Jobs & Money Detail
Business realities: Working for you
Every person who works to earn a wage from someone else soon turns to dreaming about being their own boss: Not so easy, says Helen Willy
The most successful business entrepreneurs we've come across in Canada are those that basically set-up on the kitchen table from an idea and a passion.
You may grow a little slower than you'd hoped initially, but you keep your overheads minimal and grow as much as you can handle, expanding later to a business park or suitable compliant premises. Six-to-ten years ago we'd see a lot more people coming in from the UK under the Entrepreneur category, adamant to buy a business here in Canada, just to meet the visa requirements.
Unfortunately, at least 95 per cent of them regretted doing so, by either trying to resell within 12 to 24 months or having to close doors or having them closed on them within four years. I have a very firm philosophy on buying or starting a business – make sure it's something you are passionate about doing and not just a potential monetary attraction. Initially, it's usually the money that motivates, but that motivation on its own is very short lived and usually doesn't materialise as much as one would have hoped.
Tips and questions
Make sure any accounting records you consider are audited (too many people want to believe those 'higher cash under the table' records!!), you are aware of any immediate area changes in planning and compliance, and that you are 100 per cent satisfied that it is a genuine sale. Above all make sure you know exactly lock, stock and barrel what you are buying and will own. Very few people will ever sell a 'cash cow', as we call it here. If it's that profitable and they want out, a good business person will usually put in someone to manage it or find a partner, and still take some of the profits. If not, are the profits really there to be had? If a business has changed hands several times (these records are available), ask yourself why? Even if you think you can implement certain changes, are you positive that no-one else thought that before you? How long has it been on the market? Does it conform to municipal by-laws and relevant planning requirements you need?
Most importantly, aside from the business viability, whether purchasing an existing business or creating one yourself from scratch, assess the dynamics of the business and ask yourself if your personality matches it. Ask yourself about the commitment and persistence needed, and whether your family really understands what it will take on your part and theirs to successfully run the business? Do you have what it takes? Working for oneself or buying a business isn't right for everyone, and there is a high failure rate. With this in mind, it is crucial that you know your market.
Principles of business
The principals of doing business really are not much different in Canada than most other parts of the modern world. With the Internet being the number one marketing – and, in many, cases ordering tool now – a lot of companies that used to have front offices are now basically doing business over the net and this is set to increase. City-to-city variation aside, some of the key differences here compared to the UK are as follows:
Customer service
Customer service in restaurants and general stores is usually exceptional compared to the UK. However, when contacting certain companies and/or service providers, there is a much more laid-back attitude in terms of getting back to you. A few years back small companies used to respond exceptionally well and would keep in touch often with past clients for future business and referrals. However, due to a huge deficit of employees in almost every sector in the larger economic centres, we are seeing this deteriorating in many business sectors. The customer will only chase
so long and then move on to the competition.
Red tape and taxation
With most things in Canada, including setting up a business, dealing with planning and zoning controls, there seems to be much less red tape than in the UK. Life just seems so much easier here – this is a thought that occurs to many Brits who've emigrated.
However, when it comes to taxation you need to be aware that, unlike the UK where you deal with only the Inland Revenue and VAT on goods, here in Canada each province taxes you as well. All provinces have a provincial income tax portion, in addition to the federal tax, and all but the province of Alberta charges a provincial tax on certain goods besides the federal Goods and Sales Tax. Make sure you research the requirements of the individual provinces thoroughly, and talk at length to an accountant on business taxation and options. Many of us running businesses here will operate under a corporation/ numbered company. The taxation rates with dividend income to the shareholders are typically very favourable. Your accountant and/or lawyer here will advise you as to the legalities.
Keep it in the family
Setting up and running a business in Canada can offer so many rewards, but just as anywhere else in the world, it requires unfaltering commitment, hard work, and a never-give-up attitude. Many family businesses do extremely well as each member contributes a skill set to servicing, marketing and managing it.
Starting small
So many Brits dream of moving to Canada and running their own business. I can't tell you the countless people over the years who thought they would come and run a B&B successfully (many fail to make a living due to over supply!). Others visualise taking over a franchise or buying an existing business most often to their peril, but the same could of course have happened in a similar marketplace in another country.
The most successful people are usually one-man-band home set-ups that expand from there. Cleaning companies, Internet-based marketing, supplying goods and services over the net, self-employed electricians, plumbers, carpenters that add another as work increases and so on.
There's always the odd exceptions such as those setting up recruitment consultancies successfully that rent a small office space and grow. The key is they've all kept overheads to an absolute minimum with as little upfront investment as possible. Others buy a donut making machine (CDN$2,000–4,000) and then go to events, and reinvest some of the profits into more machines and so on. The list is endless but my point is this: many people buying an existing business are typically just buying themselves a job. If there is real property involved in the purchase, then admittedly they will have an asset to sell later on.
Helen Willy moved to Canada in the mid 1990s and has run successful businesses on both sides of the Atlantic. She is now a realtor and relocation specialist and is based in Calgary. To contact Helen visit Home is Canada
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