Newfoundland & Labrador Small Business: Complete Guide for Entrepreneurs

ByMaurice

There’s no question Newfoundland & Labrador is one of the most unique cultures in the world. And it features all the rugged, natural beauty of the Atlantic Ocean and Eastern Canada, to boot!

NL is also known as an area undergoing economic changes, making it an exciting time to start a business here.

Business opportunities are varied in the province. Our guide to Newfoundland and Labrador small business covers everything you need to know to prepare for starting or buying a business in this eastern most Canadian province.

Major Industries in Newfoundland & Labrador

Newfoundland & Labrador has many natural resources, and its economy traditionally relies on fishing, mining, manufacturing, forestry, and the petroleum industry. Other important economic sectors for Newfoundland & Labrador include tourism, agriculture, aquaculture, and technology.

Although the Newfoundland & Labrador economy suffered from a downturn in the cod fishery industry a few decades ago, it is rebounding in nearly all measurable areas in recent years.

Fisheries continue to be an important sector for the provincial economy. Species regularly harvested include cod, haddock, halibut, herring, mackerel, crab, shrimp, and clams.

Best Business to Start in Newfoundland & Labrador: 6 Promising Industries

Businesses that take advantage of Newfoundland & Labrador’s natural resources certainly continue to play a big role in business development in this province.

But there are definitely growth industries in NL as well. The Newfoundland & Labrador government has six priority sectors that it believes represent forward-looking investment opportunities for businesses, including:

  • Oil and Gas
  • Mines and Mineral Development
  • Ocean Technology
  • Technology Sector
  • Aerospace and Defense
  • Innovation Supports

When considering starting a business in Newfoundland & Labrador, it may pay to focus on options directly related to these industries or that provide support services for these industries.

Additionally, St. John’s, the largest city in Newfoundland & Labrador, has its own list of five key investment sectors where businesses starting here may want to focus, including:

  • Ocean Technology
  • Natural Resources
  • Technology and Innovation
  • Film, Arts, and Culture
  • Tourism

How to Start a Business in Newfoundland & Labrador: Step-by-Step Instructions

1. Start with the basics:

  • Determine which industry or segment of that industry matches up well with your skills
  • Understand the services you can provide to customers
  • Understand the goods you can provide to customers
  • Do you prefer an in-person business, an online business, or a mix of the two?

2. Study any government requirements you must follow:

  • Register as a sole proprietorship, a partnership, or a NL corporation
  • Research whether you need licences and permits
  • Study any provincial or federal regulations you must follow
  • Understand the taxes you’ll owe (yes, unfortunately, your business will have to pay taxes)
  • What types of insurance do you need to purchase to protect your investment?

3. Write a business plan.

There are some endeavours where it’s best to jump in with no preparation work. You don’t want to think much about trying the tallest freefall ride at the theme park, for example, or you might chicken out.

However, when it comes to operating a business, going into freefall is the last thing you want to do. Therefore, some preparation work on your part is the best way to set yourself up for success, starting with creating a business plan.

The business plan is a blueprint for how you expect to start and operate the business. Items you should have in the business plan include:

  • A description of your business
  • How you plan to market the business
  • Expectations for how the business runs on a daily basis
  • Skill sets you need employees to have
  • Number of employees you plan to hire immediately
  • Calculations of expected profit margins
  • Expected financial results now and in the future
  • Startup costs

4. Look for funding sources.

Finding the money to start your business is one of the most challenging steps.

You can consider seeking a business loan from a bank. You also may qualify for government funding. Check out our big lists of:

5. Seek help when you need it.

The majority of successful small business owners in Newfoundland & Labrador and elsewhere had help at some point in the process. Seek out mentors from professional organizations, or consider requesting advice from accountants, attorneys, and bankers.

Newfoundland & Labrador Small Business Grants: Top 10 Grants to Grow Your NL Business

Newfoundland & Labrador Small Business Loans: 3 Loan Programs to Start & Grow Your NL Business

Business for Sale Newfoundland & Labrador: Business Opportunities in Newfoundland & Labrador

When starting a business, you need to follow a lot of steps and jump through a lot of hoops. It can all seem like too much at times.

Rather than giving up on your dream of being a business owner in Newfoundland & Labrador, though, you could purchase an existing business and make it your own.

We collected some resources you can use to find a business for sale that matches your skills and desired area of the market.

Online Business Marketplaces

An online marketplace for businesses showcases various businesses listed for sale. Some of the best marketplaces for Newfoundland & Labrador businesses include:

Real Estate Brokerages

When you prefer to stick with a real estate broker to help you find a business for sale, multiple brokerages in Newfoundland & Labrador provide business listings, including:

Online Classifieds (For Sale by Owner)

When business owners are selling the business on their own, trying to avoid having to make commission payments to agents, they may list their Newfoundland & Labrador businesses on online classified websites, including:

Business Brokers

Count on a business broker to simplify the process of trying to purchase an existing business. The business broker alerts you to new businesses as they come on the market – sometimes even before they are officially on the market – and helps you facilitate the purchase.

The broker serves as the middleman for negotiating the deal, hopefully making the transaction go faster and smoother. Brokers may even be able to help you find a business in a niche area, because they understand the local market so well.

Some of the best Newfoundland & Labrador business brokers include:

Business Registration in Newfoundland & Labrador

You can register your business in Newfoundland & Labrador completely online through the Digital Government and Service webpage. The steps include:

  1. Decide whether to register as a sole proprietorship, corporation, or partnership
  2. Choose a name for your business
  3. Search for existing names of businesses in Newfoundland & Labrador to ensure your desired name is available
  4. Reserve the name you want through the provincial government
  5. Wait for confirmation that the government approved your name     

Business Licences in Newfoundland & Labrador

You may need to obtain certain business permits and licences to be able to operate in Newfoundland & Labrador, as well as in specific cities within the province. Read more about the permits and licences you need at the following links.

Business Insurance in Newfoundland & Labrador

The provincial government of Newfoundland & Labrador does not regulate the types of insurance that local businesses purchase. However, this doesn’t mean you should skip purchasing insurance.

Insurance for your business protects you financially from unforeseen problems and catastrophes. It’s almost like a safety net. The most common types of business insurance you want to consider purchasing include:

  • Property insurance. This policy protects you from property losses that occur from catastrophes, like storms or fire.
  • Workers’ compensation insurance. If you have employees, you probably will need to purchase workers’ comp insurance.
  • General liability insurance. This insurance protects your business if someone sues you for damages because of an injury that allegedly occurred because of your negligence.
  • Product liability insurance. If one of your products allegedly causes an injury for someone, this insurance protects your business.
  • Professional liability insurance. If a client accuses you of making a mistake that leads to financial loss for the client, this insurance protects you and your business.

Business Laws in Newfoundland & Labrador

Provincial laws in Newfoundland & Labrador may directly affect the way you operate your business and treat your employees. Such laws include:

Business Taxes in Newfoundland & Labrador

All business owners want to be successful. With big success, however, comes big tax bills. Learn more about the taxes you may owe with your business in Newfoundland & Labrador through the following links.

The current provincial tax rate for business in Newfoundland & Labrador ranges from 3% to 15%.

Newfoundland & Labrador Business Immigration

The provincial government of Newfoundland & Labrador encourages immigrants to start businesses in the province, with an eye toward establishing residence here and contributing to the local economy. The International Entrepreneur program spells out the eligibility criteria for potential immigrants who want to start or buy a business in Newfoundland & Labrador.

Small Business Resources in Newfoundland & Labrador

Starting a small business is a challenge. No one wants to make a mistake when putting their professional life on the line with a new business. Fortunately, Newfoundland & Labrador has numerous resources to help you with your plans to become an entrepreneur in the province.

Newfoundland & Labrador Business Directories

General Business Directories

Indigenous-Owned Businesses Newfoundland & Labrador

Newfoundland & Labrador Business Associations & Organizations

Newfoundland & Labrador Business News

Other Newfoundland and Labrador Resources for Business

Government Websites for Newfoundland & Labrador Businesses

Newfoundland & Labrador Industry Links

Other Resources for NL Businesses

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Atlantic Canada to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.