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A Condensed Guide to
Starting a Business

The Chamber’s own helpful guide to starting up

If you are in the process of starting a small business, you have probably talked with consultants and financial advisers, studied market research and read dozens of books on the innumerable aspects of beginning a small business. In short, you’ve left no stone unturned in finding out everything you can about how to make a small business successful. But there comes a time when you need to begin assembling the pieces involved in moving your idea from paper to reality. To do this, you should prepare a comprehensive checklist that includes everything that you may need to accomplish to get your business up and running.

Develop a name for your business and register that name with appropriate officials.

Below is a condensed guide produced and distributed by the Chamber of Commerce in order to encourage and aid new business.

Step One

Develop a business plan. A business plan is a description of your business, including your product, your market, the market environment, your competitive strengths and weaknesses and your strategy, your people ant your financing needs to capture a feasible share of the target market as well as projecting sources of funds to start and operate your venture.

You should consider that a well-prepared business plan plays two important roles, firstly, it is a useful management tool that can help you to plot a course for your company, and secondly, it is a vital sales tool, that will impress venture capitalists with your planning ability and general competence as a manager. Other things being equal, a well-prepared business plan will increase your chances of obtaining the venture capitalist’s financial commitment.

This outlines the market environment, your competitive strengths and weaknesses and your strategy to capture a feasible share of the target market as well as projecting sources of funds to start and operate your venture.

A small business, like a stool, requires at least three legs for success’

Most business plans have three main components:

  1. Marketing Plan
  2. Operating Plan
  3. Financial Plan

Supporting Documents (10-100 pages)

  • Organizational Chart
  • Resumes
  • Financial Statements
  • Etc.

An accountant can aid with your financial plan. Your financial institution will require a copy of your business plan for any type of operating or term loans. Below is a list of accountants and financial institutions that are Chamber of Commerce members.

Member Guide:  
Chamber logo Accounting and/or Bookkeeping Services| Banking and/or Financial Services

THE BUSINESS PLAN: Your Road Map for Success

As any good salesperson knows, you have to know everything you can about your product in order to persuade someone to buy it. In this case, YOU are the salesperson and your product is your business. Your customers are potential investors and employees. Since you want your customers to believe in you, you must be able to convince them that you know what you are talking about when it comes to your business.

“WHAT is a Business Plan?”
by Rebecca Game

If you have ever walked into a bank and asked for a business loan, I am sure the first thing they want to see is your business plan. The first time this happened to me I said, “What is a business plan? Do you mean do I have my idea down on paper? I kind of know what I need for money to get started.” AFTER he quit laughing he explained to me that I needed a business plan. Something to show them my idea and what I forecasted my sales to be. My market analysis was also needed. Again I said, “My what? Market analysis?”

He was very nice as he sat down and explained to me that before the bank could just hand money over to me, they needed to know what I intended to do with the money. How was I going to pay the money back? What exactly would I need to buy, what would my operating costs be for the first year, how much did I predict my sales to be in the first year and how did I arrive at those figures? Had I talked to any people? Done a market analysis of whether or not my business would even be wanted or needed in that area? What was I willing to put up front to show that I was serious about my business? Had any people had that type of business before me and how were they doing? Was the market big enough for the both of us? And so and so and so on…

I really wanted to get up right then and leave, but he convinced me that I wasn’t a hopeless case and he would help me see it through because I really did have a good business idea.

SO… What is a business plan?

A business plan is an outline of your business idea. There are several ways to go about this but your best bet is to hire a professional. Someone who KNOWS what the bank is looking for in the way of information. If you can’t afford a professional then here are some tips to help you started.

Your Business Plan should include:

• A synopsis of your “strategy for success.” In other words, WHY do you think this is a good enough business idea for them to loan you money.

• A brief summary of your market analysis. We discussed this earlier. You need to do a little market research to find out if your business would even be needed in the community and if so by how many, percentage wise?

• A description of your product or service. The bank wants to know WHAT you will be selling.

• A description of your qualifications and the qualifications of anyone on your “team” that will prove to be an asset to your business. Let’s say you want to open up a flower shop but you don’t know a daisy from a carnation, BUT the person that is going to manage your shop is a horticulturist with 20 years experience in the business. THIS would be an asset that you would want to bring to the banks attention.

• Your forecasted financial information. Be realistic here. Don’t go putting down that you are going to be a millionaire by the end of the first year! And be sure to list what you expect your operating costs to be. You will have utilities, license fees, rent space, advertising and so on.

• An estimate of how much money you think you will need and an outline of HOW you are going to spend that money. Be sure to include all start up costs and operating costs for the first year, as it usually takes a year to get off the ground.

A key to a successful business is to compare your financial statements and budgets periodically (monthly, quarterly, semi annually and annually). If there are any large discrepancies between your budget and your actual statement investigate and take corrective action before a small problem becomes a large problem.

The Community Development Resource Centre is local source of information. The Centre has a small business library and a computer for public research.

Community Development Resource Centre
#202, 1006 - 4th Avenue
Wainwright, Alberta
T9W 1S9
(780) 842-4910

Below are listed links that can assist you in developing a business plan and can assist you to find your areas of interest and expertise. All outgoing links open in the active window.

For a free downloadable business plan, visit these web sites:
www.albertafirst.com | www.cbsc.org | www.bdc.ca

Step Two

The type of business organization that you choose is important. There are four types of business organizations.

  1. Sole Proprietorship
  2. Partnership
  3. Limited Companies
  4. Co-Operatives

It may be advisable to retain a lawyer to further explore the appropriate business organization for you. A list of solicitors who are Chamber of Commerce members listed below.

Member Guide:
Chamber logoLawyers

Partnerships, proprietorships, trade names and agreements for limited partners may be registered at:

Government Services - Corporate Registries
Web Site: www.gov.ab.ca
1-877-227-4088

Step Three

Licenses And Permits

Federal Government

The Federal Government has wide licensing powers within the fields of agriculture, manufacturing, communication and interprovincial and international transportation. Information as to which Federal Department deals with specific licenses can be obtained from:

Reference Canada - Business Gateway
Web Site: www.canada.gc.ca
1-800-667-3355

Virtual Reference Canada
Web Site: www.collectionscanada.ca

Provincial Government

The Provincial Government regulates some businesses by requiring them to obtain a Provincial Business License. For more information, contact:

Government Services - Registries
Web Site: www.gov.ab.ca
1-877-227-4088

Municipal Government

The Town of Wainwright
1018 - 2nd Avenue
Wainwright, AB
T9W 1R1
Phone: (780) 842-3381
Email: tofwain@town.wainwright.ab.ca
Web Site: www.town.wainwright.ab.ca

Step Four

Permits Required

  1. Development Permit - A new business may require one. Development relates to land use; i.e., the use to which is put a piece of land and the building on that land is subject to The Town and Municipality Land Use Bylaws which stipulate what type of use is allowed and which uses are discretionary, in commercial, industrial, residential districts, etc. An application for a Development Permit must be made and approved by the Development Officer to confirm the proposed development complies with the Land Use Bylaw.

    If you are considering leasing or purchasing a property you may wish to contact the Town of Wainwright prior to signing any papers to determine if the general ‘land use’ is allowed in that district. A development permit application would still be required but a preliminary inquiry could save time.

  2. Building Permit - If a building is being constructed or altered in any way (renovated) a building permit is required. Also if the occupancy of space changes, a building permit may be required (i.e. if office space is turned into a restaurant or office space is turned into retail space). Building permits do not just deal with construction, but also with safety, building and fire codes.

Step Five

Other Government Agencies To Be Contacted:

Alberta Human Resources and Employment
Workplace Health & Safety
www.gov.ab.ca
Toll free: 310-0000

Alberta Human Resources and Employment
Employment Standards
www.gov.ab.ca
Edmonton 1-780-427-3731
Web Site: (Government of Alberta)www.gov.ab.ca

Public Health Inspector (Regional Health Authority)
Gordon Corcoran
#22, 810 - 14 Avenue
Wainwright, AB
Phone: 842-4077
Fax: 842-3151

Canada Customs and Revenue Agency
Tax (Business Forms & Publications)
1-800-959-2221

GST/Harmonized Sales Tax Credit
1-800-387-1953

Business Enquiries & Registrations
www.canada.gc.ca
1-800-959-5525

All inquiries concerning federal sales and excise taxes should be directed to:

Canada Customs and Revenue Agency
Web Site: www.cra-arc.gc.ca
1-800-959-5525

Workers Compensation Board
Web Site: www.wcb.ab.ca
310-0000

Inquiries regarding provincial and federal grants and programs should be directed to:

Business Development Bank of Canada
Web Site: www.bdc.ca
1-780-495-2277

Canadian Automated Export Declaration (CAED)
Home Occupations/Cottage Industries
1-800-257-2434

There may be some restrictions for operating a business out of the home. For regulations regarding a home occupation or cottage industry contact:

The Town of Wainwright
1018 - 2nd Avenue
Wainwright, AB
T9W 1R1
Phone: (780) 842-3381
Email: tofwain@town.wainwright.ab.ca
Web Site: www.town.wainwright.ab.ca

Step Six

Other Things To Consider:

  • Accountant
    An accountant can aid with setting up books and/or doing year-end statements.

  • Member Guide:
    Chamber logoAccounting and/or Bookkeeping Service

  • Business Insurance
    An insurance agent will advise and help you set up all necessary business insurance, including property, liability, loss of income, health and life on principals. There is a wide variety of insurance available to protect a business and business premises. For information on bonding & insurance contact local insurance agencies.

  • Member Guide:
    Chamber logoInsurance Agency and/or Registry Service

  • Computers and Communication Devices
    You may want to purchase a computer or additional software.

  • Member Guide:
    Chamber logoComputer Sales and/or Service| Electronics and/or Communications

  • Financial Institutions
    There are a wide variety of services offered.

  • Member Guide:
    Chamber logoBanking and/or Financial Services

  • Group Insurance
    A national plan is available to Chamber of Commerce members. A business of one person can obtain group rates and benefits such as life, disability, dental, and medical. Contact the Chamber Office for full details at: (780) 842-4910.

  • Member Guide:
    Chamber logoChambers of Commerce Group Insurance

  • Hiring

  • wantjobgotjob.com
    Chamber logowantjobgotjob.com ~ virtual job fair is your best source for employment opportunities in the eastern Alberta region including Wainwright,
                 Chauvin, Edgerton, Irma, Denwood, Hardisty, Hughenden, Killam, Provost, Sedgewick & Viking.

  • Human Resources Development Canada - Wainwright Office
    1-780-842-7500
  • Human Resources Development Canada - Alberta Regional Office
    1-780-427-3731
  • Lawyer
    As previously mentioned, it may be advisable to retain a lawyer to further explore the appropriate business organization.

  • Member Guide:
    Chamber logoLawyers

  • Printing
    Chamber members who will aid with the design and printing of your logo, business cards, letterhead, envelopes, invoices, etc.

  • Member Guide:
    Chamber logoPrinting and/or Copying

  • Logo Protection
    Canadian Intellectual Property Office (CIPO)
    Web Site: www.cipo.gc.ca
    1-819-977-1936
Step Seven

Join the Wainwright & District Chamber of Commerce!!
Your Chamber of Commerce is a salesman for your business community.

Your Chamber 2007 Membership Application and RenewalAdobe Reader is required to view above file. …Get Adobe ReaderGet Adobe Reader