How to Start a Small Business in Quebec

Creating your small to medium-sized business (SMB) is the adventure of a lifetime, requiring both financial and personal investment. Done incorrectly, most new businesses close their doors before their fifth year in operation.

The business start-up period presents the most risk, in which you tend to make mistakes. In this article, there are many different steps you should know for the success of your new business. By applying some foundational principles, you can greatly increase the chances of your success.

Discover 5 key steps to help you start a business in Quebec.

1. Start with a strong business foundation

As with any start up project, you need a structured approach to have a clear vision of the project and define an effective strategy in line with reality.

Admittedly, starting your business requires special qualities and skills. If you aren’t familiar with the trade and marketing world, don’t hesitate to take a few courses or reach out to people you may know with qualifications in the field. There are also online courses and dozens of online videos that cover the topic.

To steer your SMB in the right direction, you will have to study the competition, know their position in the market and get inspiration from other successful businesses. These steps should be designed to help you reflect on how you will implement the tools at your disposal to attract customers.

Questions your business plan should answer

To start a business in Quebec and even outside of it, it is necessary to ask yourself some particularly important questions. You can then include the answers you find in your business plan.

Products and services

• What are the qualities of the products or services that you want to emphasize in order to sell them?
• How does your product or service stand out from the competition?
• What customer benefits does your product or service provide?

Market

• What is the size of your market? Local, national, international?
• Is it a growing market?
• Is there a shortage or excess of supply in your industry?

Customer base

• What is your target audience (age, location, occupation)?
• What are your customers' buying criteria (price range, delivery, ecommerce)?
• What are your customers' buying habits?

Prices

• Are the prices of your products or services competitive?
• What message will the price of your product or service send to your customers (low-end, mid-range, high-end, etc.)?
• How much are your clients willing to spend for your products or services?

2. Find financing to start your business

Once you create and establish a business plan, you will have to move on to other serious matters: financing.

Not everyone is in the same situation, some will have more liquidity than others, and it all depends on the investment needs of your future SME. That's why a basic knowledge of accounting is a real asset. Without some knowledge, it's easy to be taken for a ride. In this case, don't hesitate to seek the invaluable advice of a Quebec chartered accountant, who will be able to guide you through all the steps involved in setting up a business.

3. Keep your cash flowing to keep your business growing

In the first few months after starting your small business, the hardest thing to do is to stay out of debt. It's likely that you won't earn a salary for several months. That's why it's important to have a cushion in case of a setback.

That's why you need to invest wisely. Don't call in dozens of specialists before you've mastered the basics of setting up a business, and choose reliable, experienced partners. The same goes for loans: avoid multiplying them and think now about the future tax savings you could make.

When you're starting out, you need to keep costs down. So think twice before quitting your job to devote yourself entirely to your project, which will certainly take time, but also money.

4. Create your business network

The worst thing you can do when starting a small business is withdraw yourself in isolation. It’s the best time to get out of the office and go to a few happy hours and get involved in local groups to find useful contacts.

It’s always good to meet people in the same situation as you as it allows you to exchange tips and experiences. Some will have encountered the same problems as you and might have interesting solutions to share.

Learn to get yourself out there, have a presence on social media, directories, search engines and advertising. Consider investing in digital marketing, as it’s practically a necessity today.

5. Be patient with your small business start up

When starting a business, there are always some discouraging moments where we feel like giving in to panic. There are many difficulties, but you need to keep calm and clear-minded. Don’t hesitate to turn to your loved ones for a little comfort. Listen to the criticisms that can lead to improvement.

Starting your own business is a very formative experience and you'll learn something new every day. Don't hesitate to contact the T2inc.ca team if you need help with your start-up, a business incorporation or tax advice. We're here to help.