Jobs & Money Detail
Doing business in Canada
Perhaps you’ve got a great idea for a new business that you just know you could make a success of across the Atlantic?
David Fuller speaks to three emigrants who have launched their own companies since emigrating to Canada, to find out just how difficult it was to get them off the ground and whether it has been worth it
Realising that they wanted to live in Canada but unable to meet the criteria to qualify for the Skilled Worker programme, Debra and Michael Collins decided to put the experience they had accumulated from seven years of running a shopfitting company in the UK to good use.
"The occupation of 'shopfitter' is not recognised as a trade in Canada, so we did not qualify as skilled workers," explains Debra. "But thanks to our business experience we did manage to score enough points under the Entrepreneur business category."
However, knowing you have to start a business in order to obtain a visa is one thing, coming up with an idea that will be approved by the Canadian government and then become a success, is quite another. Fortunately for the Collinses, they didn't have to stray too far from what they were already doing to come up with a viable business plan. "Mike is an experienced carpenter and has worked in general construction trades," says Debra. "Canada has a desperate shortage of construction trades and so after doing our homework we felt confident that a home renovation business would be welcome in the area that we had chosen to settle in – the Golden Horseshoe (between Toronto and Niagara)." So, how did the couple find the whole process of applying for an Entrepreneur visa? "Getting to Canada was not easy. The process took three years and caused us a lot of frustration and anxiety. As part of the application process for this category we had to have an interview at the Canadian High Commission and produce the past three year's accounts, and evidence of our works from our business in the UK. "This went a lot smoother than we thought it would, but we had done plenty of preparation and presented our case favourably," adds Debra.
New experience
It's not only Brits who have had previous experience of running a business who decide to become their own bosses in Canada. Mike and Orla Wilson actually emigrated to Canada on a Skilled Worker visa, even though they always had it in mind to set up their own company. "A part of coming to Canada was to settle in a new environment for our family and to meet new challenges. We didn't want to ever look back and feel that we had not given our new life all that we could, which included working for ourselves," says Mike. Not that the Wilsons consider themselves to have been complete business novices. "We brought experience in other fields to our venture," Mike explains. "Orla was a national manager for a healthcare company and I was an officer in the London Fire Service; both occupations relied heavily on interaction with customers and people in general, which is the basis for our company's foundations," he adds.
So what inspired Mike and Orla to come up with the idea for their business, UK 2 Nova Scotia – a settlement company for residents of the UK who are planning to move to the Atlantic province? "During our application and processing time we felt that there was a gap in the market for families who wanted real life solutions to problems, discounts and enquiries relating to relocating to Nova Scotia," answers Mike. "If we would have liked such a service, we reasoned that others may have similar needs."
Carolyn Steele is another British immigrant who, despite not having any business experience in the UK, has managed to take control of her own employment destiny in Canada. "I own a bed and breakfast in Kitchener-Waterloo, Ontario, about an hour west of Toronto," she explains. "It has four letting rooms, two of which have ensuite bathrooms, an outdoor heated pool and hottub, and half an acre of gardens.
Unlike the Collinses and Wilsons, it had never been Carolyn's intention to one day start up her own business in Canada, but was instead a step borne out of necessity in order to make the country her new home. "At the time it was the best option for moving here," she admits. "Back then the Entrepreneur category didn't insist on a business background, just a plan that looked as though you stood a chance of making it. I did my homework very thoroughly but I'd not be eligible to emigrate that way now. Oddly enough, though, if I was to apply now I would probably have enough points to move as a skilled worker, but I didn't then." Carolyn continues: ""The goalposts for entrepreneurs were a little wider than for the self-employed category as we had a two-year probationary period to prove the business was viable and genuine. "I found the B&B I currently run by accident while researching other ideas. The previous owner agreed to wait the two years it would take for me to obtain the visa and also agreed to stay on for a few weeks and show me the ropes, which was extremely useful for hitting the ground running with the Canadian ways of doing things."
Exceeding expectations
As you can see from these three very different businesses, there are no shortage of opportunities available for those of you who want to run a business in Canada that appeals to you. But how successful have each of these businesses been since their formation? Extremely, it would seem. "Our business keeps going from strength to strength," enthuses Debra. "I think we're working harder now than we ever did in the UK, but it is very rewarding. "We have been quite lucky in that the clients we have had, many of who are now becoming repeat customers, are recommending us. "We've also made a lot of friends and contacts due to the high level of work and service we aim to give. "To be honest, we can now afford to be a lot more choosy in the jobs we take on or turn down. Our order book is currently full until next spring," she adds.
The Wilsons have also seen their business exceed initial expectations. "At first we anticipated operating a business which would help around 30–50 families a year; we now aid well over 250 families a year, so by any predictions we made, we have been very successful," says Mike. "It soon became glaringly obvious that employment opportunities would be vital for would-be immigrants to expedite their emigration process; we therefore have now partnered with some major employers in the province to provide these opportunities for our clients. This will progress over the next year so that quality jobs are available through UK 2 Nova Scotia. "Beyond next year, we will be looking at new bespoke accommodation facilities for clients, perhaps even partnering new investment into the province," predicts Mike.
Carolyn's situation was slightly different from that of the Wilsons and Collinses as she was taking over an already existing and established business, rather than starting afresh. But having endured some tough times, she too has seen her business enjoy an upturn in fortune. "Canadian tourism has not been good over the last few years so we have had to change our target market and marketing mix quite drastically," she explains. "We can't sit back and wait for the summer influx of visitors any more, so we have begun to cater more and more to the local community, becoming a resource for getaways, small weddings and fundraising events. We advertise to the immigration community too, taking whole families with kids and pets for weeks at a time while they settle into the region. "I think we've done a great job at turning things around."
Extra effort
While each of these businesses have been successful, should you be planning to start up your own company across the pond you certainly should not expect similar fortunes without putting a lot of hard work in first. Says Mike: "Initially we were on our own and had to find out from experience the organisations which were just talking shops or those which provided practical help. Most things in Nova Scotia are done on a personal level so the right contacts were crucial. "The office of immigration has been a huge support to us on the governmental side, and an organisation which I cannot speak highly enough of is the Greater Halifax partnership." He continues: "Undoubtedly the hardest part initially was meeting the right people at the right level in other businesses, those who could make decisions. This was crucial to obtaining discounts and dedicated processes for our client base."
For Debra and Michael, the secret of their success was down to ploughing through research, research and even more research prior to opening their company for business. "We did not start the business for six months until after our arrival so it gave us a lot of time to research things for ourselves," says Debra. "We researched a lot on the Internet for relevant information, including registering the business correctly and rules and regulations regarding GST (VAT equivalent). We also met with a local accountant who gave us some useful information, and our bank manager to open a business account." She continues: "We did consider the services of the local Chamber of Commerce and other small business start-up help organisations, but basically we did it all by ourselves," she adds. This half a year spent researching their business certainly appears to have paid off. "To be perfectly honest, it really wasn't that difficult to get it up and running in the end," Debra continues. "As mentioned before, there is a shortage of our trades here and it certainly made a difference when people knew we were English – we believe this creates an edge for us as our training is of a higher quality. "Mike is an experienced sales and business man. We immediately respond to telephone enquiries and issue typed quotes after visits, continue through with professionally produced contracts for projects, have constant communication with our clients, and finally up-to-date invoices."
Carolyn, meanwhile, found that while taking over an already existing business was a great help to her, there was still much to learn about running her own Canadian empire.
"Taking over a thriving concern was a great help," she says. "Having the previous owner stay on to show me the ropes was extremely useful in helping me to hit the ground running and navigate my way around the Canadian ways of doing things. I'd advise anyone who's thinking of purchasing an existing business here to try and get a similar commitment from whoever they buy from. "I found the biggest hurdle was learning the hard way that there is zero consumer protection here. "Caveat emptor (let the buyer beware) rules here. There can be all sorts of extra clauses in every contract you enter into that don't have to be brought to your attention. If you don't ask, because it would never occur to you that anyone would do that (especially if you come from a country where it's illegal), then it's just tough luck when you get burned. "There's no-one to complain to. I've been stuck with mobile phones that just don't work, hire purchase agreements that were changed after I signed them, and useless advertising deals, all because no-one in the UK would try it on so I didn't see it coming."
However, these experiences clearly haven't put Carolyn off the Canadian business world, and she is hoping to sell her B&B some time next year in order to start her own business from scratch. "I have discovered a gap in the market that I would never have dreamed of and would never have had the contacts to get into if I hadn't begun here in the bed and breakfast," she explains. "It has been a perfect training ground for dealing with aspects of business such as the various federal and provincial taxes, payroll legislation and bylaws/inspections in a relatively small way." Whether Carolyn's new business venture will go on to be as successful as her B&B or those operated by the Wilsons and Collins's remains to be seen.
But, as we've seen, with a good idea, a lot of hard work and, of course, a little bit of luck, there's no reason why anyone who is serious about running their own business in Canada won't make a success of it.
Business category options
The Canadian government currently offers budding business applicants three federal business categories through which they can apply: Investor, Entrepreneur and Self Employed. Below is the minimum requirements for each of these three visas.
Investors
Successful applicants through the Investor category must have had relevant business experience, legally obtained a net worth of at least CDN$800,000, and be willing to make an investment of CDN$400,000. Citizenship and Immigration Canada (CIC) will return your CDN$400,000 investment, without interest, approximately five years and two months after payment.
Entrepreneurs
To qualify as an entrepreneur, applicants must have had the relevant business experience (once again, this can be viewed on the CIC website) legally obtained a minimum net worth of CDN$300,000, and commit to managing and owning at least one-third of a business of a defined size for at least one year within three years of landing in Canada. Those who don't can have their residency status revoked.
Self Employed
This category is only open to applicants who have relevant experience in culture, athletics or farm management, and who can prove to officials they will be able to make a significant contribution to the cultural or athletic life of Canada or purchase and manage a farm in Canada.
Further requirement
As well as meeting the criteria for the individual category under which you intend to apply, you will also need to score 35 points on the Business category points grid. To see if you meet this pass mark, visit CIC.
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