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Newfoundland and Labrador

Newfoundland & Labrador Small Business: Complete Guide for Entrepreneurs

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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

JobsNL Wage Subsidy

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Amount:

No Fixed Amount

Type of Program:

Subsidy

Description:

The JobsNL Wage Subsidy program supports employers to create sustainable long-term employment or seasonal / short term employment. The subsidy is intended to offset salary costs to create new positions.

There are two subsidy options:

  1. 1

    JobsNL- 42 that provides a wage subsidy for 28 weeks of a minimum 42-week period of employment

  2. 2

    JobsNL- 28 that provides a wage subsidy for a period of 10 – 28 weeks, allowing funding for seasonal / short term employment.

Comments on Funding:

For the JobsNL- 42 option the subsidy is as follows:

  • first 14 weeks, 60% subsidy, to a maximum of $12 towards the hourly wage rate,

  • second 14 weeks, 0% subsidy towards wages,

  • third 14 weeks, 80% subsidy, to a maximum of $12 towards the hourly wage rate.

A completion bonus of $2,000 for the employer and $1,000 for the employee may be paid, only if the employee remains employed for ten (10) weeks after the end of the subsidy, meaning 52 weeks of continuous employment.

For the JobsNL- 28 option the subsidy is 60% subsidy, to a maximum of $12 towards the hourly wage rate.

A completion bonus of $2,000 for the employer and $1,000 for the employee may be paid to employers approved for a subsidy of 28 weeks, only if the employee remains employed for ten (10) weeks after the end of the subsidy period, meaning 38 weeks of continuous employment. 

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

Applicants must:

  • be private or not-for-profit sector employers that are incorporated or sole proprietorship

  • have a Canada Revenue Agency (CRA) business number,

  • be in good standing with Registry of Companies and Deeds,

  • have an office location/base in Newfoundland and Labrador,

  • adhere to the all relevant Terms and Conditions of the JobsNL program

Federal and provincial government departments, crown agencies and corporations, boards and commissions, municipalities and political parties are not eligible for funding

Participants must:

  • be Canadian citizens or permanent residents, who are residents of Newfoundland and Labrador

  • unemployed or underemployed (underemployed being someone who has been employed on average less than 20 hours per week or in a field not related to their training),

  • be recent post-secondary graduates who have not obtained employment in their field of study,

  • be international graduates of Memorial University of Newfoundland, or College of the North Atlantic with a Post-graduate Work Permit, and individuals with an Open Work Permit who are residents of the province,

  • not receive a federal or provincial pension, Workplace NL benefits or another benefit prescribed by the Minister,

  • not be an individual hired prior to the date an application is submitted.

Application Steps:

1

register and create an account in the Department of Immigration, Population Growth and Skills LaMPSS payment system to apply on-line,

2

complete and submit an online application and wait to be notified by email after a decision is made on the application – within 20 business days of receipt of a complete application,

3

submit the Consent Form after hiring an individual. When approval is granted, an individual must be hired within 30 business days.

Documentation Needed: 

The applicant must submit:

  • an online application form,

  • the most recent annual or general meeting minutes and financial statement to demonstrate the organization has an executive structure, decision making process and financial accountability, if the employer is a not-for-profit organization.

Other Things to Note: 

Employment Standards

Employers who participate in the JobsNL Wage Subsidy Program are required to comply with all relevant employment standards laws and regulations. This includes minimum wage requirements, hours of work, vacation pay, statutory holidays, and other applicable standards. Employers must also provide a safe and healthy work environment for their employees.

Reporting Requirements

Employers are required to submit regular reports to JobsNL regarding their participation in the Wage Subsidy Program. These reports must include information on the number of employees hired, the duration of employment, and the amount of wage subsidy received. Employers must also provide evidence of compliance with employment standards laws and regulations.

If an employer fails to comply with employment standards laws and regulations or fails to meet reporting requirements, JobsNL may terminate their participation in the Wage Subsidy Program and require repayment of any subsidy funds received.

Program Contact:

JobsNL Wage Subsidy

JobsNL Wage Subsidy Program Guidelines

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

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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!)

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

Newfoundland and Labrador online marketplaces with businesses for sale

Newfoundland and Labrador businesses for sale by owner

Newfoundland and Labrador online real estate brokers

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.

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 docment 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.

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 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.

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:

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

Best Business to Start in Newfoundland & Labrador: Growth Industries + Top Business Ideas

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Newfoundland & Labrador is well known for its mining and petroleum industries. For entrepreneurs here, though, those aren’t the only successful potential business opportunities.

Agriculture, tourism, fishery, and forestry are also key industries in Newfoundland & Labrador. Understanding both the traditionally successful and emerging industries can be a key component to developing a successful business venture in this eastern Canadian province.

When you want some help with finding just the right business idea in Newfoundland & Labrador, check out our advice and tips.

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Why Start a Business in Newfoundland & Labrador? Key Stats

After a dip during COVID-19, Newfoundland & Labrador’s GDP reached a record $37.9 billion in 2021, continuing a steady climb that began in 2015 with only a brief interruption from the pandemic.

With such a heavy reliance on natural resources in Newfoundland & Labrador, exports are a significant part of the province’s economy. In the month of January 2021 alone, Newfoundland & Labrador had more than $1 billion in export value.

NL reported more than 15,200 businesses province-wide as of December 2021. Of those, more than 13,300 had fewer than 20 employees. More than 8,200 of those had fewer than five employees, showing the strength of the province as it relates to extremely small businesses.

When starting a business in Newfoundland & Labrador, many people focus on the city of St. John’s, as the city has almost 22% of the entire 525,000 population in the NL province.

Biggest Industries in Newfoundland & Labrador

Certainly, those looking to start a business are free to work inside any NL industry area they choose. However, when entrepreneurs focus on the largest industries in Newfoundland & Labrador, they may have a better chance of success.

Focusing your new business in an area where numerous existing businesses are already having success may give you access to more potential customers. Traditional Newfoundland & Labrador industries – such as mining, petroleum, fishery, agriculture, exporting, and manufacturing – all continue to show strength.

The NL provincial government is also targeting investment and expansion into other industries. Such efforts aim to diversify Newfoundland & Labrador’s economy and to modernize traditional industries, meaning entrepreneurs may want to consider these options as well.

According to Statista, the industries in Newfoundland & Labrador that generate the largest percentage of the province’s GDP include:

  • Mining, quarrying, and oil and gas extraction, 31.8%

  • Real estate, 9.3%

  • Health care and social assistance, 9.1%

  • Public administration, 7.8%

  • Construction, 6.2%

  • Educational services, 5.6%

  • Retail, 5.4%

  • Manufacturing, 3.5%

  • Professional, scientific, and technical services, 3.3%

  • Finance and insurance, 3.2%

What Kind of Business Should I Start in Newfoundland & Labrador?

When preparing to start a business in Newfoundland & Labrador, it’s important to understand there’s no guarantee of success. Finding a successful business venture is hard work, but the financial and professional rewards are almost impossible to match.

One of the best ways to set yourself up for success is to take the time to study the needs of various industries and to use that information to find something that matches your skills. Figure out what problems exist in a particular industry. Then decide how you can solve those problems in a way that competitors cannot match.

To take this advice a step farther, think about using the acronym NOC to help you brainstorm to find a workable business idea. NOC is short for Niche, Offer, and Channel.

  • Niche

Niche refers to the industry in which you want to work. Many small businesses choose to work in a niche area of an industry, rather than competing against larger businesses working in the industry in a general manner. When you start in a niche area, you always can expand later as you learn more about the market.

  • Offer

Offer refers to whether you will offer goods, services, or both goods and services to your customers. You could choose to make and sell your own goods, or you could source goods from elsewhere to sell. You could hire someone to perform a service on behalf of your business, or you could perform the service yourself.

  • Channel

Channel refers to how you will present your business to customers. Will you have a physical location that customers can visit? Do you prefer an online-only store based out of your home where you never interact face to face with customers? Or will you travel to your customers to provide services?

Best Businesses to Start in Newfoundland & Labrador

Beyond the primary industries that we mentioned earlier, the Newfoundland & Labrador provincial government has listed six emerging industries that are poised for growth, modernization, and investment.

  • Aerospace and defence: Newfoundland & Labrador is a key defence location for all of North America, aiding in marine and airspace defence. NL also has a growing training and surveillance industry.

  • Innovation supports: Newfoundland & Labrador has numerous opportunities for targeted investments toward innovation in various industries.

  • Mining: Newfoundland & Labrador is one of the world’s most diverse mining locations, offering multiple precious metals. NL offers significant geoscience information to help mining businesses minimize their risks.

  • Ocean technology: With NL’s expertise in ocean-related industries, newer industries that use ocean technology to create improvements and to modernize these industries is an emerging area of the economy.

  • Oil and gas: Investors in Newfoundland & Labrador’s petroleum industry have options for both onshore and offshore developments for oil and natural gas.

  • Technology: Newfoundland & Labrador’s tech sector continues to show economic growth. Enhanced technology feeds business growth in nearly every sector of the NL economy.

Focusing on a niche area of these NL emerging industries or of the traditional NL industries may give you a better chance at success. Those industries have established companies, which could lead to trustworthy customers for you.

Manufacturing Business Ideas for Newfoundland & Labrador

  • An export business that aids in transporting NL’s natural resources around the world.

  • A trucking business to bring raw materials to processing areas in Newfoundland & Labrador.

  • A laundering business that helps manufacturers clean their employees’ uniforms and other linens used in the business.

  • An equipment manufacturer who creates custom machines to solve particular problems in the mining industry.

  • A business that creates parts to keep older machines in operational condition for the petroleum industry.

Home-Based Business Ideas Newfoundland & Labrador

  • A child care or pet care business that helps working people in Newfoundland & Labrador find the trustworthy care they need.

  • An investment consultation business that helps those wishing to invest in Newfoundland & Labrador understand the business market.

  • A home-based repair business that travels to the customer locations to fix small engine equipment or winter recreational equipment.

  • A freelance writer and photographer who documents the rugged beauty of NL for tourism.

  • An online store that sells processed seafood and other locally sourced products from Newfoundland & Labrador across Canada and the world.

How to Start a Business on Newfoundland & Labrador - 8 Steps

Preparing to start a business in Newfoundland & Labrador takes quite a bit of work on your part. If you aren’t sure where to start, try these steps to give you the best chance of getting your NL business off on the right foot.

  1. 1

    Study Potential Business Ideas

Determining what kind of business you would like to run is simultaneously the most exciting and terrifying aspect of starting a Newfoundland & Labrador business. Taking the time to study the business market and to determine whether there’s a problem out there that you can solve is key to finding a workable business idea.

  1. 2

    Develop a Business Plan

If you want to try to obtain business grants, a business bank account, or business loans in Newfoundland & Labrador, having a detailed business plan is vital. Your business plan is your opportunity to show others, including potential investors, that your idea is realistic and that a path to profitability exists for you.

You need to perform market research to come up with statistics and proof that your business idea will work in the local market. You can use the plan to create projections for financial gains down the road as well.

  1. 3

    Find Sources of Funding

No business can get off the ground without funding. Beyond the startup money, entrepreneurs in NL will want some money available for the first several months while they work to generate income.

The Newfoundland & Labrador Business Development Support Program has a list of funding sources available to entrepreneurs. As mentioned earlier, business grants and loans are good funding sources, too. Business owners often will put up some of their own savings as well.

  1. 4

    Determine the Type of Business You Want

Some people prefer the idea of starting an NL business from scratch. This gives you full control over the direction of the business, making every choice from what industry to focus on to finding the ideal location for the business.

Other people prefer to purchase an existing business in Newfoundland & Labrador. Taking over an existing business means you have to live with the decisions of the previous owner for a while, but it also allows you to be up and running faster.

  1. 5

    Find a Location

Location is a key aspect of starting your Newfoundland & Labrador business. You want to find a spot that’s convenient for your customers.

If you are providing support services to rural business customers, you may want to locate closer to them. If you need employees with certain skill sets, you may want to remain close to St. John’s, giving you a larger potential pool of employees.

Other people may prefer to run an online-only business that they can run from home.

  1. 6

    Register Your Business

As part of the business registration process in Newfoundland & Labrador, you need to select a business name that is unique in the province. The name should reflect what your business does, but it should also be different enough from other businesses to prevent confusion among customers.

You then will select a business structure to use, such as sole proprietorship, corporation, co-operative, or partnership. The business structure determines your taxation rate and what types of forms you need to complete to register with the NL Registry of Companies.

With this information in hand, you’re ready to register your business with the province.

  1. 7

    Find Out Which Permits and Licences You Need

You may need certain licences and permits to run your business in Newfoundland & Labrador, including provincial and federal licences and permits. BizPaL is the best way to search for the regulations that affect you, based on the industry in which your business is operating.

If your business is operating in St. John’s, you also may need local business licences, as well as permits for special events.

  1. 8

    Start Serving Your Customers!

With all the provincial government regulations completed, you’re ready to open your doors and start serving customers. Be sure to display any licences or permits prominently, so your customers know that you are operating legally. (If you are running an online-only business, show off your licences on the website.)

Once you are feeling comfortable with the direction of your business, Newfoundland & Labrador has multiple programs to help you grow your business.

Businesses for Sale in Newfoundland & Labrador: Best Places to Buy + Mistakes to Avoid

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Deciding to become an entrepreneur in Newfoundland & Labrador is a big step forward. However, it’s only the beginning.

The next step is determining whether you want to start a business from scratch, or you want to purchase someone else’s business that’s already up and running.

Buying an existing business in the NL province has some advantages and disadvantages versus starting a new business where you do all the prep work yourself.

If you would like to learn more about how to purchase a business for sale in Newfoundland and how to make it your own, we have some tips for you. We’ll also point you in the direction of multiple resources that are available in Newfoundland & Labrador for those wishing to buy a business.