You are on: Starting a Business
Now that your personal arrangements are looked after, it is time to refocus your efforts on your business needs. Here are a few key tips that can help you set up your business needs.
The RBC Advice Centre
Owning a business is a lot more than just a source of income. For many newcomers it’s also a source of pride that represents dreams and ideas brought to life. Of course, starting and managing a business can have challenges and getting the right information and advice can make all the difference.
At RBC we provide a variety of resources specifically designed for business owners including online tools, guidebooks 
and the RBC Advice Centre to help you make your business dream a reality.
Determine your business structure
Choosing the right structure for your business is important; it’s more than deciding whether you want to work by yourself or with a partner or associates. Some of the things you may want to ask yourself are: how much responsibility do I want to take for debts and obligation? How do I want to deal with profits? How much direct control do I want over the running of my business?
With the appropriate structure you can take advantage of tax benefits, share start-up costs and properly protect your interests.
The three legal business structures in Canada are:
- Sole proprietorship: As the simplest and most straightforward structure, you take on responsibility for your businesses’ debts and liabilities. There is no legal distinction between the owner and the business -- earnings are taxed as your personal income and all profits go to you directly.
- Partnership: In a partnership, two or more owners agree to share profits and losses according to their share in the firm. Learn more about general partnerships and limited partnerships
- Corporation: A corporation is a legal entity that is recognized as being separate from the owners and shareholders. In other words, the company earns money, is liable for its debts, and pays taxes separately from its owners.
Find out more 
about the pros and cons of each business structure.
Create a business plan
Why is a business plan important? Well, for one thing, it requires you to conduct important research during the set-up of your business to identify opportunities and risks. It also gives you something to measure the success of your business against throughout the first year and beyond. It’s probably the most important business document you will prepare.
While business plans vary depending on the type and size of the business, we recommend that every plan include an 'Executive Summary' as well as an outline of the business environment, your leadership team, marketing and sales strategy, operations, finance, risks and conclusions.
Here are a few key tips when writing a business plan:
- The 'Executive Summary' highlights the key points in your business plan: what makes your business different from others? Why will it be a success? While it’s typically the first page in your plan, we recommend that you write it last.
- Make sure your financial projections make sense, or your investors won’t buy into it.
- While it may be tempting to have someone else write your business plan, you are the best person to do it. Be sure to let other members of your team review it, as their input can be invaluable.
Learn more about creating a sound business plan and view sample plans.
Create a marketing plan to help you start your business with confidence.
Register your business
Choosing and registering your business name is one of the first steps in starting a business. Depending on your type of business, you may need to register with the federal, provincial, territorial and even municipal levels of governments.
Here are a few tips for choosing a name and registering your business.
- Your business name should be simple and unique. Ideally, it should describe the type of service you provide.
- Apply for a Business Number (BN), which is a unique 9-digit number that is assigned to your business. You will use this number for identifying your business when it comes to opening and managing accounts with the Canada Revenue Agency (CRA) for GST/HST, payroll and corporate income tax.
- Most provincial governments require that you register your business name with them for sales tax, worker’s compensation and other purposes.
- For some businesses, you will be required to obtain operating permits or other forms of special permission through the municipal government.
Federal Government
- Corporate Income Tax
- Payroll Deductions (e.g. CPP/QPP and EI)
- GST/HST
- Import/Export Documents
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Register with Canada Revenue Agency for your Business Number – which registers you for all four purposes listed on the left – at www.businessregistration.gc.ca |
Provincial Government
- Business Names
- Provincial Sales Tax
- Workers’s Compensation
- Employment Standards
- Health taxes, etc...
|
Go to the Canada Business website at www.canadabusiness.ca to find the requirements for your province or territory and sector. |
Municipal Government
(may require)
- Business licence
- Fire safety inspection
- Health inspection
- Approval of any changes you make to the space where you operate your business
|
Consult with local municipal offices to determine local regulations and licensing requirements. Also check that your business does not contravene any zoning or land use bylaws. |
Open a business bank account
Having the right business bank account can make your day-to-day banking easier and more cost-effective. At RBC Royal Bank® we offer a variety of small business and specialty bank accounts to suit your unique needs as a business owner or franchisee, self-employed professional or entrepreneur.
RBC Royal Bank business advisors are always available 24/7. They will work with you to understand your business and make suggestions about the accounts and services to help you manage your day-to-day banking needs.
Talk to one of our business advisors today at 1-800-769-2520 or find a branch near you.
TIP: When you open your business banking account please ensure that all individuals who are owners and/or signing officers attend and come prepared with these basic documents:
- Documents that provide their full legal name, date of birth and address
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Two pieces of unexpired, original identification for each owner/signing officer
- At least one of these must have a photo identification
- At least one of these must be issued by a government authority
- Business documentation – trade name registration, partnership documentation or articles of incorporation.
We also understand that your personal and business finances are closely connected, which is why our business advisors can speak with you about your personal finances as well. Our one-stop services are one of the main reasons why our clients choose RBC. Our expert personalized advice has helped many business owners achieve success. Open your RBC business banking account today. Learn more about the many ways we can help simplify your business banking and save you money.
Calculate your start-up costs
How much will it cost to start your business? Of course the answer to this will depend largely on the type and size of your business as well as whether you’re buying a business or starting your own. Also, the start-up costs for a sole proprietorship or partnership are relatively lower than when you incorporate your business.
To calculate your start-up costs:
Step 1: Add up your start-up costs such as rent, licences and initial inventory.
Step 2: Calculate your cash flow needs. Cash flow refers to the movement of cash going in and out of your business over a period of time. Keep in mind that cash inflow may take time to reach expected levels, and cash outflows may initially include extra amounts.
Step 3: Subtract your initial investment. This includes money provided by you, your family or business partners.
Learn more about start-up costs including how to calculate a cash flow forecast, which breaks down how much money you will need to pay your bills each month.
You are on: Financing your Business
Getting financing for your business can be overwhelming. There’s a lot of information out there; choosing and pursuing the option that’s right for your business can take a lot of time and energy. Knowing what types of financing are available to you and matching the right type to your business needs is key.
That’s where we come in. Depending on your goals, RBC Royal Bank® can help tailor-fit a plan to best suit your business needs.
Match Financing to your Needs
There are different types of financing options you should consider for your business.
Government Financing: There are different types of government financing available for your business. These include grants and contributions, subsidies and loan guarantees. The requirements for specific government programs change frequently. The best way to stay on top of them is to use the search tool at www.canadabusiness.ca.
Private Sector Financing: Over the years, we have helped hundreds of thousands of entrepreneurs get their small business off to a good start with our range of credit and borrowing options. Talk to one of our business advisors today at 1-800-769-2520 so that we can learn what makes your business different from everyone else’s. Or read about our suite of customized, flexible borrowing and credit solutions that can grow and change with your business.
Personal Assets: These are provided by you to get your business started.
Before applying for financing, you may want to assess your personal credit situation according to Equifax .
Apply for bank loans
With the right borrowing solution you can take advantage of the opportunities that will lead to your company's success. Choosing the type of loan or financing you need is not always easy, and each option has different benefits. Short-term and long-term borrowing options include:
You can rely on an RBC business advisor to help you match financing solutions for your short-term and long-term needs. Talk to a specialist today
You are on: Grow your Business
Once your business is up and running you want to make sure that it is primed for growth. How can you expand your operations? Capitalize on change in the market? Improve efficiency? These are questions you may ask yourself as you consider where you want to take your business in the next few years.
Get and keep customers
While it may be tempting to focus all your efforts on attracting new clients, don’t forget the value of your existing customer base. Here are some additional tips to help you keep and grow your customer base:
Increase profit margins: is there a way you can reduce costs while maintaining your sales prices?
Introduce new products or services: Consider offering a wider range of products or services if your market research supports such an initiative.
Expand your market: Once again, market research will help you determine whether the potential for a new market or location will off-set the potential risks and costs. If you decide to target a new market you will need to spread the word through sales and marketing, while ensuring that your distribution and production can keep up.
Take a hard look at your marketing strategy: Can your message be improved? Is there a better way to track results? Is there a more efficient way to get your message out? Is there a segment that you have overlooked? Do you know your target audiences as well as you think you do? These are all questions that can help you improve your marketing.
Customer service counts! Remember that word-of-mouth is the best form of advertising.
Learn more tips for increasing your sales
Calculate your cash flow
There are many ways you can generate more cash for your business. Here are just a few ideas:
- Collect from customers on time and be a good customer yourself. Can you offer a discount to suppliers who pay early? Can you improve your own system for paying suppliers?
- Finance larger projects such as equipment purchases and building expansion.
- Keep inventory at reasonable levels. Too much inventory can tie up your cash. If sales are down you have to be aggressive at clearing out stock.
Learn more tips about building your cash flow
The RBC Small Business Cash Flow Tool can help you analyze and improve your current cash flow position.
Reduce your debt
It is always smart to reduce your debt when your business has extra cash. RBC can help you do this by ensuring you are able to move money between your business account, your investment account and loans or credit facilities. It’s our job to help you earn as much interest as possible on investments, while reducing the interest you pay on debt.
In particular, our
revolving line of credit can help you move money so that you can borrow when you need it and pay something back when a pre-determined amount is in your business account.
Speak to an RBC business advisor to help you with both your personal and business banking needs. Call us today at 1-800-769-2520
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