Business Owner and Investor

You are on: Get Organized

Get Organized

You’ve just arrived in Canada and have lots to think about. If you haven’t already taken care of your personal needs, now is the time to get organized.

Here are a few key tips that can help you to set up your business.

Research and validate your business idea in Canada

Is your product/service relevant to Canadian consumers? What kind of consumer will generate the most profit? Is there room for your product/service in the market? What distinguishes your business idea from the competition? These are just a few questions to ask yourself.

Understand what it takes to be a successful entrepreneur

Many books have been written about owning a business but a lot comes down to one thing: passion. Being a boss takes personality! Some of the other character traits found in successful entrepreneurs are: strong work ethic, strategic thinker, resourcefulness and self-discipline.

Do the groundwork that will improve your business’s chances of success

A sound business plan will help you build a framework for your business and enable you to track your progress. Be sure to consult your accountant, banker and key industry contacts along the way.

Here are the first few steps involved in establishing a business plan:

1. Write a sentence describing what products or services your business provides.
2. Write down who your customers are and why they will buy from you over the competition.
3. Research your market before investing resources.

Read more steps

You are on: Get Advice

Get Advice

Be sure to talk to advisors early in the process of starting your business. If you don’t have a banker, lawyer, accountant or management consultant, ask family members, friends, business colleagues and community contacts for referrals.

Consult an RBC business advisor

Your RBC Royal Bank^® business advisor can offer you sound advice and the right financial solutions. Our business advisors can advise you on everything from building a business plan and managing cash flow to paying employees and simplifying your expense management. We look forward to working alongside you to help you achieve business success. Learn more about working with RBC^®.

If you wish to speak with us about any of your business needs, we can help in your language of choice.

• Please call us at no charge at 1-800-769-2520.
• From outside North America, you can call us collect at 1-506-864-2275.

Consult a lawyer

A lawyer can provide many essential services including: incorporation of your company, shareholder agreements, insurance requirements and business documentation such as articles, bylaws and directors’ minutes.

Consult an accountant

An accountant can provide assistance with everything from setting up your business plan and company books to tax planning, cash flow and preparation of financial statements.

Look into government support

Both the provincial and federal levels of government offer assistance for new business owners such as free seminars, tools, grants, and a wide range of relevant information for entrepreneurs. Visit Canada Business as well as your provincial government websites for more information.

You are on: Get Established

Get Established

Here are some tips to keep in mind as you start to plan for your business.

Separate your personal and business spending

As an entrepreneur it’s often hard to draw a line between your personal and business life, especially when it comes to your finances. Stick to the hard and fast rule: keep your personal and business spending separate. Also, knowing your cash position at all times - the balance in your bank account, outstanding receivables, etc. - means you'll never be caught off-guard.

Build your credit history in Canada

One of the easiest, most effective ways to start building a credit history is to get a Canadian credit card such as an RBC Royal Bank^® credit card. As you use your credit card and make regular payments, you will create a credit history. When you need more credit later on, your good credit history will help you achieve a more favourable credit score. Both your personal and business credit history can be used to help you qualify for various loans in the future. In fact, research shows—and lenders know—that how you handled loans in the past is the best way to predict how you will handle them in the future.

Outside of building a Canadian credit history, a Canadian credit card will offer you the following benefits:

• It’s a convenient way to shop and pay for services for both your business and personal needs.
• A credit card is essential for certain purchases, such as setting up contracts for a mobile phone, renting a car or purchasing items online.
• It enables you to make everyday purchases without carrying large amounts of cash and offers a way to keep track of day-to-day expenses.
• You’ll make purchases in Canadian funds and avoid exchange-rate costs.

 

Glossary - Credit history

A list of facts, gathered from financial institutions, retailers and other lenders, about how you have handled credit in the past. Most of this information stays in your file for seven years. This information forms a profile of your credit-worthiness, called your credit rating. Your credit rating is used to help banks and other companies to decide whether they will allow you to borrow money, and how much.

 

 

Glossary - Credit card

A plastic card that enables you to purchase items or services from a range of stores and establishments and pay for them at a later date. A minimum amount must be repaid each month. If you pay the full balance by the due date, no interest is charged.

 

 

Glossary - Mortgage

A loan secured by real property, typically a home.

 

 

Glossary - Loan

An agreement under which a borrower receives cash from a lender (often a bank) for a predetermined length of time at a given interest rate, generally with a stated repayment schedule. The principal must be paid back at a specified future date. Interim payments may consist of interest only or a blend of interest and principal. With a fixed-rate loan, the interest rate stays the same for the term of the loan. With a variable-rate loan, the interest rate changes with market rates.

 

Check out our Banking Tutorial: Build your Credit History

Become familiar with Canadian business practices

Every country has its own business practices and Canada is no exception. Be sure to research online and learn about doing business in Canada, in particular, our business culture and etiquette.

Conduct competitive research to find out what sells in Canada

Market research is something that should be done early in the process as it will help you decide if your business is viable as well as make informed decisions regarding: capital investment, entry into niche markets, upcoming trends, competitive bench-marking and consumer expectations.

Learn six low-cost ways to research your market

Build a network

“Social capital” is important in the business environment, as opportunities often come from people in your network including suppliers, trade associations, professional associations, clients, advisors and colleagues. These professionals likely understand your business and may offer valuable advice, contacts and a potential market for your service or product.

Starting a Business Guidebook