small business in canada
DESCRIPTION
Starting a small business in Canada. Presented by Accounting Troubleshooters of Canada.TRANSCRIPT
Doing Business in CanadaTrends and Prospects
Presented byAccounting Troubleshooters Network
Do you know that…..
Small businesses fuel the growth of Canada’s economic engine.
Small businesses generate between 60% to 75% of new jobs.
Many big businesses start small and grow to be giant firms.
Definition of small business
Is independently owned Is managed by owner or part owner Has less than 50 employees Has less than $2 million in annual
sales
Types of Businesses
Professional services Personal services Wholesale and retail Financial services Agency sales Food services
Statistics on Small Businesses
Self-employment is the fastest amongst young people aged 15 to 24 and seniors aged 55 and over.
“Seniorpreneurs” constitute 1 in 4 of self-employed people and over 30% of total workforce of workers aged 55+
Nature of small business in Canada
60% of small business owners are “in” for the lifestyles. They do not want to grow.
Growth of small business formation stronger in the west, and in urban centers.
Is being shaped by increased immigration, rise of internet use, and globalization.
Affected by demographics, in particular, the aging baby boomers.
Reasons for starting a business
Opportunity presented Passion and motivation Underemployment Lifestyle choice Satisfaction and self-fulfillment Leadership opportunities
Who are the business people?
Try making a guess!!
Who are these business people?
Starbucks was started in 1971 by three friends: Jerry Baldwin – English teacher; Zev Siegel – History teacher; Gordon Bowker – Writer
Tim Horton was started in 1964 by Tim Horton, a hockey player and joined in 1967 by Ron Joyce – former police constable
Is the business idea viable?
Is the investment in fixed assets or machinery small?
Is the product or service specialized?
Is it quick and flexible to meet demand?
Is the technology introduced neutral to economies of scale?
Characteristics of a strong business
Dynamic and flexible, must have ability to adapt, transform and re-invent
Access to capital through personal loans, bank loans
Management skills Economies of scale
Effects of increased immigration
20% of self-employed people are immigrants. (double the rate of 1980)
These immigrants have connections to their countries of origin
This translate to increased foreign trade in the form of imports or exports.
Small businesses – trends
INCREASED IMMIGRATIONNew immigrants bring about new
opportunities for small businesses.They have different tastes and
preferences. They have different lifestyles and
traditions.
Origin of new immigrants
9%Miscellaneous11%Africa11%Mexico/Carribean16%Europe2.5%Iran3%Korea5%Pakistan7%Philippines12%India14%China
Many successful immigrant/ethnic businesses
Kin’s Market Future Shop – started by Iranian Tom Lee Music H.Y. Louie- grocery wholesaler T & T Supermarket
The Bubble tea phenomenom
In 1983 Liu Han-Chieh introduced Taiwan to tapioca pearls added to infused tea and flavorings, and shaken well. It started with a small concession stand serving school children.
In Taiwan, one owner owns 450 bubble tea stores and in the Philippines, one owner owns 100 stores in a matter of 1-1/2 years.
Frozen prepared foods
highly stressed lifestyle experiment with new tastes/ flavor. Comfort goods /nostalgic reasons.
Frozen Filipino foods-USDA inspectedPronto Foods- Chicago
WORKING LIFESTYLES
Highly stressed working women wants to be pampered
What’s Hot and What’s Not
Tim Horton offers choices
Not so hot..
What’s Hot and What’s Not
More than Aerobics
Not so hot..
New technologies
Be aware of trends Keep ahead of the latest
technologies Anticipate changes
AGING DEMOGRAPHICS
Businesses that caters to the aging baby boomers born between 1946-1964.
FUTURE GROWTH BUSINESS
Mobile hairdressing (Au,UK, Kansas)
Mobile pet grooming
Help available for Small Businesses
Western Economic Diversification for market research, and market development
In the form of business events, seminars, loans, and grants (support contributions)
Program for Export Development (PEMD)
Help available for Small Businesses
IRAP – Industry Research Assistance programs from the National Research Council
Research grants for development and commercialization of new technologies
Youth Internship programs for new graduates
Help available for Small Businesses
SRDTC – scientific and research development tax credits
Tax credits for film and television productions
Export Development Corporation provides receivables management
Canadian Trade Commissions in foreign countries
Federal Development Bank
SUMMARY
To do business in Canada, you need
VISION Know where you want to be Know what sets you apart Have a plan and stick to it
SUMMARY
To do business in Canada, you need
MARKETING Get your message across Network as much as you can, Chamber of
Commerce, AFCA-BC…… Use cost-effective advertising, google
click per ad, online marketing, trade shows, newspapers
SUMMARY
To do business in Canada, you need
MANAGEMENT Observe trends Attend events and seminars Read business news and magazines Monitor company financial reports
SUMMARY
To do business in Canada, you need
SYSTEMS AND PROCEDURES IN PLACE
have a formula that allows for growth Good accounting systems and procedures Effective internal controls
SUMMARY
To do business in Canada, you need
FINANCE Access to capital Cash flow management Avail of government loans and grants
Join the Accounting Troubleshooters Network
Mentoring Networking Continuing education Encourage and support FUN