How to Start a Small

Business in Manitoba

Nicole Fontaine
Liaison Officer
January 10, 2018

1
AGENDA

 About Us
 Entrepreneurship
 Business Plan
 Business Structures
 Home-Based Business
 Legal Requirements
 Taxes
 Hiring Employees
 Financing
 Procurement
 Other Resources and Support

2
WORLD TRADE CENTERS ASSOCIATION

3
WORLD TRADE CENTERS ASSOCIATION
CANADIAN PRESENCE

4
WORLD TRADE CENTRE WINNIPEG

5
WORLD TRADE CENTRE WINNIPEG

 Established in 2007 as ANIM

 Joined WTCA in 2013 in partnership with
The Winnipeg Chamber of Commerce
 Private sector leadership (Board of Directors)

6
WORLD TRADE CENTRE WINNIPEG

 Independent, not-for-profit
 Fully bilingual, English-French

7
WORLD TRADE CENTRE WINNIPEG

Vision
 A Manitoba business community that engages the world.

Mission
 We bring the world to your business, one connection at a time.

8
WORLD TRADE CENTRE WINNIPEG

BUSINESS INFOCENTRE

TRADE SERVICES

9
BUSINESS INFOCENTRE

10
BUSINESS INFOCENTRE
 Member of the Canada Business Network (CBN)
 Supported by Western Economic Diversification Canada

11
BUSINESS INFOCENTRE

 Guidance and startup tools

 Seminars, webinars and online training

 Customized market research

 Biz Grid

12
SEMINARS, WEBINARS AND
ONLINE TRAINING
 Finance
 Tax
 Export
 Import
 Social media
 Human resources
 Sales and marketing

13
UPCOMING SEMINARS

SEMINAR DATE
RST: An Overview of Retail Sales Tax Thursday, Jan.11 @ 9:30 a.m. – 11:30 a.m.

Which Social Media is Right for Your Business Tuesday, Jan.16 @ 5:30 p.m. – 7:30 p.m.

Sales: Get Higher-Level Prospects to Listen Wednesday, Jan.17 @ 11:30 a.m. – 1:30 p.m.

Are You Ready to Import/Export? Thursday, Jan.18 @ 9:30 a.m – 11:30 a.m.

Diversité culturelle et enjeux

Le mardi 23 janvier 2018 de 9 h 30 – 11 h 30
intergénérationels au milieu de travail

14
BUSINESS INFOCENTRE
RESEARCH

 Secondary Market Research Request

 wtcwinnipeg.com/secondary-market-research-request

15
BUSINESS INFOCENTRE
BIZ GRID

16
TRADE SERVICES

17
TRADE SERVICES
 Assist Manitoba companies to pursue trade
 Increase engagement in trade
 Raise awareness of trade and investment opportunities in
Manitoba

18
TRADE SERVICES
 Trade information and market intelligence

 Business matchmaking

 Advisory services

 Trade missions

 Trade education and training

 Business-to-business forums and events

19
ENTREPRENEURSHIP

20
ARE YOU AN ENTREPRENEUR?

“ Am I an entrepreneur?”

 What does it take?

 Evaluate your business skills with a self-assessment quiz:
 Business Development Bank of Canada (BDC)
 Entrepreneur’s Tool Kit
 Advisory Services

21
WHAT ARE THE ADVANTAGES?

 Do what you LOVE

 Fulfill your dream to run your own business
 Be your own boss
 Fill a void in the market
 Earn greater income

22
BUSINESS OPTIONS

 Start a brand new business  Establish a partnership with

 Buy an existing business an existing business

 Create a co-operative  Franchise

(e.g.: Tim Horton’s)

23
IS YOUR BUSINESS IDEA VIABLE?

 Evaluate your business idea

 Understand your expenses,
cash flow
 Know your break-even point

24
BREAK-EVEN POINT (BEP)

 Calculation of the sales volume (in units) required to

cover costs
 Break-Even Point (BEP): sales exactly cover expenses

BEP = fixed costs

(unit selling price – variable costs)

 How many items/services do you

have to sell to break even?

25
PROFIT Revenues  Variable cost + fixed cost

BEP Revenues = Variable cost + fixed cost

LOSS Revenues  Variable cost + fixed cost

26
WHAT ARE THE DISADVANTAGES?

 Long work hours

 Risk of investment
 Fluctuating income
 Paperwork
 Hard work
 Failure

27
WHY DO BUSINESSES FAIL?

 Lack of management skills

 Insufficient financing
 Lack of financial literacy
 Insufficient plan
 No market demand for
your service or product

28
BUSINESS PLAN

29
BUSINESS PLAN

 What is a business plan?

 Why do you need one?

“ Failing to plan is
planning to fail.”
30
BUSINESS PLAN
Should include:
 Executive summary  Operational data
 Company management  Environmental
 Marketing strategy considerations, risks
 Financial proposal  Appendices with detailed
financial projections

31
MARKET RESEARCH

 Primary Research
 Secondary Research

Always keep in mind

 Who is your target market?
 Who are your competitors?
 What are the trends in your industry?

32
MARKET RESEARCH LINKS

 City of Winnipeg Economic Development and 2006 Census

 now.winnipeg.ca

 City of Winnipeg Traffic Flow Map

 Average Weekday Daily Traffic (AWDT) on major streets inside Winnipeg
 Traffic Flow Map

 Contact us

33
BUSINESS PLAN

 Templates and samples:

 Business InfoCentre
 Microsoft Word
 Online
 www.bplans.com (over 400 samples)
 www.businessplantemplate.net
 Financial institutions

 BIC Online Training Series: A+ Business Plan

 Attend Business Planning series starting January 31, 2018

34
BUSINESS STRUCTURES

35
FORMS OF BUSINESS STRUCTURES

 Sole proprietorship
 Partnership
 Incorporation
 Attend Taxation of a Business – February 27, 2018
Advantages and Disadvantages
Top 5 legal mistakes made by SMEs
Watch a short video on this seminar, click here

36
SOLE PROPRIETORSHIP

 Business and owner are one

 Simplest to set-up
 Low start-up costs
 Self-employed (T1 form)
 Fully responsible for all debts
 Creditor can claim against your assets
 Life of business confined to that of the owner

37
PARTNERSHIP

 Agreement between 2+ people

 Partnership agreement
 Combine resources, capital and
experience
 Self-employed (T1 form)
 Responsible for business debts
 Creditors can claim against your assets
 Responsible for consequences of other partners’ actions
 Risk of conflict between partners

38
INCORPORATION

 Separate legal entity (T2 form)

 Limited liability
 Ownership is transferable
 Closely regulated
 Most expensive form to set-up
 Director(s) can be held legally responsible
 Name protection – Manitoba or Canada

39
BUSINESS REGISTRATION
 Choose a business name
 Register with the Companies Office
 Two-part process:
 Name search: $45 > 90-day name reservation
 Registration: $60
 Valid in Manitoba for 3 years
 Fees
 Do I register as a business or incorporate?

40
FILING FOR INCORPORATION
 Provincial Incorporation
 Companies Office
 Fees
 Federal Incorporation
 Corporations Canada
 Corporations Canada – FAQ
 Get professional advice from an accountant and a lawyer

41
NATIONAL NAME PROTECTION

Two options:
 Federal incorporation
 Name protection across Canada
 Separate registration in each province
 Trademark
 Protect business name within Canada – 15 years
 www.cipo.gc.ca

42
THE BUSINESS NUMBER

“
ONE BUSINESS, ONE NUMBER”

 Administered by CRA
 Who needs a business number?
 How to get a business number?

Example > A business wants to register with the CRA for a GST/HST account, two payroll
accounts and with the Minister of Finance for the PST/RST account. The business will receive:
 GST/HST program account: 123456789 RT 0001
 1st payroll program account: 123456789 RP 0001
 2nd payroll program account: 123456789 RP 0002
 PST/RST program account: 123456789 MT 0001

43
HOME-BASED BUSINESS

44
HOME-BASED BUSINESS

 Full-time, part-time or occasional venture

 Business mail comes to your home and/or administrative
duties are conducted from your home
 Home Occupancy Permit
 City of Winnipeg or your municipality
 Home-Based Business City of Winnipeg Application

45
HOME-BASED BUSINESS

 Home Occupancy Permit with conditional use

 Provide a personal service on the premises
 Conditional Use Approval
 From the Director of the City’s Planning, Property and Development
Department
 In addition to the Home Occupation Permit
 Prior to establishing the home-based business
 Employees are not permitted without approval
 Granted by the City of Winnipeg or your municipality

46
PROHIBITED HOME-BASED BUSINESSES
113. The following home-based businesses are prohibited in all zoning districts:
(1) Adult entertainment;
(2) Dating and escort service;
(3) Massage therapy unless the resident providing the service is licensed as such by the
License Branch of the City of Winnipeg;
(4) Body modification;
(5) On-site painting, body repairs, or other repair of automobiles, trucks, boats, trailers, or
other motorized vehicles;
(6) Vehicle towing operations;
(7) Dispatch centres for auto-oriented services;
(8) Sales of firearms or ammunition;
(9) Any business utilizing radio transmission equipment; and
(10) Any business engaged in the sales and rental of autos, light trucks, or motorcycles.

47
HOME-BASED BUSINESS
 Deduct a portion of your home expenses from your business profit
 Self-employed / sole proprietor
 Principle place of business is your home
 Deductions include:
 Rent or mortgage interest
 Insurance
 Utilities
 Property taxes
 Maintenance fees
 (A/B) x C = the amount you can deduct
 (A) square footage you use for your business
 (B) total square footage of your home
 (C) amount of allowable expenses
 CRA’s website
 CRA’s Business and Professional Income Guide (p. 29-30)
 Guide-RC4070 Information for Canadian Small Businesses

48
LEGAL REQUIREMENTS

49
LICENSES AND PERMITS

 BizPaL – www.bizpalmanitoba.ca
 City of Winnipeg
 Rural Manitoba
 Consumer Protection Office:
 Direct Sellers License
 204.945.3800

50
INSURANCE

 Fire, theft or vandalism insurance

 Life insurance
 Health insurance
 Liability insurance
 Disability insurance
 Business interruption insurance
 Specific home-based business insurance
 Ensure you make a will
 Prepare for retirement: Canada Pension Plan

51
CANADA ANTI-SPAM LEGISLATION

 Visit the Canada Chamber of Commerce for CASL

information
 CASL applies to everyone who sends electronic messages
for commercial purposes
 Includes individuals, incorporated and unincorporated
businesses, not-for-profit organizations, etc.
 Under CASL, you must be able to prove you have consent

52
TAXATION

53
RETAIL SALES TAX (RST)
A.K.A. PROVINCIAL SALES TAX (PST)

 What is it?
 When is it charged?
 When should I register?
 How to register?
 Manitoba Finance – Taxation Division
 Manitoba Taxation Publications
 RST: Intro to Retail Sales Tax – January 11, 2018

54
GOODS AND SERVICES TAX (GST)

 What is it?
 When is it charged?
 When should I register?
 How to register?
 www.cra-arc.gc.ca/gsthst | 1.800.959.5525
 Information on business related tax inquiries:
 Refer to CRA business videos: GST/HST information

 Goods & Services Tax (GST) 101 – February 1, 2018

55
HIRING EMPLOYEES

56
HIRING EMPLOYEES

 Payroll deductions
 Deduct and remit to CRA
 Income tax, Canada Pension Plan (CPP), employment
insurance (EI)
 Employer contribution of CPP and EI
 Payroll deductions publications/tables available from CRA
www.cra-arc.gc.ca
 Set up an account
 Attend seminar Hiring Smart – February 6, 2018

57
HIRING EMPLOYEES

 Employment Standards
 Workers Compensation Board of Manitoba
 Safe Work Manitoba
 Canada Business Network – information on hiring in
Manitoba
 Canada Revenue Agency – payroll information
 Payroll: EI, CPP, Income Tax Remittance video, click here
 Hiring Your First Employee video, click here
 Consider programs such as Asper Co-Op program, ACE
Project Space, universities Co-Op programs

58
HIRING EMPLOYEES

 Consider programs such as

 Brandon University
 Herzing College
 Red River College - ACE Project Space
 University of Manitoba Co-Op programs, Asper Co-Op program
 Université de Saint-Boniface
 University of Winnipeg Co-Op programs

59
FINANCING

60
FINANCING

 How do I get financing?

 What do I need to get a loan?
 Grants vs. loans

61
A “BUYER BEWARE” NOTICE

 Government grant and loan information is FREE

 Organizations that sell you information should be
checked out first
 Beware of scammers

62
PROGRAMS AND SERVICES AVAILABLE

 Canada Business Network (several ways of searching)

 Government grants and financing
 Find financing by purpose
 Filter by region and business type
 Entrepreneurship Manitoba – Business Start Program
 Futurpreneur – Young Entrepreneur Program
 Government of Manitoba –Rural Economic Development Initiative-
Rural Entrepreneur Assistance (MB)
 Government of Canada – Canada Small Business Financing Program
 Women’s Enterprise Centre – financing available
 YMCA – Self Employment Assistance
 Aboriginal Loan Program
 And more…

63
BUSINESS START PROGRAM

 Loan guarantee up to $30,000

 5 year repayment term (1st year interest only)
 Prime + 1% interest
 40% equity requirement
 3-day business workshop (attendance mandatory)
 For new businesses
 Home-based businesses eligible (min. 20 hours)
 Entrepreneurship Manitoba (204.945.8200)

64
FUTURPRENEUR CANADA
ENTREPRENEURS AGED 18-39 with:

 Start-up resources for perfecting your business plan

 Mentoring – matched with a mentor in your community
 Financing of up to $45,000
 Expertise and resources to help you get connected and
grow a successful business
 www.futurpreneur.ca/en

65
Rural Entrepreneur Assistance (MB)-REA
 Funds for business starts, expansion or purchase of existing for
small, non-agricultural businesses in rural Manitoba
 REA guarantees up to 80% of the first $200,000 borrowed
 Funds can be used for purchase of fixed assets, inventory
and/or working capital
 Cooperative and partnerships are eligible for the REA program
 Not eligible: insurance, real estate investing, financial etc.
 3-day business workshop (attendance mandatory)
 Application form with business plan is required
 REA Program Administrator, Manitoba Agriculture Services
Corporation (1-800-282-8069), www.masc.mb.ca

66
PROGRAMS AND SERVICES AVAILABLE

 Business InfoCentre (BIC) – Biz Grid

 BIC – Online Training Series:
 Understanding Your Credit
 Cash Flow for Small Businesses
 A+ Business Plan
 Hiring Your First Employee
 How to Be Successful at Tradeshows
 And more…

67
PROCUREMENT

68
PROCUREMENT
SELLING YOUR PRODUCT OR SERVICE

 Selling to the City of Winnipeg

 Materials Management Policy

 Selling to the Province of Manitoba

 Selling to the Government of Canada

69
OTHER RESOURCES AND
SUPPORT

70
GET HELP FROM THE EXPERTS
 Accounting and taxation
 Bookkeeping
 Government regulations – labeling, standards
 Banking and financial services
 Marketing and advertising
 Insurance brokerage
 Legal
 Technology
 Ask the Expert – lawyer, accountant, social media, HR professional,
website expert (program offered by Entrepreneurship Manitoba)

71
SUPPORT, RESOURCES, TOOLS AND
NETWORKING OPPORTUNITIES
 Aboriginal Chamber of Commerce
 Chambre de commerce francophone de Saint-Boniface
 Community Futures Manitoba (rural entrepreneurs)
 Conseil de development économique des municipalités bilingues du
Manitoba (CDEM) (Francophone entrepreneurs)
 Economic Developers Association of Manitoba
 Entrepreneurship Manitoba
 Futurpreneur Canada (aged 18-39)
 Indigenous Business Development Services (Community Futures
Manitoba, Indigenous entrepreneurs rural and urban)
 Junior Chamber International (JCI) Winnipeg (aged 18-40)
 LSAM (Life Science Association of Manitoba)

72
SUPPORT, RESOURCES, TOOLS AND
NETWORKING OPPORTUNITIES
 Manitoba Chambers of Commerce
 Manitoba Marketing Network
 Manitoba Tourism Education Council and Manitoba Training and
Education Centre
 North Forge
 Self-Employment Training Program-YMCA
 The Business Calendar
 The Winnipeg Chamber of Commerce
 Women Business Owners of Manitoba
 Women’s Enterprise Centre

73
BUSINESS COURSES

 Academy of Learning
 Brandon University
 Red River College
 Université de Saint-Boniface
 University of Manitoba | Asper School of Business
 University of Winnipeg
 Winnipeg Leisure Guide
 Your local School Division’s Continuing Education

74
SUPPORT FOR ENTREPRENEURS WITH
DISABILITIES OR HEALTH CONDITIONS
 Community Futures Manitoba – Entrepreneurs with
Disabilities Program
 Employment and Income Assistance (EIA)
 Independent Living Resource Centre-Urban
Entrepreneurs with Disabilities Project
 marketAbilities Program
 SEED Winnipeg: Business Development Services

75
SUPPORT FOR NEWCOMERS

 Manitoba Start
 Immigrant Centre Manitoba Inc.

If wanting to immigrate to or invest in Manitoba:

 Manitoba Provincial Nominee Program
 Investment Canada Act
 LexMundi World Ready – Guides to Doing Business

76
SUPPORT FOR IMPORTING
 Importing number
 Government of Canada general information
Call CRA at 1.800.959.5525 for import number when registering
your business name
 Importing – Canada Business Network website
 Canada Border Services Agency (CBSA)
Information on restrictions/regulations
 1.800.461.9999
 Step-by-Step Guide to Importing Commercial Goods into Canada
 For labelling in Canada
 Competition Bureau
 Guide to the Consumer Packaging and Labelling Act and
Regulations – labelling needs to be bilingual (English and French)

77
SUPPORT FOR EXPORTING
 Exporting number
 Government of Canada general info
Call CRA at 1.800.959.5525 for export number
 Exporting – Canada Business Network website
 Canada Border Services Agency (CBSA) – restrictions/regulations
 1.800.461.9999
 Step-by-Step Guide to Exporting Commercial Goods from Canada
 The Canadian Trade Commissioner Service
 Export Development Canada (EDC) – Canada’s export credit agency,
offering financial and risk management solutions
 Manitoba Trade and Investment
 LexMundi World Ready – Guides to Doing Business

78
SUPPORT FOR IMPORTING AND EXPORTING
BIC AND WTC WINNIPEG

 Import/Export seminars, visit our BIC events calendar

 Exporting – online training video

79
 Uncover all aspects of importing/exporting
 Customs clearance procedures
 Customs brokers and freight forwarders
 Taxation and legal considerations

 Experts are at your disposal to answer questions

 Date: May -June, 2018 date to be confirmed
Location: WTC Winnipeg Office (219 Provencher Blvd, 2nd floor)
Contact: Joelle Boisvert, jboisvert@wtcwinnipeg.com | 204.289.4078, if
you would like to be added to the wait list or have any questions.

80
QUESTIONS?

81
 Nicole Fontaine
Liaison Officer
wtcwinnipeg.com
nfontaine@wtcwinnipeg.com
@WTCWinnipeg
@Nicole_f25

82