a business in New Brunswick, you likely will need to follow multiple regulations the provincial government has. Local governments may also have regulations in place that you need to follow, depending on the type of business you are operating.

                                                                                                                Some government regulations may feel unfair or may cost you some extra money when setting up your business, which is frustrating. However, adhering to regulations is a necessary part of starting many types of businesses in New Brunswick or anywhere in Canada.


                                                                                                                 

                                                                                                                Determining Your Business’ Legal Structure


                                                                                                                Registering your business and specifying its legal structure is a key part of legally operating in New Brunswick. Typically, the majority of New Brunswick new business owners will choose among:



                                                                                                                 

                                                                                                                  • Sole proprietorship

                                                                                                                  • Partnership

                                                                                                                  • Incorporated company



                                                                                                                OpportunitiesNB has advice for selecting the right business structure for your needs. Additionally, BizPaL offers the Business Structures Wizard that can walk a New Brunswick business owner through the process of selecting a legal business structure.




                                                                                                                 

                                                                                                                Selecting a Name for Your New Brunswick Business


                                                                                                                New Brunswick’s provincial government has a number of resources to help you select and register your business name. Some of the rules for selecting a business name in New Brunswick include:



                                                                                                                 

                                                                                                                  • The name must be different from other business names in New Brunswick.

                                                                                                                  • It must not be misleading to potential customers.

                                                                                                                  • It cannot include words considered obscene.

                                                                                                                  • The name should describe your business’ purpose.

                                                                                                                  • You must use certain words if you are naming a corporation.



                                                                                                                You can search for currently registered business names in New Brunswick, so you know whether the name you want to use is too similar to another name. If you use a name that’s similar, the other business could sue you later, forcing you to change your name after you start running the business. This can be a problem, leading to confusion for customers.




                                                                                                                 

                                                                                                                Determining Your Business Taxes


                                                                                                                The business structure you select will play a role in the types and percentages of taxes you must pay. (Yes, you must pay business taxes; no one said all aspects of starting a business would be enjoyable.) Some resources to help you understand common taxes for New Brunswick businesses include:



                                                                                                                 

                                                                                                                  • Corporate income tax law from New Brunswick government

                                                                                                                  • Free tax help for small business owners from Canadian government

                                                                                                                  • Federal and provincial corporate income tax rates in Canada



                                                                                                                Additionally, depending on the type of business you are running, you could be subject to other New Brunswick business taxes. The good news? You may also qualify to receive tax credits.




                                                                                                                 

                                                                                                                Required Businesses Licences and Permits in New Brunswick


                                                                                                                Another form of government regulation for New Brunswick businesses occurs in the form of licences and permits. Local, provincial, and federal government officials may require these permits and licences.

                                                                                                                The best place to search for necessary permits and licences is BizPaL. This is an online database that is a helpful resource, explaining what you need to operate your business properly. In addition to your provincial licences and permits, you may need local permits and licences in the major cities in New Brunswick, including Saint John, Moncton, and Fredericton.




                                                                                                                 

                                                                                                                Required Business Regulations in New Brunswick


                                                                                                                Businesses must follow regulations when operating in New Brunswick, especially if they will be employing people. These laws include:



                                                                                                                 

                                                                                                                  • Business Corporations Act

                                                                                                                  • Industrial Relations Act

                                                                                                                  • Occupational Health and Safety Act

                                                                                                                  • Workers Safety Legislation

                                                                                                                  • Employment Standards Act



                                                                                                                Ensuring that you are following these laws – and any other laws that may be particular to your type of business – can be confusing for a new entrepreneur. If you have legal questions, hire a lawyer to protect yourself and your business.



                                                                                                                Step #5: Determine the Costs of Starting Your Business

                                                                                                                Starting a business from scratch can involve significant expenses. Some of those costs relate to the items you need to actually operate your business. Others relate to the cost of operating the business legally in the eyes of the New Brunswick provincial government.


                                                                                                                 

                                                                                                                Projected Startup Costs for Certain Types of Businesses


                                                                                                                The costs required to start operating your new business in New Brunswick vary greatly, depending on the type of business you want to try to operate. Here are some extremely broad estimates for several types of new business ventures.



                                                                                                                 

                                                                                                                  • Large agricultural farm: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                                                  • Small agricultural farm: Up to $10,000 in startup costs and variable ongoing costs.

                                                                                                                  • Consultant: Up to $1,000 in startup costs and about $100 per month in ongoing costs.

                                                                                                                  • Ecommerce retailer: Up to $5,000 in startup costs and about $250 per month in ongoing costs.

                                                                                                                  • Export business: Up to $25,000 in startup costs and variable ongoing costs.

                                                                                                                  • Commercial fishing business: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                                                  • Freelance writing: Up to $200 in startup costs and about $40 per month in ongoing costs.

                                                                                                                  • Grocery store: Up to $100,000 in startup costs and variable ongoing costs.




                                                                                                                 

                                                                                                                Business Costs You Could Encounter in New Brunswick


                                                                                                                Some one-time costs that typically occur at startup include:



                                                                                                                 

                                                                                                                  • Building a site for your operations

                                                                                                                  • Remodeling a site for your operations

                                                                                                                  • Inventory

                                                                                                                  • Website design

                                                                                                                  • Telephone system

                                                                                                                  • Tools

                                                                                                                  • Machinery

                                                                                                                  • Vehicles

                                                                                                                  • Furniture and desks

                                                                                                                  • Computers

                                                                                                                  • Software

                                                                                                                  • Registering the business

                                                                                                                  • Licences and permits

                                                                                                                  • Legal advice

                                                                                                                  • Accounting firm



                                                                                                                You also will have ongoing costs to run your business, including:



                                                                                                                 

                                                                                                                  • Inventory restocking

                                                                                                                  • Rent for your operation

                                                                                                                  • Utilities

                                                                                                                  • Advertising

                                                                                                                  • Marketing

                                                                                                                  • Insurance

                                                                                                                  • Interest on business loans

                                                                                                                  • Employee costs

                                                                                                                  • Licence renewals

                                                                                                                  • Taxes

                                                                                                                  • Payroll generation

                                                                                                                  • Business organization memberships

                                                                                                                  • Maintenance

                                                                                                                  • Upgrades and remodeling

                                                                                                                  • Shipping

                                                                                                                  • General office expenses



                                                                                                                Step #6: Develop Your Business Plan

                                                                                                                A business plan fleshes out the specifics behind your business idea.


                                                                                                                 

                                                                                                                Why Do You Need a Business Plan?


                                                                                                                Properly creating a business plan takes quite a bit of time and research on your part. However, it is a vital aspect of giving your business the best chance at success. Additionally, to obtain business loans, business grants, or financing from venture capitalists, you almost certainly need to have a business plan. Some of the benefits of creating a business plan include the following.



                                                                                                                 

                                                                                                                  • Verify your idea: A business plan forces you to take a realistic look at your business idea, removing emotion from the equation and verifying that it is a profitable idea.

                                                                                                                  • Understand the market: By researching the industry or market you want to join, you may learn something that’s important to making your business a success. You also may learn that the market is not conducive to your idea just yet.

                                                                                                                  • Calculate startup costs: Create a list of items you need to have on hand before you can open the business, including employees, along with estimated costs.

                                                                                                                  • List potential locations: Put together a list of locations where you may want to operate the business. Determine whether you’d prefer to rent or buy a location.

                                                                                                                  • Project your results: As part of the business plan, you will make projections about sales and income, helping you set goals and determining the viability of the business.

                                                                                                                  • Selling your idea: You may feel strongly about your idea. However, trying to encourage that same feeling in other people can be a challenge. The business plan lets you sell your idea, backed up by facts and statistics.

                                                                                                                  • Develop a marketing plan: You can list your plans for marketing and advertising your business as part of the business plan.



                                                                                                                New Brunswick’s provincial government does not require new businesses to submit a business plan during registration. However, you can use the New Brunswick business plan template to help you formulate a plan. The CBDC also provides help with business plan development.



                                                                                                                Step #7: Seek Out Financing Options

                                                                                                                Financing is the key to any small business option in New Brunswick (or anywhere else). If you don’t have financing to purchase new equipment or to start the business, it will never get off the ground. If you don’t have some money in reserve to help you work through the first several months while you try to establish an income stream, it can leave your business in trouble. Some of the financing sources that you should consider include the following.


                                                                                                                 

                                                                                                                Contribute Your Own Money


                                                                                                                The majority of entrepreneurs in New Brunswick will contribute at least some of their own money to a new business venture. This shows that the owner is serious about the business.

                                                                                                                You might pull money from your savings, your retirement accounts, or your credit cards. Some people may start the business on a limited basis as a side hustle to begin generating some money that can fund the business full time later.

                                                                                                                Perhaps you can take out a personal loan against some of your other assets, or you can sell personal items.




                                                                                                                 

                                                                                                                Funds With No Strings Attached


                                                                                                                Maybe you can find some financing options that don’t require you to pay them back. Obtaining at least some money that is “free” money can be the difference between success and failure as a business owner. (No pressure!)

                                                                                                                New Brunswick business grants from the provincial government, local government, charitable organizations, or corporations may be a source of free money. You may seek donations from crowdfunding or from the 3Fs – family, friends, and “fools.”

                                                                                                                New Brunswick business tax credits and rebates, wage subsidies, equipment rebates, and utility rebates all may help you with startup funding as well.




                                                                                                                 

                                                                                                                Business Loans


                                                                                                                It can be a challenge to qualify to receive loans for your New Brunswick business. However, when you need large sums of money for a certain type of business, a loan may be the only option for gathering enough money.

                                                                                                                Loans potentially are available from traditional banks, government (federal and provincial), alternative lenders, and equipment providers. Some people may try purchase order financing.




                                                                                                                 

                                                                                                                Equity Financing


                                                                                                                Some business owners obtain financing by selling shares in the ownership of the business. Understand, however, that someone who purchases shares probably will also want a say in how the business operates.



                                                                                                                Step #8: Seek Help Where You Need It

                                                                                                                Because starting and running a business has so many different angles to it, you may have some aspects of the business that you do not feel comfortable making decisions about. You may not fully understand financing requirements or legal aspects of operating the business, for example.

                                                                                                                You can always hire people to help you with some of these areas. Some of the experts you may want to hire include:


                                                                                                                 

                                                                                                                  • Lawyer: Have an attorney look over all legal documents and regulations that affect your business.

                                                                                                                  • Accountant: A bookkeeper or an accountant will ensure your finances are in order and that you are calculating taxes accurately.

                                                                                                                  • Banker: Have a banker give you opinions and advice on when it’s a good time to seek out a business loan.

                                                                                                                  • Insurance agent: Insurance works as a safety net, so you can operate the business without risk of a catastrophic event wiping you out. It also protects you from a liability standpoint.

                                                                                                                  • Mentor: A mentor is someone who started a business in the past and can give you advice on how to work through areas where you are struggling.


                                                                                                                Step #9: Seek Out Inspiration and Advice

                                                                                                                When you’re in the midst of starting a new business, it’s easy to lose sight of the reasons why you decided to make this move in the first place. You can become so wrapped up in the day-to-day decisions and obligations that you stop enjoying the process.

                                                                                                                Don’t be afraid to stop occasionally and take note of your accomplishments. (You have our permission to feel proud of what you’re doing!)

                                                                                                                One way to find inspiration is to seek advice from others. Advisors can show you areas where you are making good progress, giving you extra confidence. And they can keep you from making disastrous mistakes. We’ve listed some resources in New Brunswick you can use to find advice and inspiration to help you make it through the startup process successfully.


                                                                                                                 

                                                                                                                Business Startup Resources in New Brunswick


                                                                                                                The New Brunswick provincial government has a number of new business resources aimed at those considering becoming an entrepreneur.

                                                                                                                Opportunities New Brunswick is another option for business startup resources. Many of its resources are aimed at those looking to immigrate to the province to start a new business.

                                                                                                                Consider contacting the New Brunswick Association of the CBDC for additional information, including when looking for help from a business expert.




                                                                                                                 

                                                                                                                Business Networking Opportunities in New Brunswick


                                                                                                                Networking with other business owners may be a way to spark ideas for your new business. Some options for finding networking opportunities in New Brunswick include:



                                                                                                                 

                                                                                                                  • Black Business and Professional Network Inc.

                                                                                                                  • Fredericton Chamber of Commerce Networking Events

                                                                                                                  • Saint John Networking Business Events

                                                                                                                  • Women in Business NB




                                                                                                                 

                                                                                                                Business Directories Serving New Brunswick


                                                                                                                Business directories are online lists of businesses in a certain region, such as New Brunswick. Potential customers may find you on these directories, so it’s important to try to have an accurate listing on as many of them as possible.



                                                                                                                 

                                                                                                                  • New Brunswick Business Directory

                                                                                                                  • Yellow Pages Business Directory

                                                                                                                  • CanPages Business Directory

                                                                                                                  • Dun & Bradstreet Manufacturing Business Directory




                                                                                                                 

                                                                                                                Business Associations and Organizations in New Brunswick


                                                                                                                When you start your New Brunswick business, joining local organizations and associations can help you connect with fellow business owners and can show legitimacy in the eyes of your customers.



                                                                                                                 

                                                                                                                  • New Brunswick Business Council

                                                                                                                  • The Saint John Region Chamber of Commerce

                                                                                                                  • The Chamber of Commerce for Greater Moncton

                                                                                                                  • Fredericton Chamber of Commerce




                                                                                                                 

                                                                                                                Business Awards and Competitions in New Brunswick


                                                                                                                Several organizations in New Brunswick sponsor awards for business owners. Receiving a nomination for some of these awards – or even winning some of them – may help your business gain notoriety. Display these awards prominently at your business location or on your business website.

                                                                                                                If you belong to professional organizations, some of them may sponsor awards that are only available to members. Some awards that New Brunswick businesses may want to try to win include:



                                                                                                                 

                                                                                                                  • Canadian Tourism Awards

                                                                                                                  • Expansion Dieppe Awards

                                                                                                                  • Fredericton Chamber of Commerce Business Awards

                                                                                                                  • Junior Achievement NB Business Hall of Fame

                                                                                                                  • Moncton Chamber of Commerce Business Awards

                                                                                                                  • New Brunswick Export Awards

                                                                                                                  • Saint John Chamber of Commerce OBA Awards




                                                                                                                 

                                                                                                                Business Owners Immigrating to New Brunswick


                                                                                                                For those immigrating to New Brunswick with the hope of starting a business, the New Brunswick Business Immigration Stream provides the necessary resources.

                                                                                                                New Brunswick also has hints and tips for immigrants who want to start a business, as well as a detailed guide for entrepreneurs who want to immigrate.



                                                                                                                Step #10: Figure Out How to Avoid Pitfalls

                                                                                                                Although most people focus on trying to succeed when they start a business, another useful strategy is simply trying to avoid making a serious mistake. Here are 10 common mistakes that New Brunswick business owners make when starting a new business venture.


                                                                                                                 

                                                                                                                  • Failing to plan: Deciding one day to start a business and then opening the doors the next day simply isn’t going to happen. You need to put together a plan and take your time to give yourself the best chance at success.

                                                                                                                  • Not creating a business plan: The business plan forces you to look in depth at your business idea. Your research may show that what sounds like a good idea at first requires some tweaking to make it a viable option as a startup business.

                                                                                                                  • Not considering buying a business: Most people simply assume that opening a new business requires starting from scratch. As other options, though, you could purchase an existing business or a franchise. This gives you a head start toward having success, but you do lose some control over the process.

                                                                                                                  • Not finding enough funding: Even if you research your business idea’s startup costs thoroughly, surprises may appear along the way. Try to find a little extra startup money than you think you’ll need to help with emergencies and unforeseen circumstances.

                                                                                                                  • Not taking advantage of government research: The New Brunswick provincial government offers some free research that you can use for your business. For example, those exporting seafood can use the research to anticipate market conditions.

                                                                                                                  • Not considering a niche industry: Sometimes, a niche industry is the best place to start a business. You’ll have fewer competitors versus trying to start a business with a general focus. However, you likely will have fewer customers, so research the market first to understand how many potential customers are available.

                                                                                                                  • Choosing the wrong legal structure: The legal structure for your business determines your tax status as well as any fees you must pay. Some legal structures are far more complex than you may need. If choosing a legal structure for your business is confusing to you, consult with an attorney.

                                                                                                                  • Not understanding what investors want: When someone offers your New Brunswick business some investment money, it’s important to fully understand what the investors want in return. Some investors want to buy a piece of your business. Others are offering a loan (with interest). Put any agreements with investors in writing.

                                                                                                                  • Not buying insurance: Property insurance protects your business investment from a catastrophe. Should someone sue you, having liability insurance for the business can protect you from significant losses in a judgment.

                                                                                                                  • Trying to do too much yourself: Starting a businessis hard work. Doing too much of the startup work yourself can leave you burned out before you even have your first customer. While it is satisfying to do a lot of the setup work on your own, seeking help for areas where you are struggling is a good idea.


                                                                                                                Checklist for Starting a Business in New Brunswick


                                                                                                                 

                                                                                                                  • Brainstorm Possibilities for Your New Business Venture – Take the time to research your options for starting a New Brunswick business

                                                                                                                  • Select Your Preferred Type of Business – Decide whether to offer products, services, or both

                                                                                                                  • Determine Your Preferred Method of Becoming a Business Owner – Consider options other than starting a business from scratch

                                                                                                                  • Adhering to Government Regulations in New Brunswick – Decide whether you need to follow local, provincial, or federal laws

                                                                                                                  • Determine the Costs of Starting Your Business – Make an estimate of what it will cost to start your business

                                                                                                                  • Develop Your Business Plan – Research the market for your business and make estimates of how it will perform

                                                                                                                  • Seek Out Financing Options – Look for startup money for your business

                                                                                                                  • Seek Help Where You Need It – Hire professionals who can perform tasks outside your areas of skill

                                                                                                                  • Seek Out Inspiration and Advice – Find others who share your vision and entrepreneurial spirit

                                                                                                                  • Figure Out How to Avoid Pitfalls – Protect yourself from suffering common mistakes that cause new businesses to fail


                                                                                                                How to Start a Business in Newfoundland and Labrador: Step-by-Step Guide for New Entrepreneurs

                                                                                                                by Maurice | February 12, 2023

                                                                                                                In Newfoundland and Labrador, business ownership is an important part of the economy. And small businesses constitute the majority of business ownership in this province.

                                                                                                                Of the 15,200 small businesses in Newfoundland and Labrador in December 2021, more than 13,400 of them employed fewer than 20 people. More than 8,200 small businesses employed fewer than five people.

                                                                                                                If you are thinking of joining the ranks of small businesses in Newfoundland and Labrador, our comprehensive guide on how to start a business in Newfoundland and Labrador will help you move from idea to your first paying customer. (We even have advice for coming up with a winning business idea!)


                                                                                                                Table of Contents

                                                                                                                Step #1: Generating a Winning Business Idea in Newfoundland and Labrador

                                                                                                                Step #2: Decide on a Type of Business in Newfoundland and Labrador

                                                                                                                Step #3: Prepare to Enter the Business Market in Newfoundland and Labrador

                                                                                                                Step #4: What Government Business Regulations Must You Follow in Newfoundland and Labrador?

                                                                                                                Step #5: Make an Estimate on Your NL Business’ Startup Costs

                                                                                                                Step #6: Develop Your Business Plan


                                                                                                                Step #7: Seeking Funding for Your Business Venture

                                                                                                                Step #8: Don’t Be Afraid to Ask for Help

                                                                                                                Step #9: Celebrate the Little Wins and Find Advice

                                                                                                                Step #10: Guard Against These 10 Common Business Mistakes

                                                                                                                Checklist for Starting a Business on Newfoundland and Labrador


                                                                                                                Step #1: Generating a Winning Business Idea in Newfoundland and Labrador

                                                                                                                Putting together a great business idea is challenging. But don’t let fear and frustration leave you frozen in place. Let the business ideas flow freely. Some of them might be terrible. But some might end up being great!

                                                                                                                Everything starts with generating an idea for your Newfoundland and Labrador business. Here are some tips that can spark your creative side.

                                                                                                                 

                                                                                                                Start With Newfoundland and Labrador’s Top Industries

                                                                                                                Newfoundland and Labrador is known as having a unique culture that nowhere else in the world can quite match. Its rugged beauty is like a postcard for eastern Canada.

                                                                                                                Newfoundland and Labrador is also known for having an economy focused on primary industries that rely on natural resources found in this province, including:

                                                                                                                   

                                                                                                                    • Fishing

                                                                                                                    • Mining

                                                                                                                    • Forestry

                                                                                                                    • Petroleum

                                                                                                                    • Tourism

                                                                                                                  Some Newfoundland and Labrador businesses focus on manufacturing that involves these natural resources. Exporting these natural resources is a common business plan as well.

                                                                                                                  Additionally, the NL provincial government has identified six priority industry sectors that could provide a great foundation for entrepreneurs looking to start a business here. These sectors include:

                                                                                                                     

                                                                                                                      • Oil and gas

                                                                                                                      • Mineral development

                                                                                                                      • Ocean technology

                                                                                                                      • Technology and innovation

                                                                                                                      • Aerospace and defence

                                                                                                                      • Innovation

                                                                                                                     

                                                                                                                    Small Businesses Niches to Start in NL

                                                                                                                    If any of these industries seem interesting to you or seem to match your skills well, you may want to try to develop business ideas within that industry sector.

                                                                                                                    For a small business, tackling the industry sector in a general sense, where you are trying to serve all aspects of the industry, typically is a recipe for disaster. You’ll often be competing with large businesses if you try this.

                                                                                                                    Instead, you may want to start out by focusing on a niche area of the industry sector. Admittedly, you will have fewer potential customers in the niche area, but you should have fewer (and smaller) businesses competing with you, too.

                                                                                                                    For example, if you want to work in the fishing industry, rather than doing everything from selling fishing boats to servicing boats to selling fishing equipment to trucking harvested fish to the desired destination, you might want to focus on one segment of the fishing industry.

                                                                                                                    Maybe you would start with boat repair as your niche. You then could expand into more areas as your business grows and as your customers demand it.

                                                                                                                     

                                                                                                                    Where Do I Start My Newfoundland and Labrador Business?

                                                                                                                    According to the 2021 census, Newfoundland and Labrador had a population of about 510,000 across the province. Of that population, about 40% of residents live in rural areas.

                                                                                                                    If your NL business idea focuses on industries that exist primarily in rural areas, such as farming or mining, you may want to try to locate close to your rural customers.

                                                                                                                    However, if your business idea in Newfoundland and Labrador requires access to technology, high-speed internet, and a large pool of employees with specific training, locating your business in an urban area may be the better option.

                                                                                                                    St. John’s is the capital of Newfoundland and Labrador, and it has a population of more than 185,000 people. It’s in the southeast corner of the province.

                                                                                                                    The island of Newfoundland does not have any bridge to connect it to Labrador or any other Canadian province. If you need vehicular access to the rest of Canada, you must travel by ferry.

                                                                                                                    Labrador, meanwhile, shares a border with Quebec, simplifying vehicular travel to other areas in Canada for your business. The Expedition 51 Highway, completed in June 2018, helps tremendously with traveling by vehicle between Quebec and Labrador, although it can be a rugged trip in spots with limited cellular service and amenities.

                                                                                                                    Step #2: Decide on a Type of Business in Newfoundland and Labrador

                                                                                                                    The next step involves choosing what you want your business to offer and how you want the business to appear to customers.

                                                                                                                     

                                                                                                                    Offer Goods or Services

                                                                                                                    Businesses tend to offer items in one of two categories, although some operate in both categories.

                                                                                                                    When a business offers goods, the business sells tangible products. You might offer food, retail items, or photographs.

                                                                                                                    When a business offers services, the business does tasks for its customers. You may provide appliance repair, tutoring, or consultancy services.

                                                                                                                    Some businesses offer both goods and services. These businesses might sell the parts to repair small engines and then also install the parts.

                                                                                                                    Think about the skills you have when deciding between goods and services. If you are good at making things, you may want to offer your own products. If you have a knack for fixing things, offering services may be a better choice.

                                                                                                                    Some businesses that offer goods create the products themselves or assemble the products from parts they purchase. Others may purchase finished goods from elsewhere and sell these goods at retail. Services work in a similar manner. You could offer services that you perform yourself, or you could hire others to perform services on your behalf.

                                                                                                                     

                                                                                                                    Offline or Online

                                                                                                                    Next, decide whether you want your primary means of interacting with customers to be in a physical location (offline) or digitally (online).

                                                                                                                    An offline business has a building that customers visit and that employees work from, such as a retail store, manufacturing facility, or restaurant. Offline businesses still need to have a digital presence, including a website, but this is not the primary means of customer interactions.

                                                                                                                    An online business operates primarily through a website, where customers would make appointments or order products from you. You might interact with customers at their location, such as with a mobile pet grooming business, but meeting customers face-to-face is less common.

                                                                                                                    The type of business you are running will play a role in choosing between online and offline. If you want to run a restaurant, trying to operate an online business only through deliveries would be a challenge, for example.

                                                                                                                    If you want to run an online business, you need a strong internet connection. Newfoundland and Labrador’s Connectivity Strategy is working to improve broadband internet and cellular availability throughout the province.

                                                                                                                     

                                                                                                                    Things to Think About for Your Offline Newfoundland and Labrador Business

                                                                                                                    The most important aspect of an offline business in NL is the location. You want to be located near your customers as much as possible, making it convenient for them to visit you.

                                                                                                                    If you need access to shipping or major roads to move your products or to have access to goods, these considerations also should be part of your selection of a location.

                                                                                                                    You may purchase or rent your location. If your initial funding is limited, renting will be cheaper at first. However, you have less control over the configuration of the building when you are renting.

                                                                                                                    When customers are visiting your location, you must pay attention to things like building accessibility rules. Snow and ice removal must occur on the property to keep visitors safe.

                                                                                                                    Maintenance on the building is part of the ongoing cost of running an offline business. You also may need equipment, office furniture, and security, and costs are associated with all of these items.

                                                                                                                     

                                                                                                                    Examples of Newfoundland Offline Businesses

                                                                                                                       

                                                                                                                        • Fishing boats (manufacturing or servicing)

                                                                                                                        • Farming

                                                                                                                        • Mining operation

                                                                                                                        • Bed and breakfast

                                                                                                                        • Chiropractic office

                                                                                                                        • Manufacturing

                                                                                                                        • Vehicle repair

                                                                                                                        • Restaurant

                                                                                                                        • Retail store

                                                                                                                        • On-site consultancy services

                                                                                                                        • On-site mobile small engine repair

                                                                                                                       

                                                                                                                      Things to Think About for Your Online Newfoundland and Labrador Business

                                                                                                                      One of the biggest benefits of operating an online, digital-only business in NL is the ability to work from home. You can save money, because you don’t need a store or building where you can host customers.

                                                                                                                      If your home doesn’t have storage for inventory that you need for a digital store or a solid internet connection, you may need to rent space elsewhere. But you can still run a digital business, even if you must rent a location other than your home.

                                                                                                                      Although running an online-only business has quite a few advantages, it is important to be a great communicator in this type of business. Because customers don’t meet you face to face all that often, you must communicate well via telephone, email, social media, and text.

                                                                                                                      When customers don’t see you regularly, they may be less forgiving regarding mistakes or missed deadlines. You need to be disciplined about delivering what you promise to your customers, and you must communicate well.

                                                                                                                       

                                                                                                                      Examples of Newfoundland Online Businesses

                                                                                                                         

                                                                                                                          • Digital retail store

                                                                                                                          • Remote customer service

                                                                                                                          • Freelance blogger

                                                                                                                          • Freelance social media manager

                                                                                                                          • Freelance photographer

                                                                                                                          • Online tutor or personal trainer

                                                                                                                         

                                                                                                                        Seek Online Business Development Help

                                                                                                                        If you plan to operate a digital-only business, having a high-quality website is non-negotiable. If your website looks like you designed it in 15 minutes on a Saturday, your customers will give up on you even faster.

                                                                                                                        If you don’t have the skills to create your own website, you have a few options to find help. You could hire a local website developer on a freelance basis – thereby helping someone else’s small business in Newfoundland and Labrador!

                                                                                                                        You also can make use of a subscription website hosting service that runs in the cloud. These services help you from start to finish, including establishing a web address and putting together a sharp-looking website. Some cloud software services even focus on creating an online storefront.

                                                                                                                         

                                                                                                                        Social Media and Digital Marketing for Your NL Business

                                                                                                                        Whether you are running an online or offline business, social media and digital marketing is vital to your hopes for success. Customers are far more likely to check your business out on the internet before they come into your store.

                                                                                                                        An active social media presence keeps your customers engaged, even when they aren’t actively using your goods and services. You can use humor on your social media posts, but avoid humor that people may find offensive.

                                                                                                                        The Newfoundland and Labrador provincial government offers help with digital marketing for business owners.

                                                                                                                        Try to use social media to interact with your customers, especially for an online business. If people see that you are responsive on social media, they are more likely to trust you.

                                                                                                                        Step #3: Prepare to Enter the Business Market in Newfoundland and Labrador

                                                                                                                        Starting a business in Newfoundland and Labrador can involve a few different avenues to success. There’s no one path that is a guarantee of generating profits. Select your path based on what fits with your lifestyle, your goals, and your skill set.

                                                                                                                           

                                                                                                                            • New business: Starting a new business from scratch gives you full control over the process. There’s certainly a sense of pride that goes with creating a business on your own. However, it also takes the longest amount of time, as preparation for opening is lengthy. NL’s Business Development Support Program can be a big help to new entrepreneurs.

                                                                                                                            • Purchase a business: You may want to buy a business that someone else is selling. This is the fastest way to begin operating a business, as the previous owner did the legwork for you. With an existing business, you have a history of sales and income performance to lean on. You also have to live with the previous owner’s mistakes, though.

                                                                                                                            • Buy a franchise: Purchasing a franchise gives you the ability to start a business on NL that has a recognizable brand name, potentially helping you have success faster. You must adhere to rules that the franchiser sets up for what you can offer, but the franchiser helps you with marketing and advertising. (Some franchise opportunities are scams, so always be careful.)

                                                                                                                            • Part-time side hustle: If you have a business idea, but you aren’t sure whether it will give you the income level you need, you could try running it on a part-time basis as a “side hustle,” while you continue working at your current job. If the side hustle takes off, you then could make it your full-time NL business.

                                                                                                                           

                                                                                                                          Finding Businesses for Sale in Newfoundland and Labrador

                                                                                                                          If you have focused your ideas for becoming an entrepreneur in Newfoundland and Labrador on starting a business from scratch, you may not know much about buying an existing business. However, this option is a good one for people who simply don’t have the time or energy to go through the process of creating a business out of nothing.

                                                                                                                          Multiple resources are available to help you figure out if purchasing an existing business is a useful option for you.

                                                                                                                          For example, you can check multiple websites that list businesses for sale throughout the NL province. You may find something interesting by researching these websites, and you can gain an idea of the cost of businesses.

                                                                                                                          For a bit more hands-on help, reaching out to a business broker is a great idea. A business broker focuses on the business market in Newfoundland and Labrador. This person knows exactly what is available, helping you match your preferences to an uncommon niche business. Additionally, the broker may be able to help you facilitate the purchase of the business, working as a go-between to move the negotiations along faster.

                                                                                                                           

                                                                                                                          Newfoundland and Labrador business brokers:

                                                                                                                             

                                                                                                                              • Gateway Business Brokers

                                                                                                                              • Sunbelt Network Business Brokers

                                                                                                                             

                                                                                                                            Newfoundland and Labrador online marketplaces with businesses for sale:

                                                                                                                               

                                                                                                                                • BusinessesForSale.com

                                                                                                                                • BuyAndSellABusiness.com

                                                                                                                                • GlobalBX

                                                                                                                               

                                                                                                                              Newfoundland and Labrador businesses for sale by owner:

                                                                                                                                 

                                                                                                                                  • Kijiji Businesses for Sale

                                                                                                                                  • Craigslist Businesses for Sale

                                                                                                                                  • Business Sell Canada Businesses for Sale

                                                                                                                                 

                                                                                                                                Newfoundland and Labrador online real estate brokers:

                                                                                                                                   

                                                                                                                                    • Realtor.ca Businesses for Sale

                                                                                                                                    • Point2Homes Businesses for Sale

                                                                                                                                    • SoldWell Businesses for Sale

                                                                                                                                  Step #4: What Government Business Regulations Must You Follow in Newfoundland and Labrador?

                                                                                                                                  If you are hoping to start your business “under the radar” in Newfoundland and Labrador – and hoping the government might not notice you – we have some bad news for you. Government oversight and regulation are a part of operating a business in NL and elsewhere in Canada!

                                                                                                                                  You don’t want to invest a lot of time and money moving in one direction for your NL business, only to find that you are violating laws and rules for business owners in the province. Instead, take note of the regulations we’ve listed here. If you need additional help, hire an attorney to keep you operating in a legal manner. Taking care of these issues now will save you a lot of headaches in the future.

                                                                                                                                  Certainly, a few legal structures require far less government oversight than others, which may be good news for the type of business you want to start.

                                                                                                                                   

                                                                                                                                  Select the Legal Structure for Your Newfoundland and Labrador Business

                                                                                                                                  When creating your business structure in Newfoundland and Labrador, you have four options.

                                                                                                                                     

                                                                                                                                      • Sole proprietorship: A sole proprietor operates the business as a single person without employees. This is a simple business structure, but it does not divide the liability and finances of the business and the owner.

                                                                                                                                      • Partnership: A partnership involves two or more people who own a business and who all hold the same percentage of ownership. No separation of business and personal liability occurs with the partnership.

                                                                                                                                      • Corporation: A corporation involves one or more people owning a business. If more than one person owns the business, each owner can have a different percentage of ownership in the corporation. The incorporated legal structure gives the owners separation of the business’ finances and liability and their personal finances and liability.

                                                                                                                                      • Co-operative: A co-operative in NL requires three or more people (usually quite a few more) to choose to operate the business. All ownership shares are equal, and each person receives one vote on co-operative matters.

                                                                                                                                    In Newfoundland and Labrador, businesses operating as a sole proprietorship or partnership do not need to register with the provincial government.

                                                                                                                                    You can register a corporation with the NL provincial government. You also can incorporate a co-operative and register with the provincial government.

                                                                                                                                     

                                                                                                                                    Select Your Newfoundland Business Name

                                                                                                                                    If you need to register your business with the NL government, start by creating your official business name through the Newfoundland and Labrador Registry of Companies. According to the provincial government, the name needs to be descriptive, so customers can understand what your business does.

                                                                                                                                    The name also needs to be distinctive, both in the words you use and in the phonetic pronunciation of those words. A business name like “Don’s Donuts” would not be legal if someone is already operating “Dawn’s Doughnuts,” for example.

                                                                                                                                    If you are using the provincial name inside your business name, you can use “Newfoundland and Labrador” or “Newfoundland & Labrador” in the name.

                                                                                                                                    You can create your business name in English only, in French only, or in English and French.

                                                                                                                                    You can use the Companies and Deeds Online website from the NL provincial government to search for existing business names. This ensures you can avoid having a name that’s too similar to something that already exists.

                                                                                                                                     

                                                                                                                                    Figure Out What Taxes Your Newfoundland Business May Owe

                                                                                                                                    For business owners in Newfoundland and Labrador, the tax rate ranges between 3% and 15%.

                                                                                                                                    A small business receives the rate of 3% for the first $500,000 of income earned for the business.

                                                                                                                                    The general corporate tax rate for larger businesses is 15% in Newfoundland and Labrador, but you may qualify for a number of tax credits in the province.

                                                                                                                                    For some additional information regarding business taxes, the federal government has advice for small business owners and those who are self-employed. Hiring an accountant or a CPA to help with managing your taxes is a good idea, too.

                                                                                                                                     

                                                                                                                                    Figure Out What Licences and Permits Your Newfoundland Business Needs

                                                                                                                                    Newfoundland and Labrador makes use of BizPaL to give business owners a database they can search for required licences and permits in the province.

                                                                                                                                    If you are operating in St. John’s, you may need to comply with local permits and licences for businesses.

                                                                                                                                     

                                                                                                                                    Figure Out What Business Laws Apply to Your Newfoundland Business

                                                                                                                                    To operate legally as a business in Newfoundland and Labrador, you must follow the province’s laws and regulations. Here are some common regulations you should consider.

                                                                                                                                       

                                                                                                                                        • Corporations Act

                                                                                                                                        • Labour Relations Act

                                                                                                                                        • Labour Standards Act

                                                                                                                                        • Occupational Health and Safety Act

                                                                                                                                        • Consumer Protection and Business Practices Act

                                                                                                                                      You probably will want to consult with an attorney about how these rules affect your new business – or if they apply to your business at all.

                                                                                                                                      Step #5: Make an Estimate on Your NL Business’ Startup Costs

                                                                                                                                      All entrepreneurs want to start making money as quickly as possible. Unfortunately, you probably won’t start seeing income until you spend some money. Nearly all businesses have startup costs before they can begin offering goods or services to customers.

                                                                                                                                      Your startup expenses will vary quite a bit, depending on the business you are running. If you are operating a freelance writing business, you may be able to spend $300 on a used laptop and start working immediately. In a large manufacturing business, you may need hundreds of thousands of dollars of equipment before you can start.

                                                                                                                                       

                                                                                                                                      Estimated Cost to Start Your NL Business

                                                                                                                                      We put together some broad estimates of what it may cost to start and operate common businesses in Newfoundland and Labrador. These are simply estimates based on likely scenarios. Your costs could be significantly higher or lower, especially if you are in a niche area of an industry or if you have some equipment already in hand.

                                                                                                                                         

                                                                                                                                          • Mining: Up to $250,000 in startup costs and variable ongoing costs.

                                                                                                                                          • Fishing: Up to $150,000 in startup costs and variable ongoing costs.

                                                                                                                                          • Farm with livestock: Up to $75,000 in startup costs and variable ongoing costs.

                                                                                                                                          • Farm with row crops: Up to $100,000 in startup costs and variable ongoing costs.

                                                                                                                                          • Dropshipping: Up to $200 in startup costs and about $50 per month in ongoing costs.

                                                                                                                                          • Bed and breakfast: Up to $200,000 in startup costs and about $300 per month in ongoing costs.

                                                                                                                                          • Grocery store: Up to $50,000 in startup costs and variable ongoing costs.

                                                                                                                                          • Freelance tourism blogger: Up to $1,000 in startup costs and about $50 per month in ongoing costs.

                                                                                                                                         

                                                                                                                                        Startup Business Costs for Newfoundland and Labrador Businesses

                                                                                                                                        When you are starting a business in NL, you may have certain startup costs, depending on the type of business you have in mind.

                                                                                                                                           

                                                                                                                                            • Constructing a business location

                                                                                                                                            • Remodeling costs

                                                                                                                                            • Machinery

                                                                                                                                            • Special lighting

                                                                                                                                            • Vehicles

                                                                                                                                            • Equipment

                                                                                                                                            • Office furniture

                                                                                                                                            • Computer networks

                                                                                                                                            • Computer software

                                                                                                                                            • Point-of-sale hardware

                                                                                                                                            • Telephone hardware

                                                                                                                                            • Website registration and design

                                                                                                                                            • Legal advice

                                                                                                                                          Once you are running the business in NL, you then will have costs that recur on a regular basis.

                                                                                                                                             

                                                                                                                                              • Office space rent

                                                                                                                                              • Warehouse rent

                                                                                                                                              • Retail location rent

                                                                                                                                              • Equipment rent

                                                                                                                                              • Upgrade and maintenance costs

                                                                                                                                              • Janitorial services

                                                                                                                                              • Security services

                                                                                                                                              • Cloud software

                                                                                                                                              • Utilities

                                                                                                                                              • Inventory restocking

                                                                                                                                              • Insurance

                                                                                                                                              • Marketing

                                                                                                                                              • Advertising

                                                                                                                                              • Labor costs

                                                                                                                                              • Packing and shipping

                                                                                                                                              • Office expenses

                                                                                                                                              • Memberships

                                                                                                                                            Step #6: Develop Your Business Plan

                                                                                                                                            Although the provincial government in Newfoundland and Labrador does not require businesses to create an official business plan, this is an important document for all entrepreneurs.

                                                                                                                                            When some other people are skeptical about your idea for a business – and they will be – you can use the research you developed for your business plan to justify your business idea.

                                                                                                                                             

                                                                                                                                            Why a Business Plan Is Important

                                                                                                                                            A business plan takes a detailed look at your business idea, allowing you to make projections about income and expenses. The plan also lets you explain how you believe the business will operate and why it is an important option for the market in Newfoundland and Labrador.

                                                                                                                                            The idea of starting a business can be exciting and scary at the same time. When people disagree with you or even mock you, you may become quite emotional and defensive about your idea, which is understandable.

                                                                                                                                            One of the best parts of a business plan is that it takes emotion out of the argument for why you believe your business will be successful. It forces an analytical look at the market in Newfoundland and Labrador for your business’ industry and at how you believe your business will fit into it. The business plan lets you sell your idea to skeptics and potential investors. Others can read the business plan and, ideally, come to share your vision for the business.

                                                                                                                                             

                                                                                                                                            How to Make a Business Plan

                                                                                                                                            The Newfoundland and Labrador branch of the Canadian Agricultural Partnership has an example of the minimum requirements you should have in your business plan. CBDC also has some advice for creating a business plan.

                                                                                                                                            Some specific items you should include in your business plan include:

                                                                                                                                               

                                                                                                                                                • A description of your business idea

                                                                                                                                                • Research about the market in NL

                                                                                                                                                • Research about existing competitors

                                                                                                                                                • The organizational structure you plan to use

                                                                                                                                                • Your projections for startup and ongoing expenses

                                                                                                                                                • Your projections for income

                                                                                                                                                • Goals for the business in the first year and in future years

                                                                                                                                                • Your plan for marketing and advertising

                                                                                                                                                • Skills you believe your employees will need

                                                                                                                                                • Plans for the location of the business

                                                                                                                                               

                                                                                                                                              Why You Need a Business Plan

                                                                                                                                              Even though the provincial government does not require that new businesses file a business plan, you may need one to take advantage of things your business may need.

                                                                                                                                              For example, if you want to apply for business grants in Newfoundland and Labrador, you may need a business plan. Banks and investors likely will want to see your business plan before they would consider lending you money for your business venture.

                                                                                                                                              If you need to hire employees with special skills or an office manager, such people may want to see the business plan to give them confidence that you are well-organized and that your business can have success.

                                                                                                                                              Step #7: Seeking Funding for Your Business Venture

                                                                                                                                              Ideally, people with plenty of money would be extremely willing to give you startup money for your new business idea. However, those people didn’t accumulate plenty of money by just giving it away haphazardly. You will need to convince investors of the viability of your business idea and about your trustworthiness as an entrepreneur.

                                                                                                                                              Finding the seed money for your new business may end up being one of the most challenging aspects of starting a new business. We have some ideas of sources you can consider to find the funding you need.

                                                                                                                                               

                                                                                                                                              Money You Don’t Have to Pay Back

                                                                                                                                              If you can collect funds that you don’t have to pay back, your business will have a greater chance at success. If you have to borrow every penny for your business’ startup costs as loans, your business could drown in interest and principal payments before you have your first customer.

                                                                                                                                              There are a few options for sourcing money that is not part of a loan.

                                                                                                                                                 

                                                                                                                                                  • Borrowing from yourself: Most investors will expect you to put some of your own money into your business before they will invest. You can find potential investment money in your savings and retirement accounts.

                                                                                                                                                  • Using gifts: You may be able to convince others to give you a financial gift that you can apply to the startup business costs. Friends, family members, and “fools” – or what we call the 3Fs – may help you out here.

                                                                                                                                                  • Selling assets: If you have personal items that you no longer need or want, you could sell those items to help fund the business.

                                                                                                                                                  • Reuse assets: Perhaps you have items in your personal assets that you want to use for the business, such as a vehicle or a computer. Give these items to the business, and you can use your money to purchase other items you need for the business.

                                                                                                                                                 

                                                                                                                                                Creative Sources of Money

                                                                                                                                                Multiple sources of money for business startups are available, but you may need to do some work to find them. This type of money would not need paying back, much like your own money that you are placing in the business.

                                                                                                                                                   

                                                                                                                                                    • Grants from the NL provincial government

                                                                                                                                                    • Grants from charitable organizations

                                                                                                                                                    • Seed grants from corporations

                                                                                                                                                    • Tax credits

                                                                                                                                                    • Utility rebates

                                                                                                                                                    • Crowdfunding

                                                                                                                                                    • Donation of goods or equipment from investors

                                                                                                                                                    • Starting a side hustle to generate money for your new business

                                                                                                                                                    • Pre-selling some of your products

                                                                                                                                                   

                                                                                                                                                  Loans

                                                                                                                                                  Loans are a common source of startup funding for businesses, but traditional business loans aren’t as easy to obtain as you may think. You may have to get creative in how you borrow money for the business.

                                                                                                                                                     

                                                                                                                                                      • Personal credit cards

                                                                                                                                                      • Loans from family

                                                                                                                                                      • Loans from friends

                                                                                                                                                      • Loans from banks

                                                                                                                                                      • Government-backed business loans

                                                                                                                                                      • Loans from non-traditional lenders

                                                                                                                                                      • Loans from manufacturers to purchase equipment or vehicles

                                                                                                                                                      • Invoice factoring

                                                                                                                                                      • Invoice financing

                                                                                                                                                      • Scientific Research and Experimental Development (SR&ED) financing

                                                                                                                                                     

                                                                                                                                                    Offering an Equity Share in Your Business

                                                                                                                                                    If you simply can’t raise enough money through the means we listed here, you may want to consider selling equity shares in your business. Through this method, you would sell partial ownership in the business to raise money.

                                                                                                                                                    This isn’t easy to do when you have a new business with no history of income or expenses. Most investors want to see a financial history for a business before they try to buy an ownership share. However, if you have a compelling business idea and a detailed business plan, you may be able to make it work.

                                                                                                                                                    Understand that when someone buys equity in your business, that person likely will want to have a role in running the business and in making business decisions. Choose your equity partners carefully.

                                                                                                                                                    Step #8: Don’t Be Afraid to Ask for Help

                                                                                                                                                    Starting a business in Newfoundland and Labrador almost certainly means you will be wearing numerous hats. However, that doesn’t mean you naturally are an expert in everything related to running a business.

                                                                                                                                                    When you don’t quite understand something, or when you are spending too much time on things that are not of interest to you, reach out to experts.

                                                                                                                                                       

                                                                                                                                                        • Attorneys: Have an attorney review all legal documents and NL regulations that may affect your business.

                                                                                                                                                        • Accountant: Accountants can help you work through financial questions.

                                                                                                                                                        • Insurance: Finding just the right insurance packages to protect your business may require the help of a trusted agent.

                                                                                                                                                        • Banking: Receiving advice about banking services aimed at businesses and about when you should seek loans may require help from a banker.

                                                                                                                                                        • Mentor: Someone who is also an entrepreneur in Newfoundland and Labrador can give you advice about steps you may want to take and can review your business plans.

                                                                                                                                                      Step #9: Celebrate the Little Wins and Find Advice

                                                                                                                                                      When preparing to start a business in Newfoundland and Labrador, you have dozens of tasks to complete. As you focus on the big picture, it’s easy to forget to celebrate your accomplishments along the way.

                                                                                                                                                      Very few people have the fortitude to try to make a business idea become a reality. Keep moving forward, but don’t forget to give yourself credit for what you’ve accomplished already.

                                                                                                                                                      One of the ways to feel better about how the process is proceeding is by seeking advice and inspiration from other NL entrepreneurs. These people can share real-world experiences in the local business market that may help you quite a bit.

                                                                                                                                                       

                                                                                                                                                      Business Networking Opportunities in Newfoundland and Labrador

                                                                                                                                                      Start by finding other business owners who like to network with each other. Networking can help you flesh out ideas and seek advice in an informal setting.

                                                                                                                                                         

                                                                                                                                                          • Eventbrite

                                                                                                                                                          • IABC NL Networking 9

                                                                                                                                                          • Newfoundland & Labrador Organization of Women Entrepreneurs (NLOWE)

                                                                                                                                                          • PolicyNL

                                                                                                                                                         

                                                                                                                                                        Business Associations and Organizations in Newfoundland and Labrador

                                                                                                                                                        Joining associations and organizations aimed at business owners in the province can provide additional networking opportunities. These memberships also may help you promote your business and gain more notoriety.

                                                                                                                                                           

                                                                                                                                                            • Business Association of Newfoundland & Labrador

                                                                                                                                                            • St. John’s Board of Trade

                                                                                                                                                            • Newfoundland & Labrador Organization of Women Entrepreneurs

                                                                                                                                                            • Mount Pearl-Paradise Chamber of Commerce

                                                                                                                                                            • Greater Corner Brook Board of Trade

                                                                                                                                                            • International Association of Business Communicators-Newfoundland and Labrador (IABC NL)

                                                                                                                                                           

                                                                                                                                                          Business Awards and Competitions in Newfoundland and Labrador

                                                                                                                                                          Multiple types of business awards are available throughout the province. You may need to have some time operating as a business under your belt before you are eligible for awards, but receiving nominations for and winning awards can give your business a boost in the eyes of clients and customers.

                                                                                                                                                             

                                                                                                                                                              • Newfoundland and Labrador Consumer Choice Awards

                                                                                                                                                              • NLOWE Entrepreneur of the Year

                                                                                                                                                              • CBDC Tourism Excellence Awards

                                                                                                                                                              • Greater Corner Brook Board of Trade Business Excellence Awards

                                                                                                                                                              • IABC NL Pinnacle Awards

                                                                                                                                                              • St. John’s Board of Trade Business Resilience Awards

                                                                                                                                                             

                                                                                                                                                            Business Directories in Newfoundland and Labrador

                                                                                                                                                            Having your business appear in internet-based business directories makes it easier for customers to find you. Some options for directories in NL include:

                                                                                                                                                               

                                                                                                                                                                • Newfoundland & Labrador Companies and Deeds Online

                                                                                                                                                                • St. John’s Board of Trade Business Directory

                                                                                                                                                                • Yellow Pages Business Directory

                                                                                                                                                                • Canpages Business Directory

                                                                                                                                                                • Indigenous Business Directory in Newfoundland & Labrador and all of Canada

                                                                                                                                                                • Labrador North Chamber of Commerce Aboriginal Businesses

                                                                                                                                                                • Indigenous Tourism Association of Canada, Newfoundland & Labrador

                                                                                                                                                              Regularly check these business directories to ensure they have the latest information about your business, including contact information. If the directory has an old phone number for you, customers aren’t going to find you. Unfortunately, errors on these directories are common, so you may need to request corrections.

                                                                                                                                                              Step #10: Guard Against These 10 Common Business Mistakes

                                                                                                                                                              Learning from the mistakes of others sometimes can be a tremendous benefit for new business owners. Rather than making the mistakes themselves, the new owners know which pitfalls to watch for and avoid. Here are 10 common business mistakes that occur in Newfoundland and Labrador.

                                                                                                                                                                 

                                                                                                                                                                  • Not seeking help: When starting a business from scratch, you may be tempted to try to handle everything on your own. However, you should allow others to help you in areas where you don’t have the necessary expertise.

                                                                                                                                                                  • Not focusing your idea enough: In developing a business idea, you may try to be too general. Focusing on a niche or a limited area of an industry can give you a better chance at early success, rather than trying to do all things for all customers.

                                                                                                                                                                  • Not researching grants: Although finding grants for your NL business can be time consuming, they can be a great source of money that you don’t have to pay back.

                                                                                                                                                                  • Not doing a business plan: Even though a business plan takes a lot of time to do properly, the information contained in it is invaluable. Refer to it often as you work at building the business.

                                                                                                                                                                  • Not considering existing businesses: Existing businesses for sale are well worth considering when you are looking to become an entrepreneur in NL. You save quite a bit of time by buying an existing business versus building one from scratch.

                                                                                                                                                                  • Not keeping accurate records: You should track all your spending and expenses from the moment you decide to pursue a business venture, so you can accurately determine your performance. Use business accounting software or hire an accountant to help.

                                                                                                                                                                  • Not buying insurance: Don’t try to save money by skipping insurance. You need insurance to protect your investment in the business. If you have loans on the business or on your equipment, you probably need to show proof of insurance.

                                                                                                                                                                  • Not doing enough research: Part of the importance of a business plan is that it requires you to research the market to determine the viability of your business idea. Doing enough research – and the right research – can be the difference between business success and failure.

                                                                                                                                                                  • Not seeking formal agreements: Whether you are agreeing to a rental agreement for your business, a purchase agreement for goods, or a business loan from your uncle, you need to put everything in writing. Handshake agreements sound great, but they are no way to run a legitimate business.

                                                                                                                                                                  • Not delivering what you promise: Never overpromise what you can do for customers, especially in the early days of your business. The best advice to keep customers coming back is always to underpromise and overdeliver.

                                                                                                                                                                Checklist for Starting a Business on Newfoundland and Labrador

                                                                                                                                                                   

                                                                                                                                                                    • Develop a few business ideas

                                                                                                                                                                    • Decide on what you will offer as part of your business

                                                                                                                                                                    • Consider how to enter the market

                                                                                                                                                                    • Research any government regulations applying to businesses in NL

                                                                                                                                                                    • Estimate the startup and ongoing costs you will have

                                                                                                                                                                    • Create a detailed business plan

                                                                                                                                                                    • Seek financing for your business

                                                                                                                                                                    • Hire help in areas where you need it

                                                                                                                                                                    • Don’t forget to take note of your accomplishments

                                                                                                                                                                    • Avoid mistakes that are common for business owners in Newfoundland and Labrador

                                                                                                                                                                  Starting a Business in PEI: Step-by-Step Guide for Prince Edward Island Entrepreneurs

                                                                                                                                                                  by Maurice | February 11, 2023

                                                                                                                                                                  Although some people may think of Prince Edward Island as being primarily rural, it remains a great environment in which to start a business.

                                                                                                                                                                  PEI’s economy traditionally relies on fishery, agriculture, and tourism. However, new entrepreneurs here don’t have to stick to those industries to have a chance at success.

                                                                                                                                                                  Growing industries and segments of traditional industries that are going through modernization techniques work well for starting a business.

                                                                                                                                                                  When you need some advice for taking your plan for a new business from the idea phase to the making money phase, our step-by-step guide on starting a business in PEI can help. (And if you don’t even have a business idea yet, our tips can help with that, too!)


                                                                                                                                                                  Table of Contents

                                                                                                                                                                  Step #1: Come Up with Your PEI Business Idea

                                                                                                                                                                  Step #2: Select a Type of Business

                                                                                                                                                                  Step #3: Figure Out How You Want to Enter the PEI Market

                                                                                                                                                                  Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                  Step #5: Estimate Your Startup Costs

                                                                                                                                                                  Step #6: Create a Detailed Business Plan

                                                                                                                                                                  Step #7: Finding Business Financing

                                                                                                                                                                  Step #8: Accept Help When You Need It

                                                                                                                                                                  Step #9: Don’t Forget to Note Your Accomplishments

                                                                                                                                                                  Step #10: Ten Business Startup Mistakes to Avoid

                                                                                                                                                                  Checklist for Starting a Business in Prince Edward Island

                                                                                                                                                                  Businesses for sale by owner:

                                                                                                                                                                  Online marketplaces with businesses for sale:

                                                                                                                                                                  Online real estate brokers:

                                                                                                                                                                  Buy a Franchise as Your Business

                                                                                                                                                                  Start As a Side Hustle Business

                                                                                                                                                                  Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                  Decide on a Legal Name

                                                                                                                                                                  Decide on the Legal Structure for the Business

                                                                                                                                                                  Understand the Taxes Your PEI Business Will Owe

                                                                                                                                                                  Decide Whether You Need Businesses Licences and Permits in Prince Edward Island

                                                                                                                                                                  Business Laws in Prince Edward Island

                                                                                                                                                                  Step #5: Estimate Your Startup Costs

                                                                                                                                                                  Estimated Cost to Start Certain Types of Businesses

                                                                                                                                                                  One-Time Business Costs in Prince Edward Island

                                                                                                                                                                  Step #6: Create a Detailed Business Plan

                                                                                                                                                                  Why a Business Plan Is Important

                                                                                                                                                                  How to Construct a Business Plan

                                                                                                                                                                  Benefits of a Business Plan

                                                                                                                                                                  Step #7: Finding Business Financing

                                                                                                                                                                  Your Own Money

                                                                                                                                                                  “Free” Money

                                                                                                                                                                  Loans

                                                                                                                                                                  Selling Equity in Your Business

                                                                                                                                                                  Step #8: Accept Help When You Need It

                                                                                                                                                                  Step #9: Don’t Forget to Note Your Accomplishments

                                                                                                                                                                  PEI Business Startup Resources

                                                                                                                                                                  PEI Business Networking Opportunities

                                                                                                                                                                  PEI Business Directories


                                                                                                                                                                  PEI Business Associations and Organizations

                                                                                                                                                                  PEI Business Awards and Competitions

                                                                                                                                                                  PEI Immigrant Business Entrepreneurs

                                                                                                                                                                  Step #10: Ten Business Startup Mistakes to Avoid

                                                                                                                                                                  Checklist for Starting a Business in Prince Edward Island

                                                                                                                                                                  Businesses for sale by owner:

                                                                                                                                                                  Online marketplaces with businesses for sale:

                                                                                                                                                                  Online real estate brokers:

                                                                                                                                                                  Buy a Franchise as Your Business

                                                                                                                                                                  Start As a Side Hustle Business

                                                                                                                                                                  Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                  Decide on a Legal Name

                                                                                                                                                                  Decide on the Legal Structure for the Business

                                                                                                                                                                  Understand the Taxes Your PEI Business Will Owe

                                                                                                                                                                  Decide Whether You Need Businesses Licences and Permits in Prince Edward Island

                                                                                                                                                                  Business Laws in Prince Edward Island

                                                                                                                                                                  Step #5: Estimate Your Startup Costs

                                                                                                                                                                  Estimated Cost to Start Certain Types of Businesses

                                                                                                                                                                  One-Time Business Costs in Prince Edward Island

                                                                                                                                                                  Step #6: Create a Detailed Business Plan

                                                                                                                                                                  Why a Business Plan Is Important

                                                                                                                                                                  How to Construct a Business Plan

                                                                                                                                                                  Benefits of a Business Plan

                                                                                                                                                                  Step #7: Finding Business Financing

                                                                                                                                                                  Your Own Money

                                                                                                                                                                  “Free” Money

                                                                                                                                                                  Loans

                                                                                                                                                                  Selling Equity in Your Business

                                                                                                                                                                  Step #8: Accept Help When You Need It

                                                                                                                                                                  Step #9: Don’t Forget to Note Your Accomplishments

                                                                                                                                                                  PEI Business Startup Resources

                                                                                                                                                                  PEI Business Networking Opportunities

                                                                                                                                                                  PEI Business Directories

                                                                                                                                                                  PEI Business Associations and Organizations

                                                                                                                                                                  PEI Business Awards and Competitions

                                                                                                                                                                  PEI Immigrant Business Entrepreneurs

                                                                                                                                                                  Step #10: Ten Business Startup Mistakes to Avoid

                                                                                                                                                                  Checklist for Starting a Business in Prince Edward Island


                                                                                                                                                                  Step #1: Come Up with Your PEI Business Idea

                                                                                                                                                                  It’s important to note that not all business ideas are winners from the start. Some need a little tweaking and massaging to move toward the success stage.

                                                                                                                                                                  Still, even a bad business idea is better than no idea at all. You can’t move forward with trying to start a new business in PEI until you have some sort of idea that you can begin researching and studying.

                                                                                                                                                                  If you’re struggling with formulating a business idea, we have some tips you can use to spark things.

                                                                                                                                                                   

                                                                                                                                                                  Know the Top Industries in Prince Edward Island

                                                                                                                                                                  One of the most trusted ways to come up with a great business idea is to study the best industries in Prince Edward Island. These strong industries are already established, so you can piggyback on them when trying to find your footing.

                                                                                                                                                                  Some established industries in PEI include fishing, agriculture, and tourism. PEI farmers have involvement in both plant- and animal-based agriculture. Those involved in fishing in PEI harvest fish, crab, lobster, oysters, and more.

                                                                                                                                                                  Additionally, the Prince Edward Island provincial government has a list of nine emerging industries that are expanding and are ready to grow further. The industries are:

                                                                                                                                                                     

                                                                                                                                                                      • Agriculture

                                                                                                                                                                      • Seafood

                                                                                                                                                                      • Aerospace

                                                                                                                                                                      • Bioscience

                                                                                                                                                                      • Manufacturing

                                                                                                                                                                      • Ocean tech and marine

                                                                                                                                                                      • Renewable energy and clean tech

                                                                                                                                                                      • Information and communications technology

                                                                                                                                                                      • Tourism

                                                                                                                                                                     

                                                                                                                                                                    Ideas for Prince Edward Island Small Businesses

                                                                                                                                                                    If one of these industries appeals to you, the next step is to try to figure out which area of the industry is worth considering as a business venture.

                                                                                                                                                                    Rarely will a small business want to tackle the industry in a general manner, because most competitors in this area will be large businesses. Instead, it may be better to focus on a niche area of the industry where competitors will be fewer and where you can focus your investment dollars. For example, because tourism is such a big part of the economy in PEI, you may want to work in a niche area of tourism. Maybe you create tours on the island for visitors. Maybe you can set up tee times at various golf courses and lodging for visitors to the island, so they can try different courses during a week-long golf trip. Maybe you want to start a restaurant that caters to tourists.

                                                                                                                                                                     

                                                                                                                                                                    Where Is the Best Place to Start a Business in Prince Edward Island?

                                                                                                                                                                    Prince Edward Island consists of many rural areas. At a population of about 154,000 people, the island has only one city of more than 17,000 people, which is Charlottetown that has a population of more than 52,000.

                                                                                                                                                                    If you need to have access to high-tech resources or to large numbers of employees and customers, you may want to stick close to Charlottetown.

                                                                                                                                                                    Locating a business that focuses on tourism or agriculture may be more appropriate in a rural area of Prince Edward Island. However, because PEI is easily Canada’s smallest province, covering about 5,700 square kilometres, traveling across the island for business doesn’t take a long time, regardless of where you are located.

                                                                                                                                                                    If you need easy vehicular access to the Canadian mainland for your business, Prince Edward Island and New Brunswick connect through the 12.9-kilometre Confederation Bridge. Charlottetown is 55 kilometres from the Confederation Bridge. If you want to locate your business near the bridge, you’ll be in a rural area.

                                                                                                                                                                    Step #2: Select a Type of Business

                                                                                                                                                                    Once you have a few potential business ideas in mind, you are ready to think about what kind of business you may want to run. Choosing to be part of the fishery industry or the ag industry in PEI is only part of the process.

                                                                                                                                                                     

                                                                                                                                                                    Products, Services, or Both

                                                                                                                                                                    As a general rule, businesses provide goods or services. Some even provide both. Deciding whether you want to offer goods or services is a key step in moving things forward with your business idea.

                                                                                                                                                                       

                                                                                                                                                                        • Products: With products, you are offering tangible goods to your customers. In the fishery industry, you might choose to sell watercraft, nets, fishing equipment, or parts for motors. You might create these products yourself, or you might source them from another provider and resell them.

                                                                                                                                                                        • Services: With services, you will offer to perform tasks for your customers. These tasks are in areas where you have expertise. Back to the example of the fishery industry, perhaps you offer service to repair boat motors, to install navigation equipment, or to paint boats. You might offer these services yourself, or you may hire a third party to perform them on your behalf.

                                                                                                                                                                        • Both: Offering both goods and services works nicely for some small businesses in PEI. Perhaps you sell fishing equipment, while also offering to install it or repair it. Maybe you can sell parts for small engine motors, while also installing those parts.

                                                                                                                                                                       

                                                                                                                                                                      Running a Business Offline or Online

                                                                                                                                                                      Another option is to determine whether you want your primary means of business to be online or offline.

                                                                                                                                                                         

                                                                                                                                                                          • Online: An online business is a digital business that you run through a website. You could have a digital store where you sell locally sourced products from Prince Edward Island. You also could have a digital storefront where you offer your services, such as running a consulting service. You then would perform services on the client’s property, rather than having your own business location.

                                                                                                                                                                          • Offline: An offline business is one that operates from a brick-and-mortar location. (An offline business almost certainly will have a digital presence, too, such as a website.) Primarily, customers will visit your business location to purchase products, like at a retail store, or may bring items to you for repair at your location. If you have multiple employees, you likely will need a physical location to serve as headquarters.

                                                                                                                                                                        Some PEI businesses may sell products in a physical store and through a website. However, the majority of them will primarily work through either a digital location or a physical location.

                                                                                                                                                                        If you are planning on running primarily an online business, you must have excellent internet reliability and speed. The provincial Prince Edward Island government has a plan in place to greatly expand high-speed internet availability on the island by 2025.

                                                                                                                                                                         

                                                                                                                                                                        Considerations for Your PEI Physical Location Business

                                                                                                                                                                        Some things to keep in mind for locating your business in Prince Edward Island include:

                                                                                                                                                                           

                                                                                                                                                                            • Location: Placing your physical business near your customers is a great way to keep your business’ name at the front of mind for them.

                                                                                                                                                                            • Convenience: You should make it as convenient as possible for your customers to visit your location. Try to remain near major roads, if possible.

                                                                                                                                                                            • Maintenance: A physical location business involves having a building. You will have maintenance costs associated with a building, such as repairs, snow removal, janitorial, and general upkeep.

                                                                                                                                                                            • Building standards: At a physical business location where members of the public will visit, you must follow the building safety standards that the PEI provincial government has in place.

                                                                                                                                                                            • Inventory tracking: When selling products at a PEI business, you may want to have inventory tracking software in place, as well as point-of-sale equipment and software.

                                                                                                                                                                           

                                                                                                                                                                          Examples of Offline Businesses in Prince Edward Island

                                                                                                                                                                             

                                                                                                                                                                              • Boat sales

                                                                                                                                                                              • Farm with animals

                                                                                                                                                                              • Farm with planted land

                                                                                                                                                                              • Health care facility

                                                                                                                                                                              • Bed and breakfast

                                                                                                                                                                              • Restaurant

                                                                                                                                                                              • Golf course

                                                                                                                                                                              • Manufacturing facility

                                                                                                                                                                              • Car repair shop

                                                                                                                                                                             

                                                                                                                                                                            Considerations for Your PEI Digital Business

                                                                                                                                                                            Some items you should keep in mind when operating a digital business in Prince Edward Island include:

                                                                                                                                                                               

                                                                                                                                                                                • Working from home: When operating a digital-only business, you may be able to run it from your home, as long as you have a strong internet connection and the equipment required.

                                                                                                                                                                                • Communication: Excellent communications skills are vital for an online business. Because your customers may rarely see you face to face, you need to communicate well via phone, text, email, and social media.

                                                                                                                                                                                • Reliability: When customers don’t meet you face to face, they tend to be less forgiving of missed deadlines and errors. You need to be highly reliable when running an online business.

                                                                                                                                                                                • Online costs: Costs are lower when running an online business versus a physical location business. However, you still must purchase things like hardware, software, and a website, so you will have some costs.

                                                                                                                                                                                • Renting space: You don’t have to operate your online business from your home. You may want to rent office space for employees or a warehouse for storage of your products. Customers would still interact with you digitally and wouldn’t visit you at those locations. Innovation PEI offers the Startup Zone that provides these kinds of resources to startups.

                                                                                                                                                                               

                                                                                                                                                                              Examples of Digital-Only Online Businesses in Prince Edward Island

                                                                                                                                                                                 

                                                                                                                                                                                  • Freelance writing

                                                                                                                                                                                  • Freelance photography

                                                                                                                                                                                  • Freelance website development

                                                                                                                                                                                  • Manage social media for existing businesses

                                                                                                                                                                                  • Digital store with local products

                                                                                                                                                                                  • Remote customer service agent

                                                                                                                                                                                  • Remote tech support agent

                                                                                                                                                                                 

                                                                                                                                                                                Seek Online Business Development Help in PEI

                                                                                                                                                                                High quality websites are vital to any business in Prince Edward Island, but especially for online-only businesses. If your website doesn’t have a professional design, potential customers are likely to skip your site for another option.

                                                                                                                                                                                Fortunately, you can find plenty of help with developing your website. Website hosting services give you help with purchasing a web address and with designing your website.

                                                                                                                                                                                Should you want to develop an online store where you sell products sourced in Prince Edward Island, setting up an online storefront is also an easy process when you subscribe to a service.

                                                                                                                                                                                 

                                                                                                                                                                                Don’t Forget About Social Media and Digital Marketing

                                                                                                                                                                                Modern businesses rely heavily on a strong social media presence and on digital marketing. Businesses in PEI are no different. Not only can digital marketing introduce you to local customers in PEI, but it may introduce your business to others across Canada.

                                                                                                                                                                                Some of the items you should focus on when trying to build your social media presence include:

                                                                                                                                                                                   

                                                                                                                                                                                    • Professional: It’s okay to have fun with your business’ social media posts, but you should keep the humor on a professional level. You don’t want to turn off customers with poor behavior or offensive photos on social media.

                                                                                                                                                                                    • Consistency: Try to keep your core message consistent from your website to all your social media platforms. Then twist that message to match the type of digital platform.

                                                                                                                                                                                    • Updates: Keep your website and social media accounts up to date with frequent posts and updates. Highlight special deals in these digital areas, too.

                                                                                                                                                                                    • Testimonials: One great way to highlight the quality of your business’ performance is through customer testimonials and reviews on your website and in social media. You probably will have to ask customers for testimonials after you serve them, as most people won’t leave reviews on their own.

                                                                                                                                                                                    • Interact: Customers sometimes will complain about your business on social media, rather than in person. Try to engage these customers to figure out the problem and then offer to fix it. After you fix the issue, ask the customer to provide an updated review.

                                                                                                                                                                                  The Prince Edward Island provincial government offers assistance to new businesses and non-profits in developing a digital presence.

                                                                                                                                                                                  Step #3: Figure Out How You Want to Enter the PEI Market

                                                                                                                                                                                  The process of becoming an entrepreneur in Prince Edward Island opens up a few different avenues to you. Although most people focus on starting a business from nothing, there are other options that may fit your needs better.

                                                                                                                                                                                   

                                                                                                                                                                                  New Business from Scratch

                                                                                                                                                                                  Starting a PEI business from scratch gives you the most control over the process from the idea phase to the day you have your first customer.

                                                                                                                                                                                  Advantages:

                                                                                                                                                                                     

                                                                                                                                                                                      • Source of pride in accomplishment

                                                                                                                                                                                      • You have complete control

                                                                                                                                                                                      • Go as big or small as you want

                                                                                                                                                                                      • Help is available from Business Navigator PEI

                                                                                                                                                                                      • PEI has small business grants available

                                                                                                                                                                                    Disadvantages:

                                                                                                                                                                                       

                                                                                                                                                                                        • It requires a lot of hours

                                                                                                                                                                                        • Funding concerns are common

                                                                                                                                                                                        • Some tasks will be beyond your areas of skill

                                                                                                                                                                                         

                                                                                                                                                                                          • Queen Square Business Brokers

                                                                                                                                                                                          • Sunbelt Network Business Brokers

                                                                                                                                                                                        If you prefer to do some legwork regarding existing businesses for sale in Prince Edward Island before reaching out to a broker, several websites exist that showcase businesses for sale, including:

                                                                                                                                                                                         

                                                                                                                                                                                        Businesses for sale by owner:

                                                                                                                                                                                           

                                                                                                                                                                                            • PEIBusinessesforSale.com

                                                                                                                                                                                            • Kijiji Businesses for Sale

                                                                                                                                                                                            • Craigslist Businesses for Sale

                                                                                                                                                                                           

                                                                                                                                                                                          Online marketplaces with businesses for sale:

                                                                                                                                                                                             

                                                                                                                                                                                              • BusinessesForSale.com

                                                                                                                                                                                              • BuyAndSellABusiness.com

                                                                                                                                                                                              • BizQuest.com

                                                                                                                                                                                              • PEI Businesses for Sale

                                                                                                                                                                                             

                                                                                                                                                                                            Online real estate brokers:

                                                                                                                                                                                               

                                                                                                                                                                                                • Realtor.ca Businesses for Sale

                                                                                                                                                                                                • Point2Homes Businesses and Commercial Properties for Sale

                                                                                                                                                                                                • Century 21 Businesses for Sale

                                                                                                                                                                                               

                                                                                                                                                                                              Buy a Franchise as Your Business

                                                                                                                                                                                              Purchasing a franchise means you are buying a brand name business with the right to start and run a new location for that business in Prince Edward Island. The franchiser gives you help along the way.

                                                                                                                                                                                              Advantages:

                                                                                                                                                                                                 

                                                                                                                                                                                                  • Receive a known brand name

                                                                                                                                                                                                  • Receive help with advertising

                                                                                                                                                                                                  • Receive instructions for startup

                                                                                                                                                                                                  • Tap into a network of fellow franchisees

                                                                                                                                                                                                  • Be operating faster versus starting from scratch

                                                                                                                                                                                                Disadvantages:

                                                                                                                                                                                                   

                                                                                                                                                                                                    • Less control over the operations

                                                                                                                                                                                                    • Costs are higher than starting from scratch

                                                                                                                                                                                                    • Scams occur among potential franchisers

                                                                                                                                                                                                  To protect citizens of PEI from potential franchise scams, the provincial government passed the Franchises Act Regulations. Read through these rules to ensure you are protecting yourself when considering a franchise.

                                                                                                                                                                                                   

                                                                                                                                                                                                  Start As a Side Hustle Business

                                                                                                                                                                                                  A side hustle in PEI is a type of business that you run on a part-time basis, usually while you work another full-time job. It can involve working for yourself or working for a larger corporation on a freelance basis. You may find that your side hustle is expanding quickly, giving you the opportunity to turn it into a business that you will run full time.

                                                                                                                                                                                                  Advantages:

                                                                                                                                                                                                     

                                                                                                                                                                                                      • You may find something you enjoy

                                                                                                                                                                                                      • Can test the job before fully committing to full-time work

                                                                                                                                                                                                      • Commit as many hours as you want

                                                                                                                                                                                                      • Side hustles are easy to try

                                                                                                                                                                                                      • Network with and gain ideas from other “side hustlers”

                                                                                                                                                                                                    Disadvantages:

                                                                                                                                                                                                       

                                                                                                                                                                                                        • Finding enough income can be challenging

                                                                                                                                                                                                        • Working full time and part time is hard

                                                                                                                                                                                                        • Some side hustles don’t work as full-time gigs

                                                                                                                                                                                                      Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                                                      Regulations are just part of running a business anywhere in the world, and Prince Edward Island is no exception. You need to understand how these regulations affect your potential business idea, so you can plan accordingly and avoid problems.

                                                                                                                                                                                                       

                                                                                                                                                                                                      Decide on a Legal Name

                                                                                                                                                                                                      In most cases, you need to have a legal name for your business in Prince Edward Island. The name must be unique versus other businesses operating in the province, so you will need to request a name search that shows you can use your desired name.

                                                                                                                                                                                                      When naming your business, you need to follow a few rules, including:

                                                                                                                                                                                                         

                                                                                                                                                                                                          • Create a name that’s distinctive from others

                                                                                                                                                                                                          • The name should describe your business accurately

                                                                                                                                                                                                          • Avoid words that are misleading about your business

                                                                                                                                                                                                        If you are operating a sole proprietorship in PEI, and if you are operating the business under your own name, you do not need to register the business. If you want to operate under a name other than your name, you will have to register your sole proprietorship and register your preferred name.

                                                                                                                                                                                                        Additionally, Prince Edward Island is operating a new system for business name registration. All companies must re-register their businesses by mid-2023 in the Online Corporate Business Names Registry.

                                                                                                                                                                                                         

                                                                                                                                                                                                        Decide on the Legal Structure for the Business

                                                                                                                                                                                                        Pick among four different legal structures for operating your business in Prince Edward Island. You may want to hire a lawyer to help you figure out which legal structure is appropriate for your situation.

                                                                                                                                                                                                           

                                                                                                                                                                                                            • Sole proprietorship: This structure is best for a single person operating a business, as it is a simple structure. However, it doesn’t provide protection against liability.

                                                                                                                                                                                                            • Partnership: The partnership is two or more people who operate a business as co-owners with the same proportional share of profits and liabilities.

                                                                                                                                                                                                            • Corporation: Owners of a corporation have shares in the company that reflect the percentage of ownership each owner has. With this legal structure, the owners’ personal finances and liability are separate from the corporation’s finances and liability.

                                                                                                                                                                                                            • Co-operative: A group of people organize and own the co-operative. Each person receives one vote on company ownership matters. The co-operative is a separate entity from a legal standpoint.

                                                                                                                                                                                                           

                                                                                                                                                                                                          Understand the Taxes Your PEI Business Will Owe

                                                                                                                                                                                                          In Prince Edward Island, the provincial tax rate for businesses is between 1% and 16%.

                                                                                                                                                                                                          If you want to pay as little in business tax as possible – well, you’re not alone. You probably will want to consult an accountant to help you set up your PEI business to create the most advantageous tax structure that fits the type of business you are running. For more information, check out these resources:

                                                                                                                                                                                                             

                                                                                                                                                                                                              • Tax information for businesses from PEI provincial government

                                                                                                                                                                                                              • Free Tax Help for Small Business Owners from federal government

                                                                                                                                                                                                              • Canadian federal and provincial corporate income tax rates

                                                                                                                                                                                                            The Prince Edward Island government offers several tax credits that may apply to your business.

                                                                                                                                                                                                             

                                                                                                                                                                                                            Decide Whether You Need Businesses Licences and Permits in Prince Edward Island

                                                                                                                                                                                                            Another area of government regulation occurs with any licences or permits you must hold to operate your business legally.

                                                                                                                                                                                                               

                                                                                                                                                                                                                • PEI has a list of permits and licences you may need.

                                                                                                                                                                                                                • BizPaL is a database of permits and licences that businesses in PEI may need to hold to satisfy local, provincial, and federal regulations.

                                                                                                                                                                                                                • Charlottetown has explanations of local permits and licences that it requires for businesses.

                                                                                                                                                                                                               

                                                                                                                                                                                                              Business Laws in Prince Edward Island

                                                                                                                                                                                                              Multiple laws are on the books with the PEI provincial government that affect businesses. You need to understand these laws, so you don’t end up violating them inadvertently.

                                                                                                                                                                                                                 

                                                                                                                                                                                                                  • Business Corporations Regulations

                                                                                                                                                                                                                  • Business Corporations Act

                                                                                                                                                                                                                  • Business Practices Act

                                                                                                                                                                                                                  • Employment Standards Act

                                                                                                                                                                                                                  • Labour Act

                                                                                                                                                                                                                  • Occupational Health and Safety Act

                                                                                                                                                                                                                If you find these explanations confusing, your attorney can help you figure out which PEI laws apply to the type of business you are running. For example, if you don’t have employees, many of the laws won’t affect your business.

                                                                                                                                                                                                                Step #5: Estimate Your Startup Costs

                                                                                                                                                                                                                When starting a new business, you will have multiple expenses before you can open your doors. Such costs are highly variable, depending on the type of business you’re running.

                                                                                                                                                                                                                 

                                                                                                                                                                                                                Estimated Cost to Start Certain Types of Businesses

                                                                                                                                                                                                                Here are some common small business options in Prince Edward Island and broad estimates about the cost to start these businesses. Understand that your business’ actual costs could be much higher or lower than those listed here, especially if you’re operating in a niche market of a particular industry.

                                                                                                                                                                                                                   

                                                                                                                                                                                                                    • Agricultural farm with livestock: Up to $75,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                    • Agricultural farm with row crops: Up to $100,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                    • Dairy farm: Up to $75,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                    • Bed and breakfast: Up to $200,000 in startup costs to purchase a property or up to $20,000 if you already own the property and about $300 per month in ongoing costs.

                                                                                                                                                                                                                    • Golf driving range: Up to $100,000 in startup costs and about $200 per month in ongoing costs.

                                                                                                                                                                                                                    • Online store: Up to $5,000 in startup costs and about $250 per month in ongoing costs.

                                                                                                                                                                                                                    • Exporter of PEI products: Up to $25,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                    • Freelance blogger: Up to $1,000 in startup costs and about $50 per month in ongoing costs.

                                                                                                                                                                                                                   

                                                                                                                                                                                                                  One-Time Business Costs in Prince Edward Island

                                                                                                                                                                                                                  Some common one-time costs that new business owners encounter in PEI include:

                                                                                                                                                                                                                     

                                                                                                                                                                                                                      • Constructing a building

                                                                                                                                                                                                                      • Remodeling a building

                                                                                                                                                                                                                      • Stocking inventory

                                                                                                                                                                                                                      • Point-of-sale system

                                                                                                                                                                                                                      • Computer system

                                                                                                                                                                                                                      • Telephone system

                                                                                                                                                                                                                      • Furniture and desks

                                                                                                                                                                                                                      • Specialized equipment

                                                                                                                                                                                                                      • Machinery

                                                                                                                                                                                                                      • Company vehicles

                                                                                                                                                                                                                      • Website design

                                                                                                                                                                                                                      • Website registration

                                                                                                                                                                                                                      • Registering the business

                                                                                                                                                                                                                      • Legal advice

                                                                                                                                                                                                                      • Accounting advice

                                                                                                                                                                                                                    New businesses then have costs that occur regularly once they’re up and running, such as:

                                                                                                                                                                                                                       

                                                                                                                                                                                                                        • Rent for a building

                                                                                                                                                                                                                        • Rent for equipment and vehicles

                                                                                                                                                                                                                        • Machinery maintenance

                                                                                                                                                                                                                        • Machinery upgrades

                                                                                                                                                                                                                        • Replenishing products in inventory

                                                                                                                                                                                                                        • Utilities

                                                                                                                                                                                                                        • Employees

                                                                                                                                                                                                                        • Marketing and advertising

                                                                                                                                                                                                                        • Liability and general insurance

                                                                                                                                                                                                                        • Renewals of licences or permits

                                                                                                                                                                                                                        • Taxes

                                                                                                                                                                                                                        • Memberships to business groups

                                                                                                                                                                                                                        • Janitorial services

                                                                                                                                                                                                                        • Product packing and shipping

                                                                                                                                                                                                                        • Interest on money you borrowed

                                                                                                                                                                                                                      Step #6: Create a Detailed Business Plan

                                                                                                                                                                                                                      It certainly is exciting to have a business idea that you think will work. However, just because you think it will work doesn’t mean others will agree with you. (Especially people like your brother-in-law, who hates all of your ideas.)

                                                                                                                                                                                                                      You can use the creation of a business plan to showcase statistics and research that verify why your business idea is a good one. With a well-designed business plan, you may have so much proof about your idea’s potential that even your brother-in-law will be impressed.

                                                                                                                                                                                                                       

                                                                                                                                                                                                                      Why a Business Plan Is Important

                                                                                                                                                                                                                      A business plan forces you to take a look at your business idea without having emotion and excitement cloud your judgment. Use research to show potential income generation and projected costs that are realistic. Some items to include in your business plan include:

                                                                                                                                                                                                                         

                                                                                                                                                                                                                          • The purpose of the business

                                                                                                                                                                                                                          • Your personal strengths and weaknesses

                                                                                                                                                                                                                          • Areas where you may need expert help

                                                                                                                                                                                                                          • Potential problem areas

                                                                                                                                                                                                                          • Estimated costs for startup

                                                                                                                                                                                                                          • Estimated ongoing costs

                                                                                                                                                                                                                          • Potential customer base

                                                                                                                                                                                                                          • Projected income level now and in the future

                                                                                                                                                                                                                          • Projected market growth for your business

                                                                                                                                                                                                                          • Skills your employees will need

                                                                                                                                                                                                                        Ultimately, your business plan serves as a blueprint for how you believe the business will perform and grow over a period of years. This is your opportunity to convince others of the viability of your business. Consequently, the more details and research-based information you can include, the better.

                                                                                                                                                                                                                         

                                                                                                                                                                                                                        How to Construct a Business Plan

                                                                                                                                                                                                                        The Prince Edward Island provincial government has advice for creating a well-researched business plan. It should consist of two major sections.

                                                                                                                                                                                                                           

                                                                                                                                                                                                                            • Descriptive section: Use this written section to explain why you want to start the business, why PEI is the best place to start your business, how you plan to obtain customers, which competitors are already up and running, and more.

                                                                                                                                                                                                                            • Financial section: Use the financial section to show projected income and expenses, potential sources of funding, a list of equipment you need, and future projections.

                                                                                                                                                                                                                          Some entrepreneurs will want to include a marketing plan as part of the business plan, which explains how you will attempt to source customers. BDC has a marketing plan template you can borrow.

                                                                                                                                                                                                                           

                                                                                                                                                                                                                          Benefits of a Business Plan

                                                                                                                                                                                                                          Beyond being able to explain your business idea in analytical terms to other people, you may need a business plan before you can take certain steps in developing your business, including:

                                                                                                                                                                                                                             

                                                                                                                                                                                                                              • Seeking funding from banks

                                                                                                                                                                                                                              • Seeking funding from venture capitalists

                                                                                                                                                                                                                              • Seeking business grants in PEI

                                                                                                                                                                                                                              • Receiving loans from equipment manufacturers

                                                                                                                                                                                                                            Step #7: Finding Business Financing

                                                                                                                                                                                                                            Now for the really hard part of starting a business in PEI – finding the funding you need.

                                                                                                                                                                                                                            Although some new business ventures need far less startup money than others, nearly any business you want to start must have money before you are ready to seek clients or customers. Startup money pays for equipment, websites, inventory, and more.

                                                                                                                                                                                                                            Consider the following sources of business financing that you may be able to use.

                                                                                                                                                                                                                             

                                                                                                                                                                                                                            Your Own Money

                                                                                                                                                                                                                            The idea of placing your own money into your business may seem pretty scary. However, if you are going to seek financing from others, such investors likely will be leery of giving you their money if you are not willing to place your own money in the venture. Ideas for contributing your own money include:

                                                                                                                                                                                                                               

                                                                                                                                                                                                                                • Savings

                                                                                                                                                                                                                                • Selling some assets

                                                                                                                                                                                                                                • Borrowing against retirement accounts (RRSP, TFSA, or RDSP)

                                                                                                                                                                                                                                • Borrowing against your personal assets

                                                                                                                                                                                                                                • Borrowing against your personal credit cards

                                                                                                                                                                                                                                • Pre-sell your business’ products

                                                                                                                                                                                                                                • Use a side hustle to raise extra money

                                                                                                                                                                                                                               

                                                                                                                                                                                                                              “Free” Money

                                                                                                                                                                                                                              Money rarely is free, but if you can find some sources of funding that you don’t have to pay back, this is one of the best ways to raise startup money. Such funding gives your business a significant boost toward a successful outcome. Options include:

                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                  • Crowdfunding donations

                                                                                                                                                                                                                                  • Government grants

                                                                                                                                                                                                                                  • Corporate grants

                                                                                                                                                                                                                                  • Charitable grants

                                                                                                                                                                                                                                  • Business tax credits or rebates

                                                                                                                                                                                                                                  • Utility rebates

                                                                                                                                                                                                                                  • Equipment rebates

                                                                                                                                                                                                                                  • Gifts from the 3Fs – family, friends, and “fools”

                                                                                                                                                                                                                                  • In-kind support from incubators or accelerators

                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                Loans

                                                                                                                                                                                                                                Finding a source for a business loan, especially for a business you are starting from scratch, can be extremely challenging. If you are purchasing an existing business that has a history of income generation, you may have a better chance at obtaining a traditional bank loan for your business.

                                                                                                                                                                                                                                Sources for business loans you may want to research include:

                                                                                                                                                                                                                                   

                                                                                                                                                                                                                                    • Traditional banks

                                                                                                                                                                                                                                    • Government-based business loans

                                                                                                                                                                                                                                    • Loans from alternative lenders (like a private lender or a P2P lender)

                                                                                                                                                                                                                                    • Raising funds through microloans

                                                                                                                                                                                                                                    • Loans aimed at minority business owners

                                                                                                                                                                                                                                    • Manufacturer loans to purchase equipment

                                                                                                                                                                                                                                    • Manufacturer loans to purchase vehicles

                                                                                                                                                                                                                                    • Purchase order financing

                                                                                                                                                                                                                                    • Invoice factoring

                                                                                                                                                                                                                                    • Invoice financing

                                                                                                                                                                                                                                    • Scientific Research and Experimental Development (SR&ED) financing

                                                                                                                                                                                                                                   

                                                                                                                                                                                                                                  Selling Equity in Your Business

                                                                                                                                                                                                                                  Another option is to sell a chunk of ownership in your business in exchange for startup funding. You could incorporate your business and sell shares. You might work with a venture capitalist as well.

                                                                                                                                                                                                                                  Consider this option carefully, as anyone who purchases shares in your business may want to have a significant say in how you operate the business. If you are starting a business so you can have complete control, selling equity may not be a good choice.

                                                                                                                                                                                                                                  Step #8: Accept Help When You Need It

                                                                                                                                                                                                                                  When you choose to start a business in PEI, you probably are looking to take advantage of some skills that you have. If your skills are repairing small engines or shooting beautiful photographs, you may not know all that much about the legal requirements of operating a business or about managing your financial books.

                                                                                                                                                                                                                                  In situations where you don’t have much expertise, hiring professionals to help you is a good idea. Don’t just guess on how to handle certain items and risk making costly mistakes. Some areas where you may want to seek help include:

                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                      • Legal: Setting up your business’ legal operating structure, understanding provincial laws, and comprehending purchase agreements all may require the help of a lawyer.

                                                                                                                                                                                                                                      • Financial: Paying taxes, managing income and expenses, and obtaining good rates on business loans may require the help of accountants or bankers.

                                                                                                                                                                                                                                      • Protection: You can ask an insurance agent for advice on what kinds of liability and general insurance you need to protect your business investment and property.

                                                                                                                                                                                                                                      • General advice: A mentor is someone who can look over your business decisions before you make them and your business plan to give you advice on the likelihood of success.

                                                                                                                                                                                                                                    InnovationPEI has a list of funding options for entrepreneurs on the island province, including Business Supports. The Greater Charlottetown Area Chamber of Commerce has a summary of funding options as well.

                                                                                                                                                                                                                                    Step #9: Don’t Forget to Note Your Accomplishments

                                                                                                                                                                                                                                    Starting a business is not easy. Quite a few people may believe they have the idea for the perfect business in Prince Edward Island, but the majority of them never make it past the idea stage.

                                                                                                                                                                                                                                    If you’re in the process of trying to set up your new business venture, it can feel overwhelming. You may start to wonder if the process will ever end.

                                                                                                                                                                                                                                    When you are having these feelings, take a minute to think about the accomplishments you’ve had to date. You might be amazed at everything you’ve already done, which makes the tasks remaining on your list feel a little less daunting.

                                                                                                                                                                                                                                    Additionally, you can find inspiration and advice in several places around Prince Edward Island. Help from business organizations and fellow entrepreneurs can give you the impetus you need to push you over the finish line, so you can begin serving customers and clients.

                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                    PEI Business Startup Resources

                                                                                                                                                                                                                                    The Business Navigator from Prince Edward Island’s provincial government provides quite a bit of general advice on starting a business. Additional options with tips and advice come from InnovationPEI and from Startup PEI.

                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                    PEI Business Networking Opportunities

                                                                                                                                                                                                                                    Sometimes, the best way to find advice and inspiration is from other entrepreneurs in Prince Edward Island. Through networking, you also may find other business ideas through which you can expand your offerings.

                                                                                                                                                                                                                                       

                                                                                                                                                                                                                                        • Eventbrite

                                                                                                                                                                                                                                        • PEI Connectors

                                                                                                                                                                                                                                        • PEI Business Women’s Association

                                                                                                                                                                                                                                       

                                                                                                                                                                                                                                      PEI Business Directories

                                                                                                                                                                                                                                      A business directory is a website that collects a list of local PEI businesses, including contact information. Having your business listed on these directories – with the correct contact information – can help customers find you.

                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                          • PEI Business and Corporate Registry

                                                                                                                                                                                                                                          • PEILocal.com Business Directory

                                                                                                                                                                                                                                          • 411.ca Prince Edward Island Business Directory

                                                                                                                                                                                                                                          • PEI Business Directory

                                                                                                                                                                                                                                          • Yellow Pages Business Directory

                                                                                                                                                                                                                                          • PEI Aboriginal Business Directory

                                                                                                                                                                                                                                          • Indigenous Business Directory in Prince Edward Island and all of Canada

                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                        PEI Business Associations and Organizations

                                                                                                                                                                                                                                        Look for organizations in Prince Edward Island that can help you meet fellow entrepreneurs and that can generate inspiration to match their accomplishments. Joining professional associations also can be helpful to your business’ success. You may find some employees or sourcing options for products through these groups.

                                                                                                                                                                                                                                           

                                                                                                                                                                                                                                            • PEI Business Women’s Association (PEIBWA)

                                                                                                                                                                                                                                            • Greater Charlottetown Area Chamber of Commerce

                                                                                                                                                                                                                                            • Greater Summerside Chamber of Commerce

                                                                                                                                                                                                                                            • Prince Edward County Chamber of Commerce

                                                                                                                                                                                                                                            • West Prince Chamber of Commerce

                                                                                                                                                                                                                                            • PEI Business Federation

                                                                                                                                                                                                                                           

                                                                                                                                                                                                                                          PEI Business Awards and Competitions

                                                                                                                                                                                                                                          Organizations across Prince Edward Island offer awards in various business categories. Receiving a nomination for an award or winning one can give your business a nice boost in the eyes of fellow entrepreneurs and customers.

                                                                                                                                                                                                                                             

                                                                                                                                                                                                                                              • President’s Excellence Awards from Greater Charlottetown Area Chamber of Commerce

                                                                                                                                                                                                                                              • Prince Edward County Business Excellence Awards

                                                                                                                                                                                                                                              • Business Excellence Awards from West Prince Chamber of Commerce

                                                                                                                                                                                                                                              • JA Business Hall of Fame

                                                                                                                                                                                                                                            If you are a member of a professional organization, such groups may also offer business awards that are worth exploring.

                                                                                                                                                                                                                                             

                                                                                                                                                                                                                                            PEI Immigrant Business Entrepreneurs

                                                                                                                                                                                                                                            The PEI provincial government has resources available to those who want to immigrate to Prince Edward Island with the idea of starting or buying a business.

                                                                                                                                                                                                                                            Step #10: Ten Business Startup Mistakes to Avoid

                                                                                                                                                                                                                                            Starting a business requires making some bold moves. However, such moves need to have some thought behind them. Rash decisions based on emotion are sure to lead to problems. If you want to avoid these types of issues in your business venture, start by avoiding these 10 common mistakes new business owners in Prince Edward Island make.

                                                                                                                                                                                                                                               

                                                                                                                                                                                                                                                • Overpromising and underdelivering: As a new business owner, you want to impress your first few customers. However, don’t set unrealistic expectations for what you can accomplish, or you will leave your customers disappointed. It’s always better to under promise and overdeliver than vice versa.

                                                                                                                                                                                                                                                • Being too general: As we discussed at the beginning, new small businesses may have a better chance at success by focusing on a niche area of an industry. Trying to be all things to all people in your preferred industry could leave you in trouble versus competitors.

                                                                                                                                                                                                                                                • Straying from your plan: If you spent a lot of time creating your business plan, you shouldn’t abandon it the first time things get tough. You certainly can tweak your business plan as new information becomes available, but don’t give up on it too quickly.

                                                                                                                                                                                                                                                • Trying to do too much: Part of the appeal of starting your own business is being in charge. (No more answering to a boss!) But you probably can’t do it all alone. Seeking advice and expertise in areas where you need help is not a sign of weakness.

                                                                                                                                                                                                                                                • Ignoring some entrepreneurial avenues: Starting a business from scratch is a popular idea for new entrepreneurs, but it’s not the only option. You may find something that fits your life better by purchasing an existing business or a franchise.

                                                                                                                                                                                                                                                • Not putting things in writing: People may have done business with a handshake decades ago in Prince Edward Island. You are not living decades ago, though. Put everything regarding your business in writing. Have a lawyer look over any agreements you don’t quite understand.

                                                                                                                                                                                                                                                • Not seeking “free” money: Business grants, gifts from family members, and financial help for minority business owners all can give you a better chance of getting your business off the ground. Finding startup money you don’t have to repay is a big deal.

                                                                                                                                                                                                                                                • Overspending before opening: Once you have startup funding in hand, don’t spend it all right away. Only spend the money you absolutely need to get the business up and running. Hold back a bit of startup money, if at all possible, to help you work through any snags in the first few months of operation.

                                                                                                                                                                                                                                                • Not buying insurance: Insurance protects your business investment. Should a fire damage your building, property insurance helps you recoup those losses and remain in business. Should someone fall on your property and sue you, liability insurance protects your finances. Make sure insurance premiums are part of your budget.

                                                                                                                                                                                                                                                • Not being clear with investors: If you decide to accept money from investors, make sure both parties are clear about what the investment means. Some investors may want to purchase a share of your business. Some may consider the money a loan. Some may provide the money as a gift. Even if the investors are family members, make sure the purpose of the money is extremely clear.

                                                                                                                                                                                                                                              Checklist for Starting a Business in Prince Edward Island

                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Come up with your business idea by researching the market and by considering your skills and areas of interest.

                                                                                                                                                                                                                                                  • Select a business that will offer goods or services and that will have a physical location or will be digital only.

                                                                                                                                                                                                                                                  • Figure out how to enter the PEI business market, such as by purchasing an existing business.

                                                                                                                                                                                                                                                  • Understand how PEI’s regulations and laws affect your business.

                                                                                                                                                                                                                                                  • Estimate your startup costs, based on the type of business you want to operate.

                                                                                                                                                                                                                                                  • Create a business plan that shows why your idea is a good one.

                                                                                                                                                                                                                                                  • Seek financing to get your business off the ground.

                                                                                                                                                                                                                                                  • Hire experts for areas of operating the business where your skills are lacking.

                                                                                                                                                                                                                                                  • Seek advice, find inspiration, and take note of your accomplishments!

                                                                                                                                                                                                                                                  • Avoid common mistakes that hurt PEI business owners’ chances of success.

                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Queen Square Business Brokers

                                                                                                                                                                                                                                                  • Sunbelt Network Business Brokers


                                                                                                                                                                                                                                                If you prefer to do some legwork regarding existing businesses for sale in Prince Edward Island before reaching out to a broker, several websites exist that showcase businesses for sale, including:




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Businesses for sale by owner:


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • PEIBusinessesforSale.com

                                                                                                                                                                                                                                                  • Kijiji Businesses for Sale

                                                                                                                                                                                                                                                  • Craigslist Businesses for Sale




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Online marketplaces with businesses for sale:


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • BusinessesForSale.com

                                                                                                                                                                                                                                                  • BuyAndSellABusiness.com

                                                                                                                                                                                                                                                  • BizQuest.com

                                                                                                                                                                                                                                                  • PEI Businesses for Sale




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Online real estate brokers:


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Realtor.ca Businesses for Sale

                                                                                                                                                                                                                                                  • Point2Homes Businesses and Commercial Properties for Sale

                                                                                                                                                                                                                                                  • Century 21 Businesses for Sale




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Buy a Franchise as Your Business


                                                                                                                                                                                                                                                Purchasing a franchise means you are buying a brand name business with the right to start and run a new location for that business in Prince Edward Island. The franchiser gives you help along the way.

                                                                                                                                                                                                                                                Advantages:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Receive a known brand name

                                                                                                                                                                                                                                                  • Receive help with advertising

                                                                                                                                                                                                                                                  • Receive instructions for startup

                                                                                                                                                                                                                                                  • Tap into a network of fellow franchisees

                                                                                                                                                                                                                                                  • Be operating faster versus starting from scratch



                                                                                                                                                                                                                                                Disadvantages:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Less control over the operations

                                                                                                                                                                                                                                                  • Costs are higher than starting from scratch

                                                                                                                                                                                                                                                  • Scams occur among potential franchisers



                                                                                                                                                                                                                                                To protect citizens of PEI from potential franchise scams, the provincial government passed the Franchises Act Regulations. Read through these rules to ensure you are protecting yourself when considering a franchise.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Start As a Side Hustle Business


                                                                                                                                                                                                                                                A side hustle in PEI is a type of business that you run on a part-time basis, usually while you work another full-time job. It can involve working for yourself or working for a larger corporation on a freelance basis. You may find that your side hustle is expanding quickly, giving you the opportunity to turn it into a business that you will run full time.

                                                                                                                                                                                                                                                Advantages:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • You may find something you enjoy

                                                                                                                                                                                                                                                  • Can test the job before fully committing to full-time work

                                                                                                                                                                                                                                                  • Commit as many hours as you want

                                                                                                                                                                                                                                                  • Side hustles are easy to try

                                                                                                                                                                                                                                                  • Network with and gain ideas from other “side hustlers”



                                                                                                                                                                                                                                                Disadvantages:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Finding enough income can be challenging

                                                                                                                                                                                                                                                  • Working full time and part time is hard

                                                                                                                                                                                                                                                  • Some side hustles don’t work as full-time gigs



                                                                                                                                                                                                                                                Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                                                                                                Regulations are just part of running a business anywhere in the world, and Prince Edward Island is no exception. You need to understand how these regulations affect your potential business idea, so you can plan accordingly and avoid problems.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Decide on a Legal Name


                                                                                                                                                                                                                                                In most cases, you need to have a legal name for your business in Prince Edward Island. The name must be unique versus other businesses operating in the province, so you will need to request a name search that shows you can use your desired name.

                                                                                                                                                                                                                                                When naming your business, you need to follow a few rules, including:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Create a name that’s distinctive from others

                                                                                                                                                                                                                                                  • The name should describe your business accurately

                                                                                                                                                                                                                                                  • Avoid words that are misleading about your business



                                                                                                                                                                                                                                                If you are operating a sole proprietorship in PEI, and if you are operating the business under your own name, you do not need to register the business. If you want to operate under a name other than your name, you will have to register your sole proprietorship and register your preferred name.

                                                                                                                                                                                                                                                Additionally, Prince Edward Island is operating a new system for business name registration. All companies must re-register their businesses by mid-2023 in the Online Corporate Business Names Registry.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Decide on the Legal Structure for the Business


                                                                                                                                                                                                                                                Pick among four different legal structures for operating your business in Prince Edward Island. You may want to hire a lawyer to help you figure out which legal structure is appropriate for your situation.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Sole proprietorship: This structure is best for a single person operating a business, as it is a simple structure. However, it doesn’t provide protection against liability.

                                                                                                                                                                                                                                                  • Partnership: The partnership is two or more people who operate a business as co-owners with the same proportional share of profits and liabilities.

                                                                                                                                                                                                                                                  • Corporation: Owners of a corporation have shares in the company that reflect the percentage of ownership each owner has. With this legal structure, the owners’ personal finances and liability are separate from the corporation’s finances and liability.

                                                                                                                                                                                                                                                  • Co-operative: A group of people organize and own the co-operative. Each person receives one vote on company ownership matters. The co-operative is a separate entity from a legal standpoint.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Understand the Taxes Your PEI Business Will Owe


                                                                                                                                                                                                                                                In Prince Edward Island, the provincial tax rate for businesses is between 1% and 16%.

                                                                                                                                                                                                                                                If you want to pay as little in business tax as possible – well, you’re not alone. You probably will want to consult an accountant to help you set up your PEI business to create the most advantageous tax structure that fits the type of business you are running. For more information, check out these resources:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Tax information for businesses from PEI provincial government

                                                                                                                                                                                                                                                  • Free Tax Help for Small Business Owners from federal government

                                                                                                                                                                                                                                                  • Canadian federal and provincial corporate income tax rates



                                                                                                                                                                                                                                                The Prince Edward Island government offers several tax credits that may apply to your business.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Decide Whether You Need Businesses Licences and Permits in Prince Edward Island


                                                                                                                                                                                                                                                Another area of government regulation occurs with any licences or permits you must hold to operate your business legally.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • PEI has a list of permits and licences you may need.

                                                                                                                                                                                                                                                  • BizPaL is a database of permits and licences that businesses in PEI may need to hold to satisfy local, provincial, and federal regulations.

                                                                                                                                                                                                                                                  • Charlottetown has explanations of local permits and licences that it requires for businesses.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Business Laws in Prince Edward Island


                                                                                                                                                                                                                                                Multiple laws are on the books with the PEI provincial government that affect businesses. You need to understand these laws, so you don’t end up violating them inadvertently.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Business Corporations Regulations

                                                                                                                                                                                                                                                  • Business Corporations Act

                                                                                                                                                                                                                                                  • Business Practices Act

                                                                                                                                                                                                                                                  • Employment Standards Act

                                                                                                                                                                                                                                                  • Labour Act

                                                                                                                                                                                                                                                  • Occupational Health and Safety Act



                                                                                                                                                                                                                                                If you find these explanations confusing, your attorney can help you figure out which PEI laws apply to the type of business you are running. For example, if you don’t have employees, many of the laws won’t affect your business.



                                                                                                                                                                                                                                                Step #5: Estimate Your Startup Costs

                                                                                                                                                                                                                                                When starting a new business, you will have multiple expenses before you can open your doors. Such costs are highly variable, depending on the type of business you’re running.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Estimated Cost to Start Certain Types of Businesses


                                                                                                                                                                                                                                                Here are some common small business options in Prince Edward Island and broad estimates about the cost to start these businesses. Understand that your business’ actual costs could be much higher or lower than those listed here, especially if you’re operating in a niche market of a particular industry.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Agricultural farm with livestock: Up to $75,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                                                  • Agricultural farm with row crops: Up to $100,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                                                  • Dairy farm: Up to $75,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                                                  • Bed and breakfast: Up to $200,000 in startup costs to purchase a property or up to $20,000 if you already own the property and about $300 per month in ongoing costs.

                                                                                                                                                                                                                                                  • Golf driving range: Up to $100,000 in startup costs and about $200 per month in ongoing costs.

                                                                                                                                                                                                                                                  • Online store: Up to $5,000 in startup costs and about $250 per month in ongoing costs.

                                                                                                                                                                                                                                                  • Exporter of PEI products: Up to $25,000 in startup costs and variable ongoing costs.

                                                                                                                                                                                                                                                  • Freelance blogger: Up to $1,000 in startup costs and about $50 per month in ongoing costs.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                One-Time Business Costs in Prince Edward Island


                                                                                                                                                                                                                                                Some common one-time costs that new business owners encounter in PEI include:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Constructing a building

                                                                                                                                                                                                                                                  • Remodeling a building

                                                                                                                                                                                                                                                  • Stocking inventory

                                                                                                                                                                                                                                                  • Point-of-sale system

                                                                                                                                                                                                                                                  • Computer system

                                                                                                                                                                                                                                                  • Telephone system

                                                                                                                                                                                                                                                  • Furniture and desks

                                                                                                                                                                                                                                                  • Specialized equipment

                                                                                                                                                                                                                                                  • Machinery

                                                                                                                                                                                                                                                  • Company vehicles

                                                                                                                                                                                                                                                  • Website design

                                                                                                                                                                                                                                                  • Website registration

                                                                                                                                                                                                                                                  • Registering the business

                                                                                                                                                                                                                                                  • Legal advice

                                                                                                                                                                                                                                                  • Accounting advice



                                                                                                                                                                                                                                                New businesses then have costs that occur regularly once they’re up and running, such as:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Rent for a building

                                                                                                                                                                                                                                                  • Rent for equipment and vehicles

                                                                                                                                                                                                                                                  • Machinery maintenance

                                                                                                                                                                                                                                                  • Machinery upgrades

                                                                                                                                                                                                                                                  • Replenishing products in inventory

                                                                                                                                                                                                                                                  • Utilities

                                                                                                                                                                                                                                                  • Employees

                                                                                                                                                                                                                                                  • Marketing and advertising

                                                                                                                                                                                                                                                  • Liability and general insurance

                                                                                                                                                                                                                                                  • Renewals of licences or permits

                                                                                                                                                                                                                                                  • Taxes

                                                                                                                                                                                                                                                  • Memberships to business groups

                                                                                                                                                                                                                                                  • Janitorial services

                                                                                                                                                                                                                                                  • Product packing and shipping

                                                                                                                                                                                                                                                  • Interest on money you borrowed



                                                                                                                                                                                                                                                Step #6: Create a Detailed Business Plan

                                                                                                                                                                                                                                                It certainly is exciting to have a business idea that you think will work. However, just because you think it will work doesn’t mean others will agree with you. (Especially people like your brother-in-law, who hates all of your ideas.)

                                                                                                                                                                                                                                                You can use the creation of a business plan to showcase statistics and research that verify why your business idea is a good one. With a well-designed business plan, you may have so much proof about your idea’s potential that even your brother-in-law will be impressed.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Why a Business Plan Is Important


                                                                                                                                                                                                                                                A business plan forces you to take a look at your business idea without having emotion and excitement cloud your judgment. Use research to show potential income generation and projected costs that are realistic. Some items to include in your business plan include:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • The purpose of the business

                                                                                                                                                                                                                                                  • Your personal strengths and weaknesses

                                                                                                                                                                                                                                                  • Areas where you may need expert help

                                                                                                                                                                                                                                                  • Potential problem areas

                                                                                                                                                                                                                                                  • Estimated costs for startup

                                                                                                                                                                                                                                                  • Estimated ongoing costs

                                                                                                                                                                                                                                                  • Potential customer base

                                                                                                                                                                                                                                                  • Projected income level now and in the future

                                                                                                                                                                                                                                                  • Projected market growth for your business

                                                                                                                                                                                                                                                  • Skills your employees will need



                                                                                                                                                                                                                                                Ultimately, your business plan serves as a blueprint for how you believe the business will perform and grow over a period of years. This is your opportunity to convince others of the viability of your business. Consequently, the more details and research-based information you can include, the better.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                How to Construct a Business Plan


                                                                                                                                                                                                                                                The Prince Edward Island provincial government has advice for creating a well-researched business plan. It should consist of two major sections.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Descriptive section: Use this written section to explain why you want to start the business, why PEI is the best place to start your business, how you plan to obtain customers, which competitors are already up and running, and more.

                                                                                                                                                                                                                                                  • Financial section: Use the financial section to show projected income and expenses, potential sources of funding, a list of equipment you need, and future projections.



                                                                                                                                                                                                                                                Some entrepreneurs will want to include a marketing plan as part of the business plan, which explains how you will attempt to source customers. BDC has a marketing plan template you can borrow.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Benefits of a Business Plan


                                                                                                                                                                                                                                                Beyond being able to explain your business idea in analytical terms to other people, you may need a business plan before you can take certain steps in developing your business, including:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Seeking funding from banks

                                                                                                                                                                                                                                                  • Seeking funding from venture capitalists

                                                                                                                                                                                                                                                  • Seeking business grants in PEI

                                                                                                                                                                                                                                                  • Receiving loans from equipment manufacturers



                                                                                                                                                                                                                                                Step #7: Finding Business Financing

                                                                                                                                                                                                                                                Now for the really hard part of starting a business in PEI – finding the funding you need.

                                                                                                                                                                                                                                                Although some new business ventures need far less startup money than others, nearly any business you want to start must have money before you are ready to seek clients or customers. Startup money pays for equipment, websites, inventory, and more.

                                                                                                                                                                                                                                                Consider the following sources of business financing that you may be able to use.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Your Own Money


                                                                                                                                                                                                                                                The idea of placing your own money into your business may seem pretty scary. However, if you are going to seek financing from others, such investors likely will be leery of giving you their money if you are not willing to place your own money in the venture. Ideas for contributing your own money include:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Savings

                                                                                                                                                                                                                                                  • Selling some assets

                                                                                                                                                                                                                                                  • Borrowing against retirement accounts (RRSP, TFSA, or RDSP)

                                                                                                                                                                                                                                                  • Borrowing against your personal assets

                                                                                                                                                                                                                                                  • Borrowing against your personal credit cards

                                                                                                                                                                                                                                                  • Pre-sell your business’ products

                                                                                                                                                                                                                                                  • Use a side hustle to raise extra money




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                “Free” Money


                                                                                                                                                                                                                                                Money rarely is free, but if you can find some sources of funding that you don’t have to pay back, this is one of the best ways to raise startup money. Such funding gives your business a significant boost toward a successful outcome. Options include:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Crowdfunding donations

                                                                                                                                                                                                                                                  • Government grants

                                                                                                                                                                                                                                                  • Corporate grants

                                                                                                                                                                                                                                                  • Charitable grants

                                                                                                                                                                                                                                                  • Business tax credits or rebates

                                                                                                                                                                                                                                                  • Utility rebates

                                                                                                                                                                                                                                                  • Equipment rebates

                                                                                                                                                                                                                                                  • Gifts from the 3Fs – family, friends, and “fools”

                                                                                                                                                                                                                                                  • In-kind support from incubators or accelerators




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Loans


                                                                                                                                                                                                                                                Finding a source for a business loan, especially for a business you are starting from scratch, can be extremely challenging. If you are purchasing an existing business that has a history of income generation, you may have a better chance at obtaining a traditional bank loan for your business.

                                                                                                                                                                                                                                                Sources for business loans you may want to research include:



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Traditional banks

                                                                                                                                                                                                                                                  • Government-based business loans

                                                                                                                                                                                                                                                  • Loans from alternative lenders (like a private lender or a P2P lender)

                                                                                                                                                                                                                                                  • Raising funds through microloans

                                                                                                                                                                                                                                                  • Loans aimed at minority business owners

                                                                                                                                                                                                                                                  • Manufacturer loans to purchase equipment

                                                                                                                                                                                                                                                  • Manufacturer loans to purchase vehicles

                                                                                                                                                                                                                                                  • Purchase order financing

                                                                                                                                                                                                                                                  • Invoice factoring

                                                                                                                                                                                                                                                  • Invoice financing

                                                                                                                                                                                                                                                  • Scientific Research and Experimental Development (SR&ED) financing




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Selling Equity in Your Business


                                                                                                                                                                                                                                                Another option is to sell a chunk of ownership in your business in exchange for startup funding. You could incorporate your business and sell shares. You might work with a venture capitalist as well.

                                                                                                                                                                                                                                                Consider this option carefully, as anyone who purchases shares in your business may want to have a significant say in how you operate the business. If you are starting a business so you can have complete control, selling equity may not be a good choice.



                                                                                                                                                                                                                                                Step #8: Accept Help When You Need It

                                                                                                                                                                                                                                                When you choose to start a business in PEI, you probably are looking to take advantage of some skills that you have. If your skills are repairing small engines or shooting beautiful photographs, you may not know all that much about the legal requirements of operating a business or about managing your financial books.

                                                                                                                                                                                                                                                In situations where you don’t have much expertise, hiring professionals to help you is a good idea. Don’t just guess on how to handle certain items and risk making costly mistakes. Some areas where you may want to seek help include:


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Legal: Setting up your business’ legal operating structure, understanding provincial laws, and comprehending purchase agreements all may require the help of a lawyer.

                                                                                                                                                                                                                                                  • Financial: Paying taxes, managing income and expenses, and obtaining good rates on business loans may require the help of accountants or bankers.

                                                                                                                                                                                                                                                  • Protection: You can ask an insurance agent for advice on what kinds of liability and general insurance you need to protect your business investment and property.

                                                                                                                                                                                                                                                  • General advice: A mentor is someone who can look over your business decisions before you make them and your business plan to give you advice on the likelihood of success.


                                                                                                                                                                                                                                                InnovationPEI has a list of funding options for entrepreneurs on the island province, including Business Supports. The Greater Charlottetown Area Chamber of Commerce has a summary of funding options as well.

                                                                                                                                                                                                                                                Step #9: Don’t Forget to Note Your Accomplishments

                                                                                                                                                                                                                                                Starting a business is not easy. Quite a few people may believe they have the idea for the perfect business in Prince Edward Island, but the majority of them never make it past the idea stage.

                                                                                                                                                                                                                                                If you’re in the process of trying to set up your new business venture, it can feel overwhelming. You may start to wonder if the process will ever end.

                                                                                                                                                                                                                                                When you are having these feelings, take a minute to think about the accomplishments you’ve had to date. You might be amazed at everything you’ve already done, which makes the tasks remaining on your list feel a little less daunting.

                                                                                                                                                                                                                                                Additionally, you can find inspiration and advice in several places around Prince Edward Island. Help from business organizations and fellow entrepreneurs can give you the impetus you need to push you over the finish line, so you can begin serving customers and clients.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Business Startup Resources


                                                                                                                                                                                                                                                The Business Navigator from Prince Edward Island’s provincial government provides quite a bit of general advice on starting a business. Additional options with tips and advice come from InnovationPEI and from Startup PEI.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Business Networking Opportunities


                                                                                                                                                                                                                                                Sometimes, the best way to find advice and inspiration is from other entrepreneurs in Prince Edward Island. Through networking, you also may find other business ideas through which you can expand your offerings.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Eventbrite

                                                                                                                                                                                                                                                  • PEI Connectors

                                                                                                                                                                                                                                                  • PEI Business Women’s Association




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Business Directories


                                                                                                                                                                                                                                                A business directory is a website that collects a list of local PEI businesses, including contact information. Having your business listed on these directories – with the correct contact information – can help customers find you.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • PEI Business and Corporate Registry

                                                                                                                                                                                                                                                  • PEILocal.com Business Directory

                                                                                                                                                                                                                                                  • 411.ca Prince Edward Island Business Directory

                                                                                                                                                                                                                                                  • PEI Business Directory

                                                                                                                                                                                                                                                  • Yellow Pages Business Directory

                                                                                                                                                                                                                                                  • PEI Aboriginal Business Directory

                                                                                                                                                                                                                                                  • Indigenous Business Directory in Prince Edward Island and all of Canada




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Business Associations and Organizations


                                                                                                                                                                                                                                                Look for organizations in Prince Edward Island that can help you meet fellow entrepreneurs and that can generate inspiration to match their accomplishments. Joining professional associations also can be helpful to your business’ success. You may find some employees or sourcing options for products through these groups.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • PEI Business Women’s Association (PEIBWA)

                                                                                                                                                                                                                                                  • Greater Charlottetown Area Chamber of Commerce

                                                                                                                                                                                                                                                  • Greater Summerside Chamber of Commerce

                                                                                                                                                                                                                                                  • Prince Edward County Chamber of Commerce

                                                                                                                                                                                                                                                  • West Prince Chamber of Commerce

                                                                                                                                                                                                                                                  • PEI Business Federation




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Business Awards and Competitions


                                                                                                                                                                                                                                                Organizations across Prince Edward Island offer awards in various business categories. Receiving a nomination for an award or winning one can give your business a nice boost in the eyes of fellow entrepreneurs and customers.



                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • President’s Excellence Awards from Greater Charlottetown Area Chamber of Commerce

                                                                                                                                                                                                                                                  • Prince Edward County Business Excellence Awards

                                                                                                                                                                                                                                                  • Business Excellence Awards from West Prince Chamber of Commerce

                                                                                                                                                                                                                                                  • JA Business Hall of Fame



                                                                                                                                                                                                                                                If you are a member of a professional organization, such groups may also offer business awards that are worth exploring.




                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                PEI Immigrant Business Entrepreneurs


                                                                                                                                                                                                                                                The PEI provincial government has resources available to those who want to immigrate to Prince Edward Island with the idea of starting or buying a business.



                                                                                                                                                                                                                                                Step #10: Ten Business Startup Mistakes to Avoid

                                                                                                                                                                                                                                                Starting a business requires making some bold moves. However, such moves need to have some thought behind them. Rash decisions based on emotion are sure to lead to problems. If you want to avoid these types of issues in your business venture, start by avoiding these 10 common mistakes new business owners in Prince Edward Island make.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Overpromising and underdelivering: As a new business owner, you want to impress your first few customers. However, don’t set unrealistic expectations for what you can accomplish, or you will leave your customers disappointed. It’s always better to under promise and overdeliver than vice versa.

                                                                                                                                                                                                                                                  • Being too general: As we discussed at the beginning, new small businesses may have a better chance at success by focusing on a niche area of an industry. Trying to be all things to all people in your preferred industry could leave you in trouble versus competitors.

                                                                                                                                                                                                                                                  • Straying from your plan: If you spent a lot of time creating your business plan, you shouldn’t abandon it the first time things get tough. You certainly can tweak your business plan as new information becomes available, but don’t give up on it too quickly.

                                                                                                                                                                                                                                                  • Trying to do too much: Part of the appeal of starting your own business is being in charge. (No more answering to a boss!) But you probably can’t do it all alone. Seeking advice and expertise in areas where you need help is not a sign of weakness.

                                                                                                                                                                                                                                                  • Ignoring some entrepreneurial avenues: Starting a business from scratch is a popular idea for new entrepreneurs, but it’s not the only option. You may find something that fits your life better by purchasing an existing business or a franchise.

                                                                                                                                                                                                                                                  • Not putting things in writing: People may have done business with a handshake decades ago in Prince Edward Island. You are not living decades ago, though. Put everything regarding your business in writing. Have a lawyer look over any agreements you don’t quite understand.

                                                                                                                                                                                                                                                  • Not seeking “free” money: Business grants, gifts from family members, and financial help for minority business owners all can give you a better chance of getting your business off the ground. Finding startup money you don’t have to repay is a big deal.

                                                                                                                                                                                                                                                  • Overspending before opening: Once you have startup funding in hand, don’t spend it all right away. Only spend the money you absolutely need to get the business up and running. Hold back a bit of startup money, if at all possible, to help you work through any snags in the first few months of operation.

                                                                                                                                                                                                                                                  • Not buying insurance: Insurance protects your business investment. Should a fire damage your building, property insurance helps you recoup those losses and remain in business. Should someone fall on your property and sue you, liability insurance protects your finances. Make sure insurance premiums are part of your budget.

                                                                                                                                                                                                                                                  • Not being clear with investors: If you decide to accept money from investors, make sure both parties are clear about what the investment means. Some investors may want to purchase a share of your business. Some may consider the money a loan. Some may provide the money as a gift. Even if the investors are family members, make sure the purpose of the money is extremely clear.


                                                                                                                                                                                                                                                Checklist for Starting a Business in Prince Edward Island


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                  • Come up with your business idea by researching the market and by considering your skills and areas of interest.

                                                                                                                                                                                                                                                  • Select a business that will offer goods or services and that will have a physical location or will be digital only.

                                                                                                                                                                                                                                                  • Figure out how to enter the PEI business market, such as by purchasing an existing business.

                                                                                                                                                                                                                                                  • Understand how PEI’s regulations and laws affect your business.

                                                                                                                                                                                                                                                  • Estimate your startup costs, based on the type of business you want to operate.

                                                                                                                                                                                                                                                  • Create a business plan that shows why your idea is a good one.

                                                                                                                                                                                                                                                  • Seek financing to get your business off the ground.

                                                                                                                                                                                                                                                  • Hire experts for areas of operating the business where your skills are lacking.

                                                                                                                                                                                                                                                  • Seek advice, find inspiration, and take note of your accomplishments!

                                                                                                                                                                                                                                                  • Avoid common mistakes that hurt PEI business owners’ chances of success.


                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                                Buy a Business from Someone Else

                                                                                                                                                                                                                                                People sell businesses regularly in Prince Edward Island. Buying an existing business has some advantages for those seeking to become an entrepreneur.

                                                                                                                                                                                                                                                Advantages:

                                                                                                                                                                                                                                                   

                                                                                                                                                                                                                                                    • Less time required to begin operations

                                                                                                                                                                                                                                                    • Built-in brand name

                                                                                                                                                                                                                                                    • Built-in customer base

                                                                                                                                                                                                                                                    • Easier to set financial expectations

                                                                                                                                                                                                                                                    • Previous owner may stay on briefly to help you

                                                                                                                                                                                                                                                  Disadvantages:

                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Previous owner’s mistakes affect you

                                                                                                                                                                                                                                                      • You get less credit versus starting from scratch

                                                                                                                                                                                                                                                      • Some owners may lie about income history

                                                                                                                                                                                                                                                    If you are buying an existing business, taking the owner’s word for financial performance and what assets are part of the sale is a bad idea. Instead, seek out an attorney and an accountant to verify the agreement.

                                                                                                                                                                                                                                                    You may want to seek the help of a business broker to facilitate the process of finding and purchasing an existing business, too. Brokers in PEI have an intimate knowledge of the local business environment, meaning they can help you find great businesses for sale that fit your skills and desires. Some of the best business brokers in Prince Edward Island include:


                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Queen Square Business Brokers

                                                                                                                                                                                                                                                      • Sunbelt Network Business Brokers


                                                                                                                                                                                                                                                    If you prefer to do some legwork regarding existing businesses for sale in Prince Edward Island before reaching out to a broker, several websites exist that showcase businesses for sale, including:




                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Businesses for sale by owner:


                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • PEIBusinessesforSale.com

                                                                                                                                                                                                                                                      • Kijiji Businesses for Sale

                                                                                                                                                                                                                                                      • Craigslist Businesses for Sale




                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Online marketplaces with businesses for sale:


                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • BusinessesForSale.com

                                                                                                                                                                                                                                                      • BuyAndSellABusiness.com

                                                                                                                                                                                                                                                      • BizQuest.com

                                                                                                                                                                                                                                                      • PEI Businesses for Sale




                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Online real estate brokers:


                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Realtor.ca Businesses for Sale

                                                                                                                                                                                                                                                      • Point2Homes Businesses and Commercial Properties for Sale

                                                                                                                                                                                                                                                      • Century 21 Businesses for Sale




                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Buy a Franchise as Your Business


                                                                                                                                                                                                                                                    Purchasing a franchise means you are buying a brand name business with the right to start and run a new location for that business in Prince Edward Island. The franchiser gives you help along the way.

                                                                                                                                                                                                                                                    Advantages:



                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Receive a known brand name

                                                                                                                                                                                                                                                      • Receive help with advertising

                                                                                                                                                                                                                                                      • Receive instructions for startup

                                                                                                                                                                                                                                                      • Tap into a network of fellow franchisees

                                                                                                                                                                                                                                                      • Be operating faster versus starting from scratch



                                                                                                                                                                                                                                                    Disadvantages:



                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Less control over the operations

                                                                                                                                                                                                                                                      • Costs are higher than starting from scratch

                                                                                                                                                                                                                                                      • Scams occur among potential franchisers



                                                                                                                                                                                                                                                    To protect citizens of PEI from potential franchise scams, the provincial government passed the Franchises Act Regulations. Read through these rules to ensure you are protecting yourself when considering a franchise.




                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Start As a Side Hustle Business


                                                                                                                                                                                                                                                    A side hustle in PEI is a type of business that you run on a part-time basis, usually while you work another full-time job. It can involve working for yourself or working for a larger corporation on a freelance basis. You may find that your side hustle is expanding quickly, giving you the opportunity to turn it into a business that you will run full time.

                                                                                                                                                                                                                                                    Advantages:



                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • You may find something you enjoy

                                                                                                                                                                                                                                                      • Can test the job before fully committing to full-time work

                                                                                                                                                                                                                                                      • Commit as many hours as you want

                                                                                                                                                                                                                                                      • Side hustles are easy to try

                                                                                                                                                                                                                                                      • Network with and gain ideas from other “side hustlers”



                                                                                                                                                                                                                                                    Disadvantages:



                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                      • Finding enough income can be challenging

                                                                                                                                                                                                                                                      • Working full time and part time is hard

                                                                                                                                                                                                                                                      • Some side hustles don’t work as full-time gigs



                                                                                                                                                                                                                                                    Step #4: Government Regulations to Follow in Prince Edward Island

                                                                                                                                                                                                                                                    Regulations are just part of running a business anywhere in the world, and Prince Edward Island is no exception. You need to understand how these regulations affect your potential business idea, so you can plan accordingly and avoid problems.


                                                                                                                                                                                                                                                     

                                                                                                                                                                                                                                                    Decide on a Legal Name


                                                                                                                                                                                                                                                    In most cases, you need to have a legal name for your business in Prince Edward Island. The name must be unique versus other businesses operating in the province, so you will need to request a name search that shows you can use your desired name.

                                                                                                                                                                                                                                                    When naming your business, you need to follow a few rules, including: