Small business in canada

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Starting a small business in Canada. Presented by Accounting Troubleshooters of Canada.

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  • The kinds of small businesses that are being formed is affected greatly by external factors such as: Increased immigration (real estate businesses, durable goods such as furniture, car, musical instruments, ethnic magazines, ethnic foods) – bubble tea, indian restaurants. Aging demographics – home care businesses, senior homes, tourism Increased internet use and connectiviity – computer services, online businesses, web businesses Globalization -
  • Opportunities can come at any time. For example, a business is for sale because the owner is ill, retiring or died prematurely. Accountants have access to opportunities presented by clients either in the purchase of a business or in a partnership. Some people find themselves underemployed and therefore created an opportunity for themselves to do what they do best.
  • If a big investment in fixed assets is required. Undercapitalization may be a problem. If the product or service is too general, the market may be too crowded. Is the business equipped to provide the product or service quickly. If not customers might just go away. Is the cost structure of the business preventing the small business to maintain a sufficient level of profitability. (For example, a business may be profitable when operated out of home, but not in a commercial location)
  • Small business in canada

    1. 1. Doing Business in Canada Trends and Prospects Presented by Accounting Troubleshooters Network
    2. 2. Do you know that….. <ul><li>Small businesses fuel the growth of Canada’s economic engine. </li></ul><ul><li>Small businesses generate between 60% to 75% of new jobs. </li></ul><ul><li>Many big businesses start small and grow to be giant firms. </li></ul>
    3. 3. Definition of small business <ul><li>Is independently owned </li></ul><ul><li>Is managed by owner or part owner </li></ul><ul><li>Has less than 50 employees </li></ul><ul><li>Has less than $2 million in annual sales </li></ul>
    4. 4. Types of Businesses <ul><li>Professional services </li></ul><ul><li>Personal services </li></ul><ul><li>Wholesale and retail </li></ul><ul><li>Financial services </li></ul><ul><li>Agency sales </li></ul><ul><li>Food services </li></ul>
    5. 5. Statistics on Small Businesses <ul><li>Self-employment is the fastest amongst young people aged 15 to 24 and seniors aged 55 and over. </li></ul><ul><li>“ Seniorpreneurs” constitute 1 in 4 of self-employed people and over 30% of total workforce of workers aged 55+ </li></ul>
    6. 6. Nature of small business in Canada <ul><li>60% of small business owners are “in” for the lifestyles. They do not want to grow. </li></ul><ul><li>Growth of small business formation stronger in the west, and in urban centers. </li></ul><ul><li>Is being shaped by increased immigration, rise of internet use, and globalization. </li></ul><ul><li>Affected by demographics, in particular, the aging baby boomers. </li></ul>
    7. 7. Reasons for starting a business <ul><li>Opportunity presented </li></ul><ul><li>Passion and motivation </li></ul><ul><li>Underemployment </li></ul><ul><li>Lifestyle choice </li></ul><ul><li>Satisfaction and self-fulfillment </li></ul><ul><li>Leadership opportunities </li></ul>
    8. 8. Who are the business people? <ul><li>Try making a guess!! </li></ul>
    9. 9. Who are these business people? <ul><li>Starbucks was started in 1971 by three friends: Jerry Baldwin – English teacher; Zev Siegel – History teacher; Gordon Bowker – Writer </li></ul><ul><li>Tim Horton was started in 1964 by Tim Horton, a hockey player and joined in 1967 by Ron Joyce – former police constable </li></ul>
    10. 10. Is the business idea viable? <ul><li>Is the investment in fixed assets or machinery small? </li></ul><ul><li>Is the product or service specialized? </li></ul><ul><li>Is it quick and flexible to meet demand? </li></ul><ul><li>Is the technology introduced neutral to economies of scale? </li></ul>
    11. 11. Characteristics of a strong business <ul><li>Dynamic and flexible, must have ability to adapt, transform and re-invent </li></ul><ul><li>Access to capital through personal loans, bank loans </li></ul><ul><li>Management skills </li></ul><ul><li>Economies of scale </li></ul>
    12. 12. Effects of increased immigration <ul><li>20% of self-employed people are immigrants. (double the rate of 1980) </li></ul><ul><li>These immigrants have connections to their countries of origin </li></ul><ul><li>This translate to increased foreign trade in the form of imports or exports. </li></ul>
    13. 13. Small businesses – trends <ul><li>INCREASED IMMIGRATION </li></ul><ul><li>New immigrants bring about new opportunities for small businesses. </li></ul><ul><li>They have different tastes and preferences. </li></ul><ul><li>They have different lifestyles and traditions. </li></ul>
    14. 14. Origin of new immigrants 9% Miscellaneous 11% Africa 11% Mexico/Carribean 16% Europe 2.5% Iran 3% Korea 5% Pakistan 7% Philippines 12% India 14% China
    15. 15. Many successful immigrant/ethnic businesses <ul><li>Kin’s Market </li></ul><ul><li>Future Shop – started by Iranian </li></ul><ul><li>Tom Lee Music </li></ul><ul><li>H.Y. Louie- grocery wholesaler </li></ul><ul><li>T & T Supermarket </li></ul>
    16. 16. The Bubble tea phenomenom <ul><li>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. </li></ul><ul><li>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. </li></ul>
    17. 17. Frozen prepared foods <ul><li>highly stressed lifestyle </li></ul><ul><li>experiment with new tastes/ flavor. </li></ul><ul><li>Comfort goods /nostalgic reasons. </li></ul>
    18. 18. Frozen Filipino foods-USDA inspected Pronto Foods- Chicago
    19. 19. WORKING LIFESTYLES <ul><li>Highly stressed working women wants to be pampered </li></ul>
    20. 20. What’s Hot and What’s Not <ul><li>Tim Horton offers choices </li></ul><ul><li>Not so hot.. </li></ul>
    21. 21. What’s Hot and What’s Not <ul><li>More than Aerobics </li></ul><ul><li>Not so hot.. </li></ul>
    22. 22. New technologies <ul><li>Be aware of trends </li></ul><ul><li>Keep ahead of the latest technologies </li></ul><ul><li>Anticipate changes </li></ul>
    23. 23. AGING DEMOGRAPHICS <ul><li>Businesses that caters to the aging baby boomers born between 1946-1964. </li></ul>
    24. 24. FUTURE GROWTH BUSINESS <ul><li>Mobile hairdressing (Au,UK, Kansas) </li></ul><ul><li>Mobile pet grooming </li></ul>
    25. 25. Help available for Small Businesses <ul><li>Western Economic Diversification for market research, and market development </li></ul><ul><li>In the form of business events, seminars, loans, and grants (support contributions) </li></ul><ul><li>Program for Export Development (PEMD) </li></ul>
    26. 26. Help available for Small Businesses <ul><li>IRAP – Industry Research Assistance programs from the National Research Council </li></ul><ul><li>Research grants for development and commercialization of new technologies </li></ul><ul><li>Youth Internship programs for new graduates </li></ul>
    27. 27. Help available for Small Businesses <ul><li>SRDTC – scientific and research development tax credits </li></ul><ul><li>Tax credits for film and television productions </li></ul><ul><li>Export Development Corporation provides receivables management </li></ul><ul><li>Canadian Trade Commissions in foreign countries </li></ul><ul><li>Federal Development Bank </li></ul>
    28. 28. SUMMARY <ul><li>To do business in Canada, you need </li></ul><ul><li>VISION </li></ul><ul><li>Know where you want to be </li></ul><ul><li>Know what sets you apart </li></ul><ul><li>Have a plan and stick to it </li></ul>
    29. 29. SUMMARY <ul><li>To do business in Canada, you need </li></ul><ul><li>MARKETING </li></ul><ul><li>Get your message across </li></ul><ul><li>Network as much as you can, Chamber of Commerce, AFCA-BC…… </li></ul><ul><li>Use cost-effective advertising, google click per ad, online marketing, trade shows, newspapers </li></ul>
    30. 30. SUMMARY <ul><li>To do business in Canada, you need </li></ul><ul><li>MANAGEMENT </li></ul><ul><li>Observe trends </li></ul><ul><li>Attend events and seminars </li></ul><ul><li>Read business news and magazines </li></ul><ul><li>Monitor company financial reports </li></ul>
    31. 31. SUMMARY <ul><li>To do business in Canada, you need </li></ul><ul><li>SYSTEMS AND PROCEDURES IN PLACE </li></ul><ul><li>have a formula that allows for growth </li></ul><ul><li>Good accounting systems and procedures </li></ul><ul><li>Effective internal controls </li></ul>
    32. 32. SUMMARY <ul><li>To do business in Canada, you need </li></ul><ul><li>FINANCE </li></ul><ul><li>Access to capital </li></ul><ul><li>Cash flow management </li></ul><ul><li>Avail of government loans and grants </li></ul>
    33. 33. Join the Accounting Troubleshooters Network <ul><li>Mentoring </li></ul><ul><li>Networking </li></ul><ul><li>Continuing education </li></ul><ul><li>Encourage and support </li></ul><ul><li>FUN </li></ul>

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