As an economically developed city, Toronto is one of the best places to set up a business. Its skilled taskforce and regulated financial institutions that provide funding make the city an entrepreneurial haven for business startups. It’s open to all kinds of businesses.
If you plan to establish a startup in Toronto, you need to understand the procedure for setting up a new business in the city. You should also find more information regarding the target market in Toronto, necessitating the need for market research.
In this article, we bring you incredible ideas for startups in Toronto, including the steps you should follow when setting up a new business and the resources you will need.
Steps to Establish a Startup in Toronto
Toronto might not boast about its diversified economy, but it’s the best place where you can establish a startup and become successful. Here are some of the steps to follow.
1. Carry Out a Market Research
You need to conduct market research to determine if there is a demand for the products and services you promise to deliver. During the study, try to figure out your potential customers and evaluate if they are ready to pay for your products.
You may use primary (new) data or secondary (existing) data to conduct your market research. Resources like Toronto’s Economy, Labour Force & Demographics, Statistics Canada, and Industry Trends can help you understand Toronto’s market.
2. Create an Effective Business Plan
Starting a business without a plan is unprofessional and may cause business failure. You need a “roadmap” that will guide you on the steps to follow, and that’s where a business plan comes. It will help you understand the business needs and help you set goals.
A well-established business plan will also help you convince lenders to fund your business idea. So, you need to demonstrate your financial goals and show how you plan to achieve them. Some enterprises may help you build and review your business plan.
3. Define Your Marketing Strategies
Toronto is a big city, and you need effective marketing strategies to reach all your potential customers. You need to develop a good marketing plan that will promote your startup. Consider attending marketing seminars to learn more about creating brand awareness.
The data from your market research are the most resourceful tools to help you develop a good marketing plan. The plan should have an executive summary, market research data, the target market, product, competitors, and marketing strategies.
4. Select Your Business Structure and Register It
Select a type of business structure that will work best for you, whether sole proprietorship, partnership, or corporation. The tax implications and legal framework of these business structures vary significantly. Also, each has some advantages and disadvantages.
Once you’ve chosen your business structure, you will have to register it at the Ministry of Government and Consumer Services. You’ll have to pay a registration fee priced based on your business structure. You can find the fees on the government website.
5. Secure Your Business Financing
Starting up a business without a reliable source of capital can be quite tricky. Thankfully, many financial institutions and private lenders are ready to finance your business startup in Toronto. You can find some funding options here.
You should understand the growth trajectory of your business and the specific areas you will need funds. However, before you take out huge loans to fund your business, you can use personal resources or even borrow from friends and family members.
6. Select the Right Business Location
If you are a foreign investor setting up a business in Toronto, you need to find the zoning restrictions placed by the municipality of the region you wish to set up a business. That is because the municipalities may restrict some business activities in certain areas.
Your business location should easily allow you to reach your target market. For instance, if you target foreign travelers, your startup should be near a currency exchange company like Knightsbridge FX Toronto, where you can easily find the customers.
After choosing the right business location, you need to book an office. However, you must get a business license before you start operating. You may apply for a municipal license, provincial license, or a federal license, depending on the nature of your business. Another thing you must also consider is your tax obligations.