So you decided to start your own small business and Ontario. One of the 1st steps is to determine the various start-up costs that you are going to have to cover.
Small business start-up costs vary from business to business.
- Is your business online, an e-commerce model?
- Does your business require a physical location?
- Does your small business provide a service or a product?
- Do you have staff?
- Do you have inventory and supplies?
All of these are questions to answer in order to get a better understanding of the various start of costs for your small business in Ontario.
The good thing is that the Ontario government provides a number of government funding programs including government grants, government loans, and various tax breaks to small business owners starting up.
How much does it cost to start a business in Ontario
A typical small business in Ontario will cost between $5000 to $50,000. It can also go as much as a million dollars or more depending on the type of business.
One of the 1st steps to determining your startup costs is to determine your type of business. By answering some of the questions above you will get a better understanding of what type of business you have and the type of expenses you will have to have in order to operate your business.
Different types of startup expenses
When starting a small business in Ontario there are various costs to consider.
1st you have the one-time start up fees.
These startup fees can include the cost associated with registering your business, the initial set up of your website, paying into the marketing, purchasing the needed tools and equipment, covering your rent, and anything else that may be required as an initial capital investment.
The 2nd cost is the operational costs.
These are the ongoing costs that you have to cover usually month to month or at the very least once a year.
These types of costs again can include your rent, your marketing budget, any ongoing supplies, inventory changes, hiring costs, wages, and more.
Understanding your startup costs can make or break your small business.
If early on you understand that certain costs you will require assistance with, it is a good idea to start considering the support of the local provincial and federal government. The various government grants and loans available can assist you with paying off some of the expenses, especially those initial start-up ones.
Remember, when starting a business, everything that you need to run your business smoothly will be an expense.
While certain expenses you can avoid many will be required to simplify you are starting a process.
Keeping your costs slow is key to success when starting a business in Ontario. However at the same time investing in your business can help it succeed, so don’t shy away from expenses.
Starting an Ontario business for under $5,000
Is it possible?
The costs of every start of business vary on is this very are many factors. You can start a business for under $5,000 however this depends on what your business actually is and the types of small business start-up costs and expenses that you will have.
If you are running an e-commerce style model, your expenses may be very minimal.
Think about, for a new e-commerce model you need your website, hosting server, few marketing dollars, perhaps a logo, business registration and you just have to have a perfect idea to follow.
While it is recommended to keep costs slow, one of the most important decisions that you have to make is knowing if you will have enough money to cover the expenses to run the business that you want to run. If you plan on starting up with no money don’t do it.
A successful business will require an investment. That investment, be it from your own funds, borrowed from the bank, private investors, or government agencies, will be required to help you succeed in achieving your goals.
So what is the cost to start a small business in Ontario.
Depending on the type of business you want to start your costs will vary. It is recommended to get into business only when you have a certain amount of money that can cover various costs. At least for the very crucial costs. For the rest, try government funding as a way of paying off your expenses at least within the initial year.
To know more about the various costs associated with starting a small business speak to one Ontario Startups expert.