How to Start a Business in Prince George
You’ve always wanted to be your own boss and now you’re starting your own business in Prince George. Are you going to have a physical location or will your business be online? Where do you start? How do you launch your small business?
Let’s look at how to start a Prince George business:
1. Research your business idea:
- Who is your competition?
- How will your business stand out from its competitors?
- Who are your target customers?
- What problem are you solving for your customers?
- Do you have enough money to start your business?
- How will your business be financed?
- What market gaps can your business fill?
Here’s why you need to research your Prince George business idea: Data on new small businesses show that 21.5% of small businesses close before the end of their first year. About 50% of small businesses make it to five years and a third make it to 10 years in business.
Recognize the challenges you have ahead and prepare yourself for the ups and downs of launching a small business in Prince George.
2. Make a business plan: Yes, it takes work but it’s an important document to guide your new business in the right direction.
Think of it like a road map that you’ll follow to help you make the right decisions.
What’s in a business plan?
An executive summary: It’s an overview of your business plan.
Company profile: Your products or services, the market your Prince George business will be serving, and any trends in your industry.
Sales and marketing plan: Your target customers and how you intend to market and sell to them – online, bricks and mortar or both.
Operations plan: Your Prince George location, equipment and machinery, production planning, research, and any other important information about your business.
Human resources plan: Do you need HR policies for your employees? How many employees are you planning to have and what policies you will have in place for them. How do you plan to recruit, train, and retain your employees?
Your business plan is the document you’ll give lenders and investors if you need financing.
3. What’s the ownership structure of your Prince George business?
Your Prince George business can be set up in one of four ways: sole proprietorship, partnership, corporation, or cooperative.
Sole proprietorship means the business is owned by one person -- you. You benefit from the profits alone, but you’re also responsible for all the debts and losses. It is the most common set-up for a new business in Prince George.
A partnership means two or more people own the business and it’s similar to a sole proprietorship. The rewards and risks are shared by the partnership.
A corporation is a separate legal entity from its owner(s). It limits the personal liability of those who own the company.
A cooperative is a corporation run by members who have an equal vote on business matters.
4. How are you financing your Prince George business?
- Are you financing your own small business?
- Are you getting a loan?
- Combination of personal money and loan
- Do you have investors? Are they getting a stake in your business?
- Will you be relying on credit cards and lines of credit to fund your business?
- Do you qualify for grants or subsidies?
It’s important to have your financing in place well before your open your Prince George business and know how it will affect you personally should your business have to close.
5. Will your Prince George small business have a physical location and/or will it sell online?
You will need to choose a commercial location that suit what you are selling. You will also need to decide whether to buy or rent your location and how much you can afford to pay.
If your business will also be online or online only, you will need to get your website built, set up a domain name, and find a hosting company. Remember, your website will need to work intuitively and flawlessly for your customers to engage with what you are selling.
If setting up a website isn’t among your skills, hire someone who can competently do this for you and manage your business’s website.
6. Register your Prince George business
Once BC Registries and Online Services has processed your application for a business name, you will receive a Name Request Number, or NR number.
Businesses that hire workers (full-time, part-time, casual or contract) are required by law to register with WorkSafeBC.
If your Prince George business is also an employer with B.C. remuneration above the exemption amount in a calendar year, you must register for the employer health tax.
7. Get your Prince George business a GST/PST number
You will need to collect GST/PST while doing business. It’s unavoidable unless you are classified as a small supplier, which is a business with revenues that don’t exceed $30,000 over four calendar quarters.
As a business you must register to collect and remit provincial sales tax (PST) if you are located in B.C. You must also register with the Canada Revenue Agency for GST/PST remittance and payroll deductions.
8. Get your business insured
If you own a small business in Prince George, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice at the right value for you.
If you are starting a business, Western will help you with the commercial insurance you need to protect your business so that you can focus on its launch.
Here are the insurance basics for small Prince George businesses:
Commercial general liability insurance is essential for your Prince George small business because a supplier or customer could get injured or their property damaged at your business.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Prince George business in court, as well as costs to cover damages to compensate third parties.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Without CGL insurance, you will pay costs related to third-party injuries or damage out of your own pocket. Can you afford that as a Prince George new business owner?
Ask your Western Financial Group business insurance expert how much CGL insurance you need to protect your excavation business.
Commercial property insurance
Commercial property insurance protects your Prince George business from insured risks that occur, such as a fire, theft, vandalism, or storms. For example, if your business is vandalized with spray paint, commercial property damage could help cover the costs of cleaning off the graffiti.
You should consider adding a sewer backup coverage extension, which standard business insurance policies typically don’t cover, to protect your Prince George business.
Cyber liability insurance
Cyber liability insurance helps protect your Prince George small if you electronically store financial data like the credit card numbers of clients. Depending on the size of the breach and the information that was taken, the customers who are affected can hold your Prince George business liable and sue for damages.
Commercial auto insurance
If you’re driving your car to make deliveries as part of your Prince George business activities, your personal car insurance typically would not provide coverage in the case of an accident. Commercial auto insurance protects you if you are driving your car for deliveries or meetings with suppliers.
Business interruption insurance
This type of insurance supports you when your Prince George small business can’t operate due to a covered loss.
There are a number of losses that can force your business to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Did you know? Fire is one of the biggest threats facing business owners. If your Prince George small business has damage or losses due to a fire, you can file a commercial property insurance claim to help cover your financial losses.
Did you know? Cyber-attacks are increasing against businesses in Canada and small businesses are at the greatest risk. Protect your business with cyber liability insurance.
Here’s an insurance checklist for small business owners:
- Do you have the best business insurance rate that suits your business?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for your business?
- Do you know the value of your equipment and tools and are they properly insured?
- Are you or your employees using personal vehicles for your work?
What do I do if my Prince George business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Prince George business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your B.C. business.
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